2. Case Analysis Background: Corporate Database
Project at First National Bank (FNB)
Project Management Methodology at FNB
Project Constraints
Project Management Recommendations
Video
Q&A
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3. FirstNational Bank (FNB)
Corporate Database (CDB)
Project Sponsor (PS)
General Manager (GM)
Priority Committees (PC)
Project Manager (PM)
Information Service Division (ISD)
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5. First National Bank (FNB) started growing very fast in the
financial market, merge and acquisitions process were
involve in this rapid growth.
The expansion of operations brought an incremental
number of employees increasing organizational structure
complexity.
Case focus on the Information Service Division (ISD)
projects: (IT Department)
(FNB) Developing Information Technologic Projects
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6. IDS is Reporting to Executive Vice President of Consumer Banking and Operations Division
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7. 1992 IDS became a separate department from the Consumer Banking and
Operations Division reporting directly to the president.
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8. Use a computerized system to speed up the processing of
corporate consumers transactions.
Little effort expanded to meet the informational requirements of
the rest of the bank divisions.
Project Results: Major conflict because key operating functions
of the bank did not have equal access to system and
programming resources.
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9. FNB identified the need for a Corporate Marketing Division
Computerized systems were focused on small unprofitable
accounts
FNB needed to computerized their Corporate Customer
accounts which are the most profitable.
Information needs to be consolidated from three different
bank’s divisions:
• Corporate Banking
• Corporate Trust
• Consumer Banking
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10. Information was manually processed.
Project was Ranked as Number 1.
Mr. Hart was the FNB GM
Jin Gunn is appointed PM for the CDB project: the most
experienced PM at FNB.
Jin Gunn is assigned three junior programming specialist by Mr. Hart to
developed the project.
Lack of time to design the project due to pressure.
Lack of resources (project was understaffed).
Project asked for extra funding.
Quality Analyst was 90% assigned for rework.
Jinn Gunn was removed as PM.
The project has a New PM.
Mr. Hart, GM took his retirement in the middle of the Project.
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23. In the monthly meeting, Priorities Committee discussed about A
pproving, Dropping, or Tabling the Project Proposal
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24. SACRED COW
Updated list of project proposals in priority order with an
accompanying milestone schedule that indicates the
approximate time of implementation.
Priority setting , if done by a cross section of executive
management, it does not revert by default to data processing
management.
Sacred Cow: project is suggested by a senior and powerful
official in the organization
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27. System Definition Systems design System
and development Implementation
• Project Plan • Preliminary • System
• User system design implementation
Requirements • Subsystem • System test
• System Definition design • Production
• Advisability Study • Program design control turnover
• Programming and • User training
testing • System
Acceptance
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28. General Manager and Project Manager evaluate the different activities.
Estimates are performed at five intervals.
Funding must be completed and approved by the Project Manager.
With Project budget assessment General Manager can get an idea of the
quantity of system and programming resources required by the project.
Then general manager meets with project manager and user
sponsor to obtain funding from the user organization.
There are re-estimates and refunding if there has been a significant
change in the project.
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29. Quality review is the process where the user become involve with
the new system. Ten quality reviews, seven of which are
participated in jointly by users and data processing personnel, and
three of which are technical reviews by data processing (DP)
personnel only.
There is a Quality review board consists of between two and eight
people who are appointed by the project manager with the approval
of the project sponsor and the General Manager of system and
programming (ISD)
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30. After a project reach the top list of priority the ISD general
manager appoint a Project Manager from his or her staff.
Then, the Project Manager ask for resources that must be
approved by the General Manager.
CDB PM asked for three Senior Programming and was assign
two Junior Programming because there were not available
resources.
After Jim Gunn was laid off the GM assigned senior program
manager to the CDB project.
