Quality and Project Management, A Strong Solution ASQ 9/8/2008 Andy Willums Mike Luther

Overview Introduction to Sage Software and Employer Solutions What is Project Management? State of the Software Industry With and Without Process Components of How We Use Project Management Benefits Realized Next Steps in the Journey Summary

Introduction to Sage Software and Employer Solutions

What is Project Management?

State of the Software Industry

With and Without Process

Components of How We Use Project Management

Benefits Realized

Next Steps in the Journey

Summary

Introduction to Sage Software and Employer Solutions

Who Is Sage? Leading global supplier of business management software The parent company is The Sage Group, plc Currently Sage supports more than 2.8 million customers in the U.S. and Canada. The sole focus is to provide business management software and services to small and medium-sized businesses.

Leading global supplier of business management software

The parent company is The Sage Group, plc

Currently Sage supports more than 2.8 million customers in the U.S. and Canada.

The sole focus is to provide business management software and services to small and medium-sized businesses.

Sage Solutions Financial Management Peachtree by Sage Sage BusinessWorks Sage Accpac ERP Sage MAS ERP Sage FAS Fixed Assets Customer Management ACT! by Sage Sage CRM Sage CRM SalesLogix SageCRM.com Payment Solutions Sage Payment Services is focused on credit card and debit care acceptance and check conversion. Payment Solutions also offers gift and loyalty card programs, as well as cash advance services to merchants. Industry Specific Solutions Sage also delivers a variety of specialized solutions for mid-sized businesses and organizations in the following industries: Accountants Construction and Real Estate Nonprofit Organizations Manufacturing and Distribution Healthcare

Financial Management

Peachtree by Sage

Sage BusinessWorks

Sage Accpac ERP

Sage MAS ERP

Sage FAS Fixed Assets

Customer Management

ACT! by Sage

Sage CRM

Sage CRM SalesLogix

SageCRM.com

Payment Solutions

Sage Payment Services is focused on credit card and debit care acceptance and check conversion. Payment Solutions also offers gift and loyalty card programs, as well as cash advance services to merchants.

Industry Specific Solutions

Sage also delivers a variety of specialized solutions for mid-sized businesses and organizations in the following industries:

Accountants

Construction and Real Estate

Nonprofit Organizations

Manufacturing and Distribution

Healthcare

Employer Solutions Abra HRMS Sage Abra HRMS is the award-winning system comprising HR, payroll, benefits, ESS, training, recruiting, compliance and more. Abra features an integrated database and powerful reporting capabilities. Compliance Services Sage Compliance Services automates payroll tax payments and filings, wage garnishments, and W-2/1099 processes for employers in every industry, including more than 20 percent of the Fortune 500. Direct Deposit Direct deposit service for Peachtree Accounting customers TimeSheet Sage TimeSheet is a time and expense tracking solution for project-oriented organizations. It allows customers to capture detailed line-item task information for resources assigned and utilizes this data for allocation, costing, and project management systems. CarpeDiem Sage Carpe Diem is a time and expense recording system for billing professionals. Primarily known in the enterprise Legal industry, Carpe Diem is also utilized by Financial and Banking centers. It integrates with a variety of billing systems in the Legal vertical.

Abra HRMS

Sage Abra HRMS is the award-winning system comprising HR, payroll, benefits, ESS, training, recruiting, compliance and more. Abra features an integrated database and powerful reporting capabilities.

Compliance Services

Sage Compliance Services automates payroll tax payments and filings, wage garnishments, and W-2/1099 processes for employers in every industry, including more than 20 percent of the Fortune 500.

Direct Deposit

Direct deposit service for Peachtree Accounting customers

TimeSheet

Sage TimeSheet is a time and expense tracking solution for project-oriented organizations. It allows customers to capture detailed line-item task information for resources assigned and utilizes this data for allocation, costing, and project management systems.

CarpeDiem

Sage Carpe Diem is a time and expense recording system for billing professionals. Primarily known in the enterprise Legal industry, Carpe Diem is also utilized by Financial and Banking centers. It integrates with a variety of billing systems in the Legal vertical.

What is Project Management?

Balancing Objectives Cost Scope Schedule Quality

Project Management Knowledge Areas

CMMI View of Project Management Level Focus Process Areas 5 Optimizing Continuous Process Improvement Organizational Innovation and Deployment Causal Analysis and Resolution 4 Quantitatively Managed Quantitative Management Organizational Process Performance Quantitative Project Management 3 Defined Process Standardization Requirements Development Technical Solution Production Integration Verification Validation Organizational Process Focus Organizational Process Definition Organizational Training Integrated Project Management Decision Analysis and Resolution Organizational Environment for Integration 2 Managed Basic Project Management Requirements Management Project Planning Project Monitoring and Control Supplier Agreement Management Measurement and Analysis Process and Product Quality Assurance Configuration Management 1 Initial Risk Rework Quality Productivity Risk Management Integrated Teaming

The Frameworks Quagmire

Growth of PM As of March 2002, membership in the Project Management Institute was over 90,000, with 40,343 Project Management Professionals certified.

