A Model for Identifying and Forecasting Tactical and Strategic Organizational Growth Trends Based on Service Measurements

Transcription

1 A Model for Identifying and Forecasting Tactical and Strategic Organizational Growth Trends Based on Service Measurements Presented by: Douglas Schweickert DSCI Presented at: The CMMI Conference: SEPG North America 6-7 May

2 Introduction to the D&S Consultants, Inc. (DSCI ) Enterprise Founded in September 1992 Aerospace & Defense (A&D) Contractor Recently graduated from Small Business to Large Business Established DSCI Corporate Operations (DCO) as single, centralized indirect cost center providing services and operational support functions: Ten total organizations DCO s direct customers are DSCI Enterprise affiliates (ten total) On October 4, 2013, DCO became the 34 th U.S. organization to successfully achieve a Maturity Level 3 rating against the CMMI - SVC model, Version 1.3 2

3 DSCI Enterprise Objectives Defined in the Chief Executive Officer s (CEO) Strategic Vision ( ) Increase market share in highly fiscally-constrained A&D business Remain competitive against largest A&D contractors Continue to grow Enterprise: Grow direct-labor workforce while reducing the growth rate in indirect-labor DCO workforce Map growth to three tactical Objectives: End of Calendar Years 2013, 2014, and 2015 DSCI Growth Trend Model developed to help the CEO forecast, manage, budget, and control future indirect labor growth 3

4 50% increase DSCI Enterprise Growth Profile Developed by CEO as part of Strategic Vision for Ratio = 0.1 (constant) Ratio ~ 0.06 Ratio 0 = 0.1 Objective 2013 Objective 2014 Objective % increase 25% increase 25% increase 4

5 DCO Services/Operational Support Activities within Scope of CMMI -SVC ML 3 Rating 16 services across seven DCO organizations within the following functions: Personnel and physical security Contractual security Information Technologies Intellectual Property Management Customer- and Enterprise-owned Property Management: Document Control Contracts Administration and Management (includes subcontractors) Purchasing/procurement Payroll Billing (Integrated Service) Facilities Management Human resource management: o Job Fill (Integrated Service) o Employee Exit (Integrated Service) 5

6 Categorize personnel as Fixed Cost and Variable Cost, based on predominant type of work performed: Fixed Cost Fundamental to DSCI Enterprise business operations; varies in discrete intervals when core functions, capabilities, and/or infrastructure must be added Variable Cost Directly related to DSCI Enterprise size (e.g. number of employees, number of contracts/task Orders, total number of services and service requests) Identify three types of Variable Costs: Delivery of DCO Services Other DCO Support Activities Bids & Proposals (B&P) Account for Fringe Costs: Vacation Sick/Personal Holiday Description of DSCI Growth Trend Model Primary Metric = Full Time Equivalent (FTE) personnel (160 hours/month) B&P Fixed Fringe DCO Services (Measured) Other DCO Support Activities 6

7 Description of DSCI Growth Trend Model Using individual DCO Service metrics/measurements: Calculate aggregated FTE and service request metrics for all of DCO Calculate aggregated FTE metrics for: Other DCO Support Activities B&P Fringe Determine ratios for each of the three aggregated metrics versus DCO Service FTE metrics Calculate Enterprise-level growth data on a quarterly basis: Calculate future DCO growth as a function of the affiliates growth Identify trends in Fixed Cost growth 7

8 Calculation of Future Growth Projections d a c b Ratios: b/a, c/a, d/a a = ƒ (Add. Employees, Growth FTE Metric) b = a * (b/a) c = a * (c/a) d = a * (d/a) Other DCO Support Activities = b B&P = c Fringe = d Timesheets Total DCO Staff Growth (Projected) Service Measurements = a Resource Allocation Spreadsheets 8

9 Primary Aggregate Service Metrics Metric 2Q2013 3Q2013 4Q2013 Number of Requests 3,748 4,858 4,215 Number of Hours Servicing Requests 2,167 2,557 2,196 Average Number of Hours per Request Number of Additional Employees needed to Create Service Requests Requiring 1 FTE Additional DCO Support (Growth FTE Metric) Improvements in Average Service Delivery Time: 8.6% (2Q to 3Q) 1.9% (3Q to 4Q)

10 50% increase Notional DCO Staffing Projections Calculated by DSCI Growth Trend Model Objective 2013 Objective 2014 Objective % increase 25% increase 25% increase 10

11 Executive Management use of the DSCI Growth Trend Model Enterprise Assessment: Strategic/Tactical Decision Making Identifying Enterprise-level Risks Plan and implement CAs Plan and implement mitigation strategies Plan and implement contingencies Validate enterprise-level budget projections Refine Fixed Cost Growth Requirements Enterprise Solutions Customer Projections To Senior Management, Process Leads, Practitioners Corrective Action (CA) Recommendations Risk Candidates Tactical Decision Making Root Cause Analyses Evaluate Fixed Cost growth trends Pricing/Budget estimates Proposals Support Government Audits Personnel Projections Organizational Projections and Direction Executive Management Team Corporate Operations Growth Trend Analysis To CEO Executive Direction Actionable Information Tactical/Strategic Planning Process Lead MSR metrics and quality information To Senior Management Enterprise- Level Metrics Actionable Information Tactical Planning Service Metrics Organizational Metrics MSR (includes Resource Planning) Organizational Metrics Actionable Information Executive Management Summary To CEO To Executive Management 11

12 Contact Information Douglas Schweickert Enterprise Quality Officer DSCI Enterprise (732)