Group B - TSG Bank - Assignment 2 SCS2235

TSG Bank

Portfolio Strategic Plan

Banking for People. Banking for the World.

SCS-2235 Program & Portfolio Management University of Toronto

Assignment 2 June 28, 2016

Tahmina Akrami

Scott Young Sandy Chávez

Shanna Pritchard Gail Levy

TSG Bank June 28, 2016

PROJECT TITLE: Solar Panel Renewable Energy Program PROJECT #: E-001

PROJECT OBJECTIVE: To equip all TSG buildings with rooftop solar panels, enhancing our ability to power all branch and corporate office locations with renewable clean energy, enterprise-wide. Installation of the solar panels will reduce electricity costs for TSG and reduce the energy demand from non-renewable power sources. COST:

Year 1 Year 2 Year 3 Year 4 Year 5 Total $1,000,000 $5,000,000 $30,000,000 $30,000,000 $30,000,000 $96,000,000

SCHEDULE: 5 years Year 1 – planning and approvals Year 2 – preliminary and detailed designs Years 3 – 5 – construction, inspection and commissioning SCOPE: Installation of solar panels on rooftops of 1231 branch locations and 10 corporate office locations with a capture of up to 90% of the rooftop surface area to maximize the number of solar panels installed. The electricity generated from the solar panels will power all electrical functions of the branches and corporate offices, with back-up systems to all TSG Bank to use local hydroelectricity in the event of power failure. Solar panels will be connected to local hydroelectric company power grids and will allow TSG Bank to have the opportunity to sell excess power generated. QUALITY: SunPower® Power Guard, SunPower® T5 Solar Roof Tile, T10 Solar Roof Tile and SunPower® Helix products (or equivalent quality) will be installed on the rooftops of all branches and corporate offices. Tesla solar energy charging cells will be installed in our buildings to store the energy generated from the rooftop solar panels.

KPIs: Non-reusable energy consumption: Yearly measure of energy consumption from non-reusable sources such as hydro and nuclear. This value should start decreasing as solar panels become operational and start generating power for usage. Greenhouse Gas Emissions: Another yearly measure that calculates TSG’s greenhouse gas emissions from start of the solar panel project up to the point when all solar panels have been operational for at least a year in order to get a significant reading on how much TSG has reduced its greenhouse gas emissions by switching to solar power. Cost Savings: Although implementing solar panels is a costly endeavour, once the panels are fully operational cost savings in energy bills should immediately be realized. It would take a few years for the cost of implementing solar panels to breakeven with the energy savings. The breakeven point will be reached 10 years after the initial project start. Brand: increase TSG’s net promoter score by 3%. RESOUCRES: The key resource for the solar panel implementation project is the contracting companies acquired to perform the solar panel installation on TSG buildings. Since various contracting companies will be hired to work on the same project in various locations, it is vital that the quality of each individual contracting company matches other contracting companies hired to do the same job and meets the standards set by the TSG project team for the level of quality expected.


Current Last Review Next Review Score

28-Jun-16 N/A 15-Oct-16 Year Amount (millions)

Project Name Y1 $0.00 Very Low 1Project Type Y2 $0.00 Low 2

Y3 $0.00 High 4Y4 $0.00 Very High 5Y5 $0.00 Very High 5

Total $0.00

Ecosystems Services Valuation (ESV) Very High 5

Very High 5Very High 5Very High 5

Very High 5

Y1 $0.00$6.00 Y2 $0.00

$90.00 Y3 $5.00$0.00 Y4 $7.50

$96.00 Y5 $10.00

Project Risk

Costs

Sustainable Environment Impact Environmental Input-

Output Modeling (EIO-LSV)

Very Low 1

Project Financial Requirements

Business Development i. Potential Market Share Increase ii. New Product(s)

Very Low 1

Project HR Requirements (FTE)

Total:

Projected Time Duration

Other Spending:

Development:Capital Expenditure:

With a discount rate of 3.00% and a span of 5 years, the resulting NPV of the above project is -$160,074,299.13, which means that no positive cash flows until the end of this project. However, it is projected that the project will provide positive cash flow 10 years after initiation.

Solar panels and Tesla solar energy packs.

Comments

Benefits

Time

Operating Cost(millions)

DateExpected Profit Project Detail Evaluation (Very Low, Low, Average, High, Very high)

Solar Panel Renewable Energy ProgramEnvironmental Sustainability

Strategic Objective

Project Estimated Spending/Cost (One-time cost)(millions)

Financial Incentives (NPV)Enterprise Risk ReductionOperational Performance/Process ImprovementContinuous ImprovementTechnology Enhancement

Using sustainable energy will reduce the overhead costs to power our business and to reduce the energy demand on non-renewable power sources. Additional financial benefit of producing our own energy will potentially allow for TSG Bank to sell excess power to local hydroelectric companies.

To equip all TSG buildings with solar panels on their rooftops to enhance our ability to power our business with renewable clean energy, enterprise-wide.

Financial Benefits

Sustainable Environmental Impact BenefitsThis program ensures TSG Bank's commitment as an environmentally conscious leader in the banking industry and additionally reduces our carbon footprint.