Growth of PM (continued) As of November 2007: membership in the Project Management Institute was over 249,860 256,184 Total Active Project Management Professionals (PMP) certified 180,640 chapter members 60,562 members of Special Interest Groups (SIG) New CAPM and PgMP certifications

As of November 2007:

membership in the Project Management Institute was over 249,860

256,184 Total Active Project Management Professionals (PMP) certified

180,640 chapter members

60,562 members of Special Interest Groups (SIG)

New CAPM and PgMP certifications

Growth of PM (continued) The application of project management principles enables senior executives to: Establish measures of success Enable customer focus and alignment Quantify value commensurate with cost Optimize the use of organizational resources Incorporate quality principles Put strategic plans into practice Ensure fast time-to-market

The application of project management principles enables senior executives to:

Establish measures of success

Enable customer focus and alignment

Quantify value commensurate with cost

Optimize the use of organizational resources

Incorporate quality principles

Put strategic plans into practice

Ensure fast time-to-market

Growth of PM (continued) Project management also has gained popularity over the last several decades because of significant changes in the workplace. Some of these changes include: Downsizing (i.e. fewer people to do more tasks) Projects and services have grown larger and more complex Fierce global competition Easier access to information through vast communications networks More sophisticated customers demanding higher quality goods and services Exponential technological growth Multinational organizations seeking to establish uniform practices for managing projects

Project management also has gained popularity over the last several decades because of significant changes in the workplace. Some of these changes include:

Downsizing (i.e. fewer people to do more tasks)

Projects and services have grown larger and more complex

Fierce global competition

Easier access to information through vast communications networks

More sophisticated customers demanding higher quality goods and services

Exponential technological growth

Multinational organizations seeking to establish uniform practices for managing projects

State of the Software Industry

PM Problems Resources inadequate Meeting (“unrealistic”) deadlines Unclear goals/direction Team members uncommitted Insufficient planning Breakdowns in communication Changes in goals and resources Conflicts between departments or functions Source: Leadership Skills for Project Managers, Jeffrey K. Pinto and Jeffrey W. Trailer, 1998

Resources inadequate

Meeting (“unrealistic”) deadlines

Unclear goals/direction

Team members uncommitted

Insufficient planning

Breakdowns in communication

Changes in goals and resources

Conflicts between departments or functions

State of the Industry – CHAOS 2004 Standish Group CHAOS Report on 9,236 projects 29% on time, on budget, with required features 53% challenged 18% failed

2004 Standish Group CHAOS Report on 9,236 projects

29% on time, on budget, with required features

53% challenged

18% failed

Top Success Factors for Software Projects Top 10 Success Factors for Software Projects, Standish Group 5 Other 100 TOTAL 5 Reliable Estimates 6 Formal Methodology 6 Firm Basic Requirements 8 Standard Software Infrastructure 10 Minimized Scope 12 Clear Business Objectives 14 Experienced Project Manager 16 User Involvement 18 Executive Support

Top Causes for Project Failure Source: Computing Technology Industry Association, Jan 2007 web poll of 1,007 respondents

With and Without Process

What Happens Without a Well-Defined Process? Organization is highly reactionary Everything is an immediate crisis Projects exceed schedules & budgets No objective basis for judging quality

Organization is highly reactionary

Everything is an immediate crisis

Projects exceed schedules & budgets

No objective basis for judging quality

Practices are improvised or learned by “tribal legend” Crisis management becomes the cultural norm Heroes succeed, or success is on heroic effort Reliance is on key employees (who are always threatening to leave) Lack of documented processes and procedures Processes that have been defined aren’t followed, resulting in “shelfware” Lack of confidence in completing successful projects on time and within budget Loss of Customer confidence What Happens Without a Well-Defined Process? (cont)

Practices are improvised or learned by “tribal legend”

Crisis management becomes the cultural norm

Heroes succeed, or success is on heroic effort

Reliance is on key employees (who are always threatening to leave)

Lack of documented processes and procedures

Processes that have been defined aren’t followed, resulting in “shelfware”

Lack of confidence in completing successful projects on time and within budget

Loss of Customer confidence

What Happens With A Well Defined Process? Higher quality products More predictable and timely schedules Lower costs and greater efficiencies Better documentation and ease of product maintenance Happier customers Higher internal team morale Start Work Finish Project Schedule Reqs Coding Testing Release

Higher quality products

More predictable and timely schedules

Lower costs and greater efficiencies

Better documentation and ease of product maintenance

Happier customers

Higher internal team morale

Components of How We Use Project Management

Responsibility Assignment Matrix D river A pprover C ontributor I nformed Person responsible for facilitating Person with yes/no authority Person providing input Person that needs to know of the decision and rationale for decision The DACI terminology is used to describe the responsibilities for each deliverable produced in each phase. It indicates who is to perform the job, who contributes, who approves and who is informed of the results.

