SAT College

Back at Attaway Airlines, the morning meeting ended with no agreement between the VP of finance and the marketing manager. In fact, a new issue arose. The VP now says that the new accounting system is entitled to the highest priority because the federal government soon will require the reporting of certain types of company-paid health insurance premiums. Because the current system will not handle this report, the VP insists that the entire accounting system is a nondiscretionary project. As you might expect, the marketing manager is upset. Can part of a project be nondiscretionary? What issues need to be discussed? The committee meets again tomorrow, and the members will look to you, as the IT director, for guidance.

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Answer 1

It is possible for part of a project to be considered non-discretionary, while other parts may be considered discretionary. A non-discretionary project is one that is required by law, regulation, or some other external mandate, and as such, it is not optional.

The accounting system upgrade at Attaway Airlines, if it is indeed required by the federal government, would fall under this category.

What are  non-discretionary projects?

It is important to note that even non-discretionary projects can have discretionary elements. For example, the specific features or functionality that are included in the upgrade may be discretionary, and the marketing manager may still have a valid argument that the inclusion of certain features is necessary for the company's success.

In the above situation, it is important to have a clear understanding of the legal and regulatory requirements that the accounting system upgrade must meet, as well as the specific features and functionality that are necessary to meet those requirements. The IT director should also consider the potential impact of the upgrade on other projects, including the marketing manager's initiatives, and any potential trade-offs that may need to be made.

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