HOUSTON, TX, USA 5 8 NOVEMBER 2017 #PMOSym

Transcription

1 HOUSTON, TX, USA 5 8 NOVEMBER 2017 #PMOSym PMO17BR304 Building Integrated Program Teams: A Key to Agile Success Dr. Eric Rebentisch, Stephen Townsend MIT Consortium for Engineering Program Excellence (CEPE), PMI

2 Agenda Learning objectives: Understand how to apply the integration framework within the PMO to drive stronger performance Identify the key elements associated with effective integration See how the integration framework works in actual application Review the integration framework and its relationship to agile Discuss case studies that illustrate the core concepts of integration in highperforming organizations Identify the integration elements that PMOs can develop in their own organizations to improve program performance 2

3 SpaceX: High Performing or Over-Hyped? Photo by John Schreiber, 3

4 SpaceX CRS-7 (28 June 2015) 4

5 Falcon 9 Flight 20 (22 December 2015) 5

6 SpaceX CRS-8 (8 April 2016) 6

7 How Does SpaceX Do It? Among other things Focus on simplicity in the design Vertical integration across the entire product Colocation of teams and value-adding activities Responsible engineer aligns expertise with mission assurance Test-what-you-fly to rapidly introduce new capabilities Culture that promotes teamwork, mutual support, coordination and communication in the spirit of pushing the boundaries 7

8 SpaceX Has Evolved an Agile and Integrated Development Process Comprising Multiple Elements Tools, processes and methods that bring teams together and bridge boundaries to develop solutions Culture of collaboration, sharing and transparency Reliance on capable, motivated and empowered people Development approach and mindset that emphasizes rapid solution generation and validation Leaders mindset of integration, collaboration and velocity informs the values and principles, and eventually practices, models and frameworks for how SpaceX operates 8

9 A Framework for Integrating Key Disciplines in Development A four-year research effort identified how successful organizations integrate their disciplines Source: Rebentisch et al (2017)

10 Integration Reflects Characteristics and Capabilities Developed Within the Organization Integration is a reflection of the organization s ability to combine practices, tools and techniques, experience and knowledge in a collaborative and systematic approach in the face of different challenges in order to be more effective in achieving a common goal/objective in complex development environments. Adapted from Rebentisch et al (2017)

11 Processes, Practices and Tools Processes, practices and tools help to enable integration by: Enabling communication and common understanding Defining specific work activities Establishing expectations of each person s contribution Documenting approaches for coordinating and tracking work efforts Identifying critical points where individual and group work efforts must come together Facilitating problem identification and resolution Applying and updating best practices Source: Rebentisch et al (2017) Supporting and improving specific work activities

12 Integration Processes, Practices and Tools in UTC 201,600 Employees US$57.4 billion Adjusted net sales US$3.7 billion Total R&D investment Sources: Slideshare.net, UTC.com

13 Organizational Environment Organizational structures, behaviors and norms shape how team members work and interact with each other, and determine the nature of relationships An integrated environment should: Narrow the cultural divide between disciplines, roles or functions Foster team building Develop respect for each others views and opinions Build trust between executive management and teams Source: Rebentisch et al (2017)

14 The Integrated Organizational Environment at Pixar Source:

15 Developing Integration Competencies in People Organizations develop integration competencies in people by: Defining integration competencies using standards, role definitions and assessments Using education and training to develop integration competencies and teaming behaviors Managing integration competencies in the workforce at the individual and organizational levels Source: Rebentisch et al (2017)

16 Developing Integration Competencies in People at Toyota Sources: Toyota-Global.com, slideshare.com

17 Contextual Factors Program and organizational characteristics influence management approaches Product and program design choices that reduce scope and complexity Organizational relationships that foster and enable integration behaviors Stakeholder alignment requires significant management engagement One view of the program Transparency Engagement/community Source: Rebentisch et al (2017)

18 Program Performance Integration influences key program performance elements Cost and time show better performance with higher integration Outcomes are more predictive with higher integration Programs with schedule pressure are more resilient with higher integration Source: Rebentisch et al (2017)

19 Integration in Practice: F/A-18E/F Super Hornet Program The F/A-18E/F program delivered ahead of schedule, within cost and under weight (critical for fighter aircraft) Dual-purpose carrier aircraft (air-to-air, air-to-ground combat) Evolutionary design derived from the F-18C/D model Increased range, survivability, carriage capability, growth capability and bring back Source: US Navy

