How to De-Risk and Deliver a Multi-Year IT Project 

In this article, we would like to share our learnings in taming the risks that come with multi-year IT projects. Considering when projects of this magnitude go wrong, the loss could cripple organisations. 

Managing the risks could raise anxiety when most parts of the process are not easily controllable. Guiding the project smoothly from beginning to completion demands a high level of adaptability in project management. 

We’ve broken our learnings into a few sections, listed below: 

1. Agile and multi-year projects 
2. Governance, human resources, and risk management 
3. Responding to change 
4. Contracting 
5. Managing failures 
6. Automation 
7. Trust 
8. Conclusion 

1. Agile and Multi-Year IT Projects 

Traditional project management and other project delivery techniques dwell on the provision of features. Stuffing projects with unnecessary features is not the Agile formula for de-risking. 

Agile simplifies its methodology to rely only on the features that are actually necessary to launch and run. Everything after this should be an iteration on the present offering. 

You may wonder how Agile technology takes on complex projects while insisting on the economy of features. 

The sooner the launch of a multi-year IT project, the better. 

This launch is crucial when the project possesses enough features to provide the intended outcome. 

In theory, this seems easy, right? 

Build as little as possible to satisfy demand then iterate on what you’ve built. However, when modernising a legacy system this can be difficult. 

If this is the case, there are two pathways to take: 

A: Firecracker legacy migration - Gather knowledge about the legacy application and use this information to build the new application. 

Or 

B: Divide and conquer - Divide the legacy systems database out piece by piece until the application is completely modernised. 

This can be flexible though. One of our customers has had success using multiple firecracker migrations. 

To achieve this, we released a part of the rebuild of their legacy product first. With this release, they got fantastic feedback from key stakeholders. This first firecracker unlocked the next larger firecracker migration. 

As we like to say, for it to be Agile, it must be released. 

2. People, Governance, and Education 

Implementing new software brings about changes in people, governance, and education within an organisation. These changes, if not managed well, can pose risks to project success. 

People 

Stakeholder engagement remains critical. A top-down and bottom-up strategy helps ensure buy-in from everyone involved. The product owner plays a pivotal role in preparing and aligning the project’s objectives with the company’s strategic direction. 

• A quote: “It is almost impossible for projects to succeed when a stakeholder is actively working against them.”  

Governance  

Meticulous documentation and clear communication continue to be crucial. Keeping a central project space and documenting decisions helps manage risks effectively.  

• Recommendation: Include risk management plans that list potential risks, mitigation strategies, and impact analysis. Regularly reviewing and updating this plan is vital.

Education  

Early access to the software for stakeholders allows them to provide timely feedback and requests for adjustments. However, it’s vital not to expose end-users to an unfinished product prematurely, to avoid negative impacts on trust and project perception. 

New best practice for 2024: Utilise a staging environment in the final delivery stages, where stakeholders can test the product without risking its live status. This aligns with the updated best practices in project risk management. 

3. Responding to Change  

Adaptability remains at the heart of Agile. While some may view Agile as reactive, it acknowledges the reality that plans can fail and must sometimes be salvaged. Following a scientific approach—hypothesising, experimenting, measuring, and iterating—is key to adapting successfully. 

In 2024, we’ve observed an increased focus on problem statements that consider both business and end-user outcomes, ensuring that changes align with overall objectives. For example, adjusting booking processes to improve conversion rates not only benefits the business but directly impacts user experience.

4. Contracting 

Involving clients throughout the process remains an essential strategy for de-risking. Bringing clients into full disclosure through the Scrum process and offering upfront estimates of time and risk ensures better alignment. 

2024 Contracting Keys: 

• Fixed Time, Variable Scope: Contract based on the estimated time for the scope, but allow for prioritisation and adjustments. 

• Product Owner Prioritisation: Maintain focus on ‘Must have,’ ‘Should have,’ and ‘Could have’ features, mitigating the risk of delivering low-priority items at the expense of crucial ones.  

By aligning contracts in this way, clients appreciate the transparency and the ability to adapt as priorities shift. 

5. Managing Project Failures 

Being transparent about failures and learning from them is still a cornerstone of de-risking multi-year IT projects. The main reasons for project failures include product ownership issues, incorrect market fit, lack of stakeholder engagement, and failing trust. 

Strategies: 

• Stakeholder Engagement/Education: As detailed in the Asana article, educating stakeholders on how the project might impact their operations and actively involving them in decision-making reduces the risk of resistance. It’s crucial to keep them informed and trained throughout the process. 

• Failing Trust: Providing early and frequent feedback remains key to maintaining trust. Promptly addressing concerns and reaffirming trust in the team’s ability to identify and resolve issues can help mitigate risk. 

A quote: “The real failure is developing a product that the end-users don’t appreciate.” 

6. Automation 

Automation continues to be a vital tool in mitigating risks for multi-year projects. In 2024, we have seen customers leveraging automation more efficiently through the following: 

• Automation Development: Training Codebots to handle repetitive tasks, ensuring consistency, quality, and speed. 

• Hosting: Cloud hosting remains central for global availability and monitoring. With the evolution of cloud services, automated delivery processes have become even more robust. 

Additional insight: Regularly update automation tools to align with the latest technology and security standards, avoiding legacy pitfalls.  

7. Trust 

Trust has proven to be one of the most critical pillars for project success. In 2024, successful projects are characterised by open communication and collaborative problem-solving. When issues arise, the focus should be on learning from mistakes rather than assigning blame. 

One of our clients demonstrated how reaffirming trust while critiquing work fosters a positive team environment, significantly reducing turnover risks and enhancing project outcomes.  

Conclusion 

In 2024, the cost and complexity of multi-year IT projects make de-risking an essential focus from the outset. Prioritising flexibility, transparency, and early feedback are fundamental for ensuring the project’s success. 

Agile methodologies remain instrumental in today’s fast-paced environment, offering adaptability that is crucial for de-risking project delivery. However, it’s vital to be prepared to change and adapt processes—starting with people first.  

If you’re considering embarking on a multi-year IT project, book a free product strategy session with us today.