Technology to be Used

NPV -$160.07


PROJECT TITLE: Tree Planting Program PROJECT #: E-002

PROJECT OBJECTIVE: To establish and sponsor a tree planting program across Canada. COST:

Year 1 Year 2 Year 3 Year 4 Year 5 Total $500,000 $500,000 $1,500,000 $1,000,000 $1,000,000 $4,500,000

SCHEDULE: 5 years Year 1 – initiation of the program including additional fundraising and engagement of community groups and local volunteers. Year 2 - 5 – yearly spring/early-summer tree planting events across Canada. SCOPE: Yearly tree planting in Canada in areas identified in need as by provincial and territorial forestry departments and local municipalities. Tree planting will involve the engagement of local volunteers and community groups (such as Girl Guides and Boy Scouts). Fundraising will be conducted at local branches to help sponsor and engage local branches in the effort to re-establish our forests. QUALITY: Forestry ministries in each province and territory will be consulted prior to planting, to ensure that the proper species of trees are being planted in each of our tree planting projects. Forest regions of Canada are identified as; Acadian, Boreal, Carolinian, Coast, Columbia, Great Lakes-St. Lawrence, Montane and Subalpine.

KPIs: Compliance: 100% compliance of tree species as identified by their forest region. Fundraising: $5,000 per branch Social Media: an engagement rate of 1% or higher on all social media platforms (Facebook, Instagram, Twitter and LinkedIn). Engagement will be directly related to ‘likes’, ‘shares’, ‘retweets’ and comment interactions. Increase of followers on all social media platforms of 1% (based on current number of followers). Customer Satisfaction: social sentiment survey yearly with a sentiment score of +3 or higher (scale of +5 (very good) to 0 (very bad)) for current customers and those engaged in the community as volunteers and community groups in tree planting. RESOUCRES: Equipment: donation of equipment for day-of use by local forestry ministries to plant. Tree Planting SMEs: Provide knowledge and guide volunteers on the correct process to plant trees.



28-Jun-16 N/A 15-Dec-16 YearAmount

(millions)Project Name Y1 $0.00 Very Low 1Project Type Y2 $0.00 Very Low 1

Y3 $0.00 Very Low 1Y4 $0.00 Very Low 1Y5 $0.00 Very Low 1

Total $0.00


Very Low 1Low 2Low 2

Very High 5

Y1 $0.50$0.00 Y2 $0.50$0.00 Y3 $1.50$0.00 Y4 $1.00$0.00 Y5 $1.00

To achieve TSG Bank's environmental strategic goals while engaging the community. Community involvement and participation by branch location is performed yearly, with tree planting occuring in late spring/early summer.

Financial Benefits

Sustainable Environmental Impact BenefitsTree planting in identified areas will not only beautify but also sustain local habitat and create new habitat for existing wildlife. Additionally, the planting or trees wil reduce TSG Bank's carbon footprint.


NPV $0.00

Benefits

Time



Tree Planting ProgramEnvironmental Sustainability

Strategic Objective



No immediate financial benefits have been identified.


Very Low 1


Total:


Other Spending:


No identified technologies.

Comments

Project Risk

Costs



Very High 5



PROJECT TITLE: Multi-Dimensional Recycling Program PROJECT #: E-003

PROJECT OBJECTIVE: To further reduce waste produced at all TSG Bank’s branches and corporate office locations. COST:


SCHEDULE: 5 years Year 1 – all branch and corporate office locations to be equipped with blue and green bins and electronic waste bins. Year 2 – 5 – ongoing management of the program. SCOPE: Decreasing the amount of waste produced at TSG Bank branch and corporate office locations. Installation of identified blue, green and electronic waste bins will help to divert waste from landfills. Electronic waste bins will be further made available for customers to deposit old electronics and will additionally generate a small profit of per ton resale to scrap electronic purchasers. QUALITY: Installation of blue, green and electronic waste bins at all 1231 branch and 10 corporate office locations. Blue and green bins will have a minimum of 5 installed per floor, with all break/coffee rooms having both a blue and green bin. Electronic waste bins will have a minimum of 1 installed per branch and corporate office location.

KPIs: Waste Diverted: 70% reduction of waste going to the landfills. Social Media: an engagement rate of 2% or higher on all social media platforms (Facebook, Instagram, Twitter and LinkedIn). Engagement will be directly related to ‘likes’, ‘shares’, ‘retweets’ and comment interactions. Increase of followers on all social media platforms of 5% (based on current number of followers). Customer Satisfaction: social sentiment survey quarterly with a sentiment score of +3 or higher (scale of +5 (very good) to -5 (very bad)) for both current and new customers. Employee Engagement: anonymous employee recycling engagement surveys quarterly with an engagement score of +4 or higher (scale of +5 (very good) to 0 (very bad)). Brand: increase in TSG Bank’s Net Promoter Score of 2%. RESOUCRES: Waste Management Companies: scheduling of pickup and rates with private sector electronics recycling companies through a RFP process. Municipal Waste Management: local municipality waste pick-up schedules. Equipment: blue, green and electronics bins sources through a RFQ process.



28-Jun-16 N/A 31-Aug-16 YearAmount

(millions)Project Name Y1 $1.00 Very High 5Project Type Y2 $1.00 Average 3

Y3 $1.50 Low 2Y4 $1.50 Low 2Y5 $2.00 Very Low 1

Total $7.00

Ecosystems Services Valuation (ESV) Average 3

Very High 5Low 2Average 3

Very High 5

Y1 $2.00$6.00 Y2 $1.00$0.00 Y3 $1.00$2.00 Y4 $1.00$8.00 Y5 $1.00

Full and complete recycling programs in all branch and corporate office locations, within 1 year of project initiation.

Financial Benefits

Sustainable Environmental Impact BenefitsThrough the recycling program the reduction of waste going to landfills, will be reduced by 70%. Additionally, the recycling of electronic waste will further help to divert potentially hazardous waste from the landfill to appropriate disposal channels.


NPV $3.87

Benefits

Time



Multi-Dimensional Recycling ProgramEnvironmental Sustainability

Strategic Objective



Potential profit from selling of electronic waste.


