The Quest for Quality

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The Quest for Quality: An Emerging IT Imperative

Simon Mingay

The Quality Capability Gap Is Widening

75% of IT Organizations

75% of IT Organizations

Quality LeadersQuality Leaders

British Leyland 1970s/1980s

Toyota 2000

Most U.S. & European IT Organizations

India

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).

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?

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).

Why Is Quality an Imperative Now? Competition — Increasingly

based on operational effectiveness and agility

Demands for higher 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

What Does Contemporary IT Quality Mean:'Better Outcomes and Experience for Customers'

Attributes

Optimizes

Contemporary IT Quality

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 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

Focus All processes, people, automationCore IT process maturity

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

Developing Trust — In and With IT Staff

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

Maximizing Business Valueand Performance Improvement

NOT

Achieving: CMM Level “n,”

ITIL “Compliance,”

“n” Sigma,

ISO 9001, BS15000... Certification

Remember What You’re Trying to Achieve

Cont. Process Improvement Strategic program Continuous improvement Six Sigma TQM/Kaizen Simple KPI-driven Lean

People PCMM Personal/team metrics Personal/team rewards Skills & competency dev. Organizational dev. Change mgmt.

Tooling & Automation AD Operations mgmt. Automation Service desk Etc.

Implementation of IndustryStandard Best Practices ITIL CMMI Etc.

Measurement Scorecards Metrics frameworks Process maturity ISO 9001 certification BS15000 certification BS7799

Reactive:frameworks

Initial: tool & automation issue

Proactive: people

Optimizing:strategic program

A Program to Integrate the Key Elements:People + Process + Tools + Measurement

Org.Capability

ProcessTechnology People

Complexityof

Barrier

Fragmented tools

No standards

Poor ESP integration

Inconsistent processes

Poor leadership

Custom-made integration

Unintegrated processes

Lack of skills

People unable to change

People refusing to change

Poor process quality

Low morale

Inappropriate tools

Unrealistic customer

expectations

Closed culture

Poor customer perception

Inappropriate competencies

People unwilling to change

High

Low

Source of Barrier

Behavioral Change: Barriers to Process Excellence – Mostly People-Oriented

Poor governance

Funding

Service culture

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 Communication

Core 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

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 maturityDrive productivity

Six Sigma: Tackles defects and variance in a process

Lean: Tackles waste and increases speed

Operational EffectivenessOperational

Effectiveness

Quality (Defects)

Productivity Speed

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

Do You Know How You're Doing?

YTD 2006 IT Key Performance Indicators

Overall Customer Satisfaction: 89%

BETTER

350%

300%

250%

200%

150%

100%

50%

0%

Actual vs. Estimate

Act

ual /

Est

imat

e

Outstanding Calls350

300

250

200

150

350

300

250

200

150

350

300

250

200

150

Outstanding Calls

Target

Training Days3

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

BETTER

BETTER

BETTER

BETTER

BETTER

BETTER

BETTER

IT Value Added1000%

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

Best Practice Operational Effectiveness: Necessary, but Not Sufficient

FutureBest Practice

ContinuousImprovementExtends Best Practice

Cost

Quality Low High

Low

A

Less ThanBest Practice

High

Source: Adapted from Michael Porter, "What is Strategy?" Harvard Business Review, November-December 1996

B

CurrentBest

Practice

CopyBestPractice

Achieving best practice requires optimizing cost and quality

Sustained Differentiation

CStra

tegic

Choice

s

Inte

rwov

en

Proce

ses

Case Study: BPO ServicesCombining 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 and

app. dev., and quality activities integrated 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

Case Study 2: Information Services —A Good Start

Project Management

Control

IT Quality Framework

ISO/IEC20000

Service Mgmt.Processes

ServiceImprovement

Program

CMMI

ISO 9001 /TickIT

SixSigma

ProjectMethod

Prince 2

ISO 27001

Service

Security

Development

ISO AccreditationEFQM

IS Cost Model

ContinuousImprovement

Program

Financial

FAST

SOX

SixSigma

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).

What Goes Wrong?

Failing the relevance test

Failing the accountability test

Failing the incentives test

Failing the test of time

Failing the “think big” test

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

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 doing on defects, productivity, speed and (of course) customer satisfaction.

Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with Gartner's official approval. Such approvals may be requested via e-mail — [email protected].

The Quest for Quality: An Emerging IT Imperative

Simon Mingay

Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with Gartner's official approval. Such approvals may be requested via e-mail — [email protected].

The Quest for Quality: An Emerging IT Imperative

Simon Mingay