Multi Model Performance Improvement

Improving Organizational Performance

The Quandary of Multiple Reference ModelsAtlanta SPIN, February 2006

2 1/27/2006| Copyright © 2006 Borland Software Corporation. All rights reserved. |

Agenda

1) The Performance Challenge

2) Which Model to Use?

3) The Architecture of Performance Improvement

4) Implementation – Critical Success Factors

5) Questions and References® CMMI is a registered with the US Patent and Trademark Office® COBIT is a registered trademark of ISACA® ITIL is a registered trademark of the UK Office of Government Commerce"PMI", the PMI logo, "OPM3" and "PMBOK" are marks of Project Management Institute, Inc.


• Focus on cost and efficiency

• Long-lived technology• Architect for maintainability• Centralized decision-making• Mature standards, processes, measures• Long-lived strategies (e.g., reuse)

• Minimize the cost

Don’t ask the cost, ask the value

• Focus on innovation, learning, time to market • Throwaway/tactical technology

• Architect for flexibility• Devolved decision making

• RAD methods• Lightweight processes

• Tactics, not strategy

Business VolatilityBusiness Volatility

TechnicalTechnicalVolatilityVolatility

LowLow

HighHigh

LowLow

HighHigh

What Does Performance Mean?


Externally Imposed ConcernsExternally Imposed ConcernsCost needs to be minimized, value maximizedCost needs to be minimized, value maximizedDelivery needs to be fastDelivery needs to be fastCustomers demand high qualityCustomers demand high qualityOutsourcing must be addressedOutsourcing must be addressed

Internal PressuresInternal PressuresComplexity of SolutionsComplexity of SolutionsSkills shortagesSkills shortagesBalancing Development and Balancing Development and Maintenance EffortMaintenance EffortCoping with Changing TechnologyCoping with Changing Technology

Concerns and Pressures on Software Organizations


Strategic Planning Assumptions from Gartner Research

Organizations with loose processes will fail at 80 percent of development projects (0.8 probability)

Through 2004, without significant changes to its project management processes, an AD organization of 100 developers can expect to spend more than $10 million on canceled software projects (0.8 probability)

.AD process improvement efforts that lack supporting metrics and incentives will fail within three years (0.7 probability).


Project Resolution History

0% 50% 100%

1994

1996

1998 SucceededChallengedFailed

Based on 23,000 application software development projects in large, medium, and small cross-industry companies since 1994

Source: Johnson, Software Development, 12/99

26% 46% 28%


The Answer?

“We need to become


So, What Does World Class Mean?

Working definition – an organization is World Class if:

It designs, implements and automates its processes, procedures, work products and measures in accordance with applicable, generally recognized, industry and/or international standardsExecutes its processes and procedures at or near best in class levels, as demonstrated by externally observable and reproducible assessments (e.g. ISO 9000 registration, CMMI® appraisal, etc.)


The Implications…

Process models characterized by:

Implementable processes, which are easily supported by

process automation and workflow, with

model support forstandard, universally recognized appraisals, andprocess performance measures


Agenda





5) Questions and References


CMM/CMMIEstablished marketUnderstood principlesProven successes

Business Sector BP MM

ISOMBNQA

Business Process MMBuilt on CMM foundationSolves improvement problemsAids business-IT fusion

IT MMIT needs service-based modelITIL/COBIT gaining

IT Organization IT MM

ITILCOBIT

ApplicationDevelopment

SW-CMMCMMI

Process Maturity Framework

Evolution of the Process Maturity Framework


ISO

Standards

IEEE

Standards

CMMI

PracticalSoftware and

SystemMeasurement

Project Management

Institute

PMBOK

OPM3 P-CMM

Reference

Reference12207

Compliance15939

Compliance15504

Basis for15939

Guided by9000-3

Adaptation of 12207

Basis for1490-2003

Reference

Frequently Used Models and Standards

KEY:ISO = International

Organization for Standardization

IEEE = Institute of Electrical and Electronics Engineers

CMMI = Capability Maturity Model Integration

P-CMM = People Capability Maturity Model

PMBOK = Project Management Body of Knowledge

OPM3 = Organizational Project Management Maturity ModelIndustry

SpecificModels


The COBIT Cube

“IT resources are managed by

IT processes to achieve IT

goals that respond to the

business requirements.”

