Lenovo Case Study
Lenovo Case Study
Lenovo Case Study
I. Background
In recent years, the personal computer (PC) industry has been developing by
leaps and bounds. Global sales of PCs totaled 230 million units in 2006,
representing a 9 percent increase over the previous year. Lenovo has a
product line that includes everything from servers and storage devices to
printers, printer supplies, projectors, digital products, computing accessories,
computing services and mobile handsets, all in addition to its primary PC
business, which made up 96 percent of the company’s turnover as of the
second quarter of 2007.
II. Challenges
III. Solutions
1
Implementing project management as the tool for executing corporate
strategy
2
1. Lenovo sent its top talent in project management to take the PMP®
certification exam and apply project management standards. PMP®
certification is developed and managed by Project Management Institute
(PMI) which is the largest professional project management institute in the
world. The PMP certification is the most authoritative and influential of its
kind and is the only certification genuinely recognized and accepted
globally within the project management discipline. PMP® certification
conforms to A Guide to the Project Management Body of Knowledge
(PMBOK® Guide), the standards issued by PMI. The PMBOK® Guide is also
recognized and accepted internationally by premier authorities in
standards. After Lenovo’s acquisition deal with IBM’s PC business, Lenovo
project managers needed a shared platform to communicate with and
manage teams in different countries. As the de- facto global standard for
project management, the project management standards of PMI helped
Lenovo standardize its processes. Starting from its functional departments
(e.g. R&D, supply chain management, etc.) Lenovo selected a group of
key professionals to receive training in project management and sit for the
PMP® certification. The returning professionals catalyzed project
management in their respective functional departments and trained other
team members.
3
Lenovo’s experimentation in project management significantly advanced the
transformation in its corporate strategy and improved its business model. The
company’s project-oriented approach improved teamwork and leveled the
playing field; team culture and corporate culture have been promoted; an
innovative spirit has been instilled; and international integration has been
improved. In terms of the market results, Lenovo’s adaptation of project
management has improved the company’s core competitiveness with
improved delivery and customer satisfaction. In turn, distinctive performance
was delivered: In 2006, the company had a market share of seven percent in
the global PC market, led only by Dell and HP. Its total turnover was USD 14.6
billion, a rise of 10 percent over the previous year.