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they start to get concerned about that next quarter. They want to make sure that their options stay healthy, so they are quick to cut corners or not make a longterm decision that is good for the business but could take several cents off earnings. They read the papers. You miss your earnings estimate by a few pennies and Wall Street will take your stock down 20 percent. That could put those options underwater and create an army of employees with very long faces. A client of mine who is in the pizza business reported just such an example of short-term versus long-term thinking. One of his people had come across a new flour-milling system that dramatically improved the dough-making process. The people in charge hung back from quickly spending the money on what the owner thought was the right thing to do. The reason for the delay was that the costs would affect quarterly earnings estimates. As he put it, My people were robbing from Peter (quality improvement) to pay Paul (Wall Street). Needless to say, he s trying to get away from the options method of paying his people.

Initial Situation The initial situation should explain how the functions to be performed by the new system are performed today, and what the limitations or problems of the current systems are. In addition, it should describe the existing environment with which the new system will have to interoperate. Investigating the initial situation well and describing it accurately are crucial steps in identifying risks. There is a saying in the world of computer project management: Before you can drain the swamp, you have to nd the alligators. The problem is that the only way to nd the alligators is by draining the swamp! And draining a swamp takes a lot longer (and is a bit more risky)

for the machine in the previous figure [4]

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Figure 57 shows one of the ultra-precision lathes produced by Moore Precision Tools In terms of construction, it is very similar to the machine discussed previously The machine design utilizes a hydrostatic linear axis (Figure 58), linear motor, air bearing spindle and granite machine base The machine is able to achieve a resolution of 34 pm and a rotary error motion of less than 25 nm [5]

when there are alligators in it. So a careful alligator hunt at the start is a good idea. It is similar on any project. For example: On a project to modify computer software, if the existing program code is poorly documented, the project takes much longer. On a building reconstruction project, the project is much more costly if there are aws in the foundation or leaks in the roof.

Fig 57:

To put it simply, what we do not know is dangerous to the project. So, to be sure there are no project-killers, we should investigate and report on the following ve items in the concept stage: Problem to be solved Business processes Customer description Computer systems and other equipment or facilities Risk evaluation

A Moore Nanotech 350UPL ultraprecision single-point turning lathe [5]

Fig 58: A side axis hydrostatic oil bearing [5]

If we cannot complete our evaluation in the concept stage, we can seek to nd the major risks rst, and leave notes for detailed research in the analysis stage.

Another thing that happens to CEOs when they miss their brave but unrealistic goals is that their ego takes a hit at the same time that their stock takes a hit. With all

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