Bpm Agile Bucharest Nov 2011

Copyright Procesix Inc.

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e-SCM © 2006 by Carnegie Mellon University. All rights reserved. SM: CMM Integration, CMMI, SCAMPI, and IDEAL are service marks of Carnegie Mellon University

ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office. “PMI” and “PMP” are registered marks of Project Management Institute, Inc.

COBIT 4.1 is property of the IT Governance Institute (ITGI)

Luciano Guerrero President Procesix Inc. www.procesix.com

Presentation at Agile Tour 2011 Bucharest, Romania

25 Nov 2011

http://www.procesix.com/�


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Needs and challenges Process as a tool Agile approach to process improvement

Agenda


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Businesses are facing dramatic challenges during this decade, from economy, technology and globalization. The business approaches that were successful a few years ago are no longer fit for a rapidly changing environment. There are new players, different markets and greater new opportunities. There is only one thing that will never change: to be a successful enterprise (a survivor) you NEED to continuously optimize your productivity, improve quality, and to be one step ahead of your competitors for satisfying your customers’ needs.

Mature processes are the basis to build a solid enterprise architecture, to optimize the investment in technology and to obtain the best from the human talent. Well implemented processes are a powerful tool to support business goals, capture know-how and to lower the risk posed by expertise turnover.

The process need to be seen from a customer perspective, integrating the outputs of teams and functional areas in order to deliver high-quality services and products. The industry seems to be moving to adopt multimodel, pragmatic approaches oriented to measurable results.

In order to meet the need for highly efficient and adaptable practices, the industry is using agile process management approaches without lowering maturity . Sound enterprise architectures can use ready-to-use process solutions, using better the investment and integrate business functions and customer.


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WHO ARE WE


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Value proposition

Business Process Management (BPM) consulting services to improve our customer’s: •Process efficiency and productivity

•Aligning business objetctives with core processes

•Core processes workflows based on industry practices and standards

Expertise providing services since 1999

Consulting, Training, Assessment services to implement solutions to

common risks and problems

Team of consultants (SME) in governance, process management,

enterprise architecture, project management, system engineering,

software development, service, quality assurance and other IT core

areas

Leadership in introducing industry models and recommended

practices:Togaf, eSCM, PSP, TSP, C-BOK, CMMI-SVC y CMMI-DEV,

among others

Presence

Offices •Canadá •Chile •Brasil •Colombia •Argentina •Partners in Latin America and Europe

•In Romania by 3PRO-LAB

Partnership with SEI, ITSqc,

Procesix Inc. purpose


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NEEDS & CHALLENGES


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The IT industry is facing many challenges

Challenges

Globalization

Shortage of talent and expertise

Global economy problems

Increasing system

complexity

Customers expect lower

prices, shorter development and higher

quality

New technologies creating more demand for

software development


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Satisfy customer needs

Increased productivity

Costs under control

Deliver high-quality products

& services Shorter time-to-

market

Architecture oriented to

maintenance and reuse

Maintain risks under control

Need for better governance

Repeatable results

Common business objectives


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• Offer is bigger than demand • Real improvement in performance • Second decade customers expect

instant solutions • They have growth in the culture of download

and personalization • Expecting continually decreasing

costs • Globalization • Cloud ITC

IN

• What You See Is What You Get (WYSIWIG)

• Long, complex, costly lifecicles • Dependency on providers and big

companies • Inflated costs • Protected markets • Silos, island, hermits

OUT

Market trends


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Methodologies lifecycle

Crossing the Chasm (1991, 1999), Geoffrey A. Moore,

Diffusion of Innovations , Everett Rogers

CMMI, Agile are widely adopted,

mature methodologies

http://en.wikipedia.org/wiki/Geoffrey_Moore�

http://en.wikipedia.org/wiki/Geoffrey_Moore�

http://en.wikipedia.org/wiki/Diffusion_of_innovations�

http://en.wikipedia.org/wiki/Everett_Rogers�

http://en.wikipedia.org/wiki/Everett_Rogers�


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Process

Organization

People Technology

Talent Expertise Know-how

Solutions Tools

Governance Enterprise

Architecture

Basic components

Capturing knowledge


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e-SCM © 2006 by Carnegie Mellon University. All rights reserved. SM: CMM Integration, CMMI, SCAMPI, and IDEAL are service marks of Carnegie Mellon University

ITIL® is a Registered Trade Mark, and a Registered Community Trade Mark of the Office of Government Commerce, and is Registered in the U.S. Patent and Trademark Office.

