Docstoc

080220 CAI

Document Sample
080220 CAI Powered By Docstoc
					  ASMA/SQA NSW                                                  20/2/2008


                                                                          1




                    Effective IT
                   Organizations


   ITMPI005




This presentation discusses issues that impact the effectiveness of IT
organizations. Our discussion will be limited to IT Service Delivery
(problem resolution, consultation requests, enhancements and projects).
We will not be addressing Infrastructure or Operations Management
issues.




                                                                              1
ASMA/SQA NSW                              20/2/2008


                                                  2




                 Nick Spanos
                 Senior Consultant
               Computer Aid, Inc. (CAI)
               Nick_spanos@compaid.com




                                                      2
ASMA/SQA NSW                                                                         20/2/2008


                                                                                                3




  About Computer Aid, Inc. (CAI)
  •   CAI is a global IT outsourcing firm currently managing active engagements with over
      100 Fortune 1,000 companies and government agencies around the world.
  •   CAI is a leader in IT Best Practices for legacy support and new development application
      management.
  •   CAI’s focus is directed toward practical implementations that track and measure the
      right activities in software activity management
  •   CAI consistently promises and delivers double digit productivity in its outsourcing and
      consulting engagements.
  •   CAI makes all of this possible through the use of:
             • Repeatable processes
             • SLA’s and management by metrics
             • Detailed cost, resource, and time tracking
             • Repeatable estimating
             • Proprietary service management and process enforcement tool TRACER®.




                                                                                                    3
  ASMA/SQA NSW                                               20/2/2008


                                                                       4




     Agenda
             •   IT Industry Assessment
             •   Desired State
             •   Solution Strategy
             •   Assessing your organization
             •   Implementation Strategy




The agenda includes the following topics:


1. What are some of the services delivery challenges faced by IT
   organizations
2. What should our “desired state” look like
3. Describe a strategy for transform IT to achieve the desired state
4. Provide some tips for assessing your own organization
5. Describe specific implementation steps




                                                                           4
  ASMA/SQA NSW                                                    20/2/2008


                                                                          5




                    IT Industry
                    Assessment



   ITMPI005




Most IT organizations are managed as a cost center.


The approved IT budget limits the resources and capabilities of the IT
organization.


The business organizations who utilize IT services/capabilities are not
directly accountable for the cost.


Result: Limited ability to respond to unlimited demands …..


Solution: Run IT like a business where IT customers are aware and
accountable for costs of services                                             5
  ASMA/SQA NSW                                                  20/2/2008


                                                                         6




      What is the mission of IT?
       • To provide the Information Processing
         Capability:

         – Required by the Business
         – At a cost that represents Value
         – With Agility to change, when requirements change




What is the overall mission of IT?


We all have intuitive opinions but how many of your organizations have
defined IT’s mission?


Our definition is quite simple..




                                                                             6
  ASMA/SQA NSW                                                  20/2/2008


                                                                        7




     IT Challenges
         • Changing Business Expectations
         • Rapidly Changing Technology
         • Difficulty Sharing Knowledge
         • Lack of Industry Best Practices
         • Declining Budgets

               All resulting in less time planning &
               managing - and more time reacting


The IT profession is still a young profession. Technology is changing
rapidly and business are constantly finding new and innovative ways to
leverage technology. As a result, business expectation change frequently.


IT must be “agile” enough to respond to these changes. Unfortunately,
we are not.




                                                                            7
  ASMA/SQA NSW                                                            20/2/2008


                                                                                    8




    Common Industry Problems
      •   Limited Visibility and Control of   •   Reduced budgets are resulting
          Service Delivery makes it               in growing backlogs and the
          difficult to deliver the “right”        expectation to “do more with
          services                                less”

      •   Inadequate processes result in      •   Dependence on a few Subject
          quality issues and rework               Experts or heroes results in
                                                  limited flexibility and higher
      •   Missed deadlines                        staffing requirements and costs
      •   Difficulty predicting and           •   Dissatisfied Users
          controlling costs

      •   Difficulty aligning IT strategy
          with business strategy




The challenges described in the previous slide commonly result in the
following problems. The implementation strategy that we will discuss
today addresses these problems.




                                                                                        8
ASMA/SQA NSW                                                    20/2/2008


                                                                        9




  A Typical ‘Day in the Life’
                     Users   I/T Management
   Operations                                      Help Desk


                               Business Analysts
    Problems,Calls
    Projects

                                     “LIFO”


                                                   Completed Work



Work includes: Problems, Calls. Projects, Meetings, Analysis,
Status reports, Time reports from a variety of sources.


