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e-SCM © 2006 by Carnegie Mellon University. All rights reserved. SM: CMM Integration, CMMI, SCAMPI, and IDEAL are service marks of Carnegie Mellon University
ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office. “PMI” and “PMP” are registered marks of Project Management Institute, Inc.
COBIT 4.1 is property of the IT Governance Institute (ITGI)
Luciano Guerrero President Procesix Inc. www.procesix.com
Presentation at Agile Tour 2011 Bucharest, Romania
25 Nov 2011
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Needs and challenges Process as a tool Agile approach to process improvement
Agenda
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Businesses are facing dramatic challenges during this decade, from economy, technology and globalization. The business approaches that were successful a few years ago are no longer fit for a rapidly changing environment. There are new players, different markets and greater new opportunities. There is only one thing that will never change: to be a successful enterprise (a survivor) you NEED to continuously optimize your productivity, improve quality, and to be one step ahead of your competitors for satisfying your customers’ needs.
Mature processes are the basis to build a solid enterprise architecture, to optimize the investment in technology and to obtain the best from the human talent. Well implemented processes are a powerful tool to support business goals, capture know-how and to lower the risk posed by expertise turnover.
The process need to be seen from a customer perspective, integrating the outputs of teams and functional areas in order to deliver high-quality services and products. The industry seems to be moving to adopt multimodel, pragmatic approaches oriented to measurable results.
In order to meet the need for highly efficient and adaptable practices, the industry is using agile process management approaches without lowering maturity . Sound enterprise architectures can use ready-to-use process solutions, using better the investment and integrate business functions and customer.
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WHO ARE WE
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Value proposition
Business Process Management (BPM) consulting services to improve our customer’s: •Process efficiency and productivity
•Aligning business objetctives with core processes
•Core processes workflows based on industry practices and standards
Expertise providing services since 1999
Consulting, Training, Assessment services to implement solutions to
common risks and problems
Team of consultants (SME) in governance, process management,
enterprise architecture, project management, system engineering,
software development, service, quality assurance and other IT core
areas
Leadership in introducing industry models and recommended
practices:Togaf, eSCM, PSP, TSP, C-BOK, CMMI-SVC y CMMI-DEV,
among others
Presence
Offices •Canadá •Chile •Brasil •Colombia •Argentina •Partners in Latin America and Europe
•In Romania by 3PRO-LAB
Partnership with SEI, ITSqc,
Procesix Inc. purpose
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NEEDS & CHALLENGES
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The IT industry is facing many challenges
Challenges
Globalization
Shortage of talent and expertise
Global economy problems
Increasing system
complexity
Customers expect lower
prices, shorter development and higher
quality
New technologies creating more demand for
software development
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Satisfy customer needs
Increased productivity
Costs under control
Deliver high-quality products
& services Shorter time-to-
market
Architecture oriented to
maintenance and reuse
Maintain risks under control
Need for better governance
Repeatable results
Common business objectives
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• Offer is bigger than demand • Real improvement in performance • Second decade customers expect
instant solutions • They have growth in the culture of download
and personalization • Expecting continually decreasing
costs • Globalization • Cloud ITC
IN
• What You See Is What You Get (WYSIWIG)
• Long, complex, costly lifecicles • Dependency on providers and big
companies • Inflated costs • Protected markets • Silos, island, hermits
OUT
Market trends
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Methodologies lifecycle
Crossing the Chasm (1991, 1999), Geoffrey A. Moore,
Diffusion of Innovations , Everett Rogers
CMMI, Agile are widely adopted,
mature methodologies
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Process
Organization
People Technology
Talent Expertise Know-how
Solutions Tools
Governance Enterprise
Architecture
Basic components
Capturing knowledge
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e-SCM © 2006 by Carnegie Mellon University. All rights reserved. SM: CMM Integration, CMMI, SCAMPI, and IDEAL are service marks of Carnegie Mellon University
ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office.