“PMI” and “PMP” are registered marks of Project Management Institute, Inc. COBIT 4.1 is property of the IT Governance Institute (ITGI)

Multimodel approach to business processes

Governance (COBIT)

Development (CMMI)

Project Management

(PMBOK)

Service(ITIL)

CM QA Subcontracts Process Metrics

CMMI SVC

CMMI Acquisition


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•Our highest priority is to satisfy the customer through early and continuous delivery of valuable service. Customer satisfaction

•Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage. Requirements management

•Deliver working outputs frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale. Timely delivery

•Business people and developers must work together daily throughout the project. Customer involvement •Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done. Teamwork

•The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. Peer reviews

•Working outputs is the primary measure of progress. Delivering quality •Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely. Predictable productivity

•Continuous attention to technical excellence and good design enhances agility. System Architecture

•Simplicity--the art of maximizing the amount of work not done--is essential. Efficiency

•The best architectures, requirements, and designs emerge from self-organizing teams. Process maturity •At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. Continuous improvement

12 principles of Agile manifesto


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Customer satisfaction

Requirements management

Timely delivery

Customer involvement

Teamwork

Peer reviews

Delivering quality

Predictable productivity

System Architecture

Efficiency

Process maturity

Continuous improvement

How CMMI address Agile principles Requirement development

Requirements management

Project planning

Project monitoring & control

Configuration management

Measurements

Peer reviews

Testing

Continuous improvement

Design, build & integration

Integrated management

Process maturity

Subcontracting

Organizational support

CMMI

Agile


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We do something

We have control of the project

We share knowledge

We can predict performance

We can make significant improvements

Characteristics of Process Maturity

1

2

3

4

5

Knowledge depends of individuals Too many risks

Basic Project Management Engineering knowledge not shared

Common processes agreed upon Knowledge is captured and shared

Statistical understanding of process variation

Capability to achieve excellence Continuous improvement


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What is process?

Classic definition

Flow of activities to obtain an output

Translation of “Process” in the 2010’s

Model activities with adequate level of details in order to understand what the

business does and how it performs

Provide effective control on what we are doing

Potentiate innovation, productivity and sustaining business

A major investment made by the company that must provide returns

What differentiate our company from the competition


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Customer perspective

Customer Needs

Provider Process

Customer Satisfaction

Customer perspective

Price Quality Availability Selection

Functionality Service Brand Partnership

Management, Customer, Team


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We are uncovering better ways of developing software business by doing it and helping others do it.

Through this work we have come to value: Individuals and interactions over processes and tools Working practices over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan

That is, while there is value in the items on the right, we value the items on the left more

Manifesto for Agile Software Business Development

Risks

Benefits

Meeting expectations

Ensure long-term

Achieve productivity

Capture know-how

Validate satisfaction Governance

Business objectives


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AGILE PROCESS IMPROVEMENT


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Adapted from The State of BPM – 2010, Paul Harmon & Celia Wolf

Business drivers to improve processes

According to recent survey, the main drivers motivating executives to start process

improvement programs in their organizations are:

Save resources and lower costs

To be better prepared for market challenges

Improve the performance of specific existing processes or introduce innovation

Improve customer satisfaction

Compliance to regulations

Respond to special events (acquisitions, mergers)


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• Adapted from Gartner Magic Quadrant February 2010

Process agility

Efficiency is still of paramount importance, but operational excellence requires process

agility: Capability of the organization to make significant

changes and performance improvement

People and systems capability to adapt to continuous change and innovation

Process transparency and governance


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The results in performance resulting from process improvement justify the

investment needed to make changes

The cost of bad quality is always higher than investing in

good quality “Quality is Free”, Philip Crosby, 1979, ISBN 0-451-62247-

2

Business case to improve process


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Costs and roadblocks

Resistance to change

Side effects in the short term

Unrealistic expectations not met

Isolated initiatives not aligned with business needs

Partial implementations

Benefits

Usually there is measurable ROI

Efficient and effective support of business objectives

Better risk management

Improved learning curves

Enable governance, control and visibility


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Questions when adopting models and methodologies as reference for your organization's process framework:

What business needs are addressed by the model?