LIFO - Last In First Out or LOUDEST In First Out


CAI Created Managed Maintenance and Tracer to help control this
complex mix of work to help balance the workload and get more of
the “Right”work done.


We were asked by our clients to teach them the process and
license the tool.
                                                                            9
The process and tool provided numerous
ASMA/SQA NSW                                 20/2/2008


                                                    10




  Impacts
    • Conflicting priorities
    • Informal undocumented ‘black market’
      requests impede scheduled work
    • Lack of ‘Visibility and Control’


 You Can’t Manage What You Can’t Measure




                                                     10
  ASMA/SQA NSW                                                    20/2/2008


                                                                          11




                  Desired State



   ITMPI005




Most IT organizations are managed as a cost center.


The approved IT budget limits the resources and capabilities of the IT
organization.


The business organizations who utilize IT services/capabilities are not
directly accountable for the cost.


Result: Limited ability to respond to unlimited demands …..


Solution: Run IT like a business where IT customers are aware and
accountable for costs of services                                          11
ASMA/SQA NSW                                20/2/2008


                                                   12




  IT Must Balance
    • Strategic Projects
    • Scheduled Requests
    • Unscheduled Requests
    • Innovation & Continuous Improvement




                                                    12
ASMA/SQA NSW                                       20/2/2008


                                                          13




  To Provide
     •   The ‘right’ capability/service
     •   In the ‘right’ way
     •   At the ‘right’ time
     •   For the ‘right’ cost


   ‘Right’ is defined by the capabilities and services
               that provide the most ‘Value’




                                                           13
  ASMA/SQA NSW                                20/2/2008


                                                     14




    How Do We Ensure Success?
        • Manage Expectations

        • Make Commitments

        • Meet or Exceed the Commitments




How do we define success in any endeavor?


We make commitments and we meet commitments




                                                      14
  ASMA/SQA NSW                                                     20/2/2008


                                                                              15




      What Does IT Management
      Need to Know?
        • What are the business expectations?
        • What are my commitments?
        • What value are we delivering to the business?
        • Does my IT Strategic Plan support the Business
          Strategic Plan?
        • Has anything changed?



The last item is critically important. Too often we define a solution based
on original expectations and then the expectation changes and we do not
adjust.




                                                                               15
  ASMA/SQA NSW                                                                20/2/2008


                                                                                         16




     Characteristics of Effective
     Organizations
       •   Flexible: Responsive to changes in dates, scope, staffing
       •   Adaptable: Responsive to changes in service classifications, technology, or
           organizational structure
       •   Predictable: Repeatable results using standard processes
       •   Efficient: Cost-effective service delivery and focus on continuous improvement
       •   Reliable: Quality results that meet the stated requirements
       •   Innovative: Develop ideas for reducing costs or leveraging technology to
           improve competitiveness




Effectiveness is a relative term that is based on an organizations success
at meeting or exceeding positive expectations.


Expectations change …


Effective IT organizations need to balance the need to control service
delivery while also providing the agility to respond to changing
business requirements.


CAI has determined that organizations/individuals who are viewed as
effective share the following characteristics:
                                                                                            16
  ASMA/SQA NSW                                                       20/2/2008


                                                                            17




      Manage IT Like a Business
         •    An organization engaged in producing goods
              and services to make a profit

         •    An enterprise concerned with providing products
              or services to satisfy customer requirements
              (adding value)




What is a “business”?


There are various types of business that can be public, private, service
providers, product sellers


These two definitions are most applicable to the function of an IT
organization




                                                                             17
ASMA/SQA NSW                                        20/2/2008


                                                           18




 A Business Knows
     •   The cost of delivering services
     •   Who is using and misusing their services
     •   Baselines used to measure performance
     •   Performance versus expectations
     •   Estimating accuracy
     •   Order (request) backlog
     •   Status and priority of orders
     •   User satisfaction level
     •   Performance trends




                                                            18
  ASMA/SQA NSW                                 20/2/2008


                                                      19




     Business Processes
        •   Leadership and Governance
        •   Financial Controls
        •   Operations Management
        •   Human Resources Management
        •   Supplier Management
        •   Customer Service Focus
        •   Marketing and Sales




All business require the following processes


How do these processes apply to IT?