Very Low 1


Total:


Other Spending:



Comments

Project Risk

Costs



High 4



PROJECT TITLE: Bird Safety PROJECT #: E-004

PROJECT OBJECTIVE: To be in full compliance with Ontario Law and the Canadian Species at Risk Act for the protection of birds. This project will involve the installation of standardized visual markers on all windows and reflective exterior surfaces, thus helping to prevent bird strikes. COST:

Year 1 Year 2 Year 3 Year 4 Year 5 Total $1,000,000 $2,500,000 $0 $0 $0 $3,500,000

SCHEDULE: 2 years Year 1 – installation of visual markers to be completed at all branches and corporate offices. Year 2 – installation of biomimicry glass at all building 3 stories or higher, to be completed by the end of year 2. SCOPE: Installation of standardized visual markers on all windows (without advertising) or biomimicry glass in our 1231 branches and 10 corporate offices. Installation will be done by maintenance staff of each corresponding location for buildings 2 stories or less. Buildings 3 stories or higher will require biomimicry glass installed. QUALITY: Standardized visual markers will be separated no more than 5cm vertically and 10cm horizontally or 5cm horizontally in areas which are habitat to smaller bird species (such as hummingbirds), as mandated by FLAP Canada. Markers will be of high contrast on the reflective surfaces and no smaller than 0.32cm. Markers will be applied to the outer surface, as this will prevent the illusion of the reflected environment.

Decals for the windows will be outsourced by competitive bid and will be designed to reflect TSG Bank’s strategic environmental objectives.

Biomimicry glass (such as Ornilux) will be sourced via competitive bid, to include not only the purchase but also the installation of the glass.

KPIs: Compliance: 100% compliance with Ontario Law and the Canadian Species at Risk Act. Social Media: an engagement rate of 1% or higher on all social media platforms (Facebook, Instagram, Twitter and LinkedIn). Engagement will be directly related to ‘likes’, ‘shares’, ‘retweets’ and comment interaction. Increase in followers on all social media platforms of 5% (based on current number of followers). Customer Satisfaction: social sentiment engagement surveys quarterly with a sentiment score of +3 or higher (scale of +5 (very good) to -5 (very bad)) for both current and new customers. New customers to receive a survey 1 month after joining TSG Bank to measure customer satisfaction and level of interest with strategy; overall average score 8/10 or higher. Brand: increase in TSG Bank’s Net Promoter Score of 3%. RESOUCRES: Contractor: installation of biomimicry glass in all buildings 3 stories or higher, contractors will have to be locally sourced and capable of obtaining and installing such glass. Maintenance teams: sourced by branch and corporate office. They will be responsible for the installation of all decals on windows 2 stories or lower, which do not contain corporate advertising. Maintenance teams per location will have no more than 2 working days assigned for completing this task.



28-Jun-16 N/A 28-Oct-16 YearAmount


Y3 $0.00 Very Low 1Y4 $0.00 Very Low 1Y5 $0.00 Low 2

Total $0.00


Very Low 1Average 3Average 3

Very High 5

Y1 $1.00$0.50 Y2 $2.50$1.75 Y3 $0.00$0.00 Y4 $0.00$2.25 Y5 $0.00

Project Risk

Costs



Very High 5



Very Low 1


Total:


Other Spending:


Decals to be installed on building windows of 2 stories or less. All building 3 stories or higher will have biomimicry glass installed.

Comments

Benefits

Time



Bird SafetyEnvironmental Sustainability

Strategic Objective



Avoidance of potential pentalties related to bird-window strike deaths as outlined in Ontario Law and the Canadian Species at Risk Act.

To achieve TSG Bank's strategic environmental objectives in preservation and increase in bird safety. The Bird Safety Program futhermore, falls into compliance with Ontario Law and the Canadian Species at Risk Act.

Financial Benefits

Sustainable Environmental Impact BenefitsBird safety project will decrease bird-window strike related death, thus reducing environmental damage and preserving our bird species. Futhermore, it will meet the growing demands from customers to include green intiatives as an socially and environmentally responsible organization.


NPV $0.00


PROJECT TITLE: Scientific Research Grant for Global Climate Change PROJECT #: E-005

PROJECT OBJECTIVE: To fund (3 year grants) a research group in a Canadian university to conduct research to combat global climate change. COST:

Year 1 Year 2 Year 3 Year 4 Year 5 Total $1,500,000 $1,250,000 $1,250,000 $1,500,000 $0 $5,500,000

SCHEDULE: 3 year cycles, on-going Project will be transitioned after year 4 to an established management team. SCOPE: Open competition for Canadian scientists at a Canadian university to conduct research on solutions to global climate change. Competition and award selection will involve a committee formed of experts to judge and assess the viability of the proposed research, with a representation from Chemistry, Ecology and Biology. Award of the grant will consist of funding for 3 years and will cover budgetary areas of: payroll for graduate students and postdoctoral fellows, user fee costs (for various analytic tools), research materials and chemicals, project related travel and conferences. Any intellectual property (IP) generated from the research will have a split ownership of 75% TSG Bank and 25% of the awardee. Public profile of TSG Bank will be leveraged through scientific and climate change conferences and the presentation of research related to this grant. QUALITY: Research will yield high-level publications and intellectual property. Bi-annual meetings with the awardee, their research group, the Project Manager and Project Administrator will help to further assess the level of research and quality of research being conducted.

