ENGINEERING SUCCESSFUL TRANSITIONS

1. ENGINEERING SUCCESSFUL TRANSITIONS

2. Outline • Introduction to CausePoint • Problems in Software and IT Service Delivery • Value of the Higher Levels of Maturity • How CausePoint can help Introduction to CausePoint

3. Introduction to CausePointProvide an External Assessment CausePoint offers consulting services to Engineering and Information Technology organizations to improve their ability to deliver systems and products faster and with better product quality. Readiness for change can be assessed. Specific change points can be identified. Change can be managed. An effective product development process provides a competitive advantage that tremendously increases the potential of your corporate business goals and strategies. We use a number of techniques to increase the capability of services and software development groups, including the CMMISM, ITIL and Six Sigma.  Introduction to CausePoint

4. What is CausePoint? • CausePoint is a consulting company focusing on process and organizational improvements at both the software and system levels • We partner with clients to dramatically improve the ability to deliver systems and services • We are, first and foremost, engineers and managers who know how to integrate measurable improvement with ongoing business value and results Introduction to CausePoint

5. Approach • Collaborative - We collaborate with our clients to develop a strong internal capability to sustain change • Situational - We adapt our methods and approaches as needed by our clients to achieve specific improvement goals • We’re real – our services integrate our real world experience in technology development and delivery, as well as contract and business management Introduction to CausePoint

6. Citibank GEC - Marconi ITT Liberty Mutual Ameritech John Hancock National Air Traffic Services (UK) Videojet Executive Office of the President of the United States Bureau of Printing and Engraving Northeast Utilities Northrop Grumman Baxter Healthcare ISO ISS Clients Introduction to CausePoint

7. Assisting Management TeamVision and Direction SERVICES Management Consulting Change Leadership Project Services Introduction to CausePoint

8. Establishing, Leading, Assessing the Improvement Program SERVICES Management Consulting Change Leadership Project Services Introduction to CausePoint

9. Taking Policies & Procedures into Practice SERVICES Management Consulting Change Leadership Project Services Introduction to CausePoint

10. Problems in Software and Product Delivery The issues of projects and service delivery still lie in the inability to deliver with predictability. Schedule predictability, cost predictability and quality predictability. Management decisions are made knowing there is inadequate visibility into the true progress of projects. Project risk is not handled proactively and results in limited management choices. Issues on the projects lead to firefighting, with reductions in functionality delivered and cost overruns, traded for an improved schedule completion. Introduction to CausePoint

11. Problems in IT Software and Product Delivery • Products and projects are routinely: • Late • Over budget • Do not deliver the desired functionality • Have high levels of defects • This unpredictable behavior is exacerbated by: • Lack of management insight into progress and risk • Implicit decision-making • Inability to manage the differences between software development and other engineering disciplines Introduction to CausePoint

12. Problems Facing IT Today • Making Quality Assurance effective • Project Management • Software • Cost of IT Infrastructure • Outsourcing • Security • System Downtime • Change Management Introduction to CausePoint

13. Problems in Software and Product Delivery (cont’d) • These problems are typical for any product development methodology moving from art to craft to engineering discipline • Extreme dependence on individuals • Highly variable cost, productivity, and quality • Resistance to the notion of consistency and predictability • Extreme stress in the workplace Introduction to CausePoint

14. Anatomy of CMMISM Maturity Level 1 • Most organizations are fighting fires • trading functionality for time or quality for time • constantly reacting—no time to improve • firefighters get burned – effects managers and staff • short term decisions come back later • your only control: fire prevention Introduction to CausePoint

15. An Immature Process • Ad hoc; process improvised by practitioners and their management • Not rigorously followed or enforced • Highly dependent on current practitioners • Product functionality and quality may be compromised to meet schedule • Use of new technology risky • Excessive maintenance costs • Quality difficult to predict Introduction to CausePoint

