Patricia Quarnstrom       Isis Quinones                       1
 Case  Analysis Background: Corporate Database  Project at First National Bank (FNB) Project Management Methodology at F...
 FirstNational Bank (FNB) Corporate Database (CDB) Project Sponsor (PS) General Manager (GM) Priority Committees (PC)...
4
   First National Bank (FNB) started growing very fast in the    financial market, merge and acquisitions process were   ...
IDS is Reporting to Executive Vice President of Consumer Banking and Operations Division                                  ...
1992 IDS became a separate department from the Consumer Banking and         Operations Division reporting directly to the ...
Use a computerized system to speed up the processing of         corporate consumers transactions.Little effort expanded to...
   FNB identified the need for a Corporate Marketing Division   Computerized systems were focused on small unprofitable ...
   Information was manually processed.   Project was Ranked as Number 1.   Mr. Hart was the FNB GM   Jin Gunn is appoi...
CDB project was tabled.                          11
12
1. Project Sponsor2. Priorities Committee3. ISD General Manager4. ISD and System Research5. Project Manager               ...
Project Proposal Life Cycle         Project Life Cycle                              and    7 Steps    Process             ...
15
7 StepsProcess          16
Functional Department Determine the Problem.                                               17
Functional Department prepare Problem Statement a             nd send it to ISD president.                                ...
ISD authorizes System Research to prepare Impact                    Statement                                             ...
Problem and Impact Statement are then send to             Priorities Committee.                                           ...
Priorities Committee authorize the System Research  Group to prepare a Full-Scale Project Proposal.                       ...
System Research send the proposal to the       User Sponsor for Review                                           22
In the monthly meeting, Priorities Committee discussed about A      pproving, Dropping, or Tabling the Project Proposal   ...
SACRED COW   Updated list of project proposals in priority order with an    accompanying milestone schedule that indicate...
25
3Steps        26
System Definition          Systems design          System                           and development         Implementation...
   General Manager and Project Manager evaluate the different activities.   Estimates are performed at five intervals. ...
   Quality review is the process where the user become involve with    the new system. Ten quality reviews, seven of whic...
   After a project reach the top list of priority the ISD general    manager appoint a Project Manager from his or her st...
31
 Sacred  Cow Organizational Structure Long Project Proposal Process Short Project Development Process Time Management...
33
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35
 Shorten  Project Proposal flow and steps Establish an objective selection criteria using  ranking and priorities in lin...
   Create an IT Demand Process Flow     • Categorize by type of projects:        Compliance        Operational        ...
Balanced ScorecardProject Prioritization Matrix                                                     38
39
   Establish a Program & Portfolio Management (PPM)       This will insure that major organizational initiatives achieve...
Business Strategy                            IT           What, Who and how to                        Governance       mak...
42
43
   What do you think was the Major Problem at FNB?   How will you address it?   What differences present IT Project Man...
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Project Management at First National Bank

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  • 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
  • Project Management at First National Bank

    1. 1. Patricia Quarnstrom Isis Quinones 1
    2. 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 2
    3. 3.  FirstNational Bank (FNB) Corporate Database (CDB) Project Sponsor (PS) General Manager (GM) Priority Committees (PC) Project Manager (PM) Information Service Division (ISD) 3
    4. 4. 4
    5. 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 5
    6. 6. IDS is Reporting to Executive Vice President of Consumer Banking and Operations Division 6
    7. 7. 1992 IDS became a separate department from the Consumer Banking and Operations Division reporting directly to the president. 7
    8. 8. Use a computerized system to speed up the processing of corporate consumers transactions.Little effort expanded to meet the informational requirements ofthe rest of the bank divisions.Project Results: Major conflict because key operating functionsof the bank did not have equal access to system andprogramming resources. 8
    9. 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 9
    10. 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. 10
    11. 11. CDB project was tabled. 11
    12. 12. 12
    13. 13. 1. Project Sponsor2. Priorities Committee3. ISD General Manager4. ISD and System Research5. Project Manager 13
    14. 14. Project Proposal Life Cycle Project Life Cycle and 7 Steps Process 3 Steps Process 14
    15. 15. 15
    16. 16. 7 StepsProcess 16
    17. 17. Functional Department Determine the Problem. 17
    18. 18. Functional Department prepare Problem Statement a nd send it to ISD president. 18
    19. 19. ISD authorizes System Research to prepare Impact Statement 19
    20. 20. Problem and Impact Statement are then send to Priorities Committee. 20
    21. 21. Priorities Committee authorize the System Research Group to prepare a Full-Scale Project Proposal. 21
    22. 22. System Research send the proposal to the User Sponsor for Review 22
    23. 23. In the monthly meeting, Priorities Committee discussed about A pproving, Dropping, or Tabling the Project Proposal 23
    24. 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 24
    25. 25. 25
    26. 26. 3Steps 26
    27. 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 27
    28. 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. 28
    29. 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) 29
    30. 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. 30
    31. 31. 31
    32. 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 32
    33. 33. 33
    34. 34. 34
    35. 35. 35
    36. 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 36
    37. 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 37
    38. 38. Balanced ScorecardProject Prioritization Matrix 38
    39. 39. 39
    40. 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 40
    41. 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 41
    42. 42. 42
    43. 43. 43
    44. 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 44
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