THE UNIVERSITY OF THE WEST INDIES

ST. AUGUSTINE

Merger Integration at Bank of America: The TrustWeb Project Case

Study Analysis Group Project

COURSE CODE & NAME: PRMG6003 Project and Programme

Management

COURSE LECTURER: Dr. Joseph Khan

ABIGAIL QUAMINA-TOPPIN 816004973

ALEISHA TOUSSAINT 407002957
AVION BEEKHAM 810000970
RYAN MELVILLE 811100008
FACULTY OF
ENGINEERING
DATE: December 02nd 2016
Contents
Literature Review............................................................................................................................ 2
Methodology: .................................................................................................................................. 3
Audit Report.................................................................................................................................... 4
TrustWeb Revised Project Charter .................................................................................................

1|Page
Literature Review
Mergers and acquisitions in the banking and financial system is a phenomena that expands decades
ago. In the United Stated alone between 1984 and 2005 bank declined by approximately 48 percent
due to the increasing trend of mergers and acquisitions although statistics showed that such
acquisitions ae executed successfully less that 50 percent of the time due to top executives primarily
fixated on setting positive synergy targets such as costs and revenue, without considering other non-
financial factors which may increase risks (Varughese and Bond 2008).

(Novickyt and Pedroja 2015) theorized that mergers and acquisitions are usually driven by an
ambition to gain as much weight as possible in the international banking space, to eliminate
competition from profitable areas of business, to procure added financial benefits for the
shareholders, to expand the range of services and to effectively manage the resources available.

The goal of any merger and acquisition project should be the successful execution of said project by
addressing key strategies in mind and incorporating them into an approach that will considerably
maximize the chances of success (Varughese and Bond 2008). This tends to suggest that such success
is derived from the use of project managers that utilizes unique tools and techniques throughout the
projects life cycle, from conceptualization to closing out of the project. The tools and techniques
consist of establishing a common, consistent project management methodology approach which
outlines processes and knowledge areas, help mitigate risk, increase compliance and enable more
efficient project execution, all deemed critical for mergers and acquisitions.

One such project management methodology come from the Project Management Body of Knowledge
(PMBOK) which focuses on ten (10) key knowledge areas and five (5) project management process
groups. Each knowledge area deals with keys areas in project management that determines the
success or failure of a project.

In bank mergers and acquisitions, communication is paramount due to the atmosphere of corporate
culture, which is why it is suggested that naming and empowering the level-one leaders is crucial
to the integration process since it may be hampered by political manoeuvring, acts of self-
preservation and instances of myopic vision (Varughese and Bond 2008).

2|Page
Methodology:
The methodology describes a system of practices, techniques, procedures and rules used by those
who work in a discipline.

Audit the project;

Align the project charter to meet the Organization mission and vision.
Validate the scope
Identify the project management processes (initiating, planning, executing,
monitoring and closing)
Identify project management gaps (issues identified) and make necessary
recommendations in each phase of the project to achieve the project goals.
Create a Recovery plan
To provide strategies to deal with any shortcomings and issues in the project.
Provide special strengths to better achieve the project deliverables.
To provide measurable outcomes.
The project management process group and knowledge area mapping would be used to
access the project. Each knowledge area has one or more project management process groups
used to provide inputs and outputs which should be accomplished in each phase.

3|Page
Audit Report
To determine the faults in the TrustWeb project, key processes of the case study was analysed in
conjunction with the Project Management Body of Knowledge to properly assess the merger and
acquisition of U.S. Trust, from the Bank of America. The key areas are as follows:

Project Integration Management

Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management
Project Procurement management
Project Stakeholder Management

4|Page
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

PROJECT INTEGRATION PMM Required Input PMM Known Output Known Inputs Case Gaps Recommendations
MANAGEMENT Study
Initiating/ Planning Develop project Charter Project Charter Project Statement of Work Project Statement of Work Highlight high level
Project statement of Project purpose or Product scope Mission statement of mission statement in
work justification description detailing UST was highlighted in project charter.
Business case Measurable project pros and cons of BoA the case study but not in Carry out cost benefit
Agreements objectives and related and UST software the charter. The analysis to validate
Enterprise success criteria applications and the strategic plan was not project.
environmental factors High Level benefits to customers placed in the charter Market place conditions
Organizational process requirements also but was mentioned not fully clear i.e.
assets Assumptions and in the case study. customer requirements
constraints Business Case Business Case not properly known as
High-level project The merging of the two No cost-benefit analysis is seen from numerous
description and companies and the highlighted in the scope changes.
boundaries upgrading of BoAs charter.
High-level risks Trust web application to
Summary milestone cater to services that
schedule UST clients are
Summary budget accustomed to using
Stakeholder list whilst passing these
Project approval technological
requirements advancement to their
portfolio of clients
Assigned project
manager Agreements
Name and authority of Knowledge of the
the sponsor or other merger between BoA
person(s) the project and UST was channelled
charter through a press release
on November 20, 2006.
Enterprise Environmental
Factors
The Transition
Leadership Team (TLT)
for the integration
process with varying
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

background specialities
in technology, finance,
HR, marketing, legal etc.
with a majority of the
team from BoA.
Change management
team of over 100 people
including technology,
operations and business
process managers.
Organizational culture
UST catering to strictly
wealthy families whilst
BoA catered to a
broader spectrum of
wealthy people as well
as the global consumer.
Organizational Process
Assets
Excel templates that
contained
considerations for the
assessment phase such
as risk and assumptions.
This was done while
analysing the current
environment.
Creation of process
maps to depict current
state of relevant
business roles, products
and functions. This was
done while analysing
the current
environment.
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

Six sigma framework to

ensure a repeatable,
data-driven process.
The creation of project
files called the
environment gaps and
recommended
projects.
The use of a high level
target framework used
to communicate with
the TLT team which
would evaluate the
overall strategic
direction.
Executing Direct and manage project Project work result Project management plan Project Management plan Create well documented
work Overarching Deliverable Project manager and Development of plans in planning phase.
Project management - approved Trust web execution team subsidiary plans This will reduce delay
plan $3.6 million dollar developed a detailed Enterprise and improve
Approved change project plan Environmental factors functionality.
requests Target Environment : There was a lack of Unaware of risk
Enterprise tollgate with major pertinent documents tolerance The project manager
environmental factors requirements for and as a result the Personnel should be selected in
Organizational process project execution team administration and the initiation phase and
assets Current Environment completed BRD( employee reviews as not execution,
Summary Business requirements change manager was irrespective of whether
Along with other documents) , HLD( High forced to carry out or not it was the culture
subsidiary documents level documents ) and , other functions of the organization.
LLD( low level Organizational Process (Note pg. 7, line 4 of
documents) ; though assets Execution phase).
tollgates, current Issue and defect
environment summary management database Set standard guidelines
and target environment and procedures and work instructions
documentation which containing historical without deviations that
all combined to review and defect will allow for best
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

formalize plans for the status, control practice.

charter; were known . information, issue and
Throughout project defect resolution and Be fully aware of the
planning note that action item results employee performance
reviews took place should have been done. so as to know whether
amongst finance team , they could achieve the
risk management team , objectives of the phase.
six-sigma team and a
team responsible for Allow UST professionals
managing the impact of to take part in the
the work on front line decision making at an
associates who earlier phase.
supported clients on a
daily basis Be fully aware of the
Additional reviews with organizational culture
TLT and change of the businesses in the
manager who had to merger.
display expert
judgement in areas of
finance, planning,
technology operations
and tactical
negotiations.
Approved Change requests
Technology coding
changes to be developed
and tested to integrate
into the system or
process had been
outlined.
Additional items from
unfunded or
underfunded initiatives
Enterprise Environment
Factors
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

Organizational culture -
a change management
team or project
manager was often new
to the execution
initiative as noted.
In execution the change
manager had one or two
projects to directly
manage given rigour.
Prior to execution,
assessment phase,
change manager
supported an entire
line.
Use of Project
management
information system in
form of Microsoft
Project and other
proprietary tools for
tracking milestones,
issues and financials .