20 F/A-18E/F Program Employed a Variety of Integration Practices Throughout Integration Processes, Practices and Tools Integration Practices Organizational Environment WBS based on the product architecture Common central database with weekly reporting WBS linked to EVMS Flow-down budgets to the IPTs People Competencies Develop integration competencies Leaders selected on experience and ability to foster relationships Decisions made by capable people where work is performed Leadership at all levels modeled integrated behavior IPTs bridged functional groups Emphasized effective communication across functional boundaries Culture of shared responsibility for outcomes Contextual Factors Urgent replacement needed Program budget was fixed Complexity reduced using derivative product strategy and existing relationships Mature technologies limited overall program scope Source: Rebentisch et al (2017)

21 Rapid and Effective Decision Making Enabled via Organizational Structure Product-based work breakdown structure (WBS) was mirrored by the IPT structure

22 Rapid and Effective Decision Making Enabled via Organizational Structure Decisions were made at the lowest level consistent with scope of responsibilities (Level 5 team leaders controlled their own budgets) Team leaders have to balance cost, quality and schedule. They have to be good business folks as well as engineers. As a Level 5 team leader, I am running my own business. WBS and corresponding organizational structure Used to track cost, schedule, technical performance measures (TPMs) such as weight and power at the lowest level of the WBS (with roll up) Same structure used on government side promoted joint government-contractor problem solving

23 Collaboration Across Disciplines Achieved via Active Management of IPTs Moved away from functional stovepipes to Integrated Product Teams (IPTs) Each team was responsible for a part of the overall product Teams were multi-disciplinary We focused our IPTs on product and then asked, What does it take to deliver the product? These are the disciplines that have to come into every IPT. -- Vice Admiral Joe Dyer, former Navy Program Manager IPTs were used on the government and contractor sides Corresponding structures facilitated joint problem solving and communication

24 Collaboration Required a Cultural Change Led by Program Leadership Leadership matters and personalities matter. The vice president for F/A-18 at McDonnell Douglas and I had an openness with one another that we knew we could build on. We knew that we could flow it down to others and that we would both insist on it. There really is a cultural change required. We re not taught to be team players. -- Vice Admiral Joe Dyer, former Navy Program Manager

25 Effective Information Sharing Enabled via Several Mechanisms A high value was placed on open communications and quantitative data Common central database used by government and contractor with weekly reporting Cost, schedule and technical measures down to Level 5 of the WBS Problems in any of these areas were immediately apparent with clear accountability for who owned the problem A variety of program-wide tools and databases

26 Integration in Practice: The Failed Engine Stator During flight test, a stationary air foil in one of the two GE engines fractured, causing significant damage to the engine An examination of the remaining test aircraft showed fracturing in other engines as well Under the old way of doing things, GE wouldn t communicate issues until they had a plan to go forward. Now, if there s an issue we re [the Navy] the first to know. This actually works to GE s advantage because we have talented people here who can help. In just six weeks, we went full cycle from having the problem surface to diagnosing it and to installing new parts. All of us the Propulsion IPT, the Flight Test Team, McDonnell Douglas, and GE had a real sense of working as a team. Under the old way of doing things, this would have taken five or six months. -- Level 2 Propulsion IPT Leader

27 Agile Transformation at Nationwide Mutual Insurance Company Information technology (IT) plays a vital role in the company s strategy and in delivering its On Your Side customer service and protection Nationwide spends more than US$1 billion on IT per year (a significant portion spent on software projects) and employs thousands of IT employees Software projects range from small (<US$50,000) to very large (>US$50 million) Traditional waterfall development finished the majority of projects, but often late and with quality issues Teams using the agile development approach had tremendous success delivering on-time solutions with high quality levels More widespread agile implementation across IT was needed for significant impact But uneven performance was seen across the teams using the agile approach 27

28 The Diagnosis: Traditional Project Management Approach and Mindset Was in Conflict with Agile Successful teams had: A very disciplined system of rules A high degree of collaboration between program managers and software engineers An interested and supporting management system Unsuccessful teams had: A lack of process discipline and an attitude of exclusion Contentious relationships with program and project management, which was relegated to the periphery of the development life cycle Conclusion: To transform the software development system, managers had to change not only their perspective of the development teams work, but also their own way of working 28

29 Key Elements of Nationwide s Agile Transformation Created a formal change program leveraging existing change agents and infrastructure Root cause analysis of inconsistent agile execution: a lack of process discipline and an attitude of exclusion in some teams Aligning the program management orientation with the agile development approach Creating the Application Development Center (ADC) with a focus on technical excellence and process discipline Creating standard work for managers, including reporting and priorities Developing a new set of performance metrics for program managers to track development progress 29

30 Outcomes of Nationwide s Agile Transformation ( ) Critical defects released into production decreased by 50% per year, every year, on average Employee engagement increased every year Productivity levels increased with >75% of releases above industry benchmarks Changed mindsets: All members of the teams aligned toward a common purpose in delivering great solutions for customers Program management and technical staff no longer adversarial, instead work together to solve problems Culture of collaboration and integration between program management and software engineering staff Ref: Rebentisch et al.,

