Effective project management in complex IT transformation projects

The increasing need for transformation through digitalization and changing customer interests are undeniable for maintaining competitiveness (simpler processes, efficiency gains). The Intero Consulting Banking Monitor provides an overview of current topics using the financial services sector as an example. IT plays a decisive role here and is often the key to comprehensive change. Intero Consulting successfully guides clients through complex IT transformations, be it IT outsourcing projects or the implementation of core banking strategies with cloud and mainframe technologies.

In addition to technical expertise, successful project management is crucial for a successful transformation. This article highlights the most common challenges and individual success factors in the project management of such projects.

Based on our experience, it is clear that successful project management not only requires the established balance between time, quality and effort/cost, but also involves dealing with inexperience, a large number of stakeholders and complex IT landscapes. The five challenges in detail:

• Scarcity of resources: monetary and personnel capacities are limited. Human resources are also often in conflict between operational and project work. Finding a solution that suits all parties is a key component of successful project management
• In addition to the scarcity of resources, quality and time are the other two challenges in the golden triangle of project management. Contracts with service providers in particular often set tight time frames.
• Thematic inexperience: Many companies often have only limited expertise in the area of planned IT transformation.
• Complexity and multi-layered nature of IT: The IT structures of large corporations in the financial services sector are often highly interlinked and multi-layered.
• Large number of stakeholders involved: Large IT transformations involve many stakeholders in the company concerned (different hierarchical levels, specialist departments, IT departments) but also external service providers. The large number of stakeholders therefore requires effective stakeholder management.

Successful project management requires a balanced integration of different methods and consideration of individual needs. Here are our six key success factors:

1. Use of hybrid project management methods

In large projects, we combine classic (e.g. IPMA, PRINCE2) and agile project management approaches (e.g. SCRUM) to ensure an optimal balance between complexity and delivery commitments. Agile methods such as sprints in particular help to reduce complexity for individual employees and thus define smaller work steps. However, phase- and milestone-driven procedures from classic project management are essential at management level in order to meet often contracted delivery obligations.

2. Optimal balance of standards and customized solutions

Every client and every transformation is individual. Our projects are rarely managed dogmatically according to the usual project management standards. Rather, we use the standards as a framework to define a suitable roadmap for the organization concerned based on these standards as well as internal company processes, standards and tools. Based on our experience, Intero Consulting supports you in finding the optimal balance between standard and customized solutions. Our goal is to develop solutions that are as pragmatic and lean as possible in order to keep the additional organizational effort for those involved as low as possible.

3. Early resource management and involvement of top management

An early request for internal and external resources (with the involvement of managers) should be made before the project starts. Key resources should be specifically analyzed in order to define representatives or to be able to plan the effects on the phase and project plan. Ongoing transparency regarding the availability of key resources and any escalating measures are important.

It is important to involve internal line managers in the project at this stage, as too much outsourcing can compromise the success of the project. The prioritization and thus also the support of the project should be coordinated and communicated with top management from the outset.

4. Effective stakeholder management through continuous and transparent communication

At the beginning, goals are defined with management and employees and communicated across all stakeholders.During the project, information should be shared transparently via regular reporting structures and various communication channels.In addition to formal structures, channels for direct communication should also be encouraged. In particular, regular progress reports with management allow for quick adjustments if necessary.

In the event of a major impact on users, a separate change management sub-project should be set up with dedicated managers. In large projects, change management cannot be carried out "as an accessory" by the project management due to the variety of topics involved.

5. Success can only be achieved together

Purely virtual meetings often fail to build the necessary bridges for personal collaboration. Team building with all participants in face-to-face meetings across company boundaries is therefore essential.Even in the case of remote locations, regular on-site events (kick-offs, celebrations of key milestones, workshops, etc.) should be sought by all parties.As an external service provider, we understand the relevance of personal relationships and engage directly with those affected in order to take them along on the project journey.

6. Promoting personal responsibility

Working independently means understanding the project goal and working independently towards achieving this goal. This also includes thinking outside the box and making decisions independently.

Working independently can unleash further potential in employees and sustainably improve the quality of work results.Intero Consulting promotes personal responsibility through clearly defined and communicated areas of responsibility as well as the creation of a trusting and respectful working atmosphere.

The topic of personal responsibility also describes the "exception principle" from PRINCE2. The principle also supports the delegation of work packages and prevents individual project levels from being over- or under-managed. Escalations or interventions at the next project level should only take place if there are deviations from the planned progress.

The roadmap below summarizes the keys to success of our hybrid project management approach.

Intero Consulting has many years of experience in IT transformation projects. All our employees are certified with the current project management standards and can optimally apply our success factors in the customer relationship thanks to their operational project experience.  

This combination of methodological and soft skills in communication and project management as well as technical expertise on the specific topics of an IT transformation makes us successful. Let's tackle your next project together!