KPIs: Research Expenditures: spending of research grant should be between 80-100% per year, with a 100% total spending at the end of the grant term. Budgetary spending can exceed to a maximum of 20% without approval of the governing committee. Publications: high-level publications of 2 per year to a minimum of 6 publications total by end of grant term. Intellectual Property: filing of a 1 IP (minimum) per grant term, with registered IP filings in Canada, USA, Europe and Asia. Conferences: presentations at 2 scientific conferences and 1 climate change conference per year. Grant Competition: increase of grant proposals (after first competition) of 5%. Brand: increase in TSG Bank’s Net Promoter Score of 1%. RESOUCRES: Expert Judgement Panel: comprised of 3 individuals from a Chemistry, Biology and Ecology backgrounds to evaluate stage 2 research proposals along with the Project Manager, Sponsor and Governing Body. They will provide their expert recommendations on selecting the best research proposal for this project.





Y3 $0.00 Very Low 1Y4 $0.00 Very Low 1Y5 $0.00 Low 2

Total $0.00


Very Low 1Average 3Average 3

Very High 5

Y1 $1.50$1.50 Y2 $1.25$1.00 Y3 $1.25$0.00 Y4 $1.50$2.50 Y5 $0.00

To achieve TSG Bank's strategic environmental objectives in combating global climate change through scientific research and innovation.

Financial Benefits

Sustainable Environmental Impact BenefitsScientific research grant initiative will fund Canadian scientists to conduct research and develop technologies to combat global climate change.


NPV $0.00

Benefits

Time



Scientific Research GrantEnvironmental Sustainability

Strategic Objective



Potential for filed intellectual property to become in use in markets as technology to combat climate change. With the intellectual property filings, TSG Bank will have 75% ownership, which would result in 75% of the profits.


Very Low 1


Total:


Other Spending:


Scientific research lab, equipment and analytical equipment for the development of new climate change technologies.

Comments

Project Risk

Costs



Very High 5



PROJECT TITLE: Community Gardens PROJECT #: S-001

PROJECT OBJECTIVE: Funding of community gardens in areas of socio-economic need. COST:


SCHEDULE: 5 years Year 1 – identification of areas needing community gardens and municipal planning and approval. Years 2 – 5 – ongoing establishment of community gardens. SCOPE: Fund and establish community gardens in areas of socio-economic need, where local community member can engage in gardening and growing fresh fruits and vegetables. By engaging those in areas of need in gardening, they are able to provide healthy and sustainable food sources for their families, while helping to take some financial burden away from the soaring cost of food prices. QUALITY: Set-up in areas approved by municipalities for community gardening, with the garden area established 10m x 10m and divided into 2m x 1m plots. Plots will be filled with nutrient rich soil and manure. Water irrigation system will be installed, to ensure garden success.

Seedlings for planting will be offered to gardeners (gardeners will be selected on a lottery system) and they can select seedlings from tomato, cucumber, legumes, squash, corn and other (TBA).

KPIs: Social Media: an engagement rate of 1% or higher on all social media platforms (Facebook, Instagram, Twitter and LinkedIn). Engagement will be directly related to ‘likes’, ‘shares’, ‘retweets’ and comment interactions. Increase of followers on all social media platforms of 1% (based on current number of followers). Customer Satisfaction: social sentiment survey quarterly with a sentiment score of +3 or higher (scale of +5 (very good) to -5 (very bad)) for both current and new customers. Gardener Satisfaction: anonymous employee recycling engagement surveys quarterly with an engagement score of +4 or higher (scale of +5 (very good) to 0 (very bad)). Brand: increase in TSG Bank’s Net Promoter Score of 0.5%. RESOUCRES: Landscaping/Gardening Companies: RFP process to allow for competitive proposals in helping to establish the community gardens. They will be responsible with all gardening related initial activities, with an on-going support operation. Community Gardening Co-op: establishment of gardening co-ops in each area of community gardens to ensure communication, success and potential new opportunities in community gardening.



28-Jun-16 N/A 20-Sep-16 YearAmount



Total $0.00

Ecosystems Services Valuation (ESV) High 4

Very High 5Very Low 1Very Low 1

Very High 5

Y1 $1.50$1.50 Y2 $1.00

$30.00 Y3 $1.00$0.00 Y4 $1.00

$31.50 Y5 $1.00

Funding of community gardens in areas of socio-economic need. These gardens will help to alleviate household costs of food, by allowing participants to grow and cultivate fresh produce for their consumption.

Financial Benefits

Socio-Economic BenefitsTSG Bank funding community gardens will create a community outreach benefit and provide people in areas of need a means to help with household grocery costs and also provides gardeners with fresh produce. Futhermore, it will help improve TSG Bank's image as a bank that cares about its communities.


NPV $0.00

Benefits

Time



Community GardenSocial Sustainability

Strategic Objective



No immediate financial benefits have been identified.


Low 2


Total:


Other Spending:



Comments

Project Risk

Costs



Very Low 1



PROJECT TITLE: Student Financial Education Program PROJECT #: S-002

PROJECT OBJECTIVE: Education of high school and middle school students about finances, credit management and financial services. COST:


SCHEDULE: 5 years Immediate identification of schools to participate in the program, with quarterly visits to the schools to give continued financial education. SCOPE: Establishing ongoing financial education programs in high schools and middle schools, giving students financial education in areas of money management, credit and further financial services, creating an environment for successful and healthy financial futures. QUALITY: Quarterly visits to schools to give ongoing financial education and support to students. Instruction to be conducted by financial advisors from area branches to further solidify community relations.

KPIs: Social Media: an engagement rate of 1% or higher on all social media platforms (Facebook, Instagram, Twitter and LinkedIn). Engagement will be directly related to ‘likes’, ‘shares’, ‘retweets’ and comment interactions. Increase of followers on all social media platforms of 1% (based on current number of followers). Customer Satisfaction: social sentiment survey quarterly with a sentiment score of +3 or higher (scale of +5 (very good) to -5 (very bad)) for both current and new customers. Program Satisfaction: program satisfaction surveys sent to participating students quarterly after sessions to determine success and satisfaction of the program, with a score of +3.5 or higher (scale of +5 (very good) to 0 (very bad)). New Customers: activation codes given to students, with these codes we will be able to track and measure new accounts related to this program, with activation rate of 40%. RESOUCRES: Local Middle and High Schools: schools will be required to provide an established classroom for the financial education program sessions. Financial Advisors: scheduling of financial advisors from local branches to teach at the established educational programs, 2 hour time commitment quarterly per advisor.




