The CMMI Value Proposition - PDF Free Download

22 when performance matters The CMMI Value Proposition May 2016

Copyrights and Registered Trademarks CMMI -DEV, CMMI -SVC and Standard CMMI Appraisal Method for Process Improvement The following service marks and registered marks are used in this document: Capability Maturity Model Integration CMM CMMI IDEAL SM SCAMPI CMM, CMMI, and Capability Maturity Model are registered in the U.S. Patent and Trademark Office.

How we will transform your thinking Re-evaluate the purpose of CMMI models Reach consensus on the meaning of Performance Management Better appreciate the structure of the CMMI (incl enabler for integrated frameworks) Explore the CMMI change engine Re-imagine what can be accomplished Introduction to Capability-Based Performance Management

The purpose of CMMI models CMMI models provide a rigorous framework for the development, operation, performance management, and continuous improvement of key business capabilities. Software Development Systems Development Proposal Development Financial Management Base Operations Municipal Operations Strategic Management Human Resources Engineering Services Information Services Quality Assurance Skills and Knowledge Development

The Four Categories of Process Areas Project or service management - Managing development or service requirements - Planning product development or service establishment - Managing development or service operations - Managing development or service risk - Managing development or service suppliers - Quantitative management of development or service operations Engineering or service delivery - Development: engineering life cycle process areas - Services: designing, developing, transitioning and delivering services Support - Quality assurance - Configuration management - Decision making - Metrics - Causal analysis Process management and training - Process development and management - Managing organizational performance - Knowledge assimilation - Quantitative management of processes Business Capabilities Design and Develop Operation Performance Management Continuous Improvement

The CMMI is an enabler for change Implements Lean Thinking in any environment - Field cases to date: Lean software development Lean IT services Lean enterprise Implements Six/Nine Sigma Makes ISO 9001 and AS9100 implementations more valuable to the company - Five levels of performance - More defined processes - Better consistency and repeatability

What is performance management? The coherent management of the performance of one or more business capabilities to support or effect the achievement of business goals Operational efficiency waste free and streamlined Enhanced service value and higher levels of service Fewer delivered defects Higher velocity improvement Corporate agility Agile/ lean services and development projects

Where is your service organization? Little meaningful mgt insight into status of service operations Customer expectations are not well understood Unpredictable number of defects in service delivery Service levels often violated Services are unmanaged and unstable Difficult to make changes to service technologies or processes Incident responses are treated as crises Meaningful, timely insight into service operations Customer expectations are clear and agreed, and managed to Few or no significant defects in service delivery Service levels met predictably Services are well managed and operate in a stable condition An efficient change engine is used to respond to changes Incident response is mature, timely, and enables continued service delivery

Estimated ROI Return on Investment Envelope MAXMUM ROI CURVE Sharp focus on organizational performance and quality goals WORST CASE ROI CURVE Break-Even Line Little or no focus on organizational performance and quality goals Level 2 Level 3 Level 4 Level 5 Focus on Organizational Performance and Quality Goals 11

How does performance management change adoption? The improvement approaches chosen Interpretation of CMMI practices Workflow measures in Value Stream Mapping Measurement objectives Which CMMI Process Areas to implement What Maturity or Capability Levels to target What part of the organization to improve How much you re willing to invest

High Performance Organizational Example Business Office Leadership Human Resources IT SERVICE TEAMS Quality Assurance Customers Facilities Security Business Development

Structure of the CMMI Models of interest - CMMI for Development - CMMI for Services Common structure - Process areas Specific Goals Specific Practices Generic Goals Generic Practices - Informative Components

The Actual Process Areas CMMI for Services CMMI for Development

Breakdown of Each Process Area 1 to 3 Specific Goals - Up to 7 Specific Practices each 3 Generic Goals (common to all process areas) - Generic Goal One: Performed Process Done if Specific Goals are done - Generic Goal Two: Managed Process 10 Generic Practices - Generic Goal Three: Defined Process 2 Generic Practices 22

Example: Risk Management SG 1: Preparation for Risk Management is Conducted - SP 1.1: Determine risk sources and categories - SP 1.2: Define parameters used to analyze and categorize risks and to control the risk management effort. - SP 1.3: Establish and maintain the strategy to be used for risk management. SG 2: Risks are identified and analyzed to determine their relative importance. - SP 2.1: Identify and document risks. - SP 2.2: Evaluate and categorize each identified risk using defined risk categories and parameters, and determine its relative priority. SG 3: Risks are handled and mitigated as appropriate to reduce adverse impacts on achieving objectives. - SP 3.1: Develop a risk mitigation plan in accordance with the risk management strategy. - SP 3.2: Monitor the status of each risk periodically and implement the risk mitigation plan as appropriate.

