The paper shows that TaxPrep, Inc., a (real) tax preparation service firm, is rapidly losing market share, experiencing negative
profits, and is unable to efficiently bring new software products to market. This paper analyzes TaxPrep's problems and presents specific recommendations to solve the software development, organizational, and communications issues. Short-term recommendations include: implementing project
management techniques for software development, conducting employee communication sessions, and freezing present
compensation. The paper shows that, in the long-term, TaxPrep should implement a management system that meets the Q9001-2000 quality management standard, market new web-based products, and institute performance based compensation.