CMMI High Maturity best Practices HMBP 2010: High Maturity: The Corporate Perspective For...

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High Maturity: The Corporate Perspective

For Organization Wide Improvement

-Koel Bhattacharya

Avinash Bharj

(Capgemini Pvt. India Ltd.)


2

High Maturity: The Corporate Perspective for

Organisation Wide Improvement

for 1st. International Colloquium on High Maturity Best Practices 2010

Koel BhattacharyaAvinash Bharj

Capgemini India Pvt. Ltd.

| The Corporate Perspective for Organisation Wide Improvement

1st. International Colloquium on HMBP, 21 May 2010


3Version 1.0 © 2010 Capgemini. All rights reserved.

Global IT Industry Outlook

Strong IT market recovery with growth projected at 8%

-10.6% -11.4%-8.9%

4.0%4.9%

8.1%

Forecasts for Global IT Purchases in 2009 and 2010

June 2009 Forecast September 2009 Forecast December 2009 Forecast

Source: September 29, 2009, “US And Global IT Market Outlook: Q3 2009” Forrester report and the June 29, 2009, “US And Global IT Market Outlook: Q2 2009” Forrester Report

2009 2010





Impact on Employment

Strong growth in employment with the economic revival

Emerging economies will account for large percentage of growth





Indian IT Industry Growth Rate

2

8

18

47

60

1998 2002 2005 2009 2010

Value in USD Billion

Revenue $60 Billion

Projected Growth Rate 15% -18%

Potential Workforce 2.3 million

Source: NASSCOM Resource Center & Economic Times

Positioning the Indian IT Sector

• High Outsourcing from North

American & European countries

• Rise in domestic demand for

e-governance initiatives

Opportunities for growth

Challenges

• Government policies

• Double-dip recession

• Competition

Pressure on billing rate

High marketing/R&D expense

• Exchange rate fluctuation





Securing a Place for the Organisation

Creating business models which cater to increased demands

• Transformation of business processes to

become more productive and competitive

• Industrialisation of operating models and use

of standardised rules, processes and tools

• Reducing layers of costs that do not bring

added value to the client

• Developing new ways of doing business

through innovation, domain expertise and

improvement initiatives

Innovative

Time

to

Market

Cost

Sensitive

Business

Model

Global

Collaboration

Talent

ManagementCompetitive





CMMI Model - Casting a Process Framework

• Business objectives explicitly

linked with operational processes

• 22 core process areas categorised

into

•project management

•engineering

•support

•process management

• Defined goals & practices for each

process areas

•Generic Goals & Generic Practices

•Specific Goals & Specific Practices

• Building infrastructure for creating a

process framework

Using processes to deliver business outcomes

Projec

t

Man

agem

ent

Deliver

y

Exce

llenc

e

Con

tinuo

us

Impr

ovem

ent

Busin

ess

Benefit

Process Maturity

Projec

t

Man

agem

ent

Deliver

y

Exce

llenc

e

Con

tinuo

us

Impr

ovem

ent

Busin

ess

Benefit

Process Maturity





Process Industrialisation

Aligning the process framework with the company’s corporate governance structure &laying the foundation for organisation wide improvement