Does the business process need to complement other models as well?

To what extent we need to implement the practices?

What are the costs and expected results?

Are these recommended practices suitable for our organizational culture and maturity?

Real value added by industry models


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– Adapted from Gartner (January 2010)

Process trends in the 2010’s

Process will be managed directly by users (management,

empowered users)

Process adaptability to specific needs will be

more easy

Management will have better control of

performance and will be able to make proactive

process changes

Process models with friendly graphics and

explicit capabilities will potentiate capture of

organizational knowledge

The shift from application development to a

paradigm of composing solutions will challenge

traditional methodologies and models


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Identify “pains” and business objectives

• The purpose is to improve performance • Models are not ends by itself

Models are tools to be adapted to business process

Models are roadmaps to guide process implementation

• They address different aspects of the business

There is no such thing as a “universal model”

• “Silo” improvements usually are not very effective

Improvements need to be addressed from a business perspective

Multimodel approach: From strategy to action


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Process As Is Assessment of business needs Process To Be Implementation

Roadmap for improvement

Diagnose D Measure M Analyze A Improve I Control C

Define D Measure M Analyze A Design D Verify V


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Roadmap for improvement - 1


Inventory, modeling, and discovery of the current processes used by the organization, including its

weaknesses What we are, understanding our risks


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Systematically identify the cost of our weaknesses, threats and setting the priorities for improvement to

address the business objectives Understand our capacity and quantify the pain


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Identify and design the process architecture needed to improve significantly the performance and

capability of the organization Plan improvement in order to achieve business

objectives


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Implement efficient, effective and agile solutions to meet business plans and survive in the marketplace

Implement solutions to needs as planned



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Process Improvement master plan “Pains” were developed in process improvement activities (requirements) Improvement plan activities prioritized

“SCRUM” approach applied Requirements broken down in backlog list Developed User stories, Use Cases

Preparation phase leaded by consultant Team received training on methodology and applicable models Consultant had experience in BPM, SCRUM Master, and applicable models

Working sessions are structured and monitored SCRUM practices applied consistently

A high level model is agreed upon Limited to 4 sessions to agree upon on common process and tailoring Documented by BPM consultant

The Process To Be is communicated Sponsor support, diffusion, training

During implementation process could be automated

Case study: Agile approach to process improvement


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Summary

There is no magic book to provide solutions to the many challenges of the TIC industry in the 2010’s decade

Nevertheless there are several models covering specific areas and common problems of the business

Organizations are learning to adapt and integrate these models to their specific needs

The industry is still waiting for a coherent vision to facilitate their application

The needs for faster, cheaper, better software are the same as in the past two decades, only that this time are much bigger

Agile approaches are powerful accelerators when used in a mature process environment


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Recommended reading

Guide to BPM Common Body of Knowledge (C-BOK) ISBN: 1442105666

www.abpmp.org

eSourcing Capability Model for Service Providers (eSCM-SP) ISBN: 9789087535612

www.itsqc.org

eSourcing Capability Model for Client Organizations (eSCM-CL) ISBN: 9789087535599

www.itsqc.org

CMMI for Services: Guidelines for Superior Service

sei.cmu.edu

CMMI-SVC, CMMI® for Services, Version 1.3

sei.cmu.edu


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Questions?


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Thank you for your attendance!

Luciano Guerrero, President Procesix Inc. [email protected] Our partner in Romania: Nicolae Giurescu [email protected] www.procesix.com

mailto:[email protected]�






Bpm Agile Bucharest Nov 2011

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