Organizational Process
Assets
Standard templates
used for documentation
which captured
operational functions
and married them with
specific technology
capabilities of an
application.
Technology and change
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

management team
communicated in form
of meetings to
determine whether the
above could be
completed within a
specific time frame and
budget.

Monitoring & Controlling Monitor and Control Project Monitor and Control Project Project Management Plan Project Management Plan No proper outline of
Work work : Subsidiary plans Subsidiary plans costs was given. Provide
Project Management Change requests created. created in the execution relevant information
plan Work performance phase which made it where necessary.
Schedule Forecasts reports Work Performance difficult to monitor and
Cost Forecasts Project management information control the project Validate the changes.
Validated changes plan updates BRDs completed and work.
Work Performance Project document HLDs on track but Schedule forecasts and cost Become fully aware of
information updates incomplete forecasts the stakeholders risk
Enterprise Forecasted estimates to Did not determine tolerance level by doing
Environmental factors complete was 3.6 whether the project was proper risk assessment
Organizational Process million within tolerance ranges
Assets Cost Variance and cost Do not wait till
performance index execution to do plans,
should be compared to they will need to be
the budget at updated so as to
completion to indicate monitor and control the
whether project was in project.
tolerance ranges if a
change request is
required.
Validate changes Again, stick to
Proper inspection of the performance metrics as
choice to make the was indicated without
change of migrating the getting political. This
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

basic functionality of can compromise the

the two US. Trust integrity of the project.
Systems to Trust web
needed to be done
Enterprise Environment
factors
Stakeholder risk
tolerance was unknown.
At project kick off
meeting this was then
made known.
Organizational process
assets
Organizational
communications
requirements
Financial control
procedures
Issue and defect
management
procedures
Change control
procedures
Risk control procedures
Process management
data base
Lesson learnt database
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

Perform Integrated Change Perform Integrated Change Perform Integrated change Perform integrated Should have been done
Project Management Control control change control should form inception by the
plan Approved Change requests Project charter which be done project manager
Work performance made up plans through to completion
reports Enterprise of the project to ensure
Change requests environmental factors that scope statement
Enterprise Organisational process and other deliverables
environmental factors assets were maintained by
Organizational process carefully and
assets continuously managing
changes and either
rejecting changes or
approving changes ,
thereby assuring that
only approved changes
will be considered in the
revised baseline.
Closing Close Project or Phase Close Project or Phase Accepted Deliverables Project management Plan Carry out adequate
Project management Final product or service 3.6 million dollar Was not completed. phase audits to ensure
plan or result transition project approved that This would have that phase were
Accepted Deliverables Organizational process would add the missing indicated the agreement completed well.
Organizational Process assists updates functionality to Trust between the project Ensure all relevant
Assets Web in order to prevent manager and project documents required
degradation of the sponsor defining what are obtained prior to
service constitutes project or the execution phase
phase completion
Operational Process Assets
Obtained a charter in
the execution phase Administrative
which was the starting procedures
point for the team.
Phase guidelines
provided as they
evaluated the project
risks in the assessment
AUDIT REPORT PROJECT INTEGRATION MANAGEMENT

phase
Transition criteria was
to hand off the project
to the change
management execution
team
AUDIT REPORT PROJECT SCOPE MANAGEMENT
PROJECT SCOPE PMM Required Input Output Known Inputs Case Study
MANAGEMENT
Planning Project scope management Plan scope Management Plan scope Management
Plan scope Management Scope management plan From the integrated
Collect requirements Requirements plan phase the team
Define scope management plan provided project
Create WBS charters which
combined to formalize a
plan to guide the
transition team
Requirements:
Performance metrics,
decision making
rationale, key processes,
stakeholders known in
Current Environment.
In Target Environment
project was prioritized.
Note that it was in top
10% of integration
initiatives based on cost
and complexity given
limited funding.
Collect Requirements Collect Requirements
Requirements Requirements stated in
management current environment
documentation summary
Requirements Requirements in
Traceability Matrix execution phase from
stakeholders which
were updated before
legal close of project in
July 2007.
Gaps Recommendations
Plan Scope Management Create properly
See Project Charter in documented project
Project Integration charter and subsidiary
Project management plans to influence how
Plan the project should be
Configuration managed.
Management activities All subsidiary plans
Traceability Structure should have been
completed in the
assessment phase not
execution phase.
Collect Requirements Collect all requirements
See plan scope for the project which
management should be done before
Stakeholder execution phase. Note
requirements not fully that, this would have
known also eliminated the
Solution requirements stress of the project
Project requirements level change manager.
Likewise, stakeholders
and their requirements
AUDIT REPORT PROJECT SCOPE MANAGEMENT

Transition would have been known

requirements prior to Running the
Requirements Trust web project
assumptions, instead of Morris and
dependencies and team having to do so at
constraints that point.
Requirements
traceability matrix Requirements
Traceability matrix is
necessary.

Define Scope Define Scope

Project Scope statement Done in the assessment A properly defined
Project documents phase and stated in scope should be done in
updates charter Exhibit 3 PMW Define Scope assessment phase so as
PLUS , Account Acceptance criteria to provide a description
Maintenance and Project exclusion of the project, service or
workflow migration, Constraints result boundaries given
Trust Web cash receipt Assumptions requirements that
and functionality, Project documents should be included and
deployment of Trust updates : stakeholder excluded from the
Web to PBRC registry , requirements project scope.
documentation ,
requirements Provide an update of
traceability matrix relevant documents to
allow for timely flow of
the project and project
delivery of
product/service.
Create WBS
Scope baseline Create WBS Required adequate
Project documents Requirements documents and
updates documentation which documentation and
was completed in the Create WBS thereafter updates.
Execution phase Scope management plan
AUDIT REPORT PROJECT SCOPE MANAGEMENT

Poorly documented Project scope statement WBS dictionary would

project scope Enterprise be pertinent.
Project documentation environmental factors A project of this nature
form Assessment phase Organizational process should not have been
was used for execution assets fast tracked in
phase assessment phase

Scope assessment Validate Scope Validate Scope Validate scope This process is
Validate scope Accepted Deliverables Project charters that Project management necessary as it would
Control scope Change requests made up plan and were plan bring objectivity to the
Work performance inclusive of Full requirements acceptance process and
information requirements documentation increase the chance of
Project documents Verified deliverables in Requirements the final product. Note
updates form of phase traceability matrix the acceptance process
documentation Verified deliverables with UST and other
Work performance data stakeholders did not go
as planned.