(millions)Project Name Y1 $1.00 Very Low 1Project Type Y2 $2.00 Very High 5

Y3 $2.50 High 4Y4 $3.00 Average 3Y5 $3.50 Low 2

Total $12.00

Ecosystems Services Valuation (ESV) Very Low 1


Very High 5

Y1 $2.00$8.00 Y2 $1.00$0.00 Y3 $1.00$4.00 Y4 $1.00

$12.00 Y5 $1.00

To provide financial education to high school and middle schools students, teaching them about their finances, credit management and financial services.

Financial Benefits

Socio-Economic BenefitsOngiong financial education to students will help students to succeed in financial wealth, credit management and ensure life goals (such as higher education) are obtainable. TSG Bank's community profile will increase and sustainment of the program can also have the benefit of future employees.


NPV -$1.13

Benefits

Time



Student Financial Education ProgramSocial Sustainability

Strategic Objective



Increase in new customer enrollement through the education program.


High 4


Total:


Other Spending:


This is intended to be an ongoing program with quarterly teaching engagements with the students invovled.

Online interactive materials, computers and/or tablets.

Comments

Project Risk

Costs



Very Low 1



PROJECT TITLE: Microloans PROJECT #: S-003

PROJECT OBJECTIVE: Microloan program aimed at women and new-comers to Canada which will help them setup small businesses. COST:


SCHEDULE: 5 years, ongoing Yearly microloan application submission deadlines of August 30th. SCOPE: Microloan program will be available to all women and any new-comers to Canada who are either Canadian citizens or permanent residents. The maximum allowable amount for a microloan will be $500,000 and those requiring a higher loan amount, will be ineligible for the microloan program and encouraged to apply for traditional loans from TSG Bank. Microloan periods are of 10 years with interest rates starting at 1% to a maximum of 2.5% based on assessed risk. QUALITY: Loans will be awarded based on the business proposal, its impact on the community and its success feasibility. Proposals will be submitted electronically and will be reviewed by a central team of SMEs. Microloan awards will be based upon established criteria and proposals must comply with the maximum $500,000 value.

KPIs: Microloan Success Indicator: business awarded microloans will be assessed yearly, until loan has been repaid. This will not only evaluate the businesses receiving the microloans, but also the success of the microloan program. Microloan Repayment: 95% success rate of timely scheduled loan repayments. Program Satisfaction: program satisfaction surveys sent to participating businesses yearly to determine success and satisfaction of the program, with a score of +3.5 or higher (scale of +5 (very good) to 0 (very bad)). Brand: increase in TSG Bank’s Net Promoter Score of 1%. RESOUCRES: Microloan Team: team members of TSG Bank will be reassigned to the microloan team from roles being phased-out. The team will consist of 10 members and will need an operation budget of $2 million and funding for this will be deducted from the $50 million budget as operating expense.



28-Jun-16 N/A 1-Nov-16 YearAmount



Total $0.00


Very High 5Very Low 1Very High 5

Very Low 1

Y1 $50.00$0.02 Y2 $50.00$0.00 Y3 $50.00$0.00 Y4 $50.00$0.02 Y5 $50.00

Project Risk

Costs



Very Low 1



Average 3


Total:


Other Spending:


Microloan application template will be created by the technology group at a cost of $20K.

Comments

Benefits

Time



MicroloansSocial Sustainability

Strategic Objective



Immediate financial benefits will range from a 1 - 2.5% interest rate on all loans, with a 10 year repayment schedule. Due to the small nature of the loan amounts and the interest rates, the immediate financial benefit is thought to be small to negligable.

Microloan program will provide the social benefit of giving small loans to fund community driven women and new-comers to Canada to open and operate their own small businesses.

Financial Benefits

Socio-Economic BenefitsBy providing microloans to women and Canadian new-comers, the socio-economic benefit is such that they will become business leaders in their communities and create new successful small businesses.


NPV $0.00


PROJECT TITLE: Women and Finance Program PROJECT #: S-004

PROJECT OBJECTIVE: Engage women in local communities to teach them to invest, increase their financial wealth and financial independence. COST:


SCHEDULE: 5 years, ongoing Year 1 – securing community centre space, financial advisors and community outreach. Years 2 – 5 – ongoing financial education. SCOPE: Programs to be held at local community centres in areas of socio-economic need to help engage and teach women about finances, financial independence, investment and financial wealth. Instruction in each location will be conducted by female financial advisors from local branches. QUALITY: Quarterly visits to local community centres. Financial instruction conducted by female financial advisors from local branches to strengthen community relations.

KPIs: Social Media: an engagement rate of 2% or higher on all social media platforms (Facebook, Instagram, Twitter and LinkedIn). Engagement will be directly related to ‘likes’, ‘shares’, ‘retweets’ and comment interactions. Increase of followers on all social media platforms of 1% (based on current number of followers). Customer Satisfaction: social sentiment survey quarterly with a sentiment score of +3 or higher (scale of +5 (very good) to -5 (very bad)) for both current and new customers. Program Satisfaction: program satisfaction surveys sent to participating students quarterly after sessions to determine success and satisfaction of the program, with a score of +4 or higher (scale of +5 (very good) to 0 (very bad)). New Customers: activation codes given to women attending, with these codes we will be able to track and measure new accounts related to this program, with activation rate of 60%. RESOUCRES: Community Centres: dedicated room available at local community centres every quarter for education program. Financial Advisors: female financial advisors from local branches to teach with a 2 hour time commitment per quarter. Computers or tablets: use of computer or tablet may be needed for each participant. Participant can bring their own computer or tablet or sourcing of such equipment may be required.