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32. Sacred Cow
Organizational Structure
Long Project Proposal Process
Short Project Development Process
Time Management
Weak Project Management Methodology
Unwillingness to share Resources
Lack of Quality Methodology
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36. Shorten Project Proposal flow and steps
Establish an objective selection criteria using
ranking and priorities in line with Corporate
goals i.e. Project Prioritization
matrix, Balanced Scorecard
Reassess Role and Membership of Priorities
Committee
• Evolve into a Change Advisory Board consisting of
Cross-Functional Executive members including IT
Management => Provides Guidance and Strategy
• Priorities Team part of PMO => Manages Process
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37. Create an IT Demand Process Flow
• Categorize by type of projects:
Compliance
Operational
Strategic
Review Resource Management Flow
• Avoids Bottleneck and conflicts
Involve Business Users at all levels of Project stages
• Insures buy-in and excitement about the project
• Alleviate and Resolve fears about what the system does to people’s jobs and
responsibilities
Improve Communication Process
• Project Reporting
• Project administration
Document key agreements and decisions. Verbal agreements can fall through during the life
of the project. It is important to get written contracts in place early on: i.e. committed
resources are not available
• Resource Availability
• IT Demands visibility
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40. Establish a Program & Portfolio Management (PPM)
This will insure that major organizational initiatives achieve the following:
Approval of ‘right’ investments
‘Best’ resources application
Accomplishing organizational value supporting strategic goals
Develop IT Governance
What it is: The processes that ensures the effective and efficient use of IT in
enabling an organization to achieve its goals*
Implement Sig Sigma for Quality Control
Adopt Standard IT Development Methodology
• Research shows use of IT standards lowers development costs by 41
percent per user ( Cosgrove Ware, 2002)
* Source Gartner
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41. Business Strategy
IT What, Who and how to
Governance make IT decisions?
Portfolio
Management Which IT initiatives to do?
Program Management
How to Execute IT initiatives?
Project Management
Business Value
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44. What do you think was the Major Problem at FNB?
How will you address it?
What differences present IT Project Management?
What do you know about IT Governance?
Q&A
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Notas do Editor
Reseason for that: Focusing on transaction support which was not a high value for them . They had not over view on the corporate consumer. Really to be able to service the consumer customer more profitable for the bank. Mergeing: not have a overall view of how the corporate consumer is! , because of different files management: manual.Hart: brought the idea, ( retired)
Because they are buying other banks, they are more concentrate on other banks,: Major conflicts of interes going against this project.
Ranked number 1
Project Sponsor : Executive or Department who identified a problem and create a project proposal to solve the problem. 2. Priorities Committee: Chief executives of each of the major operating organizations affected by the need or revised information system. (Monthly meeting)3. ISD General Manager: Approved project and assign resources.4. ISD and System Research: Evaluates project proposal and feasibility.5. Project Manager: Person who design and develop the project.
Sacred Cow: Project ( P comittes ) ceo of the bank is interesting in specific projects. President of bank is interesting in coming a Sacred Cow: not really go to project selection criteria, they relly push them because there is someone behind of them, they focus cost! Of the project
Problem here; Where is the Problem: The time spent by systems research in producing impact statements and project proposal is considered to be overhead by ISD. No system researh time is directly charged to the development of Information Systems.
If the interest level of the committee is low, then the idea is rejected. However if the priority committee feel the concep has merit, they authorize the system research group of ISD to prepare a FULL SCALE PROJECT PROPOSAL that containts:A detailed statement of the problemIndentification of alternative solutionsImpact of request on : User Dvision,ISDOther operating divisions Estimated Cost of SolutionsCos-Benefit analysis Long range implicationsRecommended course of Actions
THIS IS OVERWHELMING HERE: I SAID FROM HERE THE PMO ACCEPT THE PROPOSAL AND THE PROJECT DESIGN START WORKING SO WE HAVE 2 STEPS LESS. AND REDUCE THE PROCESS TO 5 STEPS. (The max. should be 6) I think.Or why not to eliminate the Whole System Research So. Present the Project PMO REVIEW THE PROPOSAL AND APPROVE OR DECLINE OR TABLEDPMO Call functional division (IDS) TO DESIGN THE PROJECT WITH THE FUNCTIONAL AREA (MARKETING) INVOLVING END USER SINCE THE BEGINNING OF THE PROCESS.Present Budget get resourcesStart project
Project Sponsor appear in the montly meeting to speak about te approval and priority level of the proposed work
Project Estimating: Manager evaluate the different activities, and add additional task in those critical path activities if they were needed. Estimates are performed at five intervals estimates because it is almost impossible at the beginning of many projects to be certain of what the magnitude of effort will be later on in the project life cycle. Funding of the Projects: The project plan must be completed and approved by project manager with detailed information about schedules, a cost estimate and a budget request. At this time the general manager can get an idea of the quantity of systems and programming resources required by the project. Then general manager meets with project manager and user sponsor to obtain funding from the user organization. There are re-estimates and refunding if there has been a significant change in the project.
