Develop an analysis of the case that thoroughly answers the questions below.ExpectationsThe case…

Develop an analysis of the case that thoroughly answers the questions below.ExpectationsThe case analysis write-up should not exceed five typewritten pages (1 inch margins, 12 point font, double-spaced). Detailed analysis should be placed in an appendix and referenced from the body of the report. Summary graphics (e.g., tables, charts, figures, etc.) should be inserted in the body of the report, numbered consecutively, and adequately described in the body of the report. The five page limit mentioned above refers to the written text portion of the paper. For example, if you include four half-page graphics a paper of seven pages is appropriate (plus any appendices).The paper should be professionally written and formatted. Be sure to include everything you’d expect to see in a professional management report including, but not limited to, cover page, page numbers, section headings, logical organization, no typos, etc.Questions1. Place yourself in the beginning planning stage of the project. Develop a SWOT analysis and project justification analysis. As part of the justification analysis present a project cost estimate and payback analysis. Your justification may conclude either yes (proceed with the project) or no (do not attempt the project). In either case present a summary risk analysis (meaning focus on the top 1-2 risks) associated with taking that path and briefly describe your recommendations for addressing the risks. Make assumptions as necessary to fill-in-the-blanks of data missing from the case which is needed to create a complete analysis. Be sure to justify the reasonableness of each assumption.2. Describe the major problems in the case. Highlight the problem you consider the main issue, and explain why. Identify up to three points in the project when project management tools and techniques (described in chapters 1-6) could have been applied, or been applied better. Explain who should have driven the improvement, the recommended change, when the change should have taken place, and the expected improvement.3. Develop a summary Gantt chart using Microsoft Project that reflects major phases and tasks of the project and highlights key milestones (e.g., the WBS). You do not need to load resources against the WBS. This part of the deliverable can be included in an appendix and does not require additional description, so it should not affect your 5-page report length.Harvard Business School9-398-008Rev. June 7, 1999DO NOT DUPLICATEProvidian Trust: Tradition and Technology (A)A New CEOWithin two weeks of accepting the position of CEO of Providian Trust Company, StephenWalsh, a lawyer by training, faced an unusual corporate conflict and he would have to play the role ofjudge. There was an extraordinary difference of opinion between Providian Trusts internal auditor,Peter Storey, and the leaders of a major information technology (IT) project in the trust division.Peters extremely vocal point ran to the issue of documentation, that it was incomplete and shouldbe brought up to speed, explained Walsh. The conflict reached a climax during an Audit Committeemeeting on May 13, 1995, when members of the committee, who were all on the Providian Trustboard of directors, expressed to Walsh that they had lost confidence in the internal auditor andrecommended that the external auditor, Steinman & Smith, do an analysis of the projectdocumentation prior to implementation.The purpose of the project was to convert the trust divisions outdated information systeminto a more efficient system using Access Plus, new trust and custody management software made bySelect One. The project had been initiated in 1993 under a former CEO, who had been dismissed bythe board, and had continued under an interim CEO. By the time Walsh arrived on the scene, overtwo-thirds of the $18 million budget had been invested in the implementation of the IT project andProvidian Trust had built up expectations among clients that the new system would dramaticallyimprove service. Though the company had experienced transitions in leadership at the CEO level, theAccess Plus project had stable leadership under the direction of senior vice president of Trust,Investment & Treasury Michael LeBlanc. It was LeBlanc who had argued before the board in April1994 that the information technology project was critical to the business future of the trust division,winning its unanimous approval to move forward with the plan. Storey, who had criticized theproject from day one, was regarded by some Providian Trust executives as having a tendency to crywolf. Walsh, working on a five-year strategic plan for Providian Trust, emphasized that he did nothave time to become intertwined in a political knot.Im the new CEO. I have no credibility yet with this board other than myC.V. Its the Audit Committee thats expressing reservations about this project. So, inaddition to satisfying myself about whether or not this is a go, who better than theexternal auditors to satisfy the Audit Committee in terms of the appropriateness ofResearch Associate Melissa Dailey prepared this case under the supervision of Professor F. Warren McFarlan as the basisfor class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Thenames and some of the facts have been disguised.Copyright © 1997 