Source: COBIT 4.0 Documentation


COBIT Key Points

COBIT:Control OBjectives for Information and related Technology4th edition—December 2005

Sponsorship:Open standard of IT Governance InstitutePublished by ISACA – The Information Systems Audit and Control Association & FoundationCertified Information Systems Auditor certification – 23,000+ auditors

Focus:IT Governance - How does executive management fulfill its responsibilities with respect to IT?Integrative mechanism for other models

Source: COBIT Management Guidelines (2000), updated 12/2005


ITIL Overview

Overlap requires coherent process setto enable good coordination between groups

Publications exists for each of these top 5 elements.

Source: ITIL: Service Support (2001, p.4)


ITIL Key Points

Best Practice framework for IT Service ManagementIntegrated set of process-based best practices that span the application lifecycle, service delivery, service support, IT environment, and business concerns.Process-based approach seeks to provide managed control and efficient results.Domain independentHas spawned training, certifications, consulting, software toolsbusinesses, and itSMF trade association.

Key ObjectivesAlign IT services with the current and future business needsImprove the quality of IT servicesReduce the long-term cost of service


Agenda







Performance Improvement Model Framework

Internal Departments

orCustomer(BPMM)

Information Needs

Measures

B

S

CSLA or

Contract

Governance(SarbOx/COBIT)

KEY:SLA – Service Level Agreement BSC – Balanced ScorecardLOE – Level of Effort Support BPMM – Business Process Maturity ModelCMMI® – Capability Maturity Model Integration ITIL – IT Infrastructure LibraryPMBOK® – Project Management Body of Knowledge OPM3 – Organizational Project Management Maturity ModelCOBIT – Common Business Objectives for ISO – International Standards Organization

Information Technology SarbOx – Sarbanes-OxleyP-CMM – People CMM

IT/ProductDevelopment

Projects/Project Management

(PMBOK®/OPM3)

Infra-structure(ITIL orISO))

ApplicationsDevelopment

(CMMI)

LOE

P-CMM


Process Architecture Framework

CapabilityAppraisals

Organization’s DefinedProcess

CustomizedOperations Plan

OrganizationSet of Standard

Processes

Adapted from “IEEE/EIA 12207 as the Foundation for Enterprise Software Processes”, James W. Moore, Software Quality, Spring 1999

ContextualStandards (ITIL, COBIT,

BPMM, OPM3)

IEEE Standards

Other Software & SystemsEngineering Standards

Life Cycle Models

Industry SpecificStandards


Process/Workflow Architectural Relationships

ProcessArea

SpecificPractice Activity

Process

WBS

LifecycleWorkflow

WorkflowStep

Work Item

OSSP

WorkflowManagement

LifecycleModel

Procedure


Simplified IS Process Automation Architecture

Project

Plan

Ana

lyze

Test

Inst

allDesign

Build

TrackDeliv

erablesProject/Workflow

Management

Project/Workflow

Management

CMSystemCM

System

DevelopmentSystem

RequirementsManagement

System

RequirementsManagement

System

Specification oforganization's set of standard processes

Process Architecture

Specifications ofProcess Elements

Guidelinesfor tailoring

standardprocesses

Library ofprocessassets

Processdatabase

Project 1Size$$$

DefectsResultsLessons

Approveddevelopment

life cycles

SoftwareRequirements

SystemRequirements

PreliminaryDesign

Analysis

ProgramDesign

Coding

Operations

Testing


The Performance Triangle

Process

A

B

C

D

Management

Processes

People

Technology

EnableEnables

Leverage

EnhancesLeverage

Mature


Goal and Measurement Alignment

Performance ImprovementGoals and Measures

Stra

tegi

c G

oal

supporting goal

supporting goal

supporting goal

supporting goal

supporting goal measure

measure

measure

measure

measure

Organizational BusinessGoals and Measures

Aligned goal

Aligned goal measure

measuremeasure

measure


Model “Engines” and Organizational Use

Isolate the working organization from process standards Put everything into the organization’s terms

