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Case 1 (Providian Trust)- Analysis write-up/discussion question

1) What Key issues and challenges led to the initiation of the Access+project?

According to our case study. Some of the board members believed that Providian trust was
falling behind the competition in particular their trust division. They decided to implement a new
computer software program that would bring them up to date with their competitors. Their
clients had also been convinced that the new system would dramatically improve service. They
also didnt approve of the way the trust division conducted business. They felt that control
needed to be shifted away from them. Since they had total control of the accounts and according
to some, would waive fees that would end up costing the company millions of dollars in lost
revenue. By implementing Access+, management would be able to have the control they desired.
Thus saving the company $9.2 million in annual savings.

2) What organizational changes that the company should have made (but failed to do)
before and during the project to ensure the success of the Access+ project?

Due to the lack of trust it had on its employees the company failed to include subject matter
experts prior to them agreeing on which software they would utilize. By having a totalitarian VP
the project was due to fail before it began. The board of directors should have elected a change
champion that would be able to rally the employees and embrace the change that was coming.
From the beginning they focused on what the competition was using instead of what would work
best for the company. The steering committee should have included the VP of Corporate
Services since he was in charge of 240 IT personnel. This led to immediate barriers and political
tension within the company. Some of those barriers were
Fear of the unknown- the steering committee failed to furnish realistic information in a
timely fashion further adding uncertainty.
Reduction in personal need fulfillment- this reduction of staff let some employees feeling
lost and unappreciated since their careers came down to 20-minute interviews.
Real or perceived stress- Psychological and physical stress was added to all employees.
Loss of status or personal power- the trust division felt betrayed and they would loose
total control of the accounts.
Loss of equilibrium- instead of leading the company thru this major change, the VP
created a hostile environment where employees picked sides.

3) What were the strengths and weaknesses of Providians approach in managing the

Providian failed to provide a sense of urgency on why change was needed. From the beginning
they failed to include front line managers and personnel that were going to utilize the program on
a daily basis. They didnt address the problem as a team; instead it was the VP running the show
without the taking into consideration the suggestions from the Peter Storey. Another weakness
was the lack of planning and teamwork coming from the IT department; the case study states that
some departments were running behind with the installation of their pc. This created a problem
since they couldnt actually test the product prior to going live.

4) How would you evaluate the roles (good or bad) that the internal auditor Peter Storey
played throughout the project? Do you agree with him, why and why not (if you were in
his role, what would you have done differently)? Should he be fired, why and why not?

I agree with the role that the internal auditor played throughout the project. His SWOT analysis
provided management with a clear picture on why the program was not going to be successful.
Some things that I would have done differently upon receiving a response from Michael LeBlanc
would be to notify the board of directors on the risks identified with-in the audit report. I dont
believe Peter should be fired, instead I believe Michael LeBlanc should be the one fired for
continuing with the project even after he was warned on the different changes that needed to take

5) If you were in charge of the project, what would you do differently? What have been
your experience and observations of IS projects in your organizations? If you were in
charge of a healthcare IS implementation project in your organization, what would be the
top three things/issue on your agenda list?

I would take a different approach than the one presented in the case study. The first thing that I
would do is to create a sense of urgency within the organization on why we need this change.
This would allow us to change the culture of the organization and also have a full buy-in from
the board of directors. Unlike the steering committee comprised of several vice presidents, I
would add the vice president of corporate services along with various managers instead of just
upper management. This would allow us to receive input from those that will be working on the
trenches with the new software and create a powerful guiding coalition. Their advice would be
beneficial when it comes to deciding which program we should select. I would also develop a
vision and communicate that vision to the organization. This would lead to empower others to
act on the vision. We must also plan for and create short-term wins. Additionally employees
who are involved in the improvements must be recognized and rewarded. Finally, I would
institutionalize new approaches by ensuring that managers are continuing to train personnel on
the changes that have taken place.