by the President and Fellows of Harvard College. To order copies or request permission toreproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go tohttp://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system,used in a spreadsheet, or transmitted in any form or by any meanselectronic, mechanical, photocopying,recording, or otherwisewithout the permission of Harvard Business School.1398-008Providian Trust: Tradition and Technology (A)continuing the project? My solution was to have Steinman & Smith send in one oftheir people and I asked that person to join the Implementation Committee, to beinvolved in the project and tell me what the story was here.Transforming TraditionThe trust profession is an old and noble one. Its origins go back centuriesand are based upon some of the highest values knowntrust, integrity, and honesty.It was built upon a foundation of taking care of the grantors needs and providing theservices that he or she wanted. To put it in modern day language, it was aboutcustomer service, customer service that meant doing the right thing, at the right time,in the right way for the customer.Trust & Estates1Providian Trust, headquartered in New York, delivered financial and fiduciary servicesthrough a network of 216 branches. The companys lending productsincluding residential andcommercial mortgages and consumer and corporate loanswere the principal source of its revenue(Exhibit 1). Intense competitive pressures and client demands were driving the need forimprovements in the quality of trust services. In 1994 Providian Trust managed $49.4 billion in trustassets with a staff of 840 full-time employees (FTE). Sixty percent of the companys fee income and 9%of gross earnings were generated by its fiduciary business that year. All three areas of the trustdivisionPension and Institutional Trust Services [PITS], Personal Trust Services, and TrustOperationsreported to Michael LeBlanc (Exhibit 2).Trust Divisions Assets Managed and FTE in 1994TotalAssets Managed#Full-Time Employees (FTE)Pension & Inst.Trust (PITS)$49.4B$42.7B840300PersonalTrustTrustOperations$6.7B240300The Pension and Institutional Trust Services business had $42.7 billion in assets in 1994. Wewere the tenth-largest provider and we were losing money. We had outdated reporting systems as faras our clients were concerned, explained LeBlanc. The institutional custody business was becomingextremely technology-intensive, with some of the larger players outsourcing their entire backroomfunction in order to make large operations more effective.Personal Trust Services managed $6.7 billion in assets for 10,000 clients and was onlymarginally profitable, observed LeBlanc: It wasnt the stuff that 15% return on equity [ROE] wasmade of. Personal Trust Services included the administration of estates, trusts and agencies, will andestate planning, self-directed registered savings plans, and dealer trustee services. Investmentmanagement services were provided through Kaye Whitney Investment Management Limited, thecompanys investment counsel and portfolio manager.Management regarded the trust division as the most isolated and change-resistant area of thecompany. The majority of trust officers had 20 to 30 years of experience with Providian Trust and hadalways managed their clients affairs on a personal level, calling them regularly and generating and1 Sam F. Lewis, Jr., Trust Professionals Must Keep Their Eyes On the Target, Trust & Estates, April 1997, p.20.2Providian Trust: Tradition and Technology (A)398-008correcting financial statements with the help of administrative support staff. Trust officers oftencompensated for late or inaccurate statements by discounting or waiving fees, costing the company anestimated $2 million to $5 million per year, according to LeBlanc.Every statement that was prepared for our 10,000 Personal Trust clients hadto be reviewed by a trust officer, corrected by the trust officer, and then mailed out tothe client. They had total control over what went out. The clients were relativelyhappy, although there were some grumblings about having to wait two or threemonths for a statement. Our research on competitors showed that we werehopelessly behind in terms of number crunching.The trust officers working in PITS and Personal Trust were considered front office peoplebecause they were client-driven and managed clients accounts. The 250 personnel in the TrustOperations Department, or the back office, were responsible for handling, settlement, and recordkeeping for securities. The administrative functions were being done both by the front and backoffices, explained LeBlanc. We had an environment where everybody could point a finger ateverybody else if something went wrong. The trust officers blamed the operations people and theoperations people blamed the trust officers. It had been running this way forever.LeBlanc believed that intense client demand, especially on the part of Pension andInstitutional Trust clients, dictated that Providian Trust quickly upgrade the trust divisions oldlegacy mainframe systems. He also believed that the lack of control in the trust division had persistedfor too long and that it was time for the company to remove control of clients accounts from the trustofficers hands. An improved computerized trust system would enable management to centralize andcontrol the numbers, thereby forcing