North American Financial Corporation: The MLM Project Harvard Case Solution & Analysis

Escalation of Commitment

No, this is not the case of escalation of commitment because the problems incurred after the engagement in the project and negative outcomes were realized by the groups from the decision taken by them. However, to resolve these situations, explanations were provided by the functional team and technical team of both the organizations and a request to re-open the contract was submitted so that alteration could be made to the existing operations carried out by both the teams in order to come up with the solution to make the project functioning as soon as possible of on the deadline time. As the alteration were being considered by both the parties to fix and run the project, therefore the project is not considered to be the escalation of commitment due to the fact that the mistakes were recognized and presented by the consulting firm in order to come up with the solution to run the project.

Action Plan

To resolve the problem which arose due to the mismanagement and estimation of the less experienced firm i.e. Ceres Opt consulting firm, the North American Financial Corporation is in trouble to meet the deadline. However, there are four options available for the NAF to decide so that the recovery of the projects can become possible. These options are mentioned and discussed below.

  1. The Status Quo i.e. the NAF sticks to the current plan without altering the process of completing the project and allow the functional team and technical team to work according to the plan which was developed before the start of engaging in the product activity. However, there are various dis advantages which are related to the project and may lead to cross the deadline of the project.
  2. The other option is the adjustment of acceptance test plan which could also lead to the risk of completing the project after the deadline. Moreover, the adjustment will further require more funds for the project which might affect the bank in maintaining their budget to resolve the issue.
  3. The third option which is available to the North American Financial Corporation is to conduct the system and acceptance test concurrently which could save the time for the company by allowing the team to manage these operations concurrently which can lead the company to end up in completing the project on time.
  4. The fourth option which is available to the Northern Financial Corporation is to suspend the acceptance tests until the completion of system tests. Although, this option is also viable if the project time line is considered but the productivity of the acceptance team will become less due to its suspension.

Hence, the action plan which the Northern American Financial Corporation should adopt is to re-open the contract with the Ceres Opt consulting firm and adopt the option number three in implementing the plan i.e. tests of system and acceptance should be conducted concurrently which will allow the company to meet the project’s deadline and the better quality results could be obtained by the project by the implementation of test simultaneously and effectively. Moreover, the adjustments in acceptance test and the development do resources in the systems will enable the company to figure out the problem of integration appropriately which will further provide a clear path to the functional and development team to complete the project on time. Hence, the adjustments seem to be necessary to obtain the correct results with integrated system and are considered very crucial in order complete the project on time.


The analysis provides with the facts that the consequences which appeared were estimated to some extent by the Ceres Opt consulting firm but the results appeared to be more devastating due to functional integration of several system with the mortgage loan management system.Moreover, all the options for the Northern American Financial Corporation are analyzed which provides the best option which the company could adopt in order to meet the deadline of the project i.e. tests of acceptance and system should be conducted concurrently in order to meet the requirement of North American Financial Corporation before deadline which resulted in the best option available to the company.........


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