Challenge: Resolve post-acquisition IT integration problems to avoid costly penalties
Trillium’s client had recently completed the acquisition of another financial institution’
Five months into the project it became clear that the client would not complete the project using the current plans and approaches. The bank’s IT organization had limited IT experience in the newly acquired company’s technology, and two time zones and over 1,100 miles separated the two companies’ IT organizations, complicating communication and collaboration.
Furthermore, decommissioning and migration of systems from the acquired company was complicated by the fact that the banking industry client was in reality three different chartered banks in one corporate entity. This presented an especially complex challenge of enabling and referencing the right migrated systems with the right bank in order to meet the legal requirements of each charter.
Trillium Solution: A strategic approach to multi-company enabling with best practices for project governance and testing
With the threat of steep penalties on the horizon, Trillium hit the ground running with a post-integration assessment of the state of the decommissioning activities.
Trillium analyzed the company’s:
1.1 Core software development processes and tools
1.2 Executive support and participation in the project
1.3 Issue and risk management processes, including capture, prioritization, tracking, and resolution
The team found that poor communication, project planning, and project management between the two companies’ IT departments were hampering progress. Specifically, Trillium helped the client realize that the project was failing because:
2.1 Current project plans were not appropriately staffed
2.2 A number of activities were missing critical testing components
2.3 Serious gaps existed in the bank processes issues
2.4 Project governance and issue escalation was not providing timely feedback and results to the organization
Trillium developed a new post-acquisition integration project plan based on a multi-company enabling approach, which involved simultaneously turning off, migrating, and upgrading systems. Trillium consultants enhanced the acquired company’s systems in order to reference the correct bank in all documentation. In addition, as a key part of the multi-company enabling process, Trillium consultants identified deficiencies in code migration and testing processes. As a result, they modified code generation and testing to attain higher quality code in production, enabling the client’s IT staff to identify defects and problems earlier in the production process.
Trillium also re-scoped time and budget requirements to cover requisite testing that had been missing from the original project plan. The final project plan also included a list of key risks and issues, resolution recommendations, and risk mitigation plans, and a solution for facilitating communication between the two companies’ IT departments.
Results: Avoided millions in penalties while gaining $4 million in integration value
Driven by Trillium’s expert project management, the client was able to complete the post-acquisition IT migration project ahead of schedule and avoided the $1 million per day penalties. In addition, the new change control process that had been implemented for code generation and testing reduced the number of defects migrating into the production environment by 30%.
Specifically, Trillium helped its banking client achieve the following benefits:
3.1 Saved millions of dollars in potential post-acquisition penalties
3.2 Achieved $4 million in integration value realized well ahead of the original schedule
3.3 Reduced project delays by identifying defects earlier in the development process
3.4 Streamlined communication with the acquired company’s IT staff
3.5 Ensured that the client was compliant with banking regulations around post-acquisition IT migration
Beyond the project’s completion, Trillium’s project management techniques, including project governance and issue management, continued to be adopted by the client, resulting in sustainable IT performance improvements.
Trillium Solutions Group, Inc. is a professional services firm headquartered in Chicago that provides technology consulting and strategic sourcing services for industries such as trade associations, financial services, telecommunications, and healthcare. For more information, please visit www.trilliumsg.com.