the discipline that had been lacking in the division for decades.In the proposed new environment, the operations people, who were generally experienced withcomputers, would assume the trust officers administrative duties, including the generation of clientstatements. Not only would trust officers lose control of their clients financial information in the newenvironment, they would also have to learn how to use the new software system in order to access thecomputerized data. Few of the trust officers had ever touched a personal computer (PC). Youraverage trust officer was covered in 17th century cobwebs, said one executive. Theyre completelyaverse to technology, uncooperative, and they leave at five to five.The Business Impact ReportIm sort of a bull-headed person and the only way I could see this not gettinglost in a quagmire of internal politics and bickering was to run and run and run it ashard as I possibly could.Michael LeBlanc, Senior Vice President of Trust, Investment & TreasuryIn April, 1994, LeBlanc argued before the Providian Trust board that the capabilities of trustand custody management software provided the technological precondition for the redesign ofbusiness processes. He estimated that the installation of hardware and software, the conversion of alltrust financial data, and the transformation of the operating environment could be achieved byDecember 1995 through a phased implementation process. Total project costs were estimated at $18million. Once fully implemented, annual savings of approximately $9.2 million were expected toresult from reengineering the business processes and capitalizing on the new systems functionality,while reducing FTE from 840 to 660 (Exhibit 3). The board unanimously approved theimplementation of the new operating environment for trust defined in the Business Impact Report.3398-008Providian Trust: Tradition and Technology (A)A year-long review of 12 software vendors had resulted in the recommendation that SelectOnes Access Plus asset management system be acquired. Customizing a proven, off-the-shelf systemwas viewed by LeBlanc as the quickest way to get the most advanced technology for the banks trustoperations. Ten financial institutions, including one competitor, were using the Access Plus softwareat the time.LeBlanc chaired the project Steering Committee, which originally included vice presidentsfrom Corporate Services, Finance, Trust Operations, and Audit Services. Internal auditor Peter Storeysaid that he repeated like a broken record at both Steering Committee and Audit Committeemeetings that the proper management controls were not in place to ensure the projects success. Thefact that the senior vice president of Corporate Services, who headed up Providian Trusts force of240 IT personnel, was not asked to help lead the Access Plus project had served to intensify tensionon the Steering Committee. (The company had two IT departments: a group of 240 IT personnel whosupported retail banking, and an additional 30 IT personnel in the Operations Department.) Beingriddled with political tension, the Steering Committee had little effect on the Access Plus rollout.With the Steering Committee disintegrating, it fell to the Implementation Committee, whichwas also chaired by LeBlanc, to provide a guiding and protective hand for almost all of the projectteams activities. The Implementation Committee included vice presidents from each of thedepartments upon which the Access Plus system implementation was expected to have an impact(Exhibit 4).LeBlanc decided that forceful and decisive management was required to make changes in achange-resistant environment. Certain that the historically antagonistic front and back office divisionswould not cooperate in the reengineering of business processes, he selected the back office to drivethe project. LeBlanc designated Todd Benari, the vice president of Trust Operations, to lead theAccess Plus implementation. The project managers and project management team reported directly toBenari. The team included 15 representatives, 10 from Trust Operations, 2 from Personal TrustServices, and 1 each from Pension and Institutional Trust Services, Kaye Whitney InvestmentManagement, and Audit Services. The Business Impact Report emphasized that collectively the coreproject team had over 70 years of trust experience. I wanted people in this group who had been inthe trenches, in the lines dealing with clients, and who could look at the project from a relationshipmanagers perspective, explained LeBlanc. He guaranteed that team members positions would bemade available to them again at the end of the project and that they would lose no seniority.Although LeBlanc was known for his keen knowledge of the trust market, he had no projectmanagement experience and would depend to a large extent on Benaris team to orchestrate thereengineering effort. The Operation Departments 30 IT professionals would assist in the completeoverhaul of the trust divisions technology environment, including the installation of desktopcomputers in the head and branch offices and new servers to support the intense networking activityplanned for the proposed new trust operating environment. Previously, Operations had neverattempted an information technology initiative that exceeded a half-million-dollar budget.Reengineering a New Operating EnvironmentI reviewed