16. A Mature Process • Consistent with the way work actually gets done • Defined, documented, and continuously improving • understood • used • living • Supported visibly by management and others • Well controlled—process fidelity is audited and enforced • Constructive use of product and process measurement • Disciplined use of technology Introduction to CausePoint

17. Value of Higher Levels of Maturity The value of higher maturity levels can be seen in a lower defect rate and in higher levels of productivity. Project schedules will be more predictable. Project commitments are established and maintained. Risk is identified and mitigated. Some of the value of higher maturity levels can be quantified, but other benefits are more difficult to measure. Living in a controlled and less chaotic environment can not be calculated, but certainly felt. Introduction to CausePoint

18. Benefits of Higher Level Maturity Category Range Median # of Data Pts • Years Engaged in SPI 1 - 9 3.5 24 • Yearly Cost of SPI per $490 - $2004 $1375 5Software Engineer • Productivity Gain per Year 9% - 67% 35% 4 • Early Defect Detection 6% - 25% 22% 3 Gain per Year • Yearly Reduction in 15% - 23% 19% 2Time to Market • Yearly Reduction in Post- 10% - 94% 39% 5Release Defect Reports • Business Value 4.0 - 8.8:1 5.0:1 5(savings/cost of SPI) Source: SEI Report Introduction to CausePoint

19. How CausePoint Can Help Experience Change Management Subject Matter Expertise Changing the culture of an organization is a long road Introduction to CausePoint

20. Applying the Model • A Model is a Representation of a structured set of objectives • The key is in the Application of the Model • Situational Awareness • Design within the Context • Meet the Intent • Speed to Benefits Introduction to CausePoint

21. Applying ITIL andCMMISM Through Experience in Practical Ways • A model for product life cycle management and performance improvement • Expands focus to include full product life • Applies to any product development organization • Merges technical and management activities • Focuses on improving business performance • Provides mechanisms for long-term culture change • Builds on lessons learned from past models • Allows adding disciplines where appropriate Introduction to CausePoint

22. Have a process group (second party) develop all your procedures Develop procedures directly from a model’s specific practices Don’t understand you own business model Don’t create a closed management loop Don’t apply full-time resources, make sure all work is done in their spare time Don’t involve or train your unit managers, make sure their only exposure is through rumor Ensure project managers blame any schedule slip on a burdensome process to their customers Make sure the process group is responsible for achieving a change initiative’s objectives Focus all your attention on reaching a model’s capability level, don’t identify your actual objectives Assign inexperienced engineers to define your development process Top Ten Reasons – Initiatives Involving Change Fail Introduction to CausePoint

23. What Do You Need To Successfully Change Your Organization? Assess & Apply Define Establish Plan Establish and Maintain Commitment to the Change Initiative P a r t n e r F o c u s - Customer - Transfer - Commitment - Resources Objectives Responsibility C h a n g e M a n a g e m e n t Manage Change and Build Involvement for the Program - Widespread - Team - Pilot - Change Involvement Participation Management Structure Provide visibility through measurement M e a s u r e m e n t & R i s k - Measurement -Measure & Risk - Visibility & - Measurements Targets Mechanisms Risk Mitigation Follow a phased improvement methodology with interim milestones E n g i n e e r i n g M e t h o d - Baseline - Key - Projects - Vision - Tactical Plan Processes Introduction to CausePoint

24. The Bottom Line • Process improvement should be done to help the business—not for its own sake • Improvement means different things to different organizations • what are your business goals? • how do you measure progress? • Improvement is a long-term, strategic effort • “In God we trust, all others bring data.” • - W. Edwards Deming Introduction to CausePoint

25. CausePoint Consulting • Provides an external view of your organization • Applies experience and expertise • Driven by the needs of meeting management objectives, not meeting a model’s expectations • An awareness that understanding people, the organization, their needs and their drivers is key in achieving change • For More Information Please Contact: Introduction to CausePoint