“PMI” and “PMP” are registered marks of Project Management Institute, Inc. COBIT 4.1 is property of the IT Governance Institute (ITGI)
Multimodel approach to business processes
Governance (COBIT)
Development (CMMI)
Project Management
(PMBOK)
Service(ITIL)
CM QA Subcontracts Process Metrics
CMMI SVC
CMMI Acquisition
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•Our highest priority is to satisfy the customer through early and continuous delivery of valuable service. Customer satisfaction
•Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage. Requirements management
•Deliver working outputs frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale. Timely delivery
•Business people and developers must work together daily throughout the project. Customer involvement •Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done. Teamwork
•The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. Peer reviews
•Working outputs is the primary measure of progress. Delivering quality •Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely. Predictable productivity
•Continuous attention to technical excellence and good design enhances agility. System Architecture
•Simplicity--the art of maximizing the amount of work not done--is essential. Efficiency
•The best architectures, requirements, and designs emerge from self-organizing teams. Process maturity •At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. Continuous improvement
12 principles of Agile manifesto
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Customer satisfaction
Requirements management
Timely delivery
Customer involvement
Teamwork
Peer reviews
Delivering quality
Predictable productivity
System Architecture
Efficiency
Process maturity
Continuous improvement
How CMMI address Agile principles Requirement development
Requirements management
Project planning
Project monitoring & control
Configuration management
Measurements
Peer reviews
Testing
Continuous improvement
Design, build & integration
Integrated management
Process maturity
Subcontracting
Organizational support
CMMI
Agile
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We do something
We have control of the project
We share knowledge
We can predict performance
We can make significant improvements
Characteristics of Process Maturity
1
2
3
4
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Knowledge depends of individuals Too many risks
Basic Project Management Engineering knowledge not shared
Common processes agreed upon Knowledge is captured and shared
Statistical understanding of process variation
Capability to achieve excellence Continuous improvement
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What is process?
Classic definition
Flow of activities to obtain an output
Translation of “Process” in the 2010’s
Model activities with adequate level of details in order to understand what the
business does and how it performs
Provide effective control on what we are doing
Potentiate innovation, productivity and sustaining business
A major investment made by the company that must provide returns
What differentiate our company from the competition
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Customer perspective
Customer Needs
Provider Process
Customer Satisfaction
Customer perspective
Price Quality Availability Selection
Functionality Service Brand Partnership
Management, Customer, Team
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We are uncovering better ways of developing software business by doing it and helping others do it.
Through this work we have come to value: Individuals and interactions over processes and tools Working practices over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan
That is, while there is value in the items on the right, we value the items on the left more
Manifesto for Agile Software Business Development
Risks
Benefits
Meeting expectations
Ensure long-term
Achieve productivity
Capture know-how
Validate satisfaction Governance
Business objectives
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AGILE PROCESS IMPROVEMENT
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Adapted from The State of BPM – 2010, Paul Harmon & Celia Wolf
Business drivers to improve processes
According to recent survey, the main drivers motivating executives to start process
improvement programs in their organizations are:
Save resources and lower costs
To be better prepared for market challenges
Improve the performance of specific existing processes or introduce innovation
Improve customer satisfaction
Compliance to regulations
Respond to special events (acquisitions, mergers)
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• Adapted from Gartner Magic Quadrant February 2010
Process agility
Efficiency is still of paramount importance, but operational excellence requires process
agility: Capability of the organization to make significant
changes and performance improvement
People and systems capability to adapt to continuous change and innovation
Process transparency and governance
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The results in performance resulting from process improvement justify the
investment needed to make changes
The cost of bad quality is always higher than investing in
good quality “Quality is Free”, Philip Crosby, 1979, ISBN 0-451-62247-
2
Business case to improve process
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Costs and roadblocks
Resistance to change
Side effects in the short term
Unrealistic expectations not met
Isolated initiatives not aligned with business needs
Partial implementations
Benefits
Usually there is measurable ROI
Efficient and effective support of business objectives
Better risk management
Improved learning curves
Enable governance, control and visibility
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Questions when adopting models and methodologies as reference for your organization's process framework:
What business needs are addressed by the model?
