High Process Maturity: Using CMMI and it s Importance

1. High Process Maturity: Using CMMI and it�s Importance Omaha SPIN November 15, 2005

2. 2 Overview Why Process Improvement? Why Models? CMMI - Brief History CMMI Level 1, 2 and 3 What is Level 4? What is Level 5? Why Pursue High Maturity? High Maturity Challenges Strategies for Tackling These Challenges Foreign Companies and High Maturity Wrap-up

3. 3 Introduction In the world of process maturity we have Low Medium High This briefing deals with getting to high maturity Key assumption: Must already be at a solid level 2/3 before even considering high maturity

4. 4 Global Organizations and High Process Maturity Very recent statistics 52% of all appraisals are for foreign organizations, but... 61% of level 4/5 appraisals were for foreign organizations Foreign companies have government support Direct correlation between CMMI maturity and the growth of foreign outsourcing success A larger percentage of foreign companies are aiming higher for one of two reasons: Effect argument: They want the pedigree Cause argument: They believe CMMI makes them more competitive

5. 5 The �I Do, I Do� Analogy When a man is 21 he is not worth a damn, he thinks he is a lion but he really is a lamb� When a man is 31 he�s like domestic beer, he has a certain body but he doesn�t have it here, he wheels, he deals, he wears his trousers tight, but he�s like the national budget, all bark, no bite! But when a man is 41 he�s entering his prime, delightfully witty, still he�s wise, for he stood the test of time!

6. 6 Why Process Improvement? �Everyone knows in their bones that something is eternal� (Thornton Wilder) Norm�s corollary: Everyone knows in their bones that their organization can operate �better� Another reason: You may want to Keep up with the Jones's Lower wages, reduce training costs, save time, be more competitive (http://www.outsource2india.com/why_outsource/why_outsource.asp) China IT Outsourcing Summit (CITOS) ...is the software outsourcing initiative of the People's Government of Haidian District of Beijing Municipality Recent stats show direct correlation between CMMI maturity and the growth of foreign outsourcing success (more on that later)

7. 7 Industry Models Why a model? You know in your bones that �things could work better around here� You�re not sure how to do it or where to start You want a model to guide your effort You want to avoid other�s mistakes Why use the CMMI instead of another model? Combine multiple efforts to improve your processes Planned business (contracts, partners) demands it Long track record, well-supported (models, tailoring, appraisals, training programs)

8. 8 CMMI Maturity Levels

9. 9 CMMI History DoD created the SEI Early 1990s: SW CMM Then came SE-CMM, SA-CMM, SECAM Other models came along Interest in CMM relationship to ISO 9000 standards Confusion grew Industry and DoD asked SEI for merger/consolidation (incl. ISO) SEI merged process improvement models (SE, SW, Integrated Product Development, SW Acquisition) Result is today�s CMMI (�I� for integrated)

10. 10 CMMI Maturity Levels 1, 2, 3 Initial (level 1) You have incomplete or no policies (ad hoc) You don�t perform processes according to those policies Your people may be working jobs for which they have insufficient skills/resources to perform the processes The stakeholders are nowhere to be found There is no process control (out-of-control projects) You survive based on heroes (if you survive) When a man is 21 he is not worth a damn, he thinks he is a lion but he really is a lamb�

11. 11 CMMI Maturity Levels 1, 2, 3 Managed (level 2) Projects are �under control� You have policies You perform processes according to those policies Your people have requisite skills and resources to perform the processes The stakeholders are involved in the processes You monitor and control the processes You review the processes actually being used to make sure they�re the same as the written ones

12. 12 CMMI Maturity Levels 1, 2, 3 Defined (level 3) All the �managed� process characteristics, plus� You have tailoring guidelines You tailor the process according to the tailoring guidelines Organizational infrastructure to ensure execution and implementation of defined & repeatable processes Your process contributes products, measures, improvement information to organizational assets When a man is 31 he�s like domestic beer, he has a certain body but he doesn�t have it here, he wheels, he deals, he wears his trousers tight, but he�s like the national budget, all bark, no bite!

