CIOs must assess systems regularly to determine which have to go. Oftentimes, legacy systems become outdated to the point where they can cause a company to lose its competitive edge. Sunsetting is necessary, but a challenge remains in how to shut down the system without disrupting a business that has been counting on it for so long.

Signs That Tell You Sunsetting is Necessary

• High Maintenance Costs: After a system has been used for a while, it will require maintenance beyond occasional updates. You may need to add other systems to ensure high performance. In time, finding tech that integrates with older systems will become more difficult, making updates nearly impossible.
• Lack of Innovation: A legacy system may limit your operational performance, preventing innovation and growth.
• Disruptions: Older systems may break down or function slowly, reducing efficiency and potentially causing disruptions.
• Environmental Impact: A legacy system may not be as energy efficient as newer systems, resulting in higher utility costs and potentially damaging your reputation.

Preparing for a Successful Sunset Process

Sunsetting involves gradually decommissioning your system. A gradual approach allows you to transition slowly to avoid disruptions and ensure each system component functions appropriately before moving forward. However, a careful strategy is required to consider how it will impact your company internally and externally.

A Human Approach

CIOs must consider how switching out legacy systems will impact their teams. They may get anxious about the change after working on the same system for so long. Some may even worry about how it will affect their jobs.

Leaders can address stress in the workforce in the following manner:

• Be Transparent: Leaders should be transparent when communicating with teams about updates, letting them know when and why new systems will be implemented. This transparency breeds a sense of trust, which takes some of the anxiety out of the transition.
• Soliciting Feedback: Organizations should maintain an open-door policy, letting teams know they are welcome to come to them with any questions and concerns. They should also actively ask for feedback, ensuring employees adjust to the change.
• Training: Companies must ensure employees are trained in new systems. Training should be implemented early so workers are familiar with systems before fully integrating. It should continue as employees get hands-on experience.

A Political Strategy

The political aspect involves how new systems will impact stakeholders, including employees, board members, and customers. Leaders can ensure a smooth transition with the following strategy:

• Taking a Transparent Approach with Board Members: Board members should understand the need for sunsetting early on. They should have a say in the new systems guiding their organization. This approach will establish a sense of ownership and accountability, reducing the risk of future issues.
• Being Upfront with Customers: If new systems impact customers, ensure they know what to expect. Warn them of possible business disruptions and new processes in ordering and other customer-facing approaches. Ensure they understand how they will benefit from the changes.
• Preparing Employers: Leaders should provide employees with the necessary training and emotional support throughout the transition.

Technical Steps

In a technical sense, the transition should be as gradual as possible.

1. Determine which new systems to implement based on efficiency, budget, risk, and company goals.
2. Plan the decommission by considering data transfers, timeline, and how the new system will replace the old system.
3. Data extraction is a significant component of the transition. Data may be disorganized and must be cleaned and checked for accuracy. Once data is ready, transfer it to a centralized location, which may be on-site, cloud-based, or hybrid.
4. Assess the Transition in Stages: Adopt a slow assessment of how each integration impacts the business. Address issues early on before moving to the next step. This approach will reduce the risk of minor problems developing into larger ones later in the adoption period.
5. Revisit Processes Regularly: Leaders must continue revisiting systems to ensure they meet or exceed company goals. They should examine KPIs and solicit feedback to ensure systems are running smoothly and constantly look for ways to make them more efficient.

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