Providian Trust Case:
Project Management and
Organizational Change
BA 652
Fall 2008
Agenda
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Announcement – Next Thursday
A3 reports of Access Plus Implementation
Review of Facts of the Case
Project Management Issues
Business Process Change Issues
Current Situation
Characteristics of Successful Change
Next Thursday – Guest Speaker
• Brian Blue
– 1970 Economics Major from NAU CBA
– Worked at Macy’s from 1971 until 2007
– Retired as Macy’s Group Vice President
• He has done a number of implementations
of the type we have been reading about in
our cases.
• His resume is in your email this morning.
• Assignment: Develop two questions for him
after looking at his resume. Due Wed.
Team Plans for 90 day Delay in
Access Plus Implementation
• Team 2
• Team 1
Project Facts
• Size
– Implement of Access Plus by Select One
– 18 mil start 1993 (12 mil spent by 5/1995)
• Organization
Back Office Dominant
– Steering Committee (LeBlanc VP Trust & Inv)
– Implementation Committee (LeBlanc)
– Project Team (Todd Benari VP Trust
Operations)
Project Facts
• Project Impacts
– Purpose
• Increase customer service
• Centralize financial/statement/client administration
• Reduce workforce by 180 FTE
– Process Changes
• Move client control to back office
• Transform trust managers to client relations
• Software precondition to process changes
How does Access Plus fit with
Providian’s Business and
Organizational Strategies?
Business Strategy
Organizational
Strategy
Information
Strategy
Project Management Issues
• What did you identify as the most critical
shortcomings of Providian in managing
this project?
A Project Management View
• Why do 84% of IS projects fail or don’t
meet original expectations?
– Lack of clear system requirements
– Lack of User involvement
– Lack of management or executive support
– Lack of thorough and detailed project plan
– Unrealistic estimates about cost of schedule
BA 652 Fall 2008
9
Project Management Issues
• Are there current problems with the organizational
structure of the project?
• Are all aspects of the organization represented on
committees and analysis teams?
• What is the level of executive support from Walsh?
• Are there issues with the HR job selection process?
• Do issues exist with composition and delivery of
training?
• What level of formality should exist in project processes?
Project Management Issues
• Project Organization
– Insufficient representation of “front office” personnel
on Steering, Implementation, and project team.
– Dysfunctional Steering committee
– Lack of executive support from Walsh
• Project Processes
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Lack of user involvement from client services
HR screening and selection of new work force flawed
Trust officers not included in SWE
Training not offered just-in-time with equipment in
place
Project Management Formality
Resistance to Change:
Employees resent and resist change when:
– The purpose is not made clear
– They are not involved in the planning
– The appeal for acceptance is based on personal
reasons
– Habit patterns of the work group are ignored
– There are poor communications regarding the change
– There is fear of failure
– Excessive work pressure is involved
– The cost is too high or reward is too low
– The present situation seems satisfactory
Source: Industrial Management, March, 1966
Business Process Change Issues
• How will the delivery of client services change at
Providian after the system implementation?
• How has the job role and associated skills
changed for the trust officer?
• Will clients be treated differently under the new
system? If so how will this affect their loyalty to
Providian?
Business Process Change Issues
• Organizational Process Impacts
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Transfer client control from personal trust officer to “back office”
Trust officers must get computer literacy
Trust officer new role as relations manager only
Access Plus a precondition of process change
Mass elimination of workforce (180 FTE)
Training centers cause self-learning of new skills
High morale and stress problems
Overall lack of business process change analysis
• Client Relations Impacts
– Loss of client management from trust officer
– Loss of customization/personalization of information
– Retrain to new statements and administration procedures
Tactics for Dealing with
Resistance to Change
• Education and Communication
• Participation
• Facilitation and Support
• Negotiation
• Manipulation and Cooptation
• Coercion
Source: Robbins, Organization Theory
Elements Most Effected
Change
Change
Organization
Change
Strategy
Decision
Rights
Processes
Formal
structure
Infor.
Networks
Change
Control
Data
People,
Information
&
Technology
Values
Incentives &
Rew.
Plannin
g
Perf.
Meas/
Evaluation
Organizational
Effectiveness
Change
Change
Change
Culture
Characteristics of
Successful Changes
• Relative advantage
– Is the change perceived as better than the old
way or state of being?
• Compatibility
– Is the change consistent with the existing
values and needs of the organization and the
clients?
Characteristics of
Successful Changes II
• Complexity
– Is the change considered convenient, easy to
use, and easy to understand?
• Trialability
– Can the change be experimented with on a
limited basis (such as a demonstration project
or limited roll-out)?
Characteristics of
Successful Changes III
• Observability
– Are the benefits of the change clearly visible
to organization members and clients?
• Reasonable risk
– Are changes perceived as too risky in any
dimension?
Characteristics of
Successful Changes IV
• Perceived risk dimensions
– Functional – May not perform
– Financial – May cost too much
– Physical – May be harmful
– Psychological – May not meet “self – concept
needs”
– Social – May cause social problems
Next Time
• Readings
– Pearlson and Saunders, Chapter 5
– Vandalay Case
• Assignment
– Group Assignment: Prepare an A3 report and
a set of power point slides that identifies the
key issue that must be addressed to make the
ERP implementation successful and lays out
a plan for the remainder of the implementation
process.