According to a 2014 Gartner survey, only 42% of legacymodernization initiatives at life and P&C insurers meet theoriginal budget, and 82% take longer than expected. Is there a wayof improving this dismal batting average?

Absolutely! Years of experience suggest there are five keyprinciples that can dramatically increase your chances of on-time,on-budget legacy IT upgrades.

1. Secure boardroom buy-in

The new system implementation process must start in theboardroom. Why? Because it is essential that the systemsupport overall business strategy. What is the business trying toachieve in the short, medium and long terms? What is the businesscase for why IT system transformation is needed,and how it supports overall strategy? What doessuccess look like? Without an unequivocal and universally heldmandate from the C-suite, the business case will flop and/or theprogram will falter.

2. Garner stakeholder buy-in throughinvolvement

Nothing derails a project faster than a user community that isnot behind the transformation. Successful implementation relies onboth people and systems. All relevant department heads should beconsulted, different user types and their requirements defined, andthe benefits and impact of change clearly identified. Identifythe skills you need to succeed, and map where they lie within yourorganization. By getting the right people and skills on board,you can create a capable and dedicated 'A-team' to facilitate asuccessful implementation.

3. Be flexible

System implementations don't happen in a vacuum. Changes in themarket and your business will occur during the course of theprocess. You must be prepared for circumstances and the environmentaround you to change. Any project, like your business, shouldbe flexible. The key to ensuring progress is to build agilityinto your planning processes. Before you begin, document currentprocesses and map them to the new requirements. Identify gaps andincorporate process change as required. It may be necessary toaccommodate some scope creep to win the 'hearts and minds' of yourpeople, but make sure it doesn't detract from your ultimateROI.

4. Develop a systemintegration/migration strategy early

Data from legacy systems will need to be accurately transferred,and a robust data migration/integration strategy is a vital elementof any system implementation. Think of new system implementation asan iterative process. The general rule is that 80% of yourdata–generally the simpler or more standard records–will map acrossautomatically with little need for human intervention. Roughly20% of your data–the more complex or customized information–willrequire a more hands-on approach.

However, data migration no longer has to be the Achilles heel itonce was. Insurers can employ a data migration tool to identify andseparate the simple from the complex data, and put the hard tohandle data in the hands of a technical data analyst. Thisexpert will help avoid the need for hard-coding one-off 'fix'solutions to engineer data into its new home.

5. Measure and report ROI

ROI and outcomes achieved should be tracked back to the businesscase as a regular exercise. CIO's should report on the activitieswhich support, run, grow and transform the business, linked withthe business objectives first identified. Should these objectivesnot link or become outdated, revisit the business case and work outwhat processes need to be put in place to achieve them. Bymonitoring ROI and making necessary adjustments, you can help buildthe case for future projects. As positive outcomes are clearlydemonstrated, you will reinforce why periodic system transformationis a worthwhile exercise.

Adherence to these five principles won't guarantee on-time,on-budget results every time, but they will improve yourimplementation process and ROI success significantly. What do youthink?