Control Scope Control Scope Control Scope

Work performance Documentation in form Project management This would assist in
information of charter that made up Plan monitoring status of
Change requests plan Requirements project and scope and
Project management documentation also manage scope
plan updates Requirements creep. Note as time
Project documents traceability matrix went by there was
updates Work performance data additional items that
Organizational process Organizational process was added to the
assets updates assets negotiations in
Execution phase.
AUDIT REPORT PROJECT TIME MANAGEMENT

PROJECT TIME PMM Required Input Output Known Inputs Case Study Gaps Recommendations
MANAGEMENT
Planning Schedule Time Management Plan Schedule Project document updates Project schedule poorly The summary schedule
Plan Schedule Management Schedule documented no activity on should be separated from
Management plan Entire transition process : node diagram showing the milestone schedule and
Define Activities Define Activities 5-6months activities and relationships a detailed schedule should
Sequence Activities Activity List also be properly done.
Estimate Activity Activity Attributes Develop Schedule
Resources Milestone list
Estimate Activity Sequence Activities
Durations Project Schedule
Develop Schedule Network Diagram
Project Documents
updates
Estimate Activity Resources
Activity Resource
Requirements
Resource Breakdown
Structure
Project Documents
Updates
Estimate Activity Durations
Activity Duration
Estimates
Project Documents
Updates
Develop Schedule
Schedule baseline
Project schedule
Schedule data
Project calendars
Project management
Updates
Project Documents
Updates
AUDIT REPORT PROJECT TIME MANAGEMENT

Monitoring & Controlling Control Schedule

Project Management Work Performance Project schedule Relevant documentation Relevant Information
Plan Information should have been presented
Project Schedule Schedule Forecasts at the Implementation
Work Performance data Change Requests festival. Such would have
Project calendars Project Management strengthen the case for
Schedule data Plan updates Trust Web.
Organizational process Project Document
assets Updates
Organizational Process
Assets Updates
AUDIT REPORT PROJECT COST MANAGEMENT

PROJECT COST PMM Required Input Required Output Known Inputs/ Outputs Gaps Recommendations
MANAGEMENT Case Study
Planning Develop Cost Mgmt Plan Cost Management Plan Project Management Plan Project Management Plan
It may contain any of the The planning of the Even though the scope Production of a detailed
1. Project management following: project management of the project was project scope
plan Units of measure plan took place at defined in the statement, which can
Scope Baseline Level of precision varying stages of the assessment phase, no be incorporated with
Schedule baseline Level of accuracy project. The scope of indication of preparing other items such as the
Other info: risks etc. Organizational the project which falls a project scope project charter(s) to
procedures links within the requirements statement incorporating formulate a detailed
2. Project charter Control thresholds of the scope baseline constraints, exclusions cost management plan.
3. Enterprise Rules of performance requirement was etc. was indicated.
environmental factors measurement completed in the
4. Organizational process Reporting formats assessment phase after
assets which the Six-Sigma
Process descriptions
framework was
Additional details
implemented taking
into consideration the
planning of financials
for the project.
The breakdown of the The WBS was not The representation of
project was related in indicated to be each phase or
phases with the produced which could deliverable in a chart
assessment phase further breakdown form (WBS) which can
further broken into sub- incurred cost which be used to better
phases. was summarized in the establish timelines and
project charter. breakdown costs more
accurately.
The integrated plan
sub-phase created a
series of project
charters that would be
AUDIT REPORT PROJECT COST MANAGEMENT

used to seek funding

for the execution phase

Project Charter
Provided a summary
budget of technology
resource hours and
associated cost.

Enterprise Environmental
Factors
The Transition
Leadership team (TLT)
had the greatest
influence on
prioritizing the
allocation of funds for
project but only
included one
stakeholder from US
Trust and the remainder
from Bank of America.

Organizational Process
Assets
Use of past knowledge
of selecting which
platform or operating
model to use depending
on the particular
business conditions in
order to maximize cost
savings.
AUDIT REPORT PROJECT COST MANAGEMENT

Estimate Cost Estimates Estimate Cost Estimate Cost Estimate Cost

1. Cost Mgmt Plan 1. Activity cost estimates
2. Human Resource 2. Basis of estimates
Mgmt Plan 3. Project documents
3. Scope Baseline
4. Project Schedule
5. Risk Register
6. Enterprise
Environmental Factors
7. Organizational Assets
Project staffing and There is no indication The project schedule
their roles for each in their human resource can be improved upon
phase of the project management plan of by listing costs
updates was listed, such as the personnel rates to associated with each
TLT team, TPO team specify costs, or milestone so better and
and the change incentives for rewards/ faster decisions by the
management executive recognitions. TLT team can be made.
team. The case study didnt The inclusion in reports
A project milestone highlight the exact cost of a cost estimating
schedule (Exhibit 4) estimation method(s) method based on past
was provided which used for past mergers mergers and other key
can be used to and the desired one for metrics
determine cost based the current merger and Based on the collective
on estimated time taken acquisition. costs of each project
to complete. within the assessment
Risk register was phase, an activity cost
initiated in the first estimate and basis of
sub-phase of the cost documentation
assessment phase should be formulated
called Current for better tracking of
Environment and each work package.
registered on Excel
templates. Other risks
were identified in the
Target
Environment phase
and the Integrated
Plan Phase in an
Execution Risk Matrix.
Bank of America
seized the opportunity
to acquire US Trust
AUDIT REPORT PROJECT COST MANAGEMENT

based on the failed

acquisition of Charles
Schwab and an
opportunity to
capitalize ultra-wealthy
market which would
give them a
competitive advantage.
The formal definition
of projects that would
be necessary in order to
move a system or
process into its target
state was a key tactical
step to help identify
budget costs.
As part of the
acquisition budget,
BoA assumed certain
costs within the first
year or two.

--------------------------------- --------------------------------- --------------------------------- --------------------------------- ---------------------------------

Determine Budgets
1. Cost Management Plan
2. Scope Baseline
3. Activity Cost Estimates
4. Basis of Estimates
5. Project Schedule
6. Resource Calendar
7. Risk Register
8. Agreements
Budgets The acquisition of US
1. Cost baseline Trust was announced
2. Project funding for 3.3 billion dollars.
requirements Funding is received
3. Project documents based on the series of
update project charters from
each sub-phase of the
assessment phase.
Funding requirements Preparation of an
methodologies are not aggregated cost
highlighted in the case estimate for work
study. This aspect is packages sourced from
important since its used to different project
anticipate liabilities. charters
Preparation of a cost
baseline to compare
theoretical costs to
AUDIT REPORT PROJECT COST MANAGEMENT

9. Organizational process The team led by the actual cost whilst

assets change managers taking into
defined projects that consideration known-
would be necessary in known costs via
order to move a system contingencies and
or process into its unknown-unknowns
target state and this via management
step helped identify the reserves.
budget necessary for all
requested projects.
Monitoring & Controlling Control Costs Control Costs Project management The team should utilize a
1. Project management 1. Work performance tools such as Microsoft cost an EAC (estimate at
plan information project was used for completion) forecast at
2. Project funding 2. Cost forecasts tracking financials. every phase of the project
requirements 3. Change requests when the milestone is met
3. Work performance data 4. Project manage plan ad surpassed
4. Organizational process 5. Project documents
assets updates
6. Organizational process
assets updates
AUDIT REPORT PROJECT QUALITY MANAGEMENT

PROJECT QUALITY PMM Required Input Required Output Known Inputs/ Outputs Gaps Recommendations
MANAGEMENT Case Study
Planning 1. Project management 1. Quality management Project Management Plan Project Management Plan More involvement
plan plan See project cost See project cost from senior
Scope baseline 2. Process improvement management management knowledgeable staff
Schedule plan knowledge area knowledge area from US Trust.
baseline 3. Quality metrics
Cost baseline 4. Quality checklists Stakeholder Register: Stakeholders The representation of
Other 5. Project documents Stakeholders consisted of Not all stakeholders each phase or
management updates the Transition Leadership were identified for deliverable in a chart
plans Team (TLT), Stakeholders proper analysis. form (WBS) which can
2. Stakeholder register Group consisting of senior The TLT only be used to better
3. Risk register business leaders, the accounted for one establish timelines and
4. Requirements Transition Program Office member from the US breakdown costs more
documentation (TPO), Change Trust bank which may accurately.
5. Enterprise management Executive hinder the quality of
environmental factors team etc. the merger and
6. Organizational process acquisition since senior
assets Risk Register staff may have valuable
Risks were identified in the information that can
Current Environment, make the process
Target Environment and smoother.
the Integrated Plan sub-
phases of the assessment
phase. Risks were
summarized in an
Execution Risk Matrix to
assess and mitigate.