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14. 14 CMMI Maturity Levels

15. 15 High Process Maturity Means you are at peak performance Includes few organizations

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17. 17 What is CMMI Level 4? Quantitatively Managed CMMI maturity level 4 includes OPP: Get/keep quantitative understanding of performance; provide baselines and data for QPM QPM: Managing to achieve quality/process objectives In a nutshell CMMI maturity level 4 means using measurements As the basis for managing the process, instead of just making/tracking measures for posterity (corporate level) To better manage current performance (project level) To predict future project performance (corporate level)

18. 18 What is CMMI Level 5? Optimizing But when a man is 41 he�s entering his prime, delightfully witty, still he�s wise, for he stood the test of time!

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20. 20 Level 4 and Level 5: Path to High Process Maturity At level 4 we achieved objectives despite problems and defects Level 5 identifies causes of problems/variations, and prevents/reduces them in the future (CAR) At level 4 we achieved objectives without necessarily improving upon them Level 5 deploys innovative/incremental improvements, to support raising performance objectives & standards (OID) In a nutshell level 4 is about quantitatively managing, and level 5 means optimizing: The performance standards (corporate level) By improving current project performance (team members) By preventing defects By improving quality via lessons learned

21. 21 Why Pursue High Maturity? Statistics from SEI suggest measurable increase in efficiency Because foreign competition is increasing Because if you go to the trouble of measuring your performance (level 2/3), you may as well maximize the utility of those measures

22. 22 High Process Maturity Challenges Adequate data quantity Metric-phobia Unimplemented or questionable level 2/3 processes (lack of commitment) Resources Specialized skill sets Quantifiable business objectives

23. 23 High Process Maturity Strategies Combine levels 4 and 5 Very few CMMI level 4 appraisals compared to level 5 May suggest that levels 4 and 5 are hand-in-glove Automate metric collection and analysis Increase responsibility and accountability of PMG and PMO for metric analysis Enhance or modify the basic MA with processes to support high maturity Causal analysis and resolution Organizational Process Performance

24. 24 High Process Maturity Strategies:Metrics Metrics don�t have to be thesis material to be effective Simple measures can provide a lot of benefit A single metric can provide life cycle insight

25. 25 High Process Maturity Strategies Performance Standards / Objectives Cost-estimate up front Track performance through life cycle Take management action when performance slips

26. 26 Use past projects to predict future project performance (Organizational Performance) Set the baseline using past project metrics (quantitative management)

27. 27 Investigate the cause of project variation that exceeds thresholds Optimize the baseline standards using identified causes Use lessons learned (change recommendations/requests, etc.) to improve project performance

28. 28 High Maturity StrategiesAddressing Weak Level 2/3 Processes Unimplemented - meaning they�re collecting dust Results from lack of commitment to institutionalize process in the organization Other symptoms Management claims the processes but does not enforce their usage Employees aren�t trained to use the tools and the processes for their real-world, day-to-day tasks If you�re the manager, the strategy is to train your people, have them use the tools, and enforce the processes If you�re not the manager, you can�t fix this problem

29. 29 High Maturity StrategiesResource Management and Guidance Stay within available resources Focus on improvement, not rate of improvement Work at improvement like a tortoise, not a hare Larger organizations are by far more successful at successful appraisals Inverse relationship between organization size and achieving level 5

30. 30 Summary and Wrap-Up Process improvement is happening here and abroad Both medium and high maturity CMMI high maturity can help you if you want the help Process maturity produces significant results High maturity is all about managing based on measurements, learning from problems, preventing defects, and optimizing performance for your future endeavors

31. 31 Summary and Wrap-Up A high process maturity organization is a must to remain competitive Real challenges exist There are real strategies to deal with challenges

32. 32 NORMAN MANDY SENIOR PROCESS ENGINEER nmandy@sesc-us.com (402) 292-8660