Providian Trust Essay example

1773 Words Oct 31st, 2010 8 Pages
Providian Trust Case Study

Executive Summary:

Providian Trust is a company which is rich in tradition, experience, and a high level of customer service, but was void of technology, information management, and therefore also void of an IT competitive advantage. Providian Trust was in major need of reengineering and simply implementing a new software system (Access Plus) was not going to give the company a competitive advantage. The company was going to need a dramatic redesign of business processes and intense “reprogramming” of most of the employees as well as the implementation of leading edge software and information technology solutions if it was to again be profitable and become a competitive player. With the implementation of
…show more content…
The flaw lies in the premise that systems development is strictly a technical and not a social change. For instance, the result of most business process re-engineering is downsizing. This could be the source of the resistance to the changes being implemented. The board of directors did approve a plan to reduce full-time employees by 180 thus reducing the trust administration staff by 25%. Therefore it is possible that much of the resistance expressed by the employees stemmed from a fear of losing their jobs. This fear may have been further heightened by the fact that the trust officers working in PITS and Personal Trust ("front office") were not invited at anytime to provide any input or feedback during the implementation of the new system.

The case generally gave the impression that the value of the workers was not totally appreciated. This was shown in the lack of consideration given to the opinions of the employees in the "front office" and the IT department. It was further supported by the way Le Blanc ignored the concerns raised by his peers in the committees and only heeded the recommendations given by consultants. With this lack of consideration, there was also a poor flow of information. Personal trust managers were not included in the feedback mechanism of the project. The back end officers were not communicating with the front-end officers. This may have added to the negative feelings surrounding the project.

Related Documents