The Path to Delivery ExcellencePrioritize improvements based on business value
2011
1
A systematic iterative approach (supported by tools and services) for measurably improve delivery efficiency aligned with business goals and objectives
2
What Is MCIF?
Understand through Improved Diagnostics.
Identify goals and objectives. Prioritize improvements to maximize return and business alignment.
Produces
Roadmap defining how and when to make what improvements
Steer through Measured Results
Monitor deployment, take corrective actions, and measure business
results
Act through Accelerated Deployments
Deploy new technologies and solutions rapidly and predictably.
Defines order of Refines
MCIF is not a one-size-fits-all recipe (must be adjusted to client context)
5 Dimensions of Delivery Efficiency
0
2
4
6
Time-to-Value
Business Value
CostQuality
Predictability
Today
3-year goal
3
5 Dimensions of Delivery Efficiency
4
Dimensions Today 3-year goal
Time-to-ValueFix pack is released every 2 month
Increase the frequency of fix pack releases to every month
Business ValueOnly 20% of banking transactions are online
Increase number of online banking transaction to 80%
CostMaintenance cost is 75% of our IT costs
Reduce maintenance cost to 65%
Quality20% defects remaining at ship date
Reduce remaining defects at ship to 10%
Predictability70% of projects are under estimated by +10%
Reduce number of under estimated project to 30%
From In Process (Team) to Business Value (Executive)
5
Metrics Category Team(In Process)
Project Manager(Project Health)
Management(Product Owner)
Executive(Business Value)
Time-to-Value / Schedule User Story Points / Use Case Points
Iteration Burndown, Blocking Work Item
Release Burndown
Cycle Time / Time to ROI
Business Value (External):Satisfaction
Product Backlog, Stakeholder Mapping
Stakeholder Feedback, # of Change Request
Tested and Delivered Requirements
Client Sat, Benefit Realization
Business Value (Internal): Revenue
Iteration Velocity
Release Velocity
Business Value VelocityRevenue, ROI, Renewal rate
Cost / Expense Effort (Man-hours)
Cost / Unit of work
Cost by Revenue, Development cost
Quality (In-process)
Technical Debt
Test Status, Test Coverage of Requirement
Quality at ShipQuality (post-ship)
Enhancement Req., Customer Defects
Age of Enhancement Request, Defect repair latency
Customer QualityPredictability User Story Points / Use Case Points
Planned/Actual Cost (CPI) and Velocity (SPI)
Cost and Schedule variance
Use Symptoms to Determine Dimension to Focus On
6
Trace Symptoms to Dimension
TTV
Bus. Value
Co
st
Quality
Pre
dicta
bility
High development cost X X
Cost overrun X X
High market pressure (high number of competitor, need to differentiate their product)
X X
Customer see little to no value in product X X
Taking long time to change the idea to product X X
Short product lifetime X X
ETC…
Deep Dive on Symptoms for Cost
• We spend <60%, 70%, 80%, ..> of budget on maintenance, and it is increasing. How can I get more money for driving innovative projects?
• I have to cut 10%, but where should I cut?
• Cost of host usage is increasing every year. How can I reduce the cost?
• We are spending at least $200K no matter how small the project. How can I reduce my overhead?
• We have a heavy waterfall process, how can we move to more streamlined approaches to development?
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS
Reduce Application Maintenance Costs: Value Traceability Tree
7
CEO Business Objective/Value: Increase Shareholder Value/Curb Spending
CIOOperational Objective: Reduce Application Maintenance Costs
Annotate symptoms by
strategy.