                                                       19
  ASMA/SQA NSW                                                 20/2/2008


                                                                      20




    Manage Commitments
         •   Define the Commitment to Deliver
              – Strategy, Vision, Mission
              – Business Requests/Requirements
              – Service Level Agreements

         •   Establish the Ability to Deliver
              – Infrastructure and Supporting Tools
              – Staff Size and Skills
              – Institutionalized Knowledge
              – Repeatable Processes
              – Performance Metrics (Measure Success)
              – Budgets
              – Quality Control




Leadership and governance should be appropriate for ensuring that
commitments are met


Successful organizations
              Understand their commitments
              Establish the ability to meet commitments
            Requirements change and issues arise: Continuous
improvement is required to adapt
              Ensure that roles are defined and understood



                                                                       20
ASMA/SQA NSW                   20/2/2008


                                      21




  Manage Schedules
     • Unscheduled Services
        – Problem Resolution
        – Consultation

     • Scheduled Services
        – Enhancements
        – Projects




                                       21
ASMA/SQA NSW                                20/2/2008


                                                   22




 Manage Changes
     • Scope Changes
     • Schedule Changes
     • New Service Types
     • System Performance or Availability
     • Service Level Goals




                                                    22
ASMA/SQA NSW                                    20/2/2008


                                                       23




 Track Performance
    • Detailed Time Reporting
    • Actual vs. Planned Estimates
    • Actual vs. Planned Completion Dates
    • Quality Issues
    • Performance against service level goals




                                                        23
ASMA/SQA NSW                      20/2/2008


                                         24




  Manage Finances
    •   Estimate Costs
    •   Manage Budgets
    •   Total Cost of Ownership
    •   Track Expenditures




                                          24
ASMA/SQA NSW                                            20/2/2008


                                                               25




 Manage Human Resources
   • Roles and Responsibilities (Management Chain)
   • Resource Locations (off-shore, remote)
   • Required Skills vs. Available Skills
   • Capability Enhancement (Up-Skill, Technical Training,
     Personal Development, Tools)
   • Assignment Management
   • Performance Assessment (Forced Ranking, Remediation,
     Promotion)




                                                                25
ASMA/SQA NSW                                     20/2/2008


                                                        26




 Manage Customers
   • Identify customer roles
   • Identify authorized customers and their approval
     authority
   • Manage customer expectations
   • Solicit customer feedback




                                                         26
ASMA/SQA NSW                                   20/2/2008


                                                      27




 Market IT
  • Communicate IT services and capabilities
  • Link IT services to business value
  • Communicate IT value to the business
  • Develop and communicate innovations
  • Celebrate success with the business




                                                       27
ASMA/SQA NSW                                                           20/2/2008


                                                                              28




             Cultural Transformation
     Current State                             Desired State

 •   Reactive Management              •   Proactive Management
 •   Limited Visibility and Control
                                      •   Visibility & Control
 •   Missed deadlines
                                      •   Effective Prioritization
 •   Poor quality, lots of rework
 •   Endless backlogs                 •   Ability to define and meet
                                          commitments
 •   “Hero” culture
                                      •   Shared Knowledge
 •   Difficulty sharing knowledge
 •   Uncontrolled Costs               •   Cost effective
 •   Dissatisfied Users               •   High Quality

                                      •   High Customer Satisfaction




                                                                               28
  ASMA/SQA NSW                                                     20/2/2008


                                                                             29




                    Assess Your
                    Organization



   ITMPI005




How does your organization compare?


We will provide a short questionnaire that will allow you to evaluate your
own organization. We will process your answers and contact you to
provide a confidential review of the results.




                                                                              29
  ASMA/SQA NSW                                                 20/2/2008


                                                                      30




     Your Situation
         • What are your greatest challenges relating to IT
           Service Delivery?

        • Do your customers agree? If not, how would they
          describe the problems?
        • What are your approved IT strategic initiatives?

        • Do the IT initiatives address the challenges?
        • What impediments are you encountering as you
          implement solutions?




You should ask yourself the following questions when assessing the
effectiveness of your organization




                                                                       30
ASMA/SQA NSW                                              20/2/2008


                                                                 31




 Self-Assessment
     •   What is your commitment to deliver?
          – Supported Applications and Business Units
          – Types of services
          – Frequency, Time to Respond, Time to Resolve
          – Scope, Dates and Estimates
          – Frequency of Changes

     •   What is your ability to deliver?
          – Staff size and skill levels
          – Tools and Processes

     •   Are you meeting your commitments?
          – On-Demand services (Problems, Consultation)
          – Scheduled Requests (Enhancements, Projects)




                                                                  31
ASMA/SQA NSW                20/2/2008


                                   32




           Implementation
              Strategy



ITMPI005




                                    32
  ASMA/SQA NSW                                                 20/2/2008


                                                                      33




     Industry Solutions

                                  RUP




                              Oh My!
                   ISO 9001                  SEI/CMMi




                          ITIL          Six Sigma




How has the IT industry responded?