Does the business process need to complement other models as well?
To what extent we need to implement the practices?
What are the costs and expected results?
Are these recommended practices suitable for our organizational culture and maturity?
Real value added by industry models
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– Adapted from Gartner (January 2010)
Process trends in the 2010’s
Process will be managed directly by users (management,
empowered users)
Process adaptability to specific needs will be
more easy
Management will have better control of
performance and will be able to make proactive
process changes
Process models with friendly graphics and
explicit capabilities will potentiate capture of
organizational knowledge
The shift from application development to a
paradigm of composing solutions will challenge
traditional methodologies and models
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Identify “pains” and business objectives
• The purpose is to improve performance • Models are not ends by itself
Models are tools to be adapted to business process
Models are roadmaps to guide process implementation
• They address different aspects of the business
There is no such thing as a “universal model”
• “Silo” improvements usually are not very effective
Improvements need to be addressed from a business perspective
Multimodel approach: From strategy to action
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Process As Is Assessment of business needs Process To Be Implementation
Roadmap for improvement
Diagnose D Measure M Analyze A Improve I Control C
Define D Measure M Analyze A Design D Verify V
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Roadmap for improvement - 1
Process As Is Assessment of business needs Process To Be Implementation
Inventory, modeling, and discovery of the current processes used by the organization, including its
weaknesses What we are, understanding our risks
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Roadmap for improvement - 2
Process As Is Assessment of business needs Process To Be Implementation
Systematically identify the cost of our weaknesses, threats and setting the priorities for improvement to
address the business objectives Understand our capacity and quantify the pain
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Roadmap for improvement - 3
Process As Is Assessment of business needs Process To Be Implementation
Identify and design the process architecture needed to improve significantly the performance and
capability of the organization Plan improvement in order to achieve business
objectives
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Roadmap for improvement - 4
Implement efficient, effective and agile solutions to meet business plans and survive in the marketplace
Implement solutions to needs as planned
Process As Is Assessment of business needs Process To Be Implementation
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Process Improvement master plan “Pains” were developed in process improvement activities (requirements) Improvement plan activities prioritized
“SCRUM” approach applied Requirements broken down in backlog list Developed User stories, Use Cases
Preparation phase leaded by consultant Team received training on methodology and applicable models Consultant had experience in BPM, SCRUM Master, and applicable models
Working sessions are structured and monitored SCRUM practices applied consistently
A high level model is agreed upon Limited to 4 sessions to agree upon on common process and tailoring Documented by BPM consultant
The Process To Be is communicated Sponsor support, diffusion, training
During implementation process could be automated
Case study: Agile approach to process improvement
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Summary
There is no magic book to provide solutions to the many challenges of the TIC industry in the 2010’s decade
Nevertheless there are several models covering specific areas and common problems of the business
Organizations are learning to adapt and integrate these models to their specific needs
The industry is still waiting for a coherent vision to facilitate their application
The needs for faster, cheaper, better software are the same as in the past two decades, only that this time are much bigger
Agile approaches are powerful accelerators when used in a mature process environment
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Recommended reading
Guide to BPM Common Body of Knowledge (C-BOK) ISBN: 1442105666
www.abpmp.org
eSourcing Capability Model for Service Providers (eSCM-SP) ISBN: 9789087535612
www.itsqc.org
eSourcing Capability Model for Client Organizations (eSCM-CL) ISBN: 9789087535599
www.itsqc.org
CMMI for Services: Guidelines for Superior Service
sei.cmu.edu
CMMI-SVC, CMMI® for Services, Version 1.3
sei.cmu.edu
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Questions?
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Thank you for your attendance!
Luciano Guerrero, President Procesix Inc. [email protected] Our partner in Romania: Nicolae Giurescu [email protected] www.procesix.com
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