your update on the trust project. The major issue will be theculture shift inherent in moving to a dramatically different way of managing thebusiness. While extensive training will help, it is my experience that organizationalcultures function from very deep-seated norms, values, and attitudes, which are noteasily changed despite reengineering efforts. Good Luck!Senior Vice President of Human Resources Richard Caston,in a memo to Todd Benari copied to Michael LeBlanc, February 17, 19954Providian Trust: Tradition and Technology (A)398-008The Business Impact Report stated that business processes would be revised based oneffectively using technology as an enabling mechanism. The project team sought input from 30 keyemployees in order to match 17 business processes with Access Plus software functions. The teamsproposed business model for the trust division included detailed diagrams of how the softwarewould streamline information flow for each of the 17 processes (Exhibit 5). The expectation was thatcycle time for information processing would be reduced, resulting in faster and improved service forthe customer.Administration would be consolidated and centralized in the proposed operatingenvironment. All existing trust information would be converted to the Access Plus system and theOperations group would become the primary caretakers of the data, taking over sole responsibilityfor trust account administration. As the paper was removed from their desks and filing cabinets, thetrust officers traditional role would be transformedthey would become client relationshipmanagers, providing a full range of fiduciary services and retail banking products to their existingand future client base. LeBlanc explained that while Trust Operations would become centralized, theclient relationship managers, sales teams, and portfolio managers would be decentralized to enablethem to proactively sell to their clients.We knew that there was no point buying a new trust system or improvingthe technology unless we concurrently also completely rebuilt the culture andprovided the training incentives to customer relationship people to completely revisithow they approach their clients. They needed to be trained in relationshipmanagement skills and become more focused on the bottom line, cross-sellingproducts to clients, a whole range of skills upgrading to become more sales andservice oriented rather than simply bureaucrats responding to client phone calls.Concerns CommunicatedIn early 1995, as the project implementation picked up speed, Personal Trust managersstarted raising concerns. According to Personal Trust Vice President David Brown, the project teamhad decided that it would drive the project through with very little time spent getting userfeedback. There was a problem between the back room and the front room, Brown said. From thefront line perspective, the back room was not listening. The feeling was that the back room knewwhat the front wanted or needed.Although the plan seemed to make sense on paper, Benari was beginning to sense a generalresistance to change. We had trust officers with 30 years of experience who had never looked atanything more automated than an adding machine. The process of trying to get people to behave andoperate in a different way was almost impossible. Tensions were heightened when Benaris originalproject manager left Providian Trust for a new position midway through the project, in February1995. As confidence in the project faltered, Benari released an updated project plan and announcedthat the reengineering requirements would be recommended by Trust Operations, but they wouldhave to be approved by the business unit leaders and the Implementation Committee. Brown, JamesKnowles, and Robert Caseall vice presidents in the Personal Trust Department and all members ofthe Implementation Committeesent a largely negative written response to the updated project plan.The need for dramatic change is fully recognized both from the point of viewof efficiencies and competitive pressures. We support the general concepts containedin the document. It is clear that a great deal of work is still required and that animplementation plan is urgently needed if there is to be a realistic expectation thatthe current schedule for conversion will be met. The biggest obstacle that needs to beaddressed is the resourcing of the various workgroups and, in turn, the ability of the5398-008Providian Trust: Tradition and Technology (A)workgroups to deliver within the required time frames. In a general sense, we foundthat the document seems to view things from a headquarters perspective and it doesnot always recognize the nature of the existing relationships with our clients.The vice president of Client and Product Management for Pension & Institutional Trust,David English, also responded negatively to the proposed new operating environment.We need much more analysis before we would feel comfortable that the totalcentralization of back room functions is appropriate…. While I agree with the conceptthat client accounting and distribution of reports lends itself to centralization, it isimperative that the trust officer or relationship manager be in control of theaccount. Only the trust officer will know the special requirements that a client willhave in terms of their preference for receipt of information from us.In follow-up