Requirements
documentation
The company had
developed a number of
AUDIT REPORT PROJECT QUALITY MANAGEMENT

proprietary Excel based

templates to guide
individuals through the
merger process
Executing Perform Quality Assurance 1. Change requests Change managers were Too many project The utilization of a
1. Quality management 2. Project management limited to one or two charters WBS to track activities
plan plan updates projects due to Charters generated at can increase the quality
2. Process improvement 3. Project documents increased work the execution phase as of work to be done,
plan updates involved, thereby not opposed to the compensating for work
3. Quality metrics 4. Organizational process affecting the quality of initiation phase variations.
4. Quality control assets updates work. Formulating activity
5. Project documents network diagram to
track critical path to
any project.
Monitoring and Control Control Quality Control Quality Documentation such as No further explanation List of project
1. Project management 1. Quality control the Business of what these documents needed in
plan measurements Requirement Document documents are about ad the control phase with
2. Quality metrics 2. Validated changes (BRD), the High Level how exactly do they precise information
3. Quality checklists 3. Verified deliverables Design document contribute to the explaining their use
4. Work performance data 4. Work performance (HDL) and the Low effectiveness of the with respect to delays
5. Approved change information Level Design document project.
requests 5. Change requests (LLD) were utilized as
6. Deliverables 6. Project management part of a detailed
7. Project documents plan updates project plan
8. Organizational process 7. Project documents
assets updates
8. Organizational process
assets updates
AUDIT REPORT PROJECT HUMAN MANAGEMENT

PROJECT HUMAN PMM Required Input Required Output Known Inputs/ Outputs Gaps Recommendations
RESOURCE Case Study
MANAGEMENT
Planning 1. Project management Human resource Hierarchy of the project Responsibilities are a bit Utilizing a RACI
plan management plan consists of skewed and should be (responsible, accountable,
2. Activity resource CEO revisited. consult, and inform) chart
requirements Chairman to properly determine what
3. Enterprise Transition Leadership the structure of
environmental factors Team responsibilities should lie.
4. Organizational process Transition Program
assets Office
Change management
executive (team)
Executing Perform Quality Assurance 1. Project assignments Mike (project manager) Lack of a detailed Implementation of a
1. Acquire Project Team 2. Resource calendars was brought on to the human resource change request form.
2. Develop Project Team 3. Project management project during the management plan to Project forms
3. Manage Project Team plan updates execution phase. determine strengths and portraying description
4. Team performance Members from the TLT weaknesses of assigned of roles.
assessments were handpicked for project managers.
5. Enterprise their expertise. No assessment methods
environmental factors Project level change to choose suitable
updates manager was forced to candidates for positions
6. Change requests demonstrate their as opposed to hand
7. Project management project management picking persons.
plan updates skills in differing areas.
8. Project documents Personnel reassigned or
updates leaving their post
9. Enterprise within the project.
environmental factors
updates
10. Organizational process
assets updates
AUDIT REPORT PROJECT RISK MANAGEMENT
PROJECT RISK PMM Required Input PMM Known Output
MANAGEMENT
Initiating/ Planning Identify Risk and Plan Risk
Management
Risk management plan
Cost management plan
Schedule management
Quality management
Human resource
management plan.
Scope baseline
Activity cost estimates
Activity duration
estimates
Stakeholder register
Project documents
Procurement
documents
Enterprise
environmental factors
Organizational process
assets.
Project management
plan
Project charter
Stakeholder register
Known Inputs Case Gaps Recommendations
Study
Risk Register Stakeholder register: Risks were not ranked Highlight high level
Risk management plan stakeholders were according to high, low mission statement in
Project document identified who would medium, to determine project charter.
updates require updates and who priority risk. Carry out cost benefit
would participate in analysis to validate
periodic reviews. Not all stakeholders project.
were identified for Market place conditions
Risk Management plan: proper analysis. not fully clear i.e.
customer requirements
The team defined the Lack of techniques such not properly known as
considerations that the as cause and effect is seen from numerous
assessment would analysis to determine scope changes.
cover, including work to the root cause of the
be completed, key risks risks identified.
and assumptions as well
as dependence
For finishing the
assessment.
Team members created
process maps to depict
the current state of
relevant business roles,
product and functions.
The assessment team
was charged to create a
summary that provided
enough information for
the TLT and
stakeholders to
understand the teams
decision- making
rationale and approve
or reject progression to
AUDIT REPORT PROJECT RISK MANAGEMENT

the target environment

step.
Risks were summarized
in an execution risk
matrix which generated
a risk score which was
used to assess how
aggressively the
execution team would
need to mitigate the
risks in the project.
Project Management
Plan:
The change execution
team led the application
of the bank of America
Six Sigma based
framework to manage
the execution of its
project. The company
incorporated six steps
embedded within the
early stages of a
traditional DMAIC
(Define, measure,
Analyze, Improve and
Control) process
structure.
Define the scope of the
project
Plan the project
Evaluate the project
risks
AUDIT REPORT PROJECT RISK MANAGEMENT

Perform the
management check
point.
Review/ update the
project deliverables.
Schedule management
plan; Microsoft project
as well as host
proprietary tools for
tracking milestones and
issues.
Cost management
plan: Microsoft project
used for tracking
financials.

Project Documents: the

change managers led to the
creation of two documents;
environmental gaps and
recommended projects
which identified gaps
between the systems or
processes not selected and
the target system as well as
projects for closing the
gaps. The target
environment definition;
identified stakeholders and
the required levels of
support, the risks related to
adopting the target
environment and key
decisions that that would
have to be made about the
AUDIT REPORT PROJECT RISK MANAGEMENT

structure of the target

environment.
Project charter: identify
technology development
needs and corresponding
costs.

Standard templates
used for documentation
which captured
operational functions
and married them with
specific technology
capabilities of an
application.
Monitoring & Controlling Control Risk Work performance Lack risk Create well documented
Project management information. Project management management plans in planning phase.
plan Change request plan updates policies and This will reduce delay
Risk register Project management procedure. and improve
Work performance data plan updates The project functionality.
Work performance Project document management plan
reports updates does not provide The project manager
Organizational process guidance for should be selected in
asset updates. monitoring and the initiation phase and
controlling of risk. not execution,
Lack of risk audits. irrespective of whether
or not it was the culture
of the organization.
(Note pg. 7, line 4 of
Execution phase).

Set standard guidelines

and work instructions
without deviations that
AUDIT REPORT PROJECT RISK MANAGEMENT
Initiating/ Planning Identify Risk and Plan Risk
Management
Risk management plan
Cost management plan
Schedule management
Quality management
Human resource
management plan.
Scope baseline
Activity cost estimates
Activity duration
estimates
Stakeholder register
Project documents
Procurement
documents
Risk Register Stakeholder register:
Risk management plan stakeholders were
Project document identified who would
updates require updates and who
would participate in
periodic reviews.
Risk Management plan:
The team defined the
considerations that the
assessment would
cover, including work to
be completed, key risks
and assumptions as well
as dependence
will allow for best
practice.
Be fully aware of the
employee performance
so as to know whether
they could achieve the
objectives of the phase.
Allow UST professionals
to take part in the
decision making at an
earlier phase.
Be fully aware of the
organizational culture
of the businesses in the
merger.
Risks were not ranked No proper outline of
according to high, low costs was given. Provide
medium, to determine relevant information
priority risk. where necessary.
Not all stakeholders Validate the changes.
were identified for
proper analysis. Become fully aware of
the stakeholders risk
Lack of techniques such tolerance level by doing
as cause and effect proper risk assessment
analysis to determine
the root cause of the Do not wait till
risks identified. execution to do plans,
they will need to be
updated so as to
AUDIT REPORT PROJECT RISK MANAGEMENT

