The importance of mitigating inevitable mistakes
There's an age-old understanding that no significant undertaking is free from mistakes; they are simply part of the process. You need to embrace this reality.
However, it's still essential to understand the broader consequences. Major disruptions are not only costly but will affect your entire business. More often than not, other initiatives are put on hold because of the platform change. This slows your bank's progress, especially if the project takes longer than expected. Therefore, recognizing inevitable challenges is important, but planning and minimizing potential risks is equally crucial.
1. Taking on a “big bang” approach
The idea of accomplishing everything in one fell swoop can appear efficient and effective. However, the challenges that arise when diving headfirst into such a big change are often underestimated. So, instead of viewing this as a single massive production and migration process, it’s smarter to consider multiple smaller migrations.
Breaking down the project into manageable chunks provides better control, allows time for adjustments based on learnings, and reduces the overall risk. This segmented approach also offers the opportunity for regular evaluation, ensuring that each step aligns with your bank's broader strategic goals.
2. Not consistently integrating change management into your project
A common pitfall many fall into is sidelining change management or treating it as an afterthought. Yet, its integration can be the difference between a project that thrives and one that merely survives. Let's face it: every new system will encounter issues. But if your team goes into the project with a negative perception, overcoming these challenges becomes exponentially harder.
That’s why it's crucial to have the entire organization on board and maintain a positive outlook as the project unfolds. By consistently incorporating change management throughout the project, you foster a culture of adaptability and resilience. This ensures that when bumps in the road do appear, your team is not only prepared but also has a mindset geared towards solutions rather than problems.
3. Exclusively focusing on the project
It might seem tempting to pour all your resources and attention into the core banking platform overhaul. But exclusively zeroing in on this project can halt progress in other vital areas of your bank.
Diversifying your efforts is essential. While the core banking project is undeniably crucial, it's equally important to keep the broader picture in mind. By running parallel developmental initiatives, you ensure that the bank continues to innovate, evolve, and respond to dynamic market conditions even as the core system undergoes its transformation.
Remember, banking is an ever-evolving landscape, and while foundational changes are critical, so is maintaining a competitive edge in other areas.
4. Underestimating the time required for integrations
A common snag in changing core banking platforms is the tendency to overlook the intricacies of integrating other systems. While a supplier might provide a timeline for migrating to their solution, you also need to consider the numerous other systems in your bank. Each contains critical data that needs seamless integration into the new platform.
By not accounting for these integrations upfront, you risk facing unexpected delays and complications later in the process. Hence, it's paramount to have a comprehensive view of the entire migration landscape to ensure you factor in the integration of all systems, not just the primary platform change.
5. Neglecting thorough migration verification
Transitioning to a new core banking platform is not just about moving data but ensuring that it transitions correctly, remains coherent, and functions seamlessly in its new environment. A typical mistake is conducting minimal migration verifications, thinking that if it works once or twice, it will always work. But this mindset leads to unpleasant surprises down the line.
Prioritize ongoing, strict migration tests. These tests should encompass both technical aspects and full-data tests. Running full-volume tests allows you to gauge the system's performance under real-world conditions and offers a safety net to address potential glitches or bottlenecks.
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PRO TIP The importance of repeated testing with genuine data in a non-production environment cannot be overstated. This approach provides insights into how the new system will handle actual data flows and interactions, offering a realistic snapshot of the post-migration scenario. However, a word of caution: using real production data is risky and only allowed if the test environment mirrors the security protocols of a production setup. If this isn't achievable, always opt for anonymizing the data. Ensure test environments are tightly locked and secured to avoid leaks or breaches. |
6. Overlooking the well-being of project team members
With projects of this magnitude often spanning several years, it's essential to ensure that the driving force behind it – your project team – remains motivated, engaged, and primed for the challenges ahead.
A lengthy project can lead to burnout, stagnation, and dwindling enthusiasm. But a stable team can harness its collective experience, anticipate hurdles, and maintain momentum. As such, it's imperative to continuously cultivate a positive and supportive environment. Regularly check in with team members, understand their challenges, and provide them with the necessary tools and training. This not only boosts their skills but reinforces their value to the project.
7. Putting an overemphasis on autonomy
While it's smart to designate autonomy to agile teams, it's equally critical to ensure that every cog in the machine fits perfectly. Without a comprehensive architecture, there's a high risk of each team operating in its silo. And while each silo might achieve its individual goals, the result is a platform where critical components don’t seamlessly integrate or communicate as they should.
To prevent this, make sure there is an overarching architectural blueprint in place. This will serve as a reference and guide for all teams involved, assuring that while they make independent decisions, the end result is harmonious and integrated. Also, schedule regular synchronization meetings (where teams update each other on their progress and challenges) to bring everyone to the same page and flag any potential integration issues early on.
8. Adopting the “Rolls Royce” mentality
One of the things you may face when switching your core banking platform is thinking, "We're building a new system; let's ensure it has every possible feature”. However, there's a significant risk associated with this mindset.
Introducing too many features from the outset not only bloats the project scope but also leads to massive time and cost overruns. The more complex the system, the more complex the challenges that come with it. It's not just about development but also extended timeframes for testing, increased potential for bugs, and prolonged training and adaptation periods for staff.
Instead, establish a robust, compact, and flexible core system. The essence of changing your core banking platform should center around future-proofing and scalability. The goal isn't to have a system with every conceivable feature on day one but one that can adapt and integrate new features when your business demands it.
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PRO INSIGHT Think of your new system in terms of building a foundation. You want a strong, stable basis to support expansions and renovations over time. You don't want to start by building every room and facility imaginable only to find that the foundation can't bear the weight or adapt to shifting priorities. |
9. Not keeping it simple
Migrating systems often brings with it the temptation to mirror every function from the old system to the new. But remember, different systems come with their unique strengths. Instead of cloning your old system, why not see this as a chance to adapt and upgrade?
Instead of customizing the entire new system to fit old processes – which can be resource-intensive and may lead to complications later on – consider adjusting processes to align with standard features. Prioritize simplicity and use standard functionalities to make the process smoother and future changes more manageable. Refining your processes to match the new system is less taxing and results in a more streamlined operation.
After all, isn’t it worth considering adjustments for long-term efficiency?
Keen to discuss core banking, or are you considering making the change? Reach out to one of our experts to get guidance, answers to your questions, or personalized advice tailored to your bank's unique challenges and objectives.
