Business Context and Problem Analysis:Interim CEO Stephen Walsh is confronted with an outdated information system for Providian's trust division causing undue advantage to more technologically advanced competitors. Veteran Trust Officers spend a lot of time correcting statements, costing the company around $2 million to $5 million on discounts and waived fees because of discrepancies in financial statements.
a)As a solution, the firm decides to develop Access Plus, a new trust and custody management software, but is facing firm resistance from several groups (Personal Trust, PITS divisions and New England Regional offices), most especially from Internal Auditor, Peter Storey which were mostly ignored by the CEO and the Board.
b)Walsh arrived on the scene with 2/3 of $18 million project already spent. He is therefore faced with a lot of pressure to continue on the course of action and approve the roll-out. This is a clear manifestation of the "DEAF EFFECT" despite clear warnings from whistleblowers / experts.
English: Example of a balanced scorecard strategy ...
Balanced scorecard
Slovenčina: Balanced scorecard podľa Kaplana a N...Politics has also complicated the situation with 1) the question on Storey's credibility, and 2) Benari managing the project, thus wanting to put his Trust Operations in the "spotlight".
SOME CONCERNS RAISED AGAINST THE PROJECT, HOW THEY WERE REJECTED (and some examples of their corresponding misgivings based on the BSC for Projects article):a)Removing control from Trust Officers (to back-end Trust Operations -interestingly under Benari's group) will endanger client needs/wants and result to a non-client-oriented process.
â¢CUSTOMER AND INTERNAL PERSPECTIVE and Phase 2 (Planning) Failure - Providian ignores the possible effect on customer value and intimacy by being more concerned with serving the project team and internal politics. The project may deliver "Reliability, Responsiveness and Assurance" but totally miss out on "Empathy" by replacing software with personal interaction provided by experienced Trust Officers. There is also strong resistance and inherent challenges for the...