Control and Management Reporting

Corporate Governance

Result Orientation

Collaborative Steering Group

Integrated Processes

Process Infrastructure Design

Continual Improvement





Process Industrialization Framework

Pla

n

the

Pro

cess

Pro

vid

eR

eso

urces

&

Assig

n

Resp

on

sib

ilit

yGeneric Practices

Train

ing

Org

an

izati

on

al

Po

licy

Revie

w

Sta

tus w

ith

M

an

ag

em

en

t

Man

ag

e

Co

nfi

gu

rati

on

s

Co

llect

Im

pro

vem

en

t In

form

ati

on

Esta

blish

Q

uan

tita

tive

Ob

jecti

ves f

or

the P

ro

cess

Co

nti

nu

ou

s

Pro

cess

Im

pro

vem

en

t

Sta

keh

old

er

Id

en

tifi

cati

on

Sta

bilis

e

Su

b-P

ro

cess

Perfo

rm

an

ce

Co

rrect

ro

ot

cau

ses o

f p

ro

ble

ms

Mo

nit

or

&

Co

ntr

ol

Pro

cess

Evalu

ate

A

dh

eren

ce

Esta

blish

Defi

ned

P

ro

cess

Control and Mgmt Reporting


Result Orientation

Collaborative steering group




Level 2

Level 3 Level 4 Level 5

Process Industrialization Framework

Pla

n

the

Pro

cess

Pro

vid

eR

eso

urces

&

Assig

n

Resp

on

sib

ilit

yGeneric Practices

Train

ing

Org

an

izati

on

al

Po

licy

Revie

w

Sta

tus w

ith

M

an

ag

em

en

t

Man

ag

e

Co

nfi

gu

rati

on

s

Co

llect

Im

pro

vem

en

t In

form

ati

on

Esta

blish

Q

uan

tita

tive

Ob

jecti

ves f

or

the P

ro

cess

Co

nti

nu

ou

s

Pro

cess

Im

pro

vem

en

t

Sta

keh

old

er

Id

en

tifi

cati

on

Sta

bilis

e

Su

b-P

ro

cess

Perfo

rm

an

ce

Co

rrect

ro

ot

cau

ses o

f p

ro

ble

ms

Mo

nit

or

&

Co

ntr

ol

Pro

cess

Evalu

ate

A

dh

eren

ce

Esta

blish

Defi

ned

P

ro

cess

Control and Mgmt Reporting


Result Orientation

Collaborative steering group




Control and Mgmt Reporting Control and Mgmt Reporting

Corporate Governance Corporate Governance

Result Orientation Result Orientation

Collaborative steering group Collaborative steering group

Integrated Processes Integrated Processes

Process Infrastructure Design Process Infrastructure Design

Continual Improvement Continual Improvement

Level 2

Level 3 Level 4 Level 5

Process Industrialisation

Aligning the process framework with the company’s corporate governance structure &laying the foundation for organisation wide improvement





High Maturity Process Areas

• Organisational Process Performance – discusses the

need for establishing organisational performance

goals and usage of predictive models

• Quantitative Project Management – focuses on

managing projects quantitatively by measuring

actual performance against identified targets and

helps in planning for midcourse corrections

• Organisational Innovation and Deployment –

emphasizes the need for implementing

organisation wide improvement initiatives

• Causal Analysis and Resolution – helps in

identifying and addressing root causes of product

and process related defects and issues

The continuous representation

of the model has the high

maturity aspects as part of the

generic practices at level 4 & 5

which needs to be fulfilled for

achieving higher capability in a

process area.

In contrast the staged

representation includes the

high maturity practices as part

of the four process areas at

level 4 & 5.





The Premise of High Maturity

Creating synergy between Vision-BO-QPPO

Process Performance Models Process Performance Baselines

Market Leadership

Competitive Insight

Innovation

Customer Centric

Financial Performance

Capital Optimisation

Quality Focus

Business Objectives Quality & Process Performance Objectives

Vision

Busin

ess P

rocess I

mpro

vem

ent

Reduce E

nte

rpri

se C

ost

Impro

ve W

ork

forc

e E

ffectiveness

Att

ract

& R

eta

in c

usto

mers

Use o

f In

form

ation/A

naly

tics

Pre

dic

tive M

odelin

g

Custo

mer S

atis

factio

n

Incre

ase P

roductiv

ity

Resourc

e O

ptim

izatio

n

Impro

ve Q

uality

/Reduce R

ew

ork

Process Performance Models Process Performance Baselines

Market Leadership

Competitive Insight

Innovation

Customer Centric

Financial Performance

Capital Optimisation

Quality Focus

Business Objectives Quality & Process Performance Objectives

VisionVision

Busin

ess P

rocess I

mpro

vem

ent

Reduce E

nte

rpri

se C

ost

Impro

ve W

ork

forc

e E

ffectiveness

Att

ract

& R

eta

in c

usto

mers

Use o

f In

form

ation/A

naly

tics

Pre

dic

tive M

odelin

g

Custo

mer S

atis

factio

n

Incre

ase P

roductiv

ity

Resourc

e O

ptim

izatio

n

Impro

ve Q

uality

/Reduce R

ew

ork





High Maturity – Paradigm Shift

High maturity practices help to:

• Statistically define the organisation’s

performance (in terms of mean and

standard deviation)

• Predict the performance

of the organisational objectives

• Probe into reasons that lead to variation

• Plan for corrective or preventive

measures

Senior management

• view leading indicators which influence the performance

of the business objectives

• plan for organisation wide process improvements

Data Inputs

Historical & current operational

data or analytically derived

information

Recommended Actions

The optimal course to meet the

objectives

Achieving Results

Measure performance against objectives

Implementation

Execution of recommended

actions

High Maturity

Objectives

Description of goal

to be achieved

Decisions

Actions that can

realistically be

carried out in

pursuit of

objectives

Constraints

Requirements,

limitations,

rules constraining

decisions

Data Inputs

Historical & current operational

data or analytically derived

information

Recommended Actions

The optimal course to meet the

objectives

Achieving Results

Measure performance against objectives

Implementation

Execution of recommended

actions

High Maturity

Objectives

Description of goal

to be achieved

Decisions

Actions that can

realistically be

carried out in

pursuit of

objectives

Constraints

Requirements,

limitations,

rules constraining

decisions

High Maturity

Objectives

Description of goal

to be achieved

Decisions

Actions that can

realistically be

carried out in

pursuit of

objectives

Constraints

Requirements,

limitations,

rules constraining

decisions





Predictive Analytics for Monitoring QPPOs

Let us look at a simple example:

Consider a statistical model

• Y = F(x1,x2, x3….) where,

• Y = Productivity

• x(s) = Skill Index, Requirement Volatility,

Complexity of Work, Schedule Compression

Output

• Model suggests the prediction

interval for the QPPOs (Y value)

within which the estimated

productivity should range

• What-if analysis is based on past

performance data

• Recommends the need to take mid

course corrections

Improve Skill Index to Improve Productivity

Vision Revenue Growth

Business Objective Competitive Pricing

QPPO Improve Productivity





Innovation and Improvement

High maturity practices at CMMI Level 5 supports:

• Early detection of defects to reduce rework costs

• Innovative solutions to enhance operational effectiveness

• Accelerated Solutions Environment to resolve

complex business challenges

• Centers of excellence for domain specific

solutions

• High level inventory of anticipated

information technology developments

• Evaluation of the innovation’s potential to

impact future business drivers

• Develop capabilities to support clients' future

needs

Organisations are increasingly investing in innovations by setting up:

Innovation

Opportunity Assessment

Environment Scanning

Optimal Ideation





Performance results revealed by several organisations to SEI

Tangible Benefits to an Organisation

Schedule

Quality

50% reduction in release time due to -

61% improvement in productivity

48% improvement in quality due to reduction in defect injection

Cost33% decrease in the average cost of fixing defects due to early detection

and reduction in rework

RevenueEnhanced productivity and improved quality allows organisations to

price competitively, win more contracts and thereby increase top line

ROI1.7:1 to 27.7:1 improvement in ROI due to reduction in defects,

improved productivity and shorter cycle times





Summary: The Long Haul

Invest irrespective of the economic condition

Process, people and technology

Economy is not uni-directional but cyclical

Recession will follow boom and vice-versa

… To gain traction

Organisational processes help in controlling costs and showing

resilience

Performance culture aids in building a talented company

Viewing high maturity practices as strategic business collaborators

www.capgemini.com


The information contained in this presentation is proprietary. ©2010 Capgemini. All rights reserved

Thank YouContact us

Koel Bhattacharya +91 22 [email protected]

Avinash Bharj+91 22 [email protected]

mailto:[email protected]

mailto:[email protected]

www.capgemini.com


The information contained in this presentation is proprietary. ©2010 Capgemini. All rights reserved

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