Providian Trust: Tradition and Technology Essay

Business context of use/Key Business Drivers* Providian organized religion was headquartered in New York. In 1994 it was the tenth largest provider of financial and fiduciary services through its network of 216 branches. * The partnership has 3 divisions, Pension and Institutional blaspheme Services, Personal Trust and Trust Operations * The conjunctions lending productsincluding residential and commercial mortgages and consumer and corporate loans. * The Company slowly slipped away from profitability and competition due to the drop of efficient business processes and information technology.* Michael LeBlanc the Senior VP of Trust, Investment and Treasury took the first step to handle the project and address the problems faced by Providian Trust. Le Blanc was indispensable to non upright implement the new technology but overly improving Providian Trusts business processes by implementing Access Plus, a major software transcription developed by Select One. * With a bud su bmited cost of $18 million and lead-time of 20 months the board finally okay the project in April 1994. * The Key Drivers behind this new initiative was overwhelming client demand on the part of PITS division. Low operational competency outdated reporting systems, lack of control and discipline in the curse division only made the case stronger.Initiative Objectives/Benefits* Increase comprise and Discipline-* PITS and Personal Trust Employees (front office) and Trust Operations Employees (back office) constantly blamed apiece other in case of any fault. The New centralized system is supposed to increase accountability, improve transparency and force discipline crossways divisions. * As mentioned in the case the clients had to wait for 2 to 3 months to get a statement. To decrease the cycle time and improve operational might was a major objective. * Sometimes due to inaccurate or juvenile statements Providianhad to waive or discount fees, which some times cost the company be tween $2 $5 Million. * The total expected saving by implementing these changes was supposed to be inline with $9.2 million every year.Initiative challenges* Most of Providian verify officers had 20-30 years of experience in managing client relationships at a ad hominem level and had never used or touched a individualized computer. The old school employees were extremely reluctant and resistant to change. The effectuation of these changes indispensable employees to become more sales and service oriented instead just answering and responding to client phone calls. * Internal Auditor Peter report was a strong critique of the whole process. * Todd Benari, the vice president of Trust Operations, headed the project caution team of 15 representatives formed Le Blanc. Le Blanc had no project instruction experience himself so he relied severely on his very inexperienced project forethought.ResultsI believe correct though the precedenting behind the project is very strong and pra iseworthy, and my judgement of the case, I am skeptical about the possible conquest of the initiative. * want of proper leadership because of LeBlanc inexperience in project heed and Le Blanc seems to be the only person driving the project. A major reason I observed was resistance of staff to changes. The Human Resources poor management and awful timing did not help the cause. The decision to reduce the full moon time staff by 25% or 180 employees nurture sent a wrong signal and the resistance to change was employees way of expressing concern and emotions.* Lack of proper time and quality management has created unexpected roadblocks and hurdles. The Simulations Work Environment (SWE) testing was originally planned to temper the effectiveness of the new tool. The unrealistic initial deadlines, SWE testing never got introduced and LeBlanc was not feeling comfortable enough. His concerns were validated since the main users where mostly technologically handicapped. cod to lack o f sufficient testing it is next to impossible to understand the potentiality problem that they whitethorn face in the future after implementation and also to know what kind of training is required by the employees to comport and adopt the change. LeBlanc Admitsto being bull headed and does not listen or progeny into considerations and ignored concerns of PITS and Personal Trust officers.Relevance and analysisRelevance * I would like to summarize the points discussed and mentioned above- * Clear Channels of Communication, communicate the changes (via the CEO) to all employees, consequently identify and address the reasons for resistance. * Get employees involved in the reengineering process and move into in the process and explain the need to do so? * accept realistic and achievable timelines Compile a detailed project plan. start out the project into small milestones and set realistic deadlines against each milestone. Keep encompass of actual progress vs. planned progress o n a secureness basis. Implement strict internal and external audit process to reassure quality is not compromised for the sake of meeting deadlines.Learnings-We face organisational changes in real-life. Some of these changes can be very drastic. We as managers may have an IT background or may not have an IT background. The success of the project does not always depend on our knowledge of the change, in our case the IT infrastructure update it depends on a managers project management skills. There ability to track and maintain time, cost, human resource management and communication skills. .