Project Management at First National Bank

Patricia Quarnstrom
Isis Quinones

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 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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 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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 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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IDS is Reporting to Executive Vice President of Consumer Banking and Operations Division
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1992 IDS became a separate department from the Consumer Banking and
Operations Division reporting directly to the president.
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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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 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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 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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CDB project was tabled.

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1. Project Sponsor

2. Priorities Committee

3. ISD General Manager

4. ISD and System Research

5. Project Manager

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Project Proposal Life Cycle Project Life Cycle

and

7 Steps
Process 3 Steps
Process

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Functional Department Determine the Problem.

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

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ISD authorizes System Research to prepare Impact
Statement

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Problem and Impact Statement are then send to
Priorities Committee.

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

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System Research send the proposal to the
User Sponsor for Review

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

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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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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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 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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 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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 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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 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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 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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 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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Balanced Scorecard

Project Prioritization Matrix

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 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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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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 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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Project Management at First National Bank

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Editor's Notes