Performance ActionTeam

PMBoK, etc.

ITIL

CMMI FastLean

Global

Business Drivers and Objectives

Process Reqts

Practices, Procedures, and Supporting Documentation

Local Policy

Mentoring Training Support

Operations


Organizational Change Framework

5 Develop Enduring Sponsorship

DesiredState

TransitionState

ChangeStrategy

ManagingChange

PresentState

8 Measure Business Value ofthe Improvement

7 Implement theCapability Improvement

4 Define DesiredState and

Determine Strategy

1 AssessOrganizational

Readiness

3 Assess Present

Capability and Culture

6 Equip Team and Plan theImprovement

2 Establish Sponsorship


Accelerate Implementation Framework

Validate Results

Develop and Deploy the Solution

Architect ApproachDefine Goals

Develop and Pilot SolutionDevelop Skills Deploy Solution

Benchmark progressValidate measuresIdentify next steps

Align Executive Team Clarify ObjectivesBaselineCurrent State Prioritize Gaps

Define Success MeasuresDevelop Program Leaders Plan Program Approach

PHASES

HIGHLEVEL

ACTIVITIES


Agenda







Critical Success Factors – 1

Goal Alignment – Performance Improvement goals map to business goals Process Architecture – integrated processes, invisible model “engines”Measurement Program – underpins everything else (baselines and incremental improvements)Integrated Initiative – run as a cross-organizational program


Critical Success Factors – 2

Enduring Sponsorship – “Long haul” mindset Small, Incremental Releases – “baby steps”Coaching/mentoring – do not let people failMaximum Participation – at the end of the day, it’s all about the people; early and continuing commitmentIntelligent Automation – process needs drive automation requirements


Agenda







Questions?

George N. BrotbeckPrincipal ConsultantConsulting ServicesBorland Software Corporation(904) 327-6740 (mobile)(904) 287-4369 (Jacksonville Office)[email protected]


References

1. BPMM – Borland Account Executive2. CMMI – www.sei.cmu.edu (also for ISO 9000 mapping)3. COBIT – www.isaca.org4. ISO – www.iso.org5. ITIL – www.itil.co.uk; also www.isaca.org6. OPM3 – http://opm3online.pmi.org7. People CMM – www.sei.cmu.edu8. PSM – www.psmsc.com


Backup Slides


OPM3 Overview

Organizational project management is the systematic management of projects, programs, and portfolios to achieve an organization's strategic goals.

Source: “An Executive’s Guide to OPM3” (2004)


OPM3 Key Points

OPM3 is an online application and book combinationProvides self-assessment capabilityAn organization may decide to pursue a course for improvement and, consequently, determine the Best Practices it wants to improve, with the Capabilities necessary for achievementPermits benchmarking of OPM3 Self-Assessment data. This allows users to gain insight into peer organizations' maturity continuum scores and Best Practices, achieved with average, mean and median reports (available to those organizations that participate in the collection and sharing of the data)


ISO 9001 Quality Management System

Customers

Customers

Require-ments

Satis-faction

Continual improvement ofthe quality management system

Managementresponsibility

Measurement,analysis andimprovement

Productrealization

Resourcemanagement

Product

KeyValue-adding activities

Information flow Model of a Process-Based Quality Management System


COBIT-ITIL-CMMI Mapping - QualitativeCOBIT ITIL CMMI L2 CMMI L3


COBIT-ITIL-CMMI MappingCOBIT V3 ITIL CMMI L3Planning and Organization

PO1 Define a strategic IT planPO2 Define the information architecturePO3 Determine the technological direction IT Service Continuity