Numerous organizations have provided frameworks or solution strategies.




                                                                          33
  ASMA/SQA NSW                                                                                      20/2/2008


                                                                                                           34




      Industry Solutions
           Framework                    Description                           Issue
                              Service Management Framework         Does not tell you “How”
                ITIL          describes “What” you should do

                              Software Development Framework       Does not tell you “How”
               RUP            describes “What” you should do

                              Process Development Framework        Does not evaluate process
            SEI/CMMi          evaluates process “maturity”         “effectiveness”
                              Metrics-based Continuous             Does not tell you “What” to do
                              Improvement measures “quality” and   or “How”
            Six Sigma         supports process improvement

                              Quality Assurance Framework to       Does not tell you “What”
            ISO 9001          ensure “process compliance”          processes you should have


           Complete solution requires a combination of ALL of these frameworks along with
                      internal processes that are specific to your organization




Unfortunately, most of these solutions are focused on a very specific area
and do not provide a comprehensive solution.


IT is still a relatively young profession with immature processes. We do
not have a proven framework such as Accounting’s GAAP.




                                                                                                            34
  ASMA/SQA NSW                                                                          20/2/2008


                                                                                               35




    SEI Service CMMi
           Managing Service Delivery
          COMMITTMENT     The business-related workload, service delivery
                          expectations, and synergies between the IT and the
           TO PERFORM     Business User technical workload requirements

            ABILITY TO    Available tools, available documentation, number of support
             PERFORM      resources, the types of positions, and the technical skill
                          requirements

           ACTIVITIES
           PERFORMED      What services are being delivered?


          MEASUREMENT     Management tools and metrics such as time reporting,
           & ANALYSIS     problem tracking, and project tracking for analyzing and
                          planning work

           VERIFICATION   Processes for verifying the actual performance against the
                          expected performance




CAI believes that the SEI Service CMMi approach provides a theoretical
description. CMMi does not provide the detailed processes required to
implement the theory but they do provide a good starting point.




                                                                                                35
  ASMA/SQA NSW                                               20/2/2008


                                                                    36




     Required Business Processes
       • Leadership and Governance
       • Financial Controls
       • Operations Management
       • Human Resources Management
       • Supplier Management
       • Customer Service Focus
       • Marketing/Sales



Let’s go back to the processes required to run a business.


How do we make these processes relevant to IT?




                                                                     36
ASMA/SQA NSW                                                                                     20/2/2008


                                                                                                                 37

                              Effective IT Organizations

 Manage        Manage            Manage          Manage          Manage        Monitor &          Manage
 Requests    Commitments        Resources        Delivery       Knowledge       Improve          Operations

                                  Manage                                                         Configuration
                Strategic                      On-Demand &       Technical                          ?????
 On-Demand                       Resource                                      Status & Time     Management
                Planning                        Scheduled        Standards
  Services                      Capabilities
                                                 Support
                                                                                                  Security
               Estimates &       Resource                                       Processes          ?????
                                                                                                 Management
 Scheduled
                 Service        Deployment     Large Projects    Processes
  Support
               Level Goals
                                                                                Application      Production
               Priorities &                       Release       Application                       Schedule
   Large                                                                        Reliability &
               Schedules                        Management      Knowledge                        Management
  Projects                                                                     Performance

                                                                                                  Production
  Manage     Manage Scope &                                      Business     Service Delivery    Monitoring
                                               Manage Quality
 Ownership       Issues                                         Knowledge      Performance


                                                 Financial
                                                                  Training
                                                Management




                                                                                                                  37
  ASMA/SQA NSW                                                                 20/2/2008


                                                                                       38




                                                                  Optimize
                                                                  •Improve Processes

  Solution Phases                                                 •Reduce Problems
                                                                  •Reduce Costs

                                             Stabilize
                                             •Develop a comfort level
                                             with new Processes &
                                             tools

                              Control




                                                               nts
                              •Processes




                                                             me
                              •Commitments/SLA’s




                                                           ss
                              •Document Knowledge



                                                         se
               Visibility
               •Services
                                                       As
               •Resources
               •Performance
               •Metrics




Implementing change within any organization is difficult and stressful to
the affected parties. A phased approach is required.