Enterprise For finishing the monitor and control the

environmental factors assessment. project.
Organizational process Team members created
assets. process maps to depict
Project management the current state of
plan relevant business roles, Again, stick to
Project charter product and functions. performance metrics as
Stakeholder register The assessment team was indicated without
was charged to create a getting political. This
summary that provided can compromise the
enough information for integrity of the project.
the TLT and
stakeholders to
understand the teams
decision- making
rationale and approve
or reject progression to
the target environment
step.
Risks were summarized
in an execution risk
matrix which generated
a risk score which was
used to assess how
aggressively the
execution team would
need to mitigate the
risks in the project.
Project Management
Plan:
The change execution
team led the application
of the bank of America
Six Sigma based
framework to manage
AUDIT REPORT PROJECT RISK MANAGEMENT

the execution of its

project. The company
incorporated six steps
embedded within the
early stages of a
traditional DMAIC
(Define, measure,
Analyze, Improve and
Control) process
structure. Should have been done
Define the scope of the form inception by the
project project manager
Plan the project through to completion
Evaluate the project of the project to ensure
risks that scope statement
Perform the and other deliverables
management check were maintained by
point. carefully and
Review/ update the continuously managing
project deliverables. changes and either
Schedule management rejecting changes or
plan; Microsoft project approving changes ,
as well as host thereby assuring that
proprietary tools for only approved changes
tracking milestones and will be considered in the
issues. revised baseline.
Cost management
plan: Microsoft project
used for tracking
financials.
AUDIT REPORT PROJECT RISK MANAGEMENT

Project Documents: the

change managers led to the
creation of two documents;
environmental gaps and
recommended projects
which identified gaps
between the systems or
processes not selected and
the target system as well as
projects for closing the
gaps. The target
environment definition;
identified stakeholders and
the required levels of
support, the risks related to
adopting the target
environment and key
decisions that that would
have to be made about the
structure of the target
environment.
Project charter: identify
technology development
needs and corresponding
costs.

Standard templates
used for documentation
which captured
operational functions
and married them with
specific technology
capabilities of an
application.
AUDIT REPORT PROJECT RISK MANAGEMENT

Monitoring & Controlling Control Risk Work performance Project management Lack risk Carry out adequate
Project management information. plan updates management phase audits to ensure
plan Change request policies and that phase were
Risk register Project management procedure. completed well.
Work performance data plan updates The project Ensure all relevant
Work performance Project document management plan documents required
reports updates does not provide are obtained prior to
Organizational process guidance for the execution phase
asset updates. monitoring and
controlling of risk.
Lack of risk audits.
AUDIT REPORT PROJECT PROCUREMENT MANAGEMENT

PROJECT PROCUREMENT PMM Required Input PMM Known Output Known Inputs Case Gaps Recommendations
MANAGEMENT Study
Planning Plan procurement Procurement Project management Due to lack of information A WBS should be
management management plan plan: in the project scope it is not established to
Project management Procurement statement Includes a project scope clear as to what resources identify components
plan of work description for a specific should be procured, what of work that may be
Requirement Procurement result and deliverables. could impact cost resourced externally.
documentation documents Project schedule: Gantt estimates, delivery dates The project scope
Risk register Source selection criteria chart and what needs to be should be more
Activity Resource Make or buy decisions outsourced detailed including
requirements Change request Activity cost estimates: product scope
Project Schedule Project document Forecasted estimates to Project schedule: Gantt description, service
Activity cost estimates updates complete was 3.6 chat, did not take all project description, result
Stakeholder register million activities into account, all description, list of
Enterprise Stakeholder register: milestones was not deliverables,
Environmental factors include some project identified. acceptance criteria
participants. Activity cost estimates: and any other
Organizational process
assets Enterprise important
Environmental Cost estimates did not information
factors: Use of Project indicia the Stakeholder regarding technical
management register: issues.
information system in Reasonableness of the bids The schedule should
form of Microsoft or proposals from potential contain information
Project and other sellers. on required timelines
proprietary tools for or mandated
tracking milestones, deliverable dates.
issues and financials . Cost estimates should
include bids or
Organizational proposals.
process assets: Expert purchasing
Technology and change judgement can be
management team used to modify or
communicated in form develop the criteria
of meetings to for seller proposals.
determine whether the
AUDIT REPORT PROJECT PROCUREMENT MANAGEMENT

above could be Risk related contracts

completed within a should be included in
specific time frame and project documents.
budget

Executing Conduct procurements Organizational process Did not include relevant Should
Project management Selected sellers Assets information to conduct include a
plan Agreements Project management procurement process. procurement
Procurement Resource calendars plan statement of
documents Change requests work to help
Source selection criteria Project management identify
Seller proposals plan updates specifications,
Project documents Project document quantity
Make or buy decisions updates desired,
Procurement statement quality levels,
of work performance
Organizational process data, period
assets of
performance
to provide
quantifiable
response.

The project manager

should ensure that all
agreements meet the
specific needs of the
project while adhering to
organizational
procurement policy.
Monitoring & Controlling Control procurements Project management The project management Approve change
Project Work performance plan. plan did not indicate how request can include
management plan information the procurement process modifications to
Procurement Change requests will take place. terms and conditions
documents of the contract
AUDIT REPORT PROJECT PROCUREMENT MANAGEMENT

Agreements Project management including

Approve change updates procurement
request project document statement of work,
Work performance updates pricing and
reports Organizational process description of
Work performance assets updates product and services
data or results to be
provided.
All procurement
related changes
should be formally
documented in
writing and approved
before being
implemented
through the control
procurement
process.
Closing Close Procurements Closed procurements Project management Does not provide The project
Project management Organizational process plan documents for closing out management plan
Plan assets. procurement. should include a
Procurement procurement plan
documents with details and
guidelines for closing
procurement.
AUDIT REPORT PROJECT STAKEHOLDER MANAGEMENT
PROJECT STAKEHOLDER PMM Required Input PMM Known Output
MANAGEMENT
Initiating/ Planning Identify Stakeholders
Project charter Stakeholder
Procurement
documents
Enterprise
Environmental factors
Organizational Process
assets
Plan Stakeholder
Management
Project management
plan
Stakeholder register
Enterprise
Environmental factors
Organizational process
assets
Known Inputs Case Gaps
Study
Stakeholder register Project charter The project charter did
Enterprise not provide information
management plan Environmental factors.
Project document Organizational process
updates assets
Project management
plan
Stakeholder register
Recommendations
The charter should
provide information
of all internal and
external parties related
with the project and
affected by the result.
Organizational
process assets:
Issue and defect
management database
and procedures
containing historical
review and defect
status, control
information, issue and
defect resolution and
action item results
should have been done.
about internal and
external parties related
with the project and
those affected by the
results eg. Project
sponsor, customers and
people in the
organization etc.
To ensure
comprehensive
identification and listing
of stakeholders,
judgement and
expertise should be
sought from groups or
individuals with
specialized training or
subject matter expertise
such as senior
management, other
units within the
organization, key
stakeholders and
consultants.
The project
management plan
should include how
human resource
requirements will be
met and how roles and
responsibilities will be
addressed and
AUDIT REPORT PROJECT STAKEHOLDER MANAGEMENT

structured for the

project.
Historical information
should be provided
since it is of particular
importance in providing
insights on previous
stakeholder
management plans.
Executing Manage Stakeholder Organizational Not identifying The project manager
Engagement Issue log process assets. communication for should develop a
Change requests each stakeholder. communication plan
Stakeholder Project based on stakeholders
management plan management plan A change log was to decide how, when
Communications Updates not established to and which of these
management plan Project documents provide updates. communication
Change log updates methods are to be used
Organizational Organizational in the project.
process assets process assets A change log should be
updates established to
document changes
during a project.