(millions)Project Name Y1 $0.00 Very Low 1Project Type Y2 $0.10 Low 2

Y3 $0.10 Low 2Y4 $0.30 Average 3Y5 $0.50 Average 3

Total $1.00


Very High 5Average 3Low 2

Average 3

Y1 $1.00$0.02 Y2 $1.00$0.00 Y3 $1.00$0.00 Y4 $1.00$0.02 Y5 $1.00

Project Risk

Costs



Very Low 1



Low 2


Total:


Other Spending:


TSG Bank Investment Simulator tool (to be developed for $15K internally), videos, online material, computers and tablets.

Comments

Benefits

Time



Women and Finance ProgramSocial Sustainability

Strategic Objective



Financial benefit for TSG Bank in the creation of new customers with a capture of 60% of women involved in the program.

Engage women in the community to learn to invest and increase their financial wealth and independence, meeting social sustainability strategy.

Financial Benefits

Socio-Economic BenefitsEducating women about their financial wealth, financial indepence and investment, will create strong community leaders and a financial knowledge that will be passed down within families. Additionally, the socio-economic benefit of establishing TSG as a community bank.


NPV $0.10


PROJECT TITLE: Accessible Canada PROJECT #: R-001

PROJECT OBJECTIVE: Accessibility of all website content to persons of visual and/or hearing impairment as mandated by the Federal Government of Canada. COST: Additional Project Cost of $20,000,000

Year 1 Year 2 Year 3 Year 4 Year 5 Total $500,000 $500,000 $200,000 $200,000 $200,000 $21,600,000

SCHEDULE: Project Start Date: July 11, 2016 Project End Date: July 15, 2017 Full compliance of this project is required by Canadian law in a 2 year time frame from the effective date of March 20th, 2016. SCOPE: All TSG Bank websites and sub-websites that serves content and provides services to Canadians are included in this project to make these websites accessible to those of visual and/or hearing impairment. International subsidiaries are exempt from compliance with this project. TSG aims to meet this certification within 1 year of project span. QUALITY: All multi-media content with sound must have captions or subtitles. All text within the website must be screen reader compatible. Automated testing will occur in order to ensure all content has been converted to accessible content. Manual testing will also be conducted on selected content to ensure the correctness of automate tests.

KPIs: Software Agent: a software agent will check compatibility of content every 24 hours once the project has been implemented and automatically testing any new content for accessibility. Additional monthly checks will be conducted on existing content, at random. Any content failing to pass the accessibility test will be flagged and must be fixed within 45 days. Targeted Surveys: within the first year of implementation, customers with vision or hearing disabilities will be asked to take surveys about the accessibility of TSG Bank’s website(s). This will help to identify areas of opportunity and successes of the program. Brand: increase in TSG Bank’s Net Promoter Score of 1%. RESOUCRES: For the duration of the project, 30 vital resources will be needed; 5 business analysts, 5 user-experience specialists, 10 developers and 10 QA testers.




(millions)Project Name Y1 $0.00 Very Low 1Project Type Y2 $0.00 Very High 5

Y3 $0.00 Very Low 1Y4 $0.00 Very Low 1Y5 $0.00 Very High 5

Total $0.00



Very High 5

Y1 $0.50$20.00 Y2 $0.50$0.00 Y3 $0.20$0.00 Y4 $0.20

$20.00 Y5 $0.20

To be compliant with the new Canadian accessibility law requiring banks to have all website content accessible to persons with visual and/or hearing disabilities.

Financial Benefits

Socio-Economic BenefitsRegulatory project that does have social econocmic benefits, as it ensures all our web content is available for persons with visual and/or hearing impairments. Ensuring people with such disabilities have access to all online available content, ensures that we keep and attract new clients and provide services to a population in need.


NPV $0.00

Benefits

Time



Accessible CanadaRegulatory

Strategic Objective



No immediate financial benefits, avoidance of future penalities for non-compliance.


Very Low 1


Total:


Other Spending:


Regulatory project.

Various commonly used screen readers will be used to verift the compatibility of textual content with screen readers. Software agent will be used to run through the all web content to ensure full accessible compliance.

Comments

Project Risk

Costs



Very Low 1


Very Low (1) Low (2) Average (3) High (4) Very High (5)ITEM

1 0-$250K $250K-$500K $500K-$750K $750K-$1Million Over $1Million

20-$250K/ year

$250K-$500K/ year

$500K-$750K/ year

$750K-$1Million/ year

Over $1Million/ year

3 0-$250K/ year $250K-$500K/

year $500K-$750K/

year $750K-$1Million/

year Over $1Million/

year

4 0-$250K/ year $250K-$500K/

year $500K-$750K/



year

5 0-$250K/ year $250K-$500K/

year $500K-$750K/



year

60-$250K $250K-$500K $500K-$750K $750K-$1Million Over $1Million

Ecosystem Services Valuation (ESV)Valuing “services” provided to the natural environment, and/or determining how their values will change by $ / hectare Sustainable Environmental Impact (+/-)i. Green enhancement achieved to an environmental area ii. Meeting customer demand for Green Initiatives

