Notes accompany this presentation. Please select Notes Page view.

• 1. The Quest for Quality:An Emerging IT ImperativeSimon Mingay Steve Bittinger

2. The Quality Capability Gap Is Widening 75% of IT Organizations Quality Leaders British Leyland 1970s/1980s Toyota 2000 Most U.S. & European IT Organizations India 3. The Strategic Context

• By 2009, 90 percent of top-tier internal and external service providers will be distinguished by their substantial process capabilities, as well as their quality and service improvement capabilities (0.8 probability).

• By 2011, IT organizations that have not built holistic, integrated quality management programs and values will be substantially underperforming against industry norms (0.8 probability).

• Through 2011, quality problems in 75% of IT organizations will be predominantly defects and waste caused by silo-based suboptimization (0.8 probability).

• Through 2009, 75% of IT organizations will focus their "quality" initiatives too narrowly on implementing ITIL, CMMI, Prince or PMI's PMBOK (0.9 probability).

• Through 2009, two-thirds of IT organizations will overemphasize process at the expense of developing staff and the appropriate values and behaviors (0.8 probability).

4. Key Issues

• 1. What does quality mean in IT, and why should you care?

• 2. What are the building blocks for an integrated approach to quality for IT?

• 3. What are the best practices from leading organizations, and the most common pitfalls that block success?

5. Where Is 'Best Practice' IT Quality Today? The ability to choose the appropriate process maturity. The ability to simultaneously maximize productivity, product quality, defect level and time. If you don't find the defects you expected, you know you missed something. Integrates CMMI, ITIL, Six Sigma, lean Of course!But built on powerful culture. You have to live it, breathe it but above all, believe that "quality excellence" is an imperative. 80%+ reduction in defects, 140%+ increase in productivity over five years (from good base). 6. Why Is Quality an Imperative Now?

• Competition Increasingly based on operational effectiveness and agility

• Demands forhigher productivity

• Service availability

• Increased complexity

• Multisourcing

• Higher expectations

• Future role of IT organization is highly dependent on its ability to build credibility

• BPM requires skills in holistic quality capabilities, e.g., Six Sigma

Standard Availability High Availability Continuous Operations No Downtime Now 3 Years 5 Years General Trend in Availability Expectations Productivity Time Six Sigma Lean Frame- works 7. What Does Contemporary IT Quality Mean: 'Better Outcomes and Experience for Customers' Core IT process maturity All processes, people, automation Focus Attributes Optimizes Contemporary IT Quality

• Doing things well

• Inside out

• Internal silos

• Quality

• Quality control and compliance

• Certifications

• Procedures

• Value driven

• Business "believes it"

• ISO9001, TQM

Traditional IT Quality Processes

• Doing the right things well

• Outside in

• End-to-end, integrated supply chain

• Operational effectiveness

• Build quality in, and building trust

• Achieving enterprise goals

• Automation

• KPI and value driven

• Business demands proof

• Lean

Defects, Productivity, Waste 8. Implications: Moving Beyond Process 'Better Outcomes and Experience for Customers'

• The "customer" should be the start and endpoint of quality for IT organizations today. Understanding and meeting expectations is critical.

• IT must understand who its customers are and what value means to them.

• Every activity must be contextualized and prioritized around an assessment of customer value.

• Quality and operational effectiveness are two sides of the same coin, so cannot be separated.

• A holistic approach to quality is required.

• Don't rely on process just to "control" events and activities.

Process Maturity Cultural Norms Developing Good Judgment People Process Technology DevelopingTrustIn and With IT Staff 9. The Quality Journey Quality Management System ISO 9001/TickIT, Prince/PMBOK CMM(I)Agile ITIL CobiT Six Sigma PCMM Investors in People Lean Document what you do, do what you document. Develop a best-practice process. Improve and innovate the process. Build quality around people processes. Reduce waste, increase process speed. 10 years Top Down Bottom Up 10. The Quality Building Blocks: The 'Architecture of Quality' Vision Goals & Objectives Measurement Framework Quality Improvement Methods and QMS (Six Sigma, Lean) Values Leadership Policy Organisational Change Mgmt. Governance, Program Oversight (QA) and CommunicationCore IT Processes Fulfilment Processes Admin, Planning & Resource Mgmt. Processes Staff Recruitment, Development, Metrics, Rewards and Recognition Industry Frameworks and Standards (ITIL, CMMI, EFQM, etc.) Build Trust to Make Good Decisions 11. Quality, Productivity and Speed: Simultaneous Optimization

• Failing to link quality, productivity and speed will result in quality for the sake of quality

• Mature IT organizations are achieving substantial improvements in productivity and waste reduction

