1. Patricia Quarnstrom Isis Quinones 1

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. FirstNational Bank (FNB) Corporate Database (CDB) Project Sponsor (PS) General Manager (GM) Priority Committees (PC) Project Manager (PM) Information Service Division (ISD) 3

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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 5

6. IDS is Reporting to Executive Vice President of Consumer Banking and Operations Division 6

7. 1992 IDS became a separate department from the Consumer Banking and Operations Division reporting directly to the president. 7

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. 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 banks divisions: Corporate Banking Corporate Trust Consumer Banking 9

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. CDB project was tabled. 11

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13. 1. Project Sponsor2. Priorities Committee3. ISD General Manager4. ISD and System Research5. Project Manager 13

14. Project Proposal Life Cycle Project Life Cycle and 7 Steps Process 3 Steps Process 14

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16. 7 StepsProcess 16

17. Functional Department Determine the Problem. 17

18. Functional Department prepare Problem Statement a nd send it to ISD president. 18

19. ISD authorizes System Research to prepare Impact Statement 19

20. Problem and Impact Statement are then send to Priorities Committee. 20

21. Priorities Committee authorize the System Research Group to prepare a Full-Scale Project Proposal. 21

22. System Research send the proposal to the User Sponsor for Review 22

23. In the monthly meeting, Priorities Committee discussed about A pproving, Dropping, or Tabling the Project Proposal 23

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

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26. 3Steps 26

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. 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. 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. 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

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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 32

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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 36

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 peoples 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. Balanced ScorecardProject Prioritization Matrix 38

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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 40

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

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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 44