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First Security Bank of Cleveland

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Summary: In the past ten years, Tom Hood, the president of First Security of Cleveland, has brought the company into using the most current computer technology in their industry. However, at the rate that the company is growing, several executives have been thinking about whether the present organizational structure was adequate for future operations. Management doubts if the community would be able to adapt to the project management structure. Tom met with one of the vice president, Ray Dallas, to discuss a possible organizational restructuring. Issues: As Tom and Ray discuss the companys situation, they encounter some issues that may affect the companys environment if a restructuring occurs. These issues are: 1. Would the banking community be able to adapt to a project management structure? 2. With the size and complexity of the new computer project, it would create severe integration problems, and the present traditional organization would be unable to cope. 3. Company requires another project manager who could drive the project to success and handle the integration of work across functional lines. 4. With the restructuring, how would it affect if the project stays in one functional department? 5. Possible conflicts with the functional and project manager roles 6. The company having too many project structures 7. Staff unable to adapt to the new environment 8. Possible power struggles

First Security Bank of Cleveland

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9. Wages of a new project manager would possibly be out of their range compared to other banking industry. 10. Without a good project manager, the company is worried that they may fail Analysis/Evaluation: Over the past year, First Securitys projects mainly involved 50% interaction between various departments. As the company grow, so as their problems. For example if there is a small project and one department can handle it, who will manage the project? Would it be the department manager or will management assign a project manager? It seems like with the restructuring, the company will have several bumps on the way. Management for First Security seems to have some basic idea on how to handle the restructuring. Restructuring is a big ordeal for any company. They must consider several factors such as the situation of the company, their objective and goals, the employees and the culture of the company. Recommendations: Before First Security establishes a restructuring, management should seriously look into the reasons why they want this change. A few important points to remember (Super Business, 2012):

Restructuring becomes the solution to a variety of organizational issues, and in that sense we need to look at the restructuring process itself as it impacts on so many peoples lives.

Given that managers and staff are restructured so often, it is important to understand the dynamics of restructuring, what typically goes wrong and what a good process looks like.

First Security Bank of Cleveland

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In our view restructuring should be the last option considered by management rather than the first option. It is often a method for not addressing the organizational issues that it seeks to resolve.

Since First Security is determined to proceed with the restructuring, there are several steps that they must consider in the planning and implementing their new project management system (EhowMoney & SherryL, 2012). 1. Establish and set a clear chain-of-command along with a formalized decision-making process. Make sure the process is simple and can support rapid turn-around times so that implementation does not become stalled. 2. Develop program standards, success indicators and identify the standards that will be used to measure integration of the various program components. Document standards related to processes, communication, data, reports, templates, and distribution methods to ensure that various projects and tasks that are part of the program are integrated. 3. Identify an implementation schedule and status reporting. Document details of key project phases, schedules and milestones. Identify plan participants and project contributors and provide them written documentation of their responsibilities and reporting mechanisms. This will keep the team focused and on task. 4. Communicate, communicate, and communicate. Everyone involved in the program management needs to constantly communicate ongoing initiatives, activities, performance reports, successes, accomplishments, feedbacks and comments.

First Security Bank of Cleveland

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5. Evaluate process and then re-evaluate the plan. Ask for collective feedback from participants and assess if the goal is being achieved. As each key project concludes, hold a formal meeting to discuss the process. In the process, celebrate success, identify areas of improvement, and modify resources as needed to optimize performance. If goals are not being achieved, evaluate if they should change. 6. Develop a training plan. If the outcome of the program management plan results in a new system or process, a formal program should be developed to provide training and resources for all the users and system owners. The plan should outline training, communications and change-management programs.

Furthermore, as a consultant, we can point out to the management some benefits of the restructuring the project management system. These benefits are (Kerzner, 2006):

Project management allows us to accomplish more work in less time, with fewer people.

Profitability will increase. Project management will provide better control of scope changes. Project management makes the organization more efficient and effective through better organizational behavior principles.

Project management will allow us to work more closely with our customers. Project management provides a means for solving problems. All projects will benefit from project management. Project management increases quality. Project management will reduce power struggles.

First Security Bank of Cleveland

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Project management allows people to make good company decisions. Project management delivers solutions. Project management will increase our business.

First Security Bank of Cleveland

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References

EhowMoney, & SherryL. (2012). ehow money. Retrieved from How to implement a program management plan: http://www.ehow.com/how_6064202_implement-programmanagement-plan.html Kerzner, H. (2006). Project management a systems approach to planning, scheduling and controlling (9th ed.). Hoboken, New Jersey: John Wiley & Sons. Super Business. (2012). Project Management Articles. Retrieved from Restructuring Overview: http://www.super-business.net/Knowledge-Management/890.html

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