Monitoring & Controlling Control Stakeholder Work performance Project management The lack of a change Establish a change
Engagement information plan management plan that management plan.
Project management Change requests Project documents documents how Establish techniques for
plan Project Management changes will be communication among
Issue log Plan updates monitored and stakeholders.
Work performance data Project documents controlled. Keep track and record
Project documents updates No documentation of new issues identified
Organizational process issues along the project. and those that have
assets updates. been resolved.
Measurements on
project activities and
deliverables should be
AUDIT REPORT PROJECT STAKEHOLDER MANAGEMENT

conducted to identify if
the project is
establishing it goals or if
change is needed.
APPENDIX 1 PROJECT CHARTER
 TRUSTWEB
PROJECT CHARTER
Version 2.0
August 2007
 TRUSTWEB

VERSION HISTORY
(EXAMPLE)

Version Implemented Revision Approved Approval Reason

# By Date By Date

1.0 Change 06/06/2007 TLT 27/6/2007 Completion of Risk

Manager Chairperson Assessment

Page 3 of 30
 TRUSTWEB

1 INTRODUCTION

1.1 PURPOSE OF PROJECT CHARTER

The TrustWeb project charter documents and tracks the necessary information required by
decision maker(s) to approve the project for funding. The project charter should include the
needs, scope, justification, and resource commitment as well as the projects sponsor(s)
decision to proceed or not to proceed with the project. It is created during the Initiating
Phase of the project.
The intended audience of the TrustWeb project charter is the project sponsor and senior
leadership.
2 PROJECT AND PRODUCT OVERVIEW
Bank Merger - Bank of America and US Trust
On November 20, 2006, Bank of America announced the acquisition of U.S. Trust from Charles
Schwab for $3.3 billion. It is recommended that this description should state the estimated
duration (e.g. 18 month) and the estimated project budget (e.g. $2.5 mil)

3 JUSTIFICATION

3.1 BUSINESS CASE

In the combined UST/BAC PWM group the CSSO will be the day to day client service provider
for all. When clients have investment related questions, the CSSOs will need a tool that can
provide them seamless access to investment and account data in order to respond timely and
accurately to clients. UST has had these capabilities and cannot support its client base
without them. This new functionality will also improve the client experience for BAC clients
chiefly due to the fact that associates will have more information at their disposal than ever
before and will not need to seek search from help desks or ART as frequently, BAC clients will
benefit from timely response to basic questions which in the past took days or week to
compile on their behalf. 75% of their client inquiries require TrustWeb Tool.

3.2 BUSINESS IMPACT

Cut 25-30% of U.S. Trust back office costs by eliminating overlapping functions. The
integration of Bank of America and U.S. Trust Platforms, to better meet the comprehensive
needs of individuals, family members, business owners or executives, foundation and
institutional leaders will significantly increase Bank of Americas profit margin.

3.3 PROJECT STATEMENT OF WORK

For Bank of American, this acquisition will enhance their credibility in the market, significantly
advancing their capability to serve especially ultra-high net worth clients and adds scale to
their private banking business. U.S. Trust has a long-standing reputation for outstanding client
service and providing clients with comprehensive financial solutions by offering a full suite of
sophisticated products. Combining the complementary capabilities of both companies will add
value to their clients. The acquisition of U.S. Trust was intended to strengthen Bank of
America's Private Bank within the Global Wealth Management business segment. At the end of
2006, the Global Wealth Management business segment held $542 billion in assets under
management. Two wealth management organizations with highly complementary strengths,
similar business models, and a shared passion for serving the unique needs of wealthy and
ultra-wealthy individuals and families nationwide will be merged. U.S. Trust clients will gain
access to Bank of America's broad-based services and unparalleled distribution platform,
helping to better meet their comprehensive needs as individuals, family members, business
owners or executives, foundation and institutional leaders. Bank of America's wealthy clients
will benefit from expanded distribution, additional wealth management instruments, increased
presence in key markets.

4 SCOPE

4.1 OBJECTIVES
The project focuses on defining the enhancements to the TrustWeb application which are
vital to the Private Wealth Management Group's asset management relationship (Trust-
PACE) and the new combined UST/BAC relationship management business model. The goal
is to build/enhance the Trust/Web application giving all PWM associates user friendly assess
to account data including transactions and history, holdings, cost information, asset
Page 4 of 30
 TRUSTWEB

allocation, dividend/interest income, realized and unrealized gain/loss, performance data,

contributions/withdrawals, and account characteristics. Characteristics would include
account title, tax id, tax payers/owners fee schedule, etc. The application should have the
ability to download this account information or a consolidated group of accounts, excel and to
produce canned reports associates could run on the fly. These would include schedules of
property with the ability to view and print an account or consolidated group of accounts,
asset allocation, equity industry diversification, all as/of a particular date. UST associates
have all this information at their fingertips today using PMW+ and AWS. These tools enable
UST client service officers to easily respond to client inquiries regarding their investment
portfolios. BAC associates do not have these capabilities today and have to request client
information from several sources including portfolio managers and assistants, the ART group,
and other help desks in order to respond adequately to their clients. The CSSO will be the
officer servicing both banking and investment clients in the new PWM core client team. They
will need an array of tools at their disposal to provide superior client service. UST clients
expect immediate response to their investment inquiries and would be adversely affected if
our CSSOs did not have the ability to respond timely and efficiently. In addition this inability
to respond to client inquiries will be viewed by the UST clients as a degradation of service
due to the BAC acquisition. This functionality is sorely needed and will benefit BAC
associates and clients as well as UST associates and clients.

4.2 HIGH-LEVEL REQUIREMENTS

The following table presents the requirements that the projects product, service or result
must meet in order for the project objectives to be satisfied.
Req. # Requirement Description
REQ-1 The system should provide a blended approach to most of its projects in
order to prevent the degradation of service to U.S Trust clients.
REQ-2 The system should provide an approach to cut 25-30% 0f U.S. Trusts
back office costs by eliminating overlapping functions, IT systems, and
locations without losing existing customers and employees.

4.3 MAJOR DELIVERABLES (EXAMPLES)

The following table presents the major deliverables that the projects product, service or
result must meet in order for the project objectives to be satisfied.
Major Deliverable Deliverable Description

Rel 1 Addressing regulatory requirements.

Rel 2 Adding functionality to address U.S. Trust
Associates.

5 DURATION

5.1 TIMELINE

Project Plan Completed Requirements Analysis Developed Risk Analysis

Completed Prioritization of projects for funding

10/05 12/05 02/06 05/06

5.2
5.3 EXECUTIVE MILESTONES (EXAMPLES)
The table below lists the high-level Executive Milestones of the project and their estimated
completion timeframe.
Executive Milestones Estimated Completion Timeframe

Project charter approved Two weeks after Letter of Agreement is

Approval of integrated approach to Bank of
America and U.S. Trust Platforms.
New organizational structure approved
signed by the relevant parties.
Ten weeks after requirements analysis
is completed.
Four weeks after assessment of current
environment.

Page 5 of 30
 TRUSTWEB

6 BUDGET ESTIMATE

6.1 FUNDING SOURCE

This project will be funded by the Operational Budget

6.2 ESTIMATE (EXAMPLES)

This section provides a summary of estimated spending to meet the objectives of the
TrustWeb project as described in this project charter. This summary of spending is
preliminary, and should reflect costs for the entire investment lifecycle. It is intended to
present probable funding requirements and to assist in obtaining budgeting support.