It is also difficult to choose the right solution without supporting data.
Implement Visibility to track services and performance metrics. These
metrics can be analyzed to prioritize solutions and to identify focus areas.


Use the insight from the metrics/visibility to implement processes, develop
SLA’s and document key areas


Allow a stabilization period to adjust to new processes, share knowledge,
and to evaluate the effectiveness of the processes                        38

Optimize the solutions based on ongoing analysis of issues and
performance
  ASMA/SQA NSW                                                          20/2/2008


                                                                               39




    Manage Knowledge


                  Organizational &                Business functions,
                  Infrastructure                  organization charts, work
                                                  processes, security, etc



            Application                               Business purpose,
                                                      interfaces, processing
            Summary
                                                      schedule, users



          Application                                        Programs, Jobs,
          Details                                            Reports, etc.




CAI uses a structured approach to knowledge capture. We recognize that
it is not enough to know the details about application function like
program, jobs, reports. We must also understand the purpose of the
application, the business processes its support, key users and the
organizational structure.


Your support programmers know much more than application function,
they understand how the application complements business policy,
practice, and function. They understand undocumented user and
business requirements. This is the information that must be
“institutionalized” so that it is preserved for long-term support needs.


                                                                                39
  ASMA/SQA NSW                                                           20/2/2008


                                                                                40




    Continuously Improve
   •   Define the problem: What expectations are not being met?
   •   Measure: When, where, how often and by how much are we missing
       the expectations?
   •   Analyze: Why were the expectations not being met (root cause)?
   •   Implement: Take corrective action (change processes, revise goals, -
       training/coaching, etc.)
   •   Control: Establish control mechanisms and additional metrics to
       prevent future problems




Six Sigma provides an excellent framework for managing continuous
improvement based on measuring the impact of problems.




                                                                                 40
  ASMA/SQA NSW                                               20/2/2008


                                                                      41




    Recommended Metrics
      • Consultation and Problem Resolution
         – Elapsed Time to respond (by priority)
         – Elapsed Time to resolve (by priority)
         – Effort (work hours)
         – Performance against service level goals




What kind of metrics should we be tracking? Because the commitments
are different for on-demand services and scheduled work, we need
different metrics. These metrics are recommended for on-demand
services and are common to many help desk tools.




                                                                       41
  ASMA/SQA NSW                                                       20/2/2008


                                                                            42




     Recommended Metrics
     • Enhancements and Projects
         – Estimated Hours vs. Actual Hours
         – Scheduled Date vs. Actual
         – Total Issues and average time to resolve the issue
         – Total changes and total impact to estimate and schedule




The metrics for tracking scheduled activities are based on the schedule
and estimate.




                                                                             42
  ASMA/SQA NSW                                                20/2/2008


                                                                      43




    Impediments
      • Lack of visibility - you can’t manage what you can’t
        measure
      • Cultural resistance to change
      • ‘Root cause’ of problems are unknown
      • Lack of business priority




Why do most organizations fail to implement process and performance
improvements?




                                                                       43
ASMA/SQA NSW                                       20/2/2008


                                                           44




 Summary of Key Points
  • Define expectations
  • Document commitments
  • Validate ability to meet commitments
  • Establish visibility and control using processes and
    metrics
  • Continuously improve




                                                            44
  ASMA/SQA NSW                                                                  20/2/2008


                                                                                           45




      Does this work?
        100
                                                                                 People
    P                                                                            Dollars
         80
    E
    R    60
    C
                                                                             53%
    E    40
                                                                             Cost
    N
                                                                             Reduction
    T    20
                                                                             2000-2004
          0
                TEC      CAI Start   YE 2001   YE 2002   YE 2003   YE 2004
              Baseline




Did it work? Here’s a chart that the CIO of Tyco Electronics presented at
the CIO Magazine Conference in Ft Lauderdale last February reflecting on
the impact of the CAI approach on his organization. And this was an
organization that already considered themselves state-of-the-art.




                                                                                            45
ASMA/SQA NSW                20/2/2008


                                   46




               Questions?




                                    46
ASMA/SQA NSW                              20/2/2008


                                                 47




                 Nick Spanos
                 Senior Consultant
               Computer Aid, Inc. (CAI)
               Nick_spanos@compaid.com




                                                  47

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:49
posted:2/9/2011
language:English
pages:47