ManagementPO4 Define the IT organization and relationships PPQAPO5 Manage the IT investment

PO6 Communicate management aims and infrastructure PPQAPO7 Manage human resources Organizational TrainingPO8 Ensure compliance with external requirementsPO9 Assess the risks Risk ManagementPO10 Manage Projects PP, PM&C, PPQA, V&V, SAM,

Integrated Project Management, Integrated Supplier Management

PO11 Manage quality PPQA, M&A, V&V, SAM

Acquisition and ImplementationAI1 Identify automated solutions SAM, ISM, Requirements

Development, Technical SolutionAI2 Acquire and maintain application software Requirements Development,

Technical SolutionAI3 Acquire and maintain technology infrastructure SAM, ISMAI4 Develop and maintain IT procedures CM, Technical SolutionAI5 Install and accredit systems V&VAI6 Manage changes Change Management CM


CMMI-COBIT Summary

CMMI and COBIT have different objectives:COBIT focuses on governance of all IT functionsCMMI focuses on improving application development processes

CMMI and COBIT are complimentary:Use COBIT to appraise overall management of ITUse CMMI to appraise the maturity of application development

Use CMMI to guide the implementation of control processes for:acquisition and implementation processesproject management processessome delivery and support processes


Using ITIL and CMMI

ITIL and CMMI best apply to different parts of the IT organization:

Use CMMI in application developmentUse CMMI in Infrastructure projectsUse ITIL in IT operations and services

The problem – Level of Effort (LOE) activities:Option 1—treat each modification/enhancement as a project—CMMI (may require translation)Option 2—treat the service level agreement as a project—CMMI (requires translation)Option 3—treat the service level agreement as a service—ITIL


Summary – CoBIT, ITIL, CMMI

CMMI, COBIT, and ITIL (BS 15000) provide complementary models for different IT functions:

Use CMMI and ITIL to implement practices that support COBIT control objectivesApply CMMI or ITIL to appropriate parts of the IT organizationSelect appraisal/certification methods based on appropriateness of fit to the IT processes to be assessed

Draw from all standards when designing and implementing processes to ensure a more complete and robust implementation


Process Architecture Elements

OrganizationalBusiness

Processes

OrganizationSet of

StandardProcess

Activity

Task

Process WorkProduct

Procedures,Practices,Methods,

Tools Roles

MeasurementData

Entry andExit

Criteria

Interfaces

Inputs andOutputs

Note: May also connect at Activity Level

ApprovedLife Cycle

Models

Phase

Activity

Life Cycle Model

Usage Help

Tailoring Guidelines


Process Element Relationships

constrains and enablesconstrains and

enables

Project Assets

Project Plan- Lifecycle- Project- Process - Project WBS or Task

List- Project Role

Assignment

Project Deliverable/Work Product

Project Measure

OrganizationalConstraints

Organizational Business Process

Organizational Policy/Governance

Organizational Improvement

- Process Group’s Goal (Measure)

- Organization’s Goal (Measure)

Organization- Group- Position (Job

Description/Class)- Person- Strategy

used in

refers to

Core Process Assets

Process- Sub-Process (optional)- Task- Task’s Role Participation- Task’s Input/Output

provides usability aids for

Process Support Assets

Standard Lifecycle

Guideline/ Procedure/ Standard

Process Tool- Role- Template, Form,

Checklist- Artifact (Dliverable/

Work Product)- Example Deliverable/

Work Product

Measure- Process- Performance


Overall Process Architecture

Multi Model Performance Improvement

Documents

borland software corporation

software organizations

canceled software projects

project management processes

concerns cost needs

loose processes

performance mean

organizational performance