31 Strategy to Implementation: The BMW Engineering Division Challenge BMW group strategy: continue to grow and remain a strong and independent auto manufacturer despite being smaller than competitors Engineering (E-) Division requirement: increase efficiency by 1/3: Increase the number of development projects by 1/3 Reduce the development lead time by 1/3 Improve product quality by 1/3 Stay within the same budget and staffing levels All within five years 31

32 The BMW Change Management Model Source: BMW 32

33 BMW Leadership Approached Change on Multiple Fronts E 3 Program was established to transform the E-Division: E 3 : Exhilarating products; Efficient processes and structures; Emotions and team spirit System approach to change: Senior leaders provided the vision and resources, were personally involved in deploying the change Project management organization (PMO) managed the change program, provided resources, change tools and expert coaches Source: Rebentisch et al (2017)

34 Top-Down E³ Initiatives Addressed Strategic Objectives 25 top-down, strategy-driven change projects (E³ projects) were launched in May 2007 E³ project managers enjoyed several important enablers for rapid and effective action: Direct access to the top management level Supported by a network of strategy and process development groups associated with different departments within the Engineering Division Access to the necessary funding and the right people Removing road blocks in the organization when they arose Fast decision times

35 Bottom-Up Initiatives Engaged the Entire Workforce Value orientation (WO) E³ project developed as the implementation of E³ at the local level or E³ for everyone The specification of the project was open from simple ideas affecting office work with no measurable savings to hardware improvements with millions in savings Initially all level 2 and level 3 managers were required to complete a minimum of one WO project ~150 WO projects completed in 2008 Expanding to level 4 managers, more than 1200 WO projects completed in 2009 A few managers personally conducted multiple WO projects per year, and required the managers under their supervision to do the same

36 Top-Down and Bottom-Up Initiatives Were Complementary Bottom-up (WO) initiatives started slowly but eventually equaled topdown projects in savings Long-term objective was to change the entire workforce E Change LIFE initiative addressed culture change and was concurrent with and complementary to WO initiative By June 2012, all 8,000 people in the E-Division had participated in the E Change LIFE workshops Source: Rebentisch et al (2017)

37 Impact of the E³ Change Program in the BMW Engineering Division Total revenue grew by 40% 21% more vehicles were delivered Vehicle quality increased by 32% The model range expanded by 30% The number of car models and derivatives in the pipeline increased by 53% The engineering workload increased by 35% The engineering cost per derivative and workload decreased by 38% and 31%, respectively The overall lead time decreased by 14% (despite greater complexity in the models offered) Partway through the changes, the global economic downturn punished the auto industry; because of the improvements, BMW managed to remain profitable, did not cut its workforce and emerged from the downturn stronger and more competitive than many rivals

38 Conclusion Organizations with higher levels of integration between their management and technical disciplines showed higher value delivery, more predictability and more resilience Agile change is an essential component of integrated organizations Change examples demonstrate the strong role that a centralized organization like a PMO plays in: Developing tools, processes and methods for integration Helping leaders create the right climate for collaboration and integration Training and developing integration competencies in people Providing support for local improvement initiatives 38

39 Next Steps Based on the integration framework and examples, these next steps may be helpful to you: Next week: Review the content of this presentation, view the archived PM/SE integration virtual conference and/or read the Integrating Program Management and Systems Engineering book Does your organization integrate different disciplines effectively? What are the current challenges? What is going well currently? Next 90 days: Discuss with representatives from various disciplines their perspective on your current state of integration to identify problems, their root causes and possible opportunities for improvement. Enroll senior leaders in the definition of a path forward to more highly integrated programs. Next 12 months: Implement pilot projects aimed at improving various elements from the integration framework; develop the infrastructure to propagate best practices and concepts throughout your organization and to assess the desired behaviors and extent to their impact. 39

40 Book(s) Captures the Detailed Insights to Help Improve Engineering Program Performance Outcomes Integrating Program Management and Systems Engineering (Rebentisch et al., 2017) Tighter integration between program managers and systems engineers leads to high-performing programs A system approach to combining methods, tools and organizational systems provides the key to success Related resource: The Guide to Lean Enablers for Managing Engineering Programs (Oehmen, 2012) How to apply lean principles to program management 40

41 Contact Information Eric Rebentisch, PhD Research Associate, Lecturer Massachusetts Institute of Technology 77 Massachusetts Avenue (E17-355) Cambridge, MA USA Stephen Townsend Director, Network Programs Project Management Institute 14 Campus Blvd. Newtown Square, PA USA PMI: , extension