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• Look, who is the most successful in attracting
  and holding good people? The nonprofits. The
  satisfaction has to be greater than in business
  because there is no paycheck.
• Peter Drucker

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In addition to working with very large projects,
however, we have found that the same methods are
effective for smaller groups. In fact, in
simplified form, they are even helpful for
individual programmers. That, of course, is the
key. If our methods do not serve the individual
professionals, they will not endure.
Watts Humphrey
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Watts Humphrey profiled in issue of December 6,
1999
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• Aligning Measurements To Strategy
• In A Small/Medium Enterprise
• Presentation - European SEPG 2000
• June 7, 2000

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Characteristics Of Successful Companies

• High quality products and services
• Motivated and skilled employees
• Responsive and predictable internal processes
• Satisfied and loyal customers

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Characteristics Of Excellent Software Companies

• Products delivered on time with zero defects
• 90 to 95 of all defects detected early
• Most defects happen once (Defects are prevented)
• Employees goals aligned with business goals
• Have line of sight to company objectives
• Know excellent practices and use them
• Continuously improving internal processes
• Cost of quality is less than 5
• Productivity doubles every 3 to 5 years
• Mature, defined, and measured processes
• Delighted customers

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AIS Software Process Improvement A Tale of 3
Eras

• Without a model 1986 - 1992
• Using the Capability Maturity Model (CMM) 1992 -
  1995
• Using CMM and Personal Software Process (PSP)
  1996 - 1999

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AIS Predictable Results for Schedule
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AIS Predictable Results for Effort
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AIS Predictable Results for Acceptance Test
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AIS Time Spent in System Test
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Strategic Impact of SPI

• Creating value for customers
• On time delivery
• Defect free delivery
• Enhanced organizational capabilities
• Optimizing processes
• Trained workforce
• Future financial performance enabled by
• High quality products and services
• Satisfied and loyal customers
• New businesses driven by core competencies

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SPI Issues

• Employee turnover
• Core competencies walking out the door everyday
  at close of business with no guarantee of coming
  back
• Holding the gains
• New technology, applications domain
• Need to communicate strategic relevance to entire
  organization
• Need to align individual goals with business, SPI
  goals
• Core metrics tracked
• Schedule, effort, defects, PIPs along with
  investment in SEPG, SQA, SCM,and process training
  
• Performance drivers not connected explicitly to
  core outcomes represented by financial measures

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Business Strategy

• Strategy Hypotheses about cause and effect

If employees are motivated, skilled, and
committed to excellence
They will continually improve the AIS software
process
They will deliver products on time with few or no
defects
Customers will be delighted
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Translating Strategy Into Operational Terms

Financial To succeed financially, How should we
appear to our shareholders?
Internal Business Process To satisfy our
shareholders And customers, what business Process
must we excel at?
Customer To achieve our vision, How should we
appear To our customers?
Vision And Strategy
Learning and Growth To achieve our vision,
how Will we sustain our ability to Change and
improve?
Source The Balanced Scorecard, Kaplan Norton,
Harvard Business School Press
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AIS Balanced Scorecard
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Products Delivered On Time With Zero Defects

Strategic Objective Engineers achieve the
highest possible quality in the design, code
phases of a component, module or program Core
Outcome Components, modules, programs with zero
integration test defects Performance Driver
Components with target percent of defects removed
before compile and test
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Products Delivered On Time With Zero Defects

• 1998 1999
• Number of components delivered 215
• Number with zero integration defects 134

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• When managers insist that their professional
  employees rigorously apply the recognized
  disciplines of their fields, they will do better
  work.
• Watts Humphrey

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Goals Influence Behavior

• Goal 1 Reduce test defects / KLOC
• Plan for A/FR between 1.5 and 2
• Goal 2 Increase effectiveness of design and
  code reviews
• Plan for reviews of 100 150 LOC/Hour
• Goal 3 Increase process yield
• Plan for yields greater than 80

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Reduce Test Defects/KLOC
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Increase Process Yield
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Plan For A/FR Between 1.5 and 2
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Quality Is Free
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Continuously Improving Internal Processes

• Strategic Objective AIS organization defined
  process is continuously improved
• Core Outcome New products or product
  enhancements with documented quality better than
  its predecessor
• Performance Driver Process Improvement Proposals
  (PIPs) submitted and implemented

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Continuously Improving Internal Processes

• 1998 1999
• Process Improvement Proposals (PIPs)
• Number of PIPs Submitted 341
• Number of PIPs Implemented 254
• PIPs to improve quality 159
• PIPs to reduce cycle time 53
• PIPs to reduce risk 42

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Employees Goals Aligned With Business Goals

• Strategic Objective Investment in people,
  process, technology enables achievement of
  customer, employee, and shareholder satisfaction
  goals
• Core Outcome Engineers improve productivity
  continuously
• Performance Driver Engineers use the Personal
  Software Process

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Connecting Business Objectives to Career Goals
Employee Job Questionnaire
Position Attributes
Balanced Scorecard (BSC) Strategic Objectives Fin
ancial Customer Employee Internal Bus. Proc.
Learning Growth
Position Description
BSC Position Objectives
Self Evaluation Feedback
Position Knowledge Skills
Broadening Assignments Activities
Professionalism Accountability
Position Accountability
Individual BAA Goals
Individual Training Goals
Measurement of Core Outcomes Performance
Drivers
Improvement Goals/ Summary Rating
Development Staffing Plan for BAA
Training Director Plan
Future Individual Career Plan
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Way Out Of Software Hell

• Products delivered on time with zero defects
• 90 to 95 of all defects detected early
• Most defects happen once (Defects are prevented)
• Employees goals aligned to business goals
• Have line of sight to company objectives
• Know excellent practices and use them
• Continuously improving internal processes
• Cost of quality is less than 5
• Productivity doubles every 3 to 5 years
• Mature, defined, and measured processes
• Delighted customers

TSP
-
Builds
quality products
on cost and
schedule
PSP
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Builds
individual skill
and discipline
CMM
-
Builds
organizational
capability
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Contact Information

• Girish V. Seshagiri
• CEO
• Advanced Information Services Inc.
• Co-founder
• The Watts Humphrey Software Quality Institute
• Websites www.advinfo.net www.watts-sqi.org
• E-mail girish_at_advinfo.net