0-$250K/ hectare

$250K-$500K/ hectare

$500K-$750K/ hectare

$750K-$1Million/ hectare

Over $1Million/ hectare

Environmental Input Output Modeling (EIO-LSV) Economic input-output life cycle analysis (EIO-LCA) model will be used to quantify the environmental effects of the service sectors processes change initiatives i. Green enhancement achieved to an environmentally friendly processii. Meeting customer demand for Green Initiatives

0-$250K/ year $250K-$500K/

year $500K-$750K/



year

ITEM8 0-$250K $250K-$500K $500K-$750K $750K-$1Million Over $1Million

9 $100K $200K $300K $400K $500K

10 0-$250K $250K-$500K $500K-$750K $750K-$1Million Over $1MillionITEM

11 0-$250K $250K-$500K $500K-$750K $750K-$1Million Over $1Million

TSG Component Evaluation Table

Category 1 - Project Benefits Financial Incentives (NPV - benefits)

Enterprise Risk Reduction

Project Duration

7

Sustainable Environmental Impact

Category 2 - Project Costs

Operational Performance / Process Improvement

Project RiskCategory 3 - Project Time Duration

Continuous Improvement

Technology Enhancement

Business Development i. Potential Market Share Increaseii. New Product(s)

Project Cost

Project HR. Requirements (FTE) i. Internal cost of fully burdened FTE by project duration (1 internal employee full time, ~ $50/hr., ~$100K/year)

ITEM

1

2

3

4

5

6

Ecosystem Services Valuation (ESV)Valuing “services” provided to the natural environment, and/or determining how their values will change by $ / hectare Sustainable Environmental Impact (+/-)i. Green enhancement achieved to an environmental area ii. Meeting customer demand for Green Initiatives

Environmental Input Output Modeling (EIO-LCV) Economic input-output life cycle analysis (EIO-LCA) model will be used to quantify the environmental effects of the service sectors processes change initiatives i. Green enhancement achieved to an environmentally friendly processii. Meeting customer demand for Green Initiatives

ITEM

8

9

10

ITEM11

7

The total project investment / the area of the environmental enhancement in Hectares1 Hectare = 10 000m2

$ Canadian Dollars / Hectare

Determine a value that the new environmentally friendly process improvement is worth annually $ Canadian Dollars / Year

Enterprise Risk ReductionEnterprise Risk Reduction ($) = the reduction of the probability of any potential failure enterprise wide (Educated Guess of Probability %) * consequence of failure ($ Cost of the failure considered)

$ Canadian Dollars / Year

Operational Performance Improvement Each of these components can be thought logically to affect overall performance, which is a combination of efficiency and effectiveness

A logical way to valuate this is how the initiative saves the company time:If the hourly salary expense of 1 FTE is $50, then the billable rate/value of that employee's time to the business is 3 times that amount (1. Salary Exp. 2. Overhead 3. Profit)

Thus, one hour of time saved is worth $150(e.g.. My Project will save 1000 person hours/year = $150 000/year = Value)

Technology Enhancement $ Canadian Dollars / Year

$ Canadian Dollars

Business Development i. Potential Market Share Increaseii. New Product(s)

The projected value of the new business venture $ Canadian Dollars

Sustainable Environmental Impact

Select the corresponding component that best applies to your environmental initiative project

Category 2 - Project Costs Explanations

Project RiskProject Risk (S) = Probability of Failure (Educated Guess of Probability %) * Consequence of Failure ($Cost of the project failure considered)

$ Canadian Dollars

Category 1 - Project Benefits

Units

Project Cost Project Cost/Budget = Total cost of the Project Scope (amount of money required to finance the project) $ Canadian Dollars

Financial Incentives (NPV - benefits)Rt = net positive cash inflow during the period ti = discount rate i.e. the return that could be earned per unit of time on an investment with similar risk (use 2% ~ annual inflation rate - conservative) t = number of time periods

$ Canadian Dollars

$ Canadian Dollars / Year

Continuous Improvement $ Canadian Dollars / Year

Project HR. Requirements (FTE) i. Internal cost of fully burdened FTE

Project HR. Requirements (FTE) = Internal cost of a fully burdened FTE by project duration (1 internal full time employee, ~ $50/hr., ~$100K/year)

Explanations Units

Component Explanations

Category 3 - Project Duration Explanations Units Project Duration Project Duration = Total dollars spent per year on project deliverables $ Canadian Dollars / Year

Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted Score Weighted

Financial Incentives (NPV - benefits) 3.0% 1 0.03 1 0.03 5 0.15 1 0.03 1 0.03 1 0.03 1 0.03 1 0.03 1 0.03 1 0.03

Enterprise Risk Reduction 5.0% 2 0.10 1 0.05 3 0.15 1 0.05 1 0.05 1 0.05 5 0.25 1 0.05 2 0.10 5 0.25

Operational Performance Improvement 5.0% 4 0.20 1 0.05 2 0.10 1 0.05 1 0.05 1 0.05 4 0.20 1 0.05 2 0.10 1 0.05

Continuous Improvement 5.0% 5 0.25 1 0.05 2 0.10 1 0.05 1 0.05 1 0.05 3 0.15 1 0.05 3 0.15 1 0.05

Technology Enhancement 5.0% 5 0.25 1 0.05 1 0.05 2 0.10 2 0.10 1 0.05 2 0.10 1 0.05 3 0.15 5 0.25Business Development i. Potential Market Share Increaseii. New Product(s)

5.0% 1 0.05 1 0.05 1 0.05 1 0.05 1 0.05 2 0.10 4 0.20 3 0.15 2 0.10 1 0.05

Sustainable Environment Impact - Ecosystem services valuation 6.0% 5 0.30 5 0.30 3 0.18 5 0.30 5 0.30 4 0.24 1 0.06 1 0.06 1 0.06 1 0.06