VP Development
Tactic: Improve Lifecycle Collaboration with C/ALM
Strategy: Improve Team Collaboration
Tactic: Reduce infrastructure costs
Strategy: Reduce Software Delivery Costs
Tactic: Improve Developer Productivity
Tactic: Determine Application
Modernization Strategy
Strategy: Modernize Applications
Tactic: Application Transformation
Tactic: Application UI modernization
Tactic: Application Re-Platforming
Tactic: Effectively Monitor Scope
Tactic: Communicate Solution Architecture
Tactic: Increase Build & Test Automation
Tactic: Re-Architect for Reuse
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS
Reduce Application Maintenance Costs: Value Traceability Tree
8
We frequently experience scope creep (3)
Architectures are poorly understood and communicated (2)
Developers lack environments supporting local compiles and frequent builds (4)
High rework cost (4)
Average 3.25
-------------------------------------------
[Strategy: Reduce Software Delivery Cost]
Too much of budget is spent on maintenance (5)
We do not dare to touch some critical application (3)
System is overly complex (4)
We are afraid of loosing critical resources to keep some systems alive (4)
We lack a strategy for what applications are in need of what type of overhaul (5)
Low customer satisfaction (4)
High efforts to make changes the existing systemon when there is an enhancement (5)
Average 4.20
-----------------------------------------
[Strategy: Modernize Applications]
1) Present list of potential symptoms and answer score 1 to 5: 1 is not relevant to me 3 means 50% relevant to me 5 means definitely impacts my development effectiveness
Note: may consider symptoms relationship to strategy weighted.
2) Recommend the strategies where the average is higher than 3.
Recommended
Recommended
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS 9
Reduce Application Maintenance Costs: Value Traceability Tree
Tactic: Increase build & test automationDescription: Increase Build and Test automation tactic focuses on reducing manual and insufficient build and test procedure. Products: RQM, RFT, RPT, RTLM, AppScan, WF, BF
Tactic: Reduce Infrastructure CostDescription: Maximize value from host and distributed server resources when developing and deploying enterprise applications, through among others local compile. Products: RDz, RAA, RTCz, BF
Tactic: Determine application modernization strategyDescription: Consists of broad analysis and specific modernization or application transformation strategies. Supported by the “Application Health Assessment” Service Offering. Products: RAA, WSAA, RSAR, SA
Tactic: Application TransformationDescription: Re-implement business critical applications with modern architectures and tooling.Products: RME, RBD
Tactic: Effectively monitor scopeDescription: When there are functionalities removed from the agreed-upon scope, focusing on management practices to help manage stakeholder's expectation and communicate the value of the selected scope to get stakeholder agreements on the choices.Products: RTC, ReqPro, Doors
3) Tactics are proposed based on selected strategies. Tactics are ranked based on symptoms score as tactics are also directly related to symptoms.
SelectSelect
Operational Objective: Reduce Application Maintenance Costs
CIO
VP Development
Strategy: Reduce Software delivery Costs Strategy: Modernize Applications
Tactic: Re-Architect for ReuseDescription: Re-architect main applications with modern architectures to consider future reuseProducts: RSA, RAM, System Architect
Select
Select
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS 10
Impact and Timing of Cost Savings Programs
Timing of Benefits Realization
Lo
ng
-te
rm I
mp
ac
t(S
avi
ng
s a
s %
of
spe
nd
)
Low (5-10%)
Long(> 12 mos.)
Short(3-6 mos.)
Medium (10-25%)
High (>25%)
Medium(6-12 mos.)
Consider Improvement Potential & Time HorizonSample Data for Large Organization Over 3 Years
Tactic: Improve test effectiveness
RQM, RFT, RPT, RTLM, AppScan, WF, BF
Tactic: Increase code testability and maintainability
RSA, RAD, Rhapsody, AppScan
Tactic: Increase stakeholder involvement
1) RRC, RTC, 2) ReqPro, Doors
Tactic: Effectively monitor scope
ReqPro, Doors, RTC
Tactic: improve project portfolioTara, FP
Tactic: Focus on (F)URPSDoors, ReqPro, ..
Tactic: Improve lifecycle collaboration through C/ALM1) RRC, RTC, RQM, 2) Tara,
BF, Insight
Tactic: Increase build & test automation
RQM, RFT, RPT, RTLM, AppScan, WF, BF
Tactic: Increase SCM automation
CC, CQ, BF, RTC
Tactic: Increase design & construction automation
RSA, RAD, Rhapsody, …
Tactic: Communicate SolutionRRC, RSA, RSM,
Rhapsody, ..