Page 6 of 30
 TRUSTWEB

Object Budget Item Qtr1 Qtr2 Qtr3 Qtr4 Total

Code
11/12 Personnel. $ - $ - $ - $ - $0.00
20 Contractual Services $ - $ - $ - $ - $0.00
21 Travel $ - $ - $ - $ - $0.00
22 Transportation of things.. $ - $ - $ - $ - $0.00
23 Rent, Telecom, Other Comm & $ - $ - $ - $ - $0.00
Utilities..
24 Printing & Reproduction $ - $ - $ - $ - $0.00
26 Supplies $ - $ - $ - $ - $0.00
31 Equipment $ - $ - $ - $ - $0.00
41 Relocation (if needed) $ - $ - $ - $ - $0.00
Total $ - $ - $ - $ - $ -

7 HIGH-LEVEL ALTERNATIVES ANALYSIS

1. Customized existing software to accommodate the integration of both platforms.
2. Reusing U.S. Trust ATM services to prevent the loss of ultra-rich customers.
8 ASSUMPTIONS, CONSTRAINTS AND RISKS

8.1 ASSUMPTIONS
1. No conversion of data will be required, all necessary fields will be converted to PACE.
2. SMEs can commit the necessary time to provide input on deliverable in order to adhere to
the designated timeline.
3. While we are addressing some of the account maintenance functions, we are not
eliminating the dependency on PACE for Account Maintenance.

8.2 CONSTRAINTS
This section identifies any limitation that must be taken into consideration prior to the
initiation of the project.
1. Lack of U.S. Trust membership within the TLT (other than being members of the
stakeholder group).
2. Lack of Leadership from U.S. Trust due to resignation of CEO.
3. Target environment of the merger occasionally driven by politics.
4. Trust Web platform lack some functionality of U.S. Trust system platform affected both
U.S. Trust customers and employees.
5. Selection of platform not based on cost benefit analysis.
6. Overconfidence of Bank of America with regards to doing Mergers and Acquisition.

Page 7 of 30
 TRUSTWEB

8.3 RISKS

Risk
Lengthy approval of vendor
SOW could delay milestone
Unique business-critical
requirements of legacy
organizations, identified post-
charter development,
augment scope
Mitigation
Two external team members will be added to the approval
committee to minimize approval time.
Schedule requirement sessions with the team as early as
possible to analyse and stimulate the effects of avoiding or
accepting this risk and choose which option will be
favourable to both parties.

9 PROJECT ORGANIZATION

9.1 ROLES AND RESPONSIBILITIES (EXAMPLE)

This section describes the key roles supporting the project.
Name & Project Role Project Responsibilities
Organization
<Name> Project Sponsor Person responsible for acting as the projects
champion and providing direction and support to
<Org>
the team. In the context of this document, this
person approves the request for funding, approves
the project scope represented in this document, and
sets the priority of the project relative to other
projects in his/her area of responsibility.
<Name> Government Monitor Government employee who provides the interface
between the project team and the project sponsor.
<Org>
Additionally, they will serve as the single focal point
of contact for the Project Manager to manage CDCs
day-to-day interests. This person must have
adequate business and project knowledge in order
to make informed decisions.
In the case where a contract is involved, the role of a
Government Monitor will often be fulfilled by a
Contracting Officer and a Project Officer.
<Name> Contracting Officer Person who has the authority to enter into,
terminate, or change a contractual agreement on
<Org>
behalf of the Government. This person bears the
legal responsibility for the contract.
<Name> Project Officer A program representative responsible for
coordinating with acquisition officials on projects
<Org>
for which contract support is contemplated. This
representative is responsible for technical
monitoring and evaluation of the contractor's
performance after award.
<Name> Project Manager (This Person who performs the day-to-day management
could include a of the project and has specific accountability for
<Org>
Contractor Project managing the project within the approved
Manager or an FTE constraints of scope, quality, time and cost, to
Project Manager) deliver the specified requirements, deliverables and
customer satisfaction.
<Name> Business Steward Person in management, often the Branch Chief or
Division Director, who is responsible for the project
<Org>
in its entirety.
<Name> Technical Steward Person who is responsible for the technical day-to-
day aspects of the system including the details of
<Org>
system development. The Technical Steward is
responsible for providing technical direction to the
project.
<Name> Security Steward Person who is responsible for playing the lead role
for maintaining the projects information security.
<Org>

Page 8 of 30
 TRUSTWEB

9.2 STAKEHOLDERS (INTERNAL AND EXTERNAL)

Recommended: The recruitment of an experienced lead Project Manager, from Initiation of
the project, to guide the process throughout till close-out. Mike Morris does not possess the
necessary technical experience and qualifications; he can however delegate the technical
issues to leaders who are verse in this capacity. Also, some leaders of the different project
phases are neophyte, and face challenges as the project scope was not clearly define and lack
focal points. Key personnel from U.S. Trust should be included in the project team to allow
for smooth transition and integration of the merger. To transition, Mike Morris needs to
clearly define and take control of the project scope, realign the different phases to match
expected deliverables, assign leaders with the necessary skills and experience, identify and
communicate with the necessary stakeholders and their requirements, attend meetings as
this forum will provide updates and information on the progress of the project and areas of
major concerns etc. The project team should comprise the sponsor, customers and users,
sellers, business partners, organizational groups, functional managers and other stakeholders
e.g. government regulators, subject matter experts, consultants etc

Page 9 of 30
 TRUSTWEB

10 PROJECT CHARTER APPROVAL

The undersigned acknowledge they have reviewed the project charter and authorize and
fund the TrustWeb project. Changes to this project charter will be coordinated with and
approved by the undersigned or their designated representatives.

Signature: Date:
Print Name:
Title:
Role:

Signature: Date:
Print Name:
Title:
Role:

Signature: Date:
Print Name:
Title:
Role:

Page 10 of 30
 TRUSTWEB

APPENDIX A: REFERENCES

The following table summarizes the documents referenced in this document.

Document Name Description Location
and Version

TrustWeb (Edited This document formally Bank of America Consortium

version 2) authorizes the existence of
TrustWeb and gives authority
to apply resources to activities.

Page 11 of 30
 TRUSTWEB

APPENDIX B: KEY TERMS

The following table provides definitions for terms relevant to this document.

Term Definition

PMW+ and AWS U.S. Trust Systems

AMS U.S. Trust core accounting system

PACE Bank of American system

Page 12 of 30
 TRUSTWEB

APPENDIX 2
PROJECT SCOPE STATEMENT

Page 13 of 30
 TRUSTWEB

PROJECT SCOPE STATEMENT

PROJECT NAME: TrustWeb

PREPARED BY: Mike Morris
DATE: 17th August 2007
Project Justification For Bank of American, this acquisition will enhance their
credibility in the market, significantly advancing their capability to
serve especially ultra-high net worth clients and adds scale to their
private banking business. U.S. Trust has a long-standing
reputation for outstanding client service and providing clients
with comprehensive financial solutions by offering a full suite of
sophisticated products. Combining the complementary
capabilities of both companies will add value to their clients. The
acquisition of U.S. Trust was intended to strengthen Bank of
America's Private Bank within the Global Wealth Management
business segment. At the end of 2006, the Global Wealth
Management business segment held $542 billion in assets under
management
Product Description The project focuses on defining the enhancements to the
TrustWeb application which are vital to the Private Wealth
Management Group's asset management relationship (Trust-
PACE) and the new combined UST/BAC relationship management
business model. The goal is to build/enhance the Trust/Web
application giving all PWM associates user friendly assess to
account data including transactions and history, holdings, cost
information, asset allocation, dividend/interest income, realized
and unrealized gain/loss, performance data,
contributions/withdrawals, and account characteristics.
Characteristics would include account title, tax id, tax
payers/owners fee schedule, etc. The application should have the
ability to download this account information or a consolidated
group of accounts, excel and to produce canned reports associates
could run on the fly. These would include schedules of property
with the ability to view and print an account or consolidated group
of accounts, asset allocation, equity industry diversification, all
as/of a particular date. UST associates have all this information at
their fingertips today using PMW+ and AWS. These tools enable
UST client service officers to easily respond to client inquiries
regarding their investment portfolios. BAC associates do not have
these capabilities today and have to request client information
from several sources including portfolio managers and assistants,
the ART group, and other help desks in order to respond
adequately to their clients. The CSSO will be the officer servicing
both banking and investment clients in the new PWM core client
team. They will need an array of tools at their disposal to provide
superior client service. UST clients expect immediate response to
their investment inquiries and would be adversely affected if our
CSSOs did not have the ability to respond timely and efficiently. In
addition this inability to respond to client inquiries will be viewed
by the UST clients as a degradation of service due to the BAC
acquisition. This functionality is sorely needed and will benefit
BAC associates and clients as well as UST associates and clients.

