IT Service Project Initiation: Transforming Challenges into Strategic Wins for MSPs
For IT Service Managers, the Project Initiation phase can often feel more like a daunting challenge than a structured period for fact-finding. This experience typically differs from the detailed guidelines set forth by the Project Management Institute’s (PMI) Project Management Book of Knowledge (PMBOK), especially since managing projects isn't the primary responsibility of an IT Service Manager. Projects, while value-added, are often seen as an additional burden, with phrases like, “Oh by the way! We just agreed to do (sold) this project.
Since you manage the workforce needed to do the project, you need to manage the project.”
In the world of MSPs, projects represent a major liability due to their significant labor hours and the substantial financial investment for the Client. They also have high visibility, and any delays or deviations can lead to considerable financial losses and disappointment for both the MSP and the Client. Furthermore, the resources typically assigned to projects often have the highest billable hour rates and serve as key engineers and mentors for the rest of the team. Therefore, while Managed Service Agreements are often considered the economic engine of an MSP, projects remain "king". However, if not managed properly, projects can lead to lost profits and disrupt the efficiency of IT Service Delivery operations.
PMI’s initiation phase outlines specific inputs, processes, and deliverables. However, for an IT Service Manager, these responsibilities may fall to the Salesperson within a non-existent or ill-defined RACI (Responsible, Accountable, Consulted, Inform) chart. The naming conventions for project elements can also vary, taking on forms such as Budget Understanding, Scope Development, Communication Tree, Project Completion Due Date, functional and operational IT requirements, and multiple conflicting desired outcomes. Adding to this complexity, IT Service Managers often lack the extensive project management experience or formal education that PMI recommends.
Despite these challenges, there is a path forward. The key is to manage projects with a different workflow than that used for incidents or service requests. By developing well thought-out project methodologies, MSPs can reduce losses and even create demand for their managed services post-project.
Four Essential Steps to the Initiation Phase Process for IT Service Managers
For the new project manager within an MSP, the initiation phase primarily involves gathering high-level data, coordinating internal personnel, and communicating effectively with the Client.
High-Level Data Gathering - Project governance is crucial at this stage, requiring everyone to understand, follow, and agree upon what defines a project, how projects will be managed, and where they fit within the IT service delivery portfolio. This foundational understanding helps in segmenting requests into appropriate workflows.
The "What Was Sold" (WWS) Meeting - Soon after the Client’s signature, the New Project Manager should schedule a "What Was Sold" (WWS) meeting. Key attendees should include:
The Salesperson: Who possesses all the details of what was agreed to.
The Lead Tech: Responsible for delivering the sold services.
The goal of this meeting is to ensure the Lead Tech agrees that what was sold is "doable".
The Salesperson should deliver all known project information, including answers to "five whys" questions, and the New Project Manager should take control of all project communications.
It is vital that Service Delivery (specifically, the Lead Tech) has the opportunity to "bless" the Statement of Work (SoW) and Bill of Materials (BoM) before the proposal is signed by the Client. The Sales team also needs to communicate what was sold and the project plan to the project team before engagement begins.
Following the WWS meeting, the Salesperson should ideally move on to new prospects, while the Lead Tech focuses on project planning, and the New Project Manager focuses on closing out the initiation phase.
Communicating with the Client As soon as possible (ASAP), the New Project Manager needs to connect with the Client to verify the accuracy of the information received and to explain how the project will be planned, executed, and closed out. This involves understanding the Client's perspective on what was agreed upon. During this initial outreach, it's also best practice to schedule weekly touchpoints for the project's duration.
Effective Client communication is not just about keeping them informed; it's a key factor in reducing churn. Successful communication involves:
Clarity and Consistency: Notifications should be clear, concise, and easy to read, utilizing banners and subject lines that immediately convey the purpose of the email. This builds trust and allows Clients to partner with the MSP.
Strategic Messaging: Communications should be strategic, not just a knee-jerk reaction. They should inform the Client at significant milestones of their service journey.
Key Information: Clients need to know who is going to engage (Primary Resource), what they are engaging on (Ticket Title), when they are going to engage (Tech Engagement SLA), and where (Remote or Onsite).
Professional Branding: Notifications should be branded to stand out and appear professional.
Ease of Response: Including the ticket number in the subject line facilitates automated processing of Client responses.
Accountability: Techs are expected to perform real-time time entry, provide accurate documentation, and communicate internally and externally what they are working on without constant prompting. This consistent engagement and disengagement process not only creates a reliable rhythm for the Client but also makes the Service Delivery Team more efficient.
Project Closeout and Handoff - While technically part of the project closure, it is critical for the IT Service Manager to understand the importance of a smooth handoff from the project team to the support team. Therefore, beginning with the end in mind. Goes a long way to finish projects profitable, on-time, and on-budget. This process is key to retaining Clients long-term.
A Project Closeout Checklist, owned by IT Support, is highly recommended to shift responsibility, ensure documentation is complete, and inform support of new Clients or networks. This living document should capture "Lessons Learned" to continuously improve processes for future projects. This proactive approach reduces the traditionally rocky transition period to just a few days.
By embracing these steps and fostering strong alignment between Sales and Service Delivery, IT Service Managers can transform project initiation from a challenging ordeal into a structured process that contributes positively to Client satisfaction and company profitability.