Tactic: Re-architect for Reuse
RSA, RAM, …
Tactic: Reduce Infrastructure Cost
RDz, RAA, RTCz, BF
Tactic: Determine application modernization
strategyRAA, WSAA, RSAR, SA
Tactic: Application Transformation
RME, RBD
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS
Potential Roadmap
11
Priority Phase 1 Phase 2 Phase 3
When customer consider long-term high value over time of benefit realization
Re-architect for reuse
Product:
System Architect, RSA
Determine application modernization strategy
Product:
RAA, WSAA, RSAR, SA
Increase build & test automation
Product:
RQM, RFT, BF
When customer consider short time of benefit realization over long-term high value
Determine application modernization strategy
Product:
RAA, WSAA, RSAR, SA
Increase build & test automation
Product:
RQM, RFT, BF
Reduce Infrastructure Cost
Product:
RDz, RTCz,
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS
Metrics – Practices Mapping
12
Dimensions Metrics
Iterative Development
Test
Driven
Development
Release Planning
Co
ntinuous
Integration
Concurrent
Testin
g
Test Management
Team
Change ma
nageme
nt
Requirement
Management
Time-to-Value / Schedule
Release Burndown X
Iteration Burndown X
Business Value
Iteration Velocity X X
Product Backlog X X X
Cost Effort (Ideal day) X
Quality Test case execution status X X X
Test coverage of requirement X
Defect trend / defect density X X X X X
Build Health / Build Status X
Enhancement Request Trend X X X
Predictability Planned cost / actual costX
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS 13
BACKUP
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS
Definitions / Examples
14
Metrics Category Term Definition / Example
Time-to-Value / Schedule
User Story/UC Points. FP Measure of MagnitudeIteration Burndown Implementation Progress During an IterationBlocking Work Item Identify the road blocks and focus on removing them Release Burndown Implementation Progress During a ReleaseCycle Time User Story Points Delivered Per Release (Normalized)
Time to Market; Time to Client ValueValue (External):Satisfaction
Product backlog Requirements that have not yet implementedStakeholder Feedback Frequency / Use of Stakeholder Feedback e.g. # of people
attend the assess iteration results meetingChange Request Trend Number of change that users request during the development
lifecycle and number of change request approved.
Customer Satisfaction Consumability Survey; Client Quality Survey; ValueBenefit Realization Based on the benefit identify in the shared vision calculate the
business value. E.g. Insurance company monitors number of process claimed volume
Value (Internal): Revenue
Iteration Velocity Completed User Story Points in an IterationRelease Velocity Completed User Story Points in a ReleaseBusiness Value Velocity Completed Value Points in a Release (Marketing)# of Renewal Licenses # of customers renew their contactRevenue Revenue; Return on Investment
Cost / Expense Effort # of Man-hoursCost / Unit of work Cost ($$ or effort) per unit of work (UC points FP, etc..)E/R or DE Expense to Revenue; Development Expense; Capacity
COPYRIGHT 2011 WEB FINANCIAL SOLUTIONS
Definitions / Examples
15
Metrics Category
Term Definition / Example
Quality (In-Process)
Technical Debt Number of defect, Number of defects per a unit of workTest status Number of test by status (test planed, test implemented, test
attempted, blocked testes, pass tests, failed tests)Test coverage of requirements Percent of requirement with no associated test case. Number
of test cases per UC / requirementsDefect Falling Verification # of defects that fail the verification and have to re-work
Quality at Ship % of remaining defects at ship date, Defect at customer ship
Quality (After-Ship)
Enhancement request trend # of enhancement request by status over time (opened, approved, closed)
# of defects report by customer # of defects report by customer after 1 / 3 / 6 months
Age of enhancement request Average enhancement request age (may be belong to TTV)
Defect repair latency Average # of day taking to repair a critical defects
Customer Quality # of support call per month
Number of defect, defect density at after product been shipped or delivered
Predictability Estimation point Estimated effort for a work unit (user story, use case, function)
Earned Value Standard CPI or Planned / Actual Cost
Standard SPI or Planned / Actual schedule
Cost, Schedule variance % of estimation error (over or under estimate)
% of project on-budget / on-schedule
% number of project that on-budget or Total number of project that on-schedule