All Goals are REQUIRED Components SG 1: Preparation for Risk Management is Conducted - SP 1.1: Determine risk sources and categories - SP 1.2: Define parameters used to analyze and categorize risks and to control the risk management effort. - SP 1.3: Establish and maintain the strategy to be used for risk management. SG 2: Risks are identified and analyzed to determine their relative importance. - SP 2.1: Identify and document risks. - SP 2.2: Evaluate and categorize each identified risk using defined risk categories and parameters, and determine its relative priority. SG 3: Risks are handled and mitigated as appropriate to reduce adverse impacts on achieving objectives. - SP 3.1: Develop a risk mitigation plan in accordance with the risk management strategy. - SP 3.2: Monitor the status of each risk periodically and implement the risk mitigation plan as appropriate.

And All Practices are EXPECTED Components SG 1: Preparation for Risk Management is Conducted - SP 1.1: Determine risk sources and categories - SP 1.2: Define parameters used to analyze and categorize risks and to control the risk management effort. - SP 1.3: Establish and maintain the strategy to be used for risk management. SG 2: Risks are identified and analyzed to determine their relative importance. - SP 2.1: Identify and document risks. - SP 2.2: Evaluate and categorize each identified risk using defined risk categories and parameters, and determine its relative priority. SG 3: Risks are handled and mitigated as appropriate to reduce adverse impacts on achieving objectives. - SP 3.1: Develop a risk mitigation plan in accordance with the risk management strategy. - SP 3.2: Monitor the status of each risk periodically and implement the risk mitigation plan as appropriate.

The model application space Development Project has a determinate lifetime DEV model is about the project team Helps to make a series of projects perform better Primarily concerned with Project Mgr. and team Service (Most) services have an indeterminate lifetime SVC involves much more of the overall organization Helps to make a service stream perform better Routinely reaches into senior management

Focus of each model Development Focuses on project management and oversight, and the development process Very little focus on how to better manage or support multiple projects across the organization Focused on product requirements and development risk Service Focuses on mgt of the service stream, with minimal insight into the actual service process Focused on management and support of multiple services within the organization Focused on service requirements and risk

The change engine Control attributes: - Velocity (speed and direction of change) - Scope - Risk - Agility (capability to change direction quickly with near-certain capability outcomes) Uses: - Strategic pivot to a new but allied area of business - Control performance - Quickly and correct the causes of problems

The CMMI basis for the Change Engine CMMI for Services CMMI for Development

Motorola Cork Ireland (cell phones) Requirement: - Replace production capability with new technology - Produce new generation of phones - Double the size of the facility and increase the work force proportionally Solution: Give the problem to the CMM group Result: - Completed three months early - Saved 25% of migration budget - Successful migration by all measures

What implementation of the CMMI should (always) do Produce sustainable improvements Exhibit a positive return on investment Be transferrable across projects, services, and organizations Produce results fast enough to make business sense Help achieve business objectives or solve problems

What if You could reduce operational overhead and streamline the value stream to the customer? You could identify the root causes of operational problems and fix them so that they didn t return? Your proposal performance data were based on mature, dependable, repeatable, transparent processes? Your performance could differentiate your company in the market place? You could leverage corporate knowledge and business intelligence to pivot quickly, with a good level of confidence, to a new business capability?

The Importance of Focus in Model Adoption Value of effort increases with focus in CMMI framework Cost decreases as focus becomes sharper Maximum value and minimum cost comes with maximum (appropriate) focus It s possible to max cost and get negative value Value Cost Focus is the primary driver of value and velocity Focus

The Context Business Objectives Marketplace Pressures Organizational Capabilities Quality and Performance Goals Improvement Approaches Develop Integrated Improvement Frameworks are influenced by.. define the important are actualized by define the selection of to finally result in

For next Thursday, think about Organization s purpose, vision, and mission The mission (customer-facing) capabilities The kind of corporate infrastructure you want What improvement frameworks are important to you

To download these slides. Go to (hidden page). http://breakpointcg.com/download-seminar-slides.html