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    Initiation Phase of a Large IT Program: Key Points to Keep in Mind

    Many global companies are using business transformation initiatives to meet changing market needs. Implementing large IT programs is a key component of these change initiatives. Given that the failures of such programs are now commonly discussed, a recent McKinsey/Oxford study highlights that the failure rate of such programs is indeed more often. According to the study, half of IT projects with budgets of over $15 million run 45 percent over budget, and 7 percent are behind schedule and deliver 56 percent less functionality than predicted. What should organizations do to mitigate failure of such programs, and successfully implement their program?

    According to Virtusa, most IT programs struggle during the initiation phase since key program management activities are not completed to effectively start the program. This leads to longer startup times and missed budget targets, even before the program begins. The model outlined by Naushad Kapasi, associate director – client services at Virtusa Corporation, contains the key activities that need to be completed during program initiation.

    Initiation Phase of a Large IT Program: Key Points to Keep in Mind - slide 1

    Click through for six key activities that need to be completed during the program initiation phase, as identified by Virtusa.

    Initiation Phase of a Large IT Program: Key Points to Keep in Mind - slide 2

    Mandate

    This is one of the key activities without which no other activity can begin. It provides the blueprint for the entire program and all key decisions thereafter are based on the mission and objectives of the program. You can compare this to a country’s constitution that outlines the fundamental principles of the program. The mandate should include business case, project justification, high-level requirements and success criteria.

    Initiation Phase of a Large IT Program: Key Points to Keep in Mind - slide 3

    Time management

    This process is a crucial part of any successful project. Without careful time management, projects are set up to fail. This process organizes the team to meet deadlines by defining activities, estimating the durations of activities, scheduling activities, and ensuring adherence to the schedule. All programs must have the following activities completed:

    • High-level roadmap – Provides a framework to help plan and coordinate the program. The key objective is to provide consensus within the project teams and stakeholders on how the program is going to achieve its goals in a timely manner.
    • Development approach – In this activity, the software development lifecycle (SDLC) approach needs to be identified, i.e., Waterfall, iterative, agile.
    • Estimation model – The estimation model for the program needs to be identified since it is used as an input to project/program plans and budgets.

    Initiation Phase of a Large IT Program: Key Points to Keep in Mind - slide 4

    Budget management

    This process is involved in estimating, budgeting and controlling costs to complete the project within the approved budget. It requires that managers create and manage the budget effectively to yield maximum profitability.

    • Financial management – This activity provides the processes and the financial checks and balances required for the program to meet its financial commitment.
    • Contract management – The activity includes the legal framework to engage with its clients, vendors and suppliers.

    Initiation Phase of a Large IT Program: Key Points to Keep in Mind - slide 5

    Resource management

    This process manages the most crucial aspect of the project – its people. This area ensures efficient and effective deployment of an organization’s resources to achieve the program’s objectives.

    • Resource management – Defines the processes for resource estimating and deployment. This activity ensures resources with the right skills are available as per the timelines in the program plan.
    • Stakeholder management – This activity includes identification of stakeholders and managing them to align with the program and business objectives. Communication is an important factor in stakeholder management.

    Initiation Phase of a Large IT Program: Key Points to Keep in Mind - slide 6

    Governance

    This process establishes structured communications throughout the levels of organization and assures that the organizational strategy, mission, vision and desired outcomes are aligned within the program mandate.

    • Governance – This activity defines the governance structure and decision-making responsibility within each team.
    • Change management – Each program needs to define a baseline and any change beyond that needs to go through the change management process. The change management process needs to be identified early on so that teams understand the baseline and change management processes.
    • Risk management – This activity defines the processes for identification, prioritization and mitigation of risks.

    Initiation Phase of a Large IT Program: Key Points to Keep in Mind - slide 7

    Program kick-off

    All the previous processes have to be completed before program kick-off since they are very tightly interrelated to each other, i.e., budget management ties into time management because in order to ensure that the project is completed on budget, it also has to be completed on time.

    The program kickoff meeting is scheduled for introducing the members of the project team (including clients, stakeholders, employees, contractors and external vendors) to the program mandate, the program roadmap/plan, and the roles of the team members. This is essential to align the program team on the program objectives.

    The program initiation model outlined previously ensures a successful program start-up and gives a solid head start in achieving your program objectives. These critical steps will prevent program startup failures and provide a higher rate of successful program execution.

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