Transforming Banking (Part 14): The Critical Path to a Successful System Cutover

When it comes to banking system implementations, the cutover and go-live phase is a critical juncture. Once the cutover dates are set, a series of preparatory events must take place to ensure a smooth transition. As we continue our Transforming Banking series, this article delves into the essential steps required for a successful transition to a new banking system.

1.????? Establish Your Roadmap

The cutover process begins with the end in mind. Once the go-live date is set, the project team must work backward to schedule the necessary data mocks and dress rehearsals, allowing ample time between each to address any issues, rejuvenate the team, and incorporate lessons learned. Keep in mind that a “code-complete” date, which marks the end of new development, must leave sufficient time to schedule all the necessary activities required for cutover.?

2.????? Identify Points of No Return?

Once your roadmap is complete, identify the points of no return in the project timeline, including reputational, systemic, and technical.? These are the milestones beyond which certain actions cannot be undone or changed without significant repercussions. Clear identification of these points helps in better planning and risk mitigation.?

3.????? Data Mocks: The Technical Rehearsal?

Data mocks are technical exercises that simulate the data migration process. Although the data migration team may have been running migrations for months to develop and test their routines, data mocks integrate other technical streams into the migration. Typically, a project will conduct about three data mocks, ensuring that the migration strategy is robust and ready for the actual cutover. Depending on your strategy, ancillary system migrations might be part of the data mock scope.?

4.????? Dress Rehearsals: A Full-Scale Run-Through

Dress rehearsals are comprehensive tests of the entire cutover process, involving both the technical systems and the people who operate them. These rehearsals mirror the actual cutover plan as closely as possible, including the same people (stakeholders, partners, and vendors) and the same schedule (office and after-hours) as the actual cutover. The objective is to finalize timings and optimize the cutover process.

The number of dress rehearsals required may vary depending on the project's complexity and timeline adherence, but it's crucial to involve all business departments, vendors, and partners. Everyone must perform their cutover runbooks during the dress rehearsal to become familiar with their roles and responsibilities during the cutover. Without everyone’s involvement, the dress rehearsal simply becomes another technical exercise.

5.????? Understand and Optimize the Critical Path

To streamline the technical migration, it is essential to understand its critical path and explore options to expedite the process. For example, identify activities that may be currently sequential but can be done in parallel to reduce the overall timeline. Include the banking system vendor in this phase, but keep in mind their focus will primarily be on the core banking system rather than the ancillary systems, which can be numerous and equally vital.?

6.????? Finalize Runbooks and Establish a Command Centre

During the mocks and dress rehearsals, the project team must finalize the runbooks, establish the command center, adjust resources, initiate communications, revise standard operating procedures, and ultimately makes the pivotal go-no-go decision. This activity is crucial for ensuring that all teams are synchronized and ready for the cutover.

7.????? Go Live, but Maintain Control

Throughout the cutover period and subsequent hyper-care phase, your command center should operate around the clock. Some organizations may have sub-command centers, such as a business hyper-care center, but having a single point of control that serves as the focal point for all activities and communications related to the cutover is essential.?

We advise organizations to develop a real-time dashboard to track and display the cutover status. This can alleviate the need for constant visits to the command centre, reduce the presence of FOMO, and help team members rest after their shifts.?

8.????? Pro Tip: Prepare for the Worst and Harvest Lessons Learned

As the cutover phase progresses, it's important to consider and prepare for a backout strategy in case of unforeseen complications. Further, preparations for the cutover process present an opportune time to harvest lessons learned for future business continuity and technology disaster recovery planning. Documenting these lessons can help improve processes and mitigate risks in future implementations.?

In conclusion, the path to a successful banking system cutover includes detailed planning, rigorous testing, and strategic execution. By following these guidelines, financial institutions can ensure a smooth transition to their new systems, minimizing disruption and setting the stage for future innovation and growth in the banking sector.

What are some of the key challenges you've faced during banking system cutover projects, and how did you overcome them? Share your experiences and insights in the comments below!

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