They were not available resources: Managers in IT are not willing to share resources ! This result in disruptions friendship. When the project was falling they were ahead and find some resources. Lack of incentive and willigness to work in those intiatives. !! IT line management there is a conflict. Supporting the transactional system supporting the growth of the company
Senior Management InputProvide guidance in selecting criteria that are aligned with the organization’s goalsDecide how to balance available resources among current projectsThe Priority Team ResponsibilitiesPublish the priority of every projectEnsure that the project selection process is open and free of power politics.Reassess the organization’s goals and prioritiesEvaluate the progress of current projects
Methods for selecting projects include:Focusing on broad organizational needsCategorizing IT projectsFinancial analysisUsing a weighted scoring modelImplementing a balanced scorecardFocusing on Broad Organizational Needs It is often difficult to provide strong justification for many IT projects, but everyone agrees they have a high valueThree important criteria for projects:need for the projectfunds available for the projectwill to make the project succeedCategorizing IT Projects One categorization assesses if the project provides a response to:a probleman opportunitya directiveAnother categorization is based on the time and date of expected completionAnother categorization is the overall priorityof the projectWorking with internal stakeholders: Set up a cross-disciplinary project team. Currently there are no user on the project teams. Don’t forget to include staff at the operational level who have on the ground expertise and call help communicate both buy-in and excitement about the project. Alleviate and Resolve fears about what the system will do to people’s jobs and responsibilities (being taken away!)Communication and promotion: Ensure communication and promotion of project successes. Using stories and ‘snapshots’ from early adopters or champions inspire others. Expressing project outcomes in terms of return on investment is one way to promote results.Monitoring and evaluation: Using progress reporting as a reflection and monitoring tool--Progress reports should be used to better inform about the project. Taking the time to checkwhether it is on track to meeting intended outcomes. There does not seem to be any reporting from the PM until it is too late.
Selection CriteriaFinancial: payback, net present value (NPV), internal rate of return (IRR)Non-financial: projects of strategic importance to the firm.Multi-Weighted Scoring ModelsUse several weighted selection criteria to evaluate project proposals.Balanced Scorecard Robert Kaplan and David Norton developed this approach to help select and manage projects that align with business strategyMethodology that converts an organization’s value drivers, such as customer service, innovation, efficiency, and financial performance, to a series of defined metricsSee http://www.balancedscorecard.org for more information
Research by Roberts and Furlonger (2000) in a study of information systems projects show that using a reasonably detailed project management methodology, as compared to a loose methodology, improves productivity by 20 to 30 percent. Furthermore, the use of a formalised project management structure to projects can facilitate: (a) the clarification of project scope; (b) agreement of objectives and goals; (c) identifying resources needed; (d) ensuring accountability for results and performance; (e) and encouraging the project team to focus on the final benefits to be achieved. Moreover, the research indicates that 85-90% of projects fail to deliver on time, on budget and to the quality of performance expected. The major causes identified for this situation include:Lack of a valid business case justifying the project;Objectives not properly defined and agreed;Lack of communication and stakeholder management;Outcomes and/or benefits not properly defined in measurable terms;Lack of quality control;Poor estimation of duration and cost;Inadequate definition and acceptance of roles (governance);Insufficient planning and coordination of resources.* above from Project Success: Critical Factors and Behaviours By Emanuel Camilleri 2011