meetings, project team leaders addressed the concerns of the vice presidents,resulting in each of their signatures on the following written statement: The meeting produced aconsensus that there exists no obstacles to prevent the project team from proceeding with theimplementation towards the new trust operating environment. Brown, Knowles, Case, and Englishall reported directly to LeBlanc.A few months later, English outlined the impending changes to the trust environment duringa staff meeting in Boston. The New England regional office responded with a memo dispatcheddirectly to LeBlanc.Some difficulties have crept into the process of implementation: directionsand instructions are coming from too many sources…. Reactions we are witnessingfrom employees, although understandable, have created a morale problem andinsecurity that may extend itself into other areas. The process leaves us with theimpression that the process is not client oriented. There appears to be a lack ofconsideration of relationships with our client base. As a result of the above, we havedecided to create a regional committee to assist in a more harmoniousimplementation of Access Plus.On July 11, the Implementation Committee decided that the concerns of the Boston managerswould be addressed through telephone conversations and that it would not formally respond to theletter.Software TrainingThe system license stated that Select One would provide training materials and deliver onetime training on all systems functions (Exhibit 6). Project team members and 60 Operationsemployees attended Select Ones training sessions in March and April of 1995, approximately eightmonths before the first scheduled conversion of accounts. The project plan outlined a train thetrainer approachSelect One managers would teach the project team how to use Access Plus andteam members would then visit all decentralized departments to deliver instructions.Trust officers would have to be conversant with computers, Windows, and Access Plussdocument management functionality in the new operating environment. The steep learning curvewas acknowledged as early as November 1994, when the Implementation Committee discussed adocument entitled New Trust Operating Environment: Training and Strategies and Plans. Thesection Influencing Factors and Assumptions included the following two points:6Providian Trust: Tradition and Technology (A)398-008The new trust operating environment will require that virtually all levels ofpersonnel possess the required skills in the use of the new Windows-basedworkstation technology and production applications.Providian Trusts network of regional training managers and their trainingcenters across the country, as well as the corporate training departments, are staffedexclusively by retail-banking-experienced training personnel. These centers are,however, equipped with CD-ROM training labs for self study on personal computerskills and application software.Project team leaders hired an outside firm to provide training on the Microsoft tool set totrust officers and other front office work groups. In addition, trust officers had access to CD-ROMlabs where they could study Microsoft Office, which included Word, Mail, Excel, and PowerPoint. ITsupport staff, however, were still installing personal computers on the trust officers desktops in thesummer of 1995, making it impossible for trust officers to put their training to use on a daily basis.When trained project team members began visiting the decentralized workgroups in the summer of1995, they found that many trust officers did not have desktop computers, did not know Windows,and were not prepared to learn the functions of Access Plus. An important aspect of the traininginthe document management application that would revise the manner in which trust staff stored,retrieved, viewed, and used documentation ranging from original trust agreements tocorrespondence to daily voucherswas never accomplished.The Human Resources and Conversion ScheduleThe board of directors had approved a plan that promised to reduce full-time employees by180. In the summer of 1995 the project team announced that one-quarter of the trust administrationstaff would lose their jobs as a result of the technology conversion. A wave of stress moved throughcorporate headquarters.Job postings for available positions in the new operating environment were made on July 19,with a response date of August 15. Interviewing teams asked applicants three to five standardquestions based on predefined skill set requirements for each position. We went through a two-anda-half-week exercise of 20-minute interviews with all the staff applying to the new positions, justwhipping through, explained an interviewer. They felt that their entire careers came down to a 20minute interview after they had put in 20 years with the company. It was a very painful experiencefor them and it certainly affected their pride.On September 5, 1995, the Implementation Committee reviewed an Access Plus ProjectHuman Resource Timeline, which showed exactly how many staff would be dismissed as thescheduled conversions of data proceeded (Exhibit 7).Scheduled Conversions of data to the Access Plus SystemPhase IPhase IIPhase IIIPhase IVPersonal Trust (headquarters)Personal Trust BranchesPension & Institutional TrustKaye Whitney Investment ManagementNovember 1, 1995Decem…