A German financial institution and a global shared services provider were in the second year of outsourcing around 900 FTEs from nine EU branches (to the EU and India). There had already been considerable delays in the overall project, which significantly increased the cost pressure for both parties. The shared service provider therefore relieved the original program manager (a renowned consulting firm) of her duties and engaged the interim manager. She joined the ongoing project as head to lead the international team (more than 15 employees) and get the project back on track for success.
Great dissatisfaction among partners and teams
In discussions with overall project sponsors at the outsourcing financial institution and the shared service provider as well as the team members, the interim manager quickly realized that there was a whole range of challenges to overcome. There was a great deal of dissatisfaction among the partners and in the teams, and collaboration was barely coordinated. As a result, employees at all levels were repeatedly replaced - or left the project at their own request.
Lack of overall management after the departure of the program lead team
Since the departure of the external program lead team, the project team has lacked cross-project management that prioritizes tasks. Even for project team members with extensive project experience and very good specialist knowledge, it was impossible to manage the parallel tasks in the various EU countries.
The number of daily meetings and the short cycle of reports took up an enormous amount of time, which was not available for completing the actual project tasks. This was another reason why reports were often delivered late, preventing quality control and consolidation. The financial institution criticized the faulty reports.
Cultural differences also put a strain on the working atmosphere. For example, some project managers did not feel able to reject additional new customer requirements. Exceeded deadlines or delays were also often only communicated far too late.
Reorientation of project governance to an efficient and effective level
In order to enable efficient work, the interim manager reduced the frequency of meetings and project reports to a manageable level in consultation with the core program team. At the same time, she established timely internal and external coordination for the stakeholder meetings in order to present views and issues to the steering committee in an objective manner and to be able to make decisions.
In the next step, the interim manager organized a governance workshop with the financial institution's programme management. As part of this, measures were jointly identified and an action plan agreed in order to get the overall project back on track for success. To monitor implementation, the participants agreed to hold weekly joint meetings.
Improving communication - also for negative news and problems
In order to improve further collaboration and restore a relationship of trust between the partners, the interim manager drew up new communication rules. Negative information was now also passed on in good time and problems and challenges were communicated directly and constructively. Thanks to her extensive international experience and special expertise in the financial sector, the interim manager was able to establish a respectful and appreciative approach within the international team and significantly improve crisis communication. The open and transparent communication made a significant contribution to strengthening the financial institution's trust in the shared service provider.
Fluctuation and poor handover slowed down the progress of the project
The biggest challenge of the project at an operational level was managing resources. Too few employees for too many tasks led above all to considerable fluctuation - and to a self-reinforcing cycle: The constant departure of experienced project members, a lack of handover routines and undefined responsibilities overburdened the remaining employees. In addition, subordinate tasks were left undone, which led to new burdens.
Adapted resource management and improved team motivation
The interim manager succeeded in reducing the overload by introducing clear handover processes for departing team members. She also relieved the project team members by taking unrealistic targets - especially after delays - into account in the planning. This significantly improved motivation within the team.
Clients stick to unachievable deadlines: Interim manager terminates mandate
Despite the improvements, it was clear to the interim manager, as an experienced program manager, that the still ambitious schedule could not be met with the available resources. She therefore escalated this issue to the highest management level.
In these discussions, it became clear that neither the shared service provider nor the financial institution were willing to adjust the unrealistic project plan. In addition, the shared service provider refused to provide the necessary human resources for the project.
Because of the "no" to her clear recommendation - which she firmly believed had no alternative - the interim manager decided to terminate the mandate prematurely. The shared service provider and the financial institution very much regretted this step and thanked her for the trustful cooperation.
