How to Establish Improvement Targets

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How to Establish Improvement Targets

• Annie Combelles
• CEO
• Q-Labs

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Agenda

• Meeting Q-Labs
• Process Improvement Highlights
• Two Real Cases
• Conclusions

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The Q-Labs Group

• Your Partner to give your Systems and Software a
  Competitive Advantage.
• 120 Employees in 5 countries

France Germany Sweden United Kingdom USA
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Clientele and Offerings

• Q-Labs clients are companies where software and
  systems are critical business drivers
• Broad Sector Experience Aerospace, Automotive,
  Defence, Finance, Information Technology, Health,
  Systems Integrators, Telecom
• Finance Sector Clients BNPP, AXA, ABN AMRO,
  Credit Lyonnais

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All you must know about the CMMI tool
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What is Process Improvement?
A Mindset
A maturity level to demonstrate
A wish to change
A discipline
Just fad
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Resistance?

• I have no time for this, come back later
• There is no better time than now to implement
  process improvement on your project
• Discuss the project and uncover project pain
  points
• I dont believe in it, I dont see the benefit
• Show ROI data for process improvement
• Have other project managers that have benefited
  from process improvement talk to the PM
• My customer is happy, I dont need to change
  anything
• Discuss the project and uncover project pain
  points
• Dont you want to make your customer even
  happier?
• It doesnt apply to my project, were different
• Have the PM describe the project and how it is
  managed. Then identify opportunities where
  process improvement would help

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Key success factors

• 1. Maintain executive support. Strong consistent
  support is crucial.
• 2. Leverage best practices. Use what is available
  and steal with pride.
• 3. Align process improvement with business
  objectives. Leverage existing objectives.

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Targets and Continuous Improvement
External
Need to
Drivers
Improve
Project
Project
Management
Management
Benchmarking
Development
Development
Processes
Processes
Assess-
Assess-
Process
Process
ment
ment
Management
Management
(feedback loop)
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A Few Real Cases
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Alcatel

• A project
• A support from Excom to drive Jupiter
• Implement the CMM/CMMI following improvement
  objectives
• Use standardized reporting based on core metrics
  and dashboard to avoid lengthy communication gaps
• Set realistic targets for schedule, quality, cost
  and content
• Track projects against these targets on a
  quarterly basis with a clean upwards aggregation
• Take timely and effective corrective action based
  on business objectives, assessment results, and
  action plans

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Quantitative Product Targets 02
'01
'02
'02
Objetive
actual
target
actual
Productivity
40 incr. of Development vs. Total effort ratio
35
50
53
50 efficiency gain in Test (i.e. ph/def. Total)
50
25
33
30 efficiency gain in FIT (i.e. ph/def. total
detection correction)
22
15
28
Quality
6 improvement on Delivery quality
93
98
96
50 improvement of Development Defect Detection
effectiveness
50
75
68
10 improvement of Test Defect Detection
effectiveness
84
92
88
Accuracy
18 increase of Delivery Accuracy (time)
76
90
86
23 increase of Delivery Accuracy (contents)
80
98
100
(Respect
28 decrease of Cost overrun
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10
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Commitments)

• Better early defect detection than '01 and close
  to targets
• Mainly due to early validations activities
  (document and code reviews) put in place
• Better accuracy delivery than 01 and close to
  targets
• Efficiency during test activities far from
  targets
• Improvement actions related to efficiency during
  Test were put in place later than expected and
  influence will be during 03
• Same level of overrun on costs as 01and far from
  targets

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A tracking system
Target
Target
Target
Target
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BNPParibas

• A Division of 400p developing a proprietary ERP
• 58 countries
• 61 locations
• 150 BANKING ORG.
• 600 AGENCIES
• 10 000 users
• 1 900 000 clients
• 3 000 000 accounts
• 3 000 000 transactions/day

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ATLAS Improvement Objectives

• Pursue effort to be highly professional
• Improve the level of service delivery (to
  clients, requirements stakeholders and
  operations)
• Improve quality of deliveries
• Control cost and schedule better
• Improve project management capability
• Better communication between teams
• Better risks management
• Build assets
• The improvement project is part of a global
  initiative of the Bank named Vision 2007

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Improvement Roadmap
oct 2002 dec 2002
jan 2003 mar 2003
april 2003 june 2003
july 2003 sept 2003
oct 2003 jan 2004
Appraisal Action Plan
Cycle 4 Improve-ment deployment
Cycle 1 On going actions are embedded into the PI
plan New processes piloted Requirements
management
Cycle 3 Processes are completed Communi-cation to
reqts stakeholders QA is implemented
Cycle 2 Existing processes in use are
documented Product roadmap concept launched
L2 Certification
GO - NOGO
CMM Training
Senior Management Support
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Improvement Progress Observed

• Change requests are managed and controlled
• Priorities handled
• Information shared between dev stakeholders
• Packaging team involved
• Planning
• Informed decision regarding Change requests
• Estimates are accurate
• Interface with clients
• Decisions are justified based on facts
• Institutionalization
• Dashboard in use at all levels
• All teams involved
• Expectations regarding CMMI L3
• Continuous effort to work more effectively

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Conclusions

• 40 of projects are stopped, 50 overcome budget
• Below 50 of IT investments impact organizations
  profit (source London School of Economics)
• It is time to measure, take corrective actions
  and measure again the impact on the bottom line