How to Establish Improvement Targets

1. How to Establish Improvement Targets Annie Combelles CEO Q-Labs

2. Agenda • Meeting Q-Labs • Process Improvement Highlights • Two Real Cases • Conclusions

3. The Q-Labs Group Your Partner to give your Systems and Software a Competitive Advantage. 120 Employees in 5 countries France Germany Sweden United Kingdom USA

4. Project • Support Independent Appraisals Quality Support Process Improvement Clientele and Offerings Q-Labs’ clients are companies where software and systems are critical business drivers • Broad Sector Experience: Aerospace, Automotive, Defence, Finance, Information Technology, Health, Systems Integrators, Telecom • Finance Sector Clients: BNPP, AXA, ABN AMRO, Credit Lyonnais

5. All you must know about the CMMI tool

6. What is Process Improvement? A Mindset A maturity level to demonstrate Awish to change A discipline Just fad

7. Process Improvement is A project An investment A long journey A team effort ROI!

8. Resistance? I have no time for this, come back later • There is no better time than now to implement process improvement on your project • Discuss the project and uncover project pain points I don’t believe in it, I don’t see the benefit • Show ROI data for process improvement • Have other project managers that have benefited from process improvement talk to the PM My customer is happy, I don’t need to change anything • Discuss the project and uncover project pain points • Don’t you want to make your customer even happier? It doesn’t apply to my project, we’re different • Have the PM describe the project and how it is managed. Then identify opportunities where process improvement would help

10. Key success factors 1. Maintain executive support. Strong consistent support is crucial. 2. Leverage best practices. Use what is available and “steal with pride.” 3.Align process improvement with business objectives. Leverage existing objectives.

11. (need to change) Targets Targets (improvement actions) (know where we are and how to do it) Action Plan Action Plan R&D Projects Projects Weaknesses Strengths Existing (applicability) Processes CMM CMM Targets and Continuous Improvement External Need to Drivers Improve Project Project Management Management Benchmarking Development Development Processes Processes Assess- Assess- Process Process ment ment Management Management (feedback loop)

12. A Few Real Cases

13. Alcatel • A project • A support from Excom to drive Jupiter • Implement the CMM/CMMI following improvement objectives • Use standardized reporting based on core metrics and dashboard to avoid lengthy communication gaps • Set realistic targets for schedule, quality, cost and content • Track projects against these targets on a quarterly basis with a clean upwards aggregation • Take timely and effective corrective action based on business objectives, assessment results, and action plans

14. Quantitative Product Targets ’02 '01 '02 '02 Objetive actual target actual Productivity 40% incr. of Development vs. Total effort ratio 35% 50% 53% 50% efficiency gain in Test (i.e. ph/def. Total) 50 25 33 • Better early defect detection than '01 and close to targets • Mainly due to early validations activities (document and code reviews) put in place • Better accuracy delivery than ‘01 and close to targets • Efficiency during test activities far from targets • Improvement actions related to efficiency during Test were put in place later than expected and influence will be during ‘03 • Same level of overrun on costs as ‘01and far from targets 30% efficiency gain in FIT (i.e. ph/def. total; detection + correction) 22 15 28 Quality 6% improvement on Delivery quality 93% 98% 96% 50% improvement of Development Defect Detection effectiveness 50% 75% 68% 10% improvement of Test Defect Detection effectiveness 84% 92% 88% Accuracy 18% increase of Delivery Accuracy (time) 76% 90% 86% 23% increase of Delivery Accuracy (contents) 80% 98% 100% (Respect 28% decrease of Cost overrun 14% 10% 13% Commitments)

15. A tracking system Target Target Target Target

16. BNPParibas A Division of 400p developing a proprietary ERP • 58 countries • 61 locations • 150 BANKING ORG. • 600 AGENCIES • 10 000 users • 1 900 000 clients • 3 000 000 accounts • 3 000 000 transactions/day

17. ATLAS Improvement Objectives • Pursue effort to be highly professional • Improve the level of service delivery (to clients, requirements stakeholders and operations) • Improve quality of deliveries • Control cost and schedule better • Improve project management capability • Better communication between teams • Better risks management • Build assets • The improvement project is part of a global initiative of the Bank named Vision 2007

18. Improvement Roadmap oct 2002 dec 2002 jan 2003 mar 2003 april 2003 june 2003 july 2003 sept 2003 oct 2003 jan 2004 Appraisal Action Plan Cycle 1 On going actions are embedded into the PI plan New processes piloted: Requirements management Cycle 2 Existing processes in use are documented Product roadmap concept launched Cycle 3 Processes are completed Communi-cation to reqts stakeholders QA is implemented Cycle 4 Improve-ment deployment L2 Certification GO - NOGO CMM Training Senior Management Support

19. Improvement Progress Observed • Change requests are managed and controlled • Priorities handled • Information shared between dev stakeholders • Packaging team involved • Planning • Informed decision regarding Change requests • Estimates are accurate • Interface with clients • Decisions are justified based on facts • Institutionalization • Dashboard in use at all levels • All teams involved • Expectations regarding CMMI L3 • Continuous effort to work more effectively

20. Conclusions • 40% of projects are stopped, 50% overcome budget • Below 50% of IT investments impact organizations profit (source: London School of Economics) • It is time to measure, take corrective actions and measure again the impact on the bottom line