IT Service Managers and the Project Close Out Stage
For an IT Service Manager, closing out a project marks the final critical phase of project management. Projects inherently carry significant liability for an MSP, involving substantial labor hours and considerable Client investment. Any deviation or delay can result in substantial additional labor costs, financial losses, and Client dissatisfaction. The resources typically assigned to projects often have the highest billable hour rates and are crucial for engineering excellence, frequently acting as mentors to other team members.
While organizations like the Project Management Institute (PMI) provide extensive guidelines, their Project Management Book of Knowledge (PMBOK) may not fully align with the unique realities of an MSP's environment. MSP project managers often function more as project coordinators rather than having total control over a project, as lead Techs typically hold the primary operational authority. Specialized training, such as an 8-week Project Methodologies Training program and the following can help bridge the gap:
The Project Close Out Phase – More Complex Than It Seems
The close-out phase of an IT project is rarely as straightforward as simply informing the Client that the work is finished and sending a bill. Projects demand a distinct skill set, mindset, and process compared to other IT support tasks. Many MSPs only recognize the need for a more structured approach when projects start incurring losses, driving them to adopt workflows that may initially feel "alien" to a reactive, break/fix culture. Efficiently managing these processes is vital, as project scheduling can influence overall profitability and lead to disruptions if not handled correctly. Recognizing that projects constitute one of at least 11 different operational workflows within an MSP underscores the need for specialized management.
Three Key Components of the Project Close Out Phase
A systematic project close-out involves three crucial parts: a Project Close Out meeting, a Client acceptance meeting, and the capture of lessons learned. Throughout this process, clear and consistent communication is paramount:
Pre-Project Communication: Before a project proposal is sent to the Client for signature, the Service Delivery team should review the Scope of Work (SoW) and Bill of Materials (BoM) to ensure alignment and provide their approval.
Initial Project Communication: Prior to project engagement, the Sales team must clearly communicate what was sold to the Project Team, and the Lead Tech should articulate the project plan.
Ongoing Project Communication: Weekly update calls involving the Project Manager, Lead Tech, and the Client are essential during project execution.
Post-Project Handoff: Critically, the Support Team must review internal deliverables, such as Client Documentation, and formally accept the completed project before the Project Team is officially released. This formal Project Closeout Checklist, owned and maintained by IT Support, is vital for a smooth transition and ensures that comprehensive documentation is in place. This also sets expectations for positive Client interactions regarding any post-project issues.
During the close-out meeting, the project plan should be meticulously reviewed to confirm all details are completed, change requests are documented, and any budget or schedule overruns are reported. The team should collectively reflect on "What went right and what could we have done better?" Following this, a celebration is recommended to acknowledge the team's efforts.
The Project Manager (or coordinator in an MSP context) is responsible for ensuring all necessary information is gathered, taking ownership of the project's administrative aspects to free up the sales team, and providing the Client with regular updates on all project facets, including start/end dates and potential disruptions. Doug Rabold's 12-step program for project management provides a structured approach, covering elements like deadlines, priority, capacity, communication, and closure.
IT Service Managers: Post-Project Responsibilities
Once a project concludes, the IT Service Manager has several key responsibilities:
Lead Tech Release: The Lead Tech should be formally released from the project.
Billing Notification: Accounting should be notified to process the final bill. The accounting process itself benefits from integrating software and automating invoicing, potentially combining parts and labor billing, with live reports and dashboards to track progress.
Support Team Positioning: The IT Support team must be properly positioned to provide ongoing support to the Client. This is where the IT Support-owned Project Closeout Checklist is crucial for ensuring the team has all necessary information before assuming responsibility.
Client Acceptance Meeting: A final acceptance meeting with the Client should be held promptly after the internal close-out. This meeting confirms the completion of all Scope of Work items, verifies accepted change requests, addresses Client feedback, and finalizes the financial aspects of the project. Sending a thank-you note or appreciation gift after this meeting is also a good practice.
The project manager's role in an MSP is to facilitate this handoff, ensuring a seamless transition of support responsibilities.
The Essential Value of Capturing Lessons Learned
Capturing "Lessons Learned" is an invaluable component of the project close-out phase, not merely a formality. As advocated by PMI, these lessons should be noted throughout the project and then thoroughly reviewed and compiled at closure. However, simply documenting them is insufficient; the real value lies in integrating these insights back into the MSP's operations.
Continuous Improvement: Lessons Learned must be used to update templates, processes, and procedure guidelines. This iterative improvement process is fundamental for an MSP's maturity.
Future Benefits: Documenting what went right and wrong in Service Onboarding Playbooks ensures that "life will be a whole lot better for the MSP, Sales, Technical, Onboarding Manager, and most importantly - for the next Client".
Operational Enhancement: Post-mortem meetings provide an opportunity to debrief the team, update Standard Operating Procedures (SOPs), and conduct Root Cause Analysis (RCA) to prevent critical issues from recurring. Developing a Project Management Playbook based on these lessons can significantly enhance an MSP's capacity to manage numerous projects effectively.
IT Projects: Driving Growth and Establishing Maturity
Projects are a key driver of growth and a strong indicator of an MSP's maturity. Developing robust project methodologies leads to increased demand not only for project work but also for Managed Services, effectively reducing Client churn. Projects can be one of the most profitable areas of an MSP's business when managed correctly from the outset, commanding higher per-hour charges than other services.
Strategic resource planning is essential to balance project work with Managed Service Agreements, which are considered the "economic engine" of an MSP. Optimizing IT Service Delivery through effective project management can lead to significant financial benefits, such as 30% of Managed Service Agreement revenue returning as project work and increased Client satisfaction driving valuable referrals. This efficiency can even enable an MSP to take on a larger client base without needing to immediately hire additional staff. By consistently delivering projects on time, within budget, and meeting Client expectations, an MSP solidifies its reputation as a mature and reliable service provider.