##  Create and Structure Your Initiatives
After deciding which approach you want to take, you can start adding initiatives to your inventory to visualize each step of your modernization. A well-organized hierarchy helps you track progress, align stakeholders, and manage dependencies across your application landscape. To manage your cloud transformation effectively, structure your modernization efforts as initiatives in SAP LeanIX. Learn more about initiatives in [Initiative Modeling Guidelines](https://help.sap.com/docs/leanix/ea/initiative-modeling-guidelines?locale=en-US&state=PRODUCTION&version=CLOUD "Learn how to model initiatives. This includes best practices and applicable use cases, and common antipatterns.").
Choose a structure that best fits your organization’s operating model and transformation goals, for example:
  1. Level 1: Umbrella Initiative
This is your overarching modernization effort, such as “Cloud Transformation”. It acts as the central container for all related initiatives.
  2. Level 2: Strategic Initiatives
These are child initiatives aligned with your modernization strategy, such as:
     * Rehosting legacy systems
     * Replatforming core applications
     * Rearchitecting high-impact services
  3. Level 3: Execution Priorities
Break down strategic initiatives based on priority, business capability, or region. Examples include:
     * Quick wins vs. long-term efforts
     * Finance vs. HR domains
     * EMEA vs. North America rollout


To create an initiative, do the following:
  1. Go to Inventory
  2. Create a new Initiative fact sheet, for example “Cloud Transformation”.
Creating a New Initiative
![](https://help.sap.com/doc/72d375467c1e4dcb872dfa2998b6328d/CLOUD/en-US/loioc2850f2ffa7747eebed941e63ba1132b_LowRes.png)
  3. Create additional child initiatives for each 6R classification and link them to the cloud transformation initiative using the Parent relation.
  4. Optional: Link the initiative fact sheets to your previously defined objectives to outline how they support your strategy.
  5. Add Applications to the respective initiative fact sheets.
Modernization Initiative with Affected Applications
![](https://help.sap.com/doc/72d375467c1e4dcb872dfa2998b6328d/CLOUD/en-US/loioa3f9769afc3846fc9f3ef4d6684964ab_LowRes.png)