• Using lean and Six Sigma

Why Six Sigma and Lean? Both: Tackle process maturity Drive productivity Six Sigma: Tackles defects andvariance in a process Lean: Tackles waste andincreases speed Operational Effectiveness Quality (Defects) Productivity Speed 12. Building the Values and Behaviors: Building Good Judgment Recruitment Induction Coaching and Mentoring Ongoing Training Personal Measures Rewards and Recognition The Tools That Are Used by the Leaders Building Trust To Enable Empowerment Personal Link to Business Value Organizational Change Competency Development 13. Do You Know How You're Doing? YTD 2006 IT Key Performance Indicators Overall Customer Satisfaction: 89% 350% 300% 250% 200% 150% 100% 50% 0% Actual vs. Estimate Actual / Estimate Outstanding Calls 350 300 250 200 150 350 300 250 200 150 350 300 250 200 150 Outstanding Calls Target Training Days 3 2.5 2 1.5 1 0.5 0 3 2.5 2 1.5 1 0.5 0 3 2.5 2 1.5 1 0.5 0 Days per head Target days 6 8 10 12 14 16 18 Cost / Enq Target IT Costs per External Customer Inquiry 98.6% 98.8% 99.0% 99.2% 99.4% 99.6% 99.8% Actual Target Critical Services Availability 84% 86% 88% 90% 92% 94% 96% 98% Target Zero defect changes Operational Change Effectiveness IT Value Added 1000% 800% 600% 400% 200% 0% 1000% 800% 600% 400% 200% 0% 1000% 800% 600% 400% 200% 0% Value Added Target Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 0 2 4 6 8 10 12 14 16 Development Productivity Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Actual Target Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Function pts / Day Target Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May B E T T E R B E T T E R B E T T E R B E T T E R B E T T E R B E T T E R B E T T E R B E T T E R 14. Best Practice Operational Effectiveness: Necessary, but Not Sufficient Source: Adapted from Michael Porter, "What is Strategy?" Harvard Business Review, November-December 1996 Cost QualityLowHigh Low HighB Achieving best practice requiresoptimizingcost and quality A Less Than Best Practice Current BestPracticeCopy Best Practice Future BestPracticeContinuous Improvement ExtendsBest Practice C Sustained Differentiation Strategic Choices Interwoven Proceses 15. Sustained Differentiation RequiresStrategy + Culture + Integrated Processes

• Holistic optimization

• Hard to match

• Synergies

No.1 Internet Search Free Scalable Inno- vation Google Brand Simple No Frills Good Search Results Ad Revenue Platform Comple- mentary Tools Hire the Best Way of Life Freq. Releases High Wages Rule Breaking Do No Evil Risk Taking Cost & Product- ivity 16. Case Study: BPO Services Combining Agility and 'Right First Time, Every Time'

• Principles of Quality Program

• Business value driven

• Build integrity in

• Internalization

• Outside in

• Automate

• Know how you're doing - precisely

• Judgment first, process second

• Actions

• Used lean in AD. Used idea of "business impairment" in ongoing service delivery

• Testers, infra., ops., app. support andapp. dev., and quality activitiesintegrated into project teams

• Used consultants selectively,but all efforts based on internal research

• Use internal people from outside IT to critique and identify improvement opportunities

• Built on process standardization, then automate, e.g., scripted testing, release

• Balanced scorecard

• Strong focus on developing people

17. Case Study 2: Information Services A Good Start Project Management Control IT QualityFramework ISO/IEC 20000 Service Mgmt. Processes Service ImprovementProgram CMMI ISO 9001/TickIT Six Sigma Project Method Prince 2 ISO27001 Service Security Development ISOAccreditation EFQM IS Cost Model Continuous ImprovementProgram FinancialFAST SOX Six Sigma 18. Quality Management Tomorrow 'Andon' Putting Control on the Front Line By 2012, Toyota's Andon principle, where production is stopped when a staffer spots a quality problem, will be implemented in an IT operations and project environment (0.6 probability). 19. Quality Do's and Don'ts

• Do

• Have the quality team (where it needs to exist) report directly to the CIO or corporate quality executive

• Include quality processes and roles in teams

• Focus on operational effectiveness

• Make "quality" and productivity the first items in all team and leadership meetings

• Automate

• Apply the principle of "just enough process"

• Apply quality principles to everything you do

• Don't

• Think you can do quality without being serious about it

• Try and do it "on the cheap"

• Put a "quality professional" in charge of the quality program

• Rely on quality control and audit as your primary "control" mechanisms

• Focus on QA

• Focus on CMMI, ITIL alone

• Focus on process maturity alone

• Focus on certifications

20. Recommendations

• Develop a personal development agenda so that you can provide excellent leadership.

• Operational effectiveness is going to be a strategic imperative. Launch a holistic quality program (call it "operational effectiveness" if that helps).

• Contextualize any existing process programs within that.

• Focus on developing good judgment in your staff and building trust.

• Get best-practice processes in place quickly,and then move onto Six Sigma and lean principles.

• Make sure you know exactly how you are doingon defects, productivity, speed and (of course)customer satisfaction.

21. The Quest for Quality:An Emerging IT ImperativeSteve Bittinger 22. The Quest for Quality:An Emerging IT ImperativeSteve Bittinger