Sustainable Environment Impact - Environmental Input-Output Modeling 6.0% 1 0.06 5 0.30 4 0.24 5 0.30 5 0.30 1 0.06 1 0.06 1 0.06 1 0.06 1 0.06

Total Project Benefits 40.0% 24 1.24 16 0.88 21 1.02 17 0.93 17 0.93 12 0.63 21 1.05 10 0.5 15 0.75 16 0.80

Project Cost 20.0% 5 1.00 1 0.20 5 1.00 1 0.20 1 0.20 5 1.00 5 1.00 5 1.00 5 1.00 5 1.00Project HR. Requirements (FTE) i. Internal cost of fully burdened FTE

5.0% 5 0.25 2 0.10 2 0.10 3 0.15 3 0.15 1 0.05 5 0.25 1 0.05 3 0.15 5 0.25

Project Risk 20.0% 5 1.00 2 0.40 3 0.60 3 0.60 3 0.60 1 0.20 5 1.00 5 1.00 2 0.40 5 1.00

Total Project Cost 45.0% 15 2.25 5 0.70 10 1.70 7 0.95 7 0.95 7 1.25 15 2.25 11 2.1 10 1.55 15 2.25

Project Duration 15.0% 5 0.75 5 0.75 5 0.75 5 0.75 5 0.75 5 0.75 5 0.75 1 0.15 3 0.45 5 0.75

Total Project Duration 15.0% 5 0.75 5 0.75 5 0.75 5 0.75 5 0.75 5 0.75 5 0.75 1 0.2 3 0.45 5 0.75

Grand Weighted Total 100% 4.24 2.33 3.47 2.63 2.63 2.63 4.05 2.70 2.75 3.80

E-002

Component Weighted Scoring Summary Table

Project Duration

S-003

Project Benefits

Weighting

Project Costs

S-004 R-001E-003 E-004 E-005 S-001 S-002E-001

Portfolio Weighting

Financial Incentives (NPV - benefits) 3.0%Enterprise Risk Reduction 5.0%Operational Performance Improvement 5.0%Continuous Improvement 5.0%Technology Enhancement 5.0%Business Development i. Potential Market Share Increaseii. New Product(s)

5.0%

Sustainable Environment Impact - Ecosystem services valuation 6.0%Sustainable Environment Impact - Environmental Input-Output Modeling 6.0%Total 40.0%

Project Cost 20.0%Project HR. Requirements (FTE) i. Internal cost of fully burdened FTE

5.0%

Project Risk 20.0%Total 45.0%

Project Duration 15.0%Total 15.0%Grand Total 100.0%

Criteria Weightings

Category 2 - Project Cost

Category 1 - Project Benefits

Category 3 - Project Duration

Project Title Type Score Y1 Y2 Y3 Y4 Y5Development Cost (millions)

NPV (millions)

Urgency Risk Rank Included

E-001 Solar Panel Renewable Energy Program Environmental Sustainability 4.24 $1,000,000 $5,000,000 $30,000,000 $30,000,000 $30,000,000 $0.00 -$160.07 Low 5 2 YesE-002 Tree Planting Program Environmental Sustainability 2.33 $500,000 $500,000 $1,500,000 $1,000,000 $1,000,000 $0.00 $0.00 Low 2 10 NoE-003 Multi-Dimensional Recycling Program Environmental Sustainability 3.47 $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $6.00 $3.87 Medium 3 3 YesE-004 Bird Safety Environmental Sustainability 2.63 $1,000,000 $2,500,000 $0 $0 $0 $0.50 $0.00 Medium 3 4 YesE-005 Scientific Research Grant Environmental Sustainability 2.63 $1,500,000 $1,250,000 $1,250,000 $1,500,000 $0 $1.50 $0.00 Low 3 9 NoS-001 Community Gardens Social Sustainability 2.63 $1,500,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1.50 $0.00 Low 1 8 NoS-002 Student Financial Education Program Social Sustainability 4.05 $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $8.00 -$1.13 Low 5 5 Yes S-003 Microloans Social Sustainability 2.70 $50,000,000 $50,000,000 $50,000,000 $50,000,000 $50,000,000 $0.20 $0.00 Low 5 7 YesS-004 Women in Finance Program Social Sustainability 2.75 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $0.02 $0.10 Low 2 6 YesR-001 Accessible Canada Regulatory 3.80 $500,000 $500,000 $200,000 $200,000 $200,000 $20.00 $0.00 High 5 1 Yes

Component Total 3.12 $61,000,000.00 $63,750,000.00 $86,950,000.00 $86,700,000.00 $85,200,000.00 $37.72Portfolio Yearly Total $57,500,000.00 $61,000,000.00 $83,200,000.00 $83,200,000.00 $83,200,000.00 $34.72Portfolio 5 Year Total $368,100,000.00

Project Ranking Table

With an established portofolio fund of $500 million (in 2015) which has grown with TSG Bank's net profit to $625 million in (2016) and a 60% constraint, we are within the defined threshold for project selection and execution for the portfolio. With due diligence, at this time we have selected 7 out of 10 projects, with taking into account the respective scores and urgencies. Projects that are regulatory in nature have priority above all other projects.

With the allowance for remaining funds in the portfolio, this allows for room for additional regulatory projects to be addressed as they arise and new projects under both environmental and social sustainability to be also taken into consideration. Additionally, there is the opportunity to further address new strategic initiatves of TSG Bank as they arise.

Portfolio Constraints and Exceptions

The portfolio selected is balanced representation of the strategic objectives of TSG Bank, with 3 Environmental Sustainability projects to be implemented, 3 Social Sustainability projects to be implement and 1 Regulatory project.

Documents

Group B - TSG Bank - Assignment 2 SCS2235