Providian Trust
Project Background
Providian trust head quartered in New York, delivered financial and fiduciary services through a network of 216 branches. In 1994, this company managed $49.4 billion in trust asset with a staff of 840 full time employees. Sixty percent of company’s fee income and 9% of gross earnings generated by its fiduciary business that year. Though they had a huge team working on the front and back office handling and record keeping and settling activities, there was always a chance for error and it was easy for everyone point finger at others when it occurs.
Based in the facts presented in this case, LeBlanc wanted to convert the trust division’s outdated information into a more efficient system through which they can keep the date organized and respond to client request more effectively on time, and also generate and send the monthly statements on time with more accurate reports. Though the clients are happy about the statements that they have been receiving, they are not happy about the turnaround time that it takes for them to receive the reports. Ultimately as we can see in this case, they is considerable level of resistance to automate the process and system as the employees feared about their job security. When Michael Walsh took over the responsibility, we have to note that two third of the $18million budget allocated for this conversion project already been spent.
Project Justification Analysis
LeBlanc justified that by having this conversion project successfully implemented with a budget of $18 million, they can earn more trust from the customers, and have the efficient data handling and as a result of this reengineering process, they can get $9.2 million profit, while reducing the work force from 840 to 660. Cost Estimate Overall Project Budget: $18 million Expected Profit annually: $9.2 million
Payback Analysis
SWOT Analysis
As in all projects, this effort taken by LeBlanc of Providian Trust Company, this has
Providian trust head quartered in New York, delivered financial and fiduciary services through a network of 216 branches. In 1994, this company managed $49.4 billion in trust asset with a staff of 840 full time employees. Sixty percent of company’s fee income and 9% of gross earnings generated by its fiduciary business that year. Though they had a huge team working on the front and back office handling and record keeping and settling activities, there was always a chance for error and it was easy for everyone point finger at others when it occurs.
Based in the facts presented in this case, LeBlanc wanted to convert the trust division’s outdated information into a more efficient system through which they can keep the date organized and respond to client request more effectively on time, and also generate and send the monthly statements on time with more accurate reports. Though the clients are happy about the statements that they have been receiving, they are not happy about the turnaround time that it takes for them to receive the reports. Ultimately as we can see in this case, they is considerable level of resistance to automate the process and system as the employees feared about their job security. When Michael Walsh took over the responsibility, we have to note that two third of the $18million budget allocated for this conversion project already been spent.
Project Justification Analysis
LeBlanc justified that by having this conversion project successfully implemented with a budget of $18 million, they can earn more trust from the customers, and have the efficient data handling and as a result of this reengineering process, they can get $9.2 million profit, while reducing the work force from 840 to 660. Cost Estimate Overall Project Budget: $18 million Expected Profit annually: $9.2 million
Payback Analysis
SWOT Analysis
As in all projects, this effort taken by LeBlanc of Providian Trust Company, this has