Acceptance Criteria
Deliverable
Project Exclusion
Cuts should be made to U.S. Trusts back office cost without
losing existing customers and employees.
Implement a blended approach to system A (Bank of
America) and B (U.S. Trust) to prevent degradation of
service to U.S. Trust clients.
Rel 1: Addressing regulatory requirements
Rel 2: Adding functionalities to address U.S. Trust
Associates
Bank of America/U.S. Trust back office system integration
Non-private banking client facing system integration i.e.

Page 14 of 30
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consumer, enterprise etc.

System for recruitment of U.S. Trust employees and
adjustment to BOA culture (will all employees still have a
job?)
Constraints Lack of U.S. Trust membership within the TLT (other than
being members of the stakeholder group).
Lack of Leadership from U.S. Trust due to resignation of
CEO.
Target environment of the merger occasionally driven by
politics.
Trust Web platform lack some functionality of U.S. Trust
system platform affected both U.S. Trust customers and
employees.
Selection of platform not based on cost benefit analysis.
Overconfidence of Bank of America with regards to doing
Mergers and Acquisition.
Assumptions No conversion of data will be required, all necessary fields
will be converted to PACE.
SMEs can commit the necessary time to provide input on
deliverable in order to adhere to the designated timeline.
While we are addressing some of the account maintenance
functions, we are not eliminating the dependency on PACE
for Account Maintenance

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APPENDIX 3
WORK BREAKDOWN STRUCTURE

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WORK BREAKDOWN STRUCTURE

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APPENDIX 4 GANTT CHART

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GANTT CHART

Note: see soft copy attach for extended version

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APPENDIX 5 RISK RESPONSE PLAN

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RISK MANAGEMENT RESPONSE PLAN

Definition of Impact Scales for Four Project Objectives

Defined Conditions for Impact Scales of a Risk on Major Project Objectives

(Shown for negative impact only)
Project Objective Relative or numerical scales are shown
Very Low/0.05 Low/0.10 Moderate/0/20 High/0.40 Very High/0.80
Cost Insignificant cost <10% cost increase 10-20% cost increase 20-40% cost increase >40% increase
increase
Time Insignificant time <5% time increase 5-10% time increase 10-20% time increase >20% time increase
increase
Scope Scope decrease Minor areas of scope Major area of scope Scope reduction Project end item is
barely noticeable affected affected acceptable to sponsor effectively useless
Quality Quality degradation Only very demanding Quality reduction Quality reduction Project end item is
barely noticeable applications are requires sponsor unacceptable to effectively useless
affected approval sponsor

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ROOT CAUSE ANALYSIS

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Quantitative Risk Analysis Interviewing

Range of Project Cost Estimates

RiskID#TR-002 - Unique business-critical requirements of legacy organizations, identified post-charter development, augment scope.

WBS Element Low Most Likely High

Design $2M $4M $7M
Build $13M $15M $22M
Test $10M $13M $18M
Total Project $25M $32M $47M

After interviewing relevant stakeholders, the likelihood of completing the project at or below the most likely estimate of $32M is
relatively small as shown in the simulation results.

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RISK RESPONSE FRAMEWORK

Risk Risk Event Probability Impact Priority Response Risk Owner

ID
L, M, H L, M, H L, M, H Opp. Threat
TR- Lengthy approval of M M M Mitigate Add resources to the team to Individual
001 vendor SOW could speed-up approval process
delay milestones
TR- Unique business- H H H Share The impact of ignoring this Organization
002 critical requirements risk will be cause trivial
of legacy consequences to UST existing
organizations, customers. It is recommended
identified post- to add a new functionality to
charter development, the existing project. It should
augment scope be stated in writing by issuing
a revised specification. This
additional development will
cause further delays and
additional cost to the project.
It is estimated that this will
cost the organization over
$32M as can be seen from the
Cost risk simulation results.

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APPENDIX 6 RACI CHART

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RACI CHART

RACI Chart PERSON/TEAM

Activity Project Manager CEO Transition Project Team Transition Stakeholders
Leadership Team Leader Program Office
(TLT)
Initiation
Recruit PM R
Identify R
Stakeholders
Stakeholder R
Meeting
Project Statement R
of work
Create Project R
Charter
Planning
Develop PM Plan R I,C I A I I
Plan scope Mgt. R I,C I A I
Plan schedule Mgt. R I I R,A I
Plan Cost Mgt. R I I R,A
Plan Quality Mgt. R I I R,A I
Plan HR Mgt. R I I R,A I
R=Responsible A=Accountable C=Consult I=Inform

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RACI CHART (CONTINUE)

RACI Chart PERSON/TEAM

Activity Project CEO Transition Project Team Transition Stakeholders
Manager Leadership Leader Program Office
Team (TLT)
Planning Cont.
Plan Communications Mgt. R I I,C R,A I
Project Risk Mgt. R I I,C R,A I
Plan Procurement Mgt. R I,C I I
Plan Stakeholder Mgt. R I R,A I I
Execution
Acquire Project Team R I C A A I
Develop Project Team R I I R
Access current Environment C C R, A R, A
Identify key processes, I C R, A R, A C
performance metrics, current
performance
Identify gaps in both systems I, C I R, A R, A
Identify risk of choosing one I I R, A R, A
system over another
Define projects to implement I, C C R, A R, A
system or processes
R=Responsible A=Accountable C=Consult I=Inform

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RACI CHART (CONTINUE)

RACI Chart PERSON/TEAM

Activity Project CEO Transition Leadership Project Team Transition Stakeholders
Manager Team (TLT) Leader Program Office
Execution Cont.
Prioritize projects for funding I, C R R, A R, A
Identify Budget I R R R,A
Budget Approval R R,A R,A R,A
Low level design doc for R I I R,A R,A
system integration
Manage Project Team R,A
Design Approval R
Test system R R R,A
Training R I R R R,A
Implement System R R,A R,A
Create design documents for R I I R R,A
integration or processes and
system
Monitoring and
Controlling
Monitor and control project R R R,A R
Perform integrated change R R R,A R
mgt.
R=Responsible A=Accountable C=Consult I=Inform

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RACI CHART (CONTINUE)

RACI Chart PERSON/TEAM

Activity Project CEO Transition Project Team Transition Stakeholders
Manager Leadership Leader Program Office
Team (TLT)
Close Out
Audit Procurement R I R,A
Document Lessons Learnt R R,A R
Update files/records R R R,A
Gain formal acceptance R R R
Archive files/documents R,A R,A
R=Responsible A=Accountable C=Consult I=Inform

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BIBLIOGRAPHY
Bermingham, University. 2011. Docslide. November. http://docslide.us/documents/merger-
integration-at-the-boadraft.html.
Institute, Project Management. (PMBOK Guide) - Fifth Edition. A guide to the project
management body of knowledge. USA: Project Management Institute.
Mapp, Carol, and Kelvin Mapp. n.d. Project Management and Microsoft Project 2013.
Novickyt, Lina, and Graziano Pedroja. 2015. Assessment of Mergers and Acquisitions in
Banking on Small Open Economy as Sustainable Domestic Financial System
Development. Economics and Sociology 8 (1): 71-87. Accessed November 28, 2016.
doi:10.14254/2071- 789X.2015/8-1/6.
Thompson, Janet. 2005. Wachovia: Merging Businesses and Cultures. Chief Learning Officer.
1 December. Accessed November 28, 2016.
Varughese, Jess, and Peter Bond. 2008. Learning From Successful Integrations. Accessed
November 28, 2016.

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