The DACI terminology is used to describe the responsibilities for each deliverable produced in each phase. It indicates who is to perform the job, who contributes, who approves and who is informed of the results.

Responsibility Assignment - DACI Chart

SDLC Process Roadmap for Employer Solutions Design Development Detailed Requirements Product Launch Requirements Specification Revise Project Plan Revise BRD Draft Test Approach Market Launch Plan Big Picture Design Framework Document Software Architecture Design Doc Functional Design Specifications UCD Interviews & Prototypes Product Pricing Draft Test Plans Docs & Demos Knowledge Transfer Deployment of Software or Service Conduct Training Monitor Early Adopters (M7) Close Project and Archive Docs (M1) Kick Off (M2) Specifications Complete (M3) Design Complete Set Deployment Date (baseline) Project Close Out Lessons Learned Session Customer Feedback BP Feedback Analyze Metrics Update Project folder Archive Project Artifacts (M4) Feature Complete Code Complete Ideation Opportunity Assessment UCD On-Site Visits BRD MRD MRD Review/Approve SWAG Greenlight Decision Team Planning for Release Readiness Checklist (M6) Implementation Complete (M) = Milestone Verification & Validation (M5) Certification, Code Freeze, Golden Build Code & Unit Test Design Audit Feature Complete Revise/develop documentation Revise Test Plans Develop Training Material Update Sample & Demo Data Execute Test Plan QA Automation External Testing Final Pass Master CD Marketing Material Support Prep Review & Pilot Training Material Support Prep UCD Usability Testing Demos Prepare for orders BOM & CD Art Readiness Assessment Project Mgt, QA, SCM, Project Tracking, Communication, Issues, Risks, Lessons Learned, Training

Requirements Specification

Revise Project Plan

Revise BRD

Draft Test Approach

Market Launch Plan

Big Picture Design

Framework Document

Software Architecture Design Doc

Functional Design Specifications

UCD Interviews & Prototypes

Product Pricing

Draft Test Plans

Docs & Demos Knowledge Transfer

Deployment of Software or Service

Conduct Training

Monitor Early Adopters

Lessons Learned Session

Customer Feedback

BP Feedback

Analyze Metrics

Update Project folder

Archive Project Artifacts

Opportunity Assessment

UCD On-Site Visits

BRD

MRD

MRD Review/Approve

SWAG

Greenlight Decision

Team Planning for Release Readiness Checklist

Code & Unit Test

Design Audit

Feature Complete

Revise/develop documentation

Revise Test Plans

Develop Training Material

Update Sample & Demo Data

Execute Test Plan

QA Automation

External Testing

Final Pass

Master CD

Marketing Material

Support Prep

Review & Pilot Training Material

Support Prep

UCD Usability Testing

Demos

Prepare for orders

BOM & CD Art

Readiness Assessment

Issue/Action Item Management Issue: formally defined problem that is impeding the progress of a project or a program Action Item: “to do” type item not large enough to add to a schedule Both of these items are typical outputs from meetings and can be tracked through resolution and reported

Issue: formally defined problem that is impeding the progress of a project or a program

Action Item: “to do” type item not large enough to add to a schedule

Both of these items are typical outputs from meetings and can be tracked through resolution and reported

Risk Management Risk : an event that may or may not occur in the future and is managed by a “mitigation” (preventive) and a “contingency” (curative). Its occurrence is recognized to have a potentially adverse effect on the program/project objectives or the quality of its deliverables. Risk Management : “An organized, analytic process to identify what might cause harm or loss (identify risks), assess and quantify the identified risks, and to develop and, if needed, implement an appropriate approach to prevent or handle risk causes that could result in significant harm or loss.” [CMU/SEI-2002-TR-002]

Risk : an event that may or may not occur in the future and is managed by a “mitigation” (preventive) and a “contingency” (curative). Its occurrence is recognized to have a potentially adverse effect on the program/project objectives or the quality of its deliverables.

Risk Management : “An organized, analytic process to identify what might cause harm or loss (identify risks), assess and quantify the identified risks, and to develop and, if needed, implement an appropriate approach to prevent or handle risk causes that could result in significant harm or loss.” [CMU/SEI-2002-TR-002]

Lessons Learned Lessons Learned provide all projects with the opportunity to share relevant data, information and experiences with their organization. Consequently, centralized Lessons Learned can help others preview, evaluate, apply or adapt: Successful “how to” engineering hints, work-arounds and methods. Critical project management, engineering and support skills. Training performance and services. Group communication performance. Process/product review skills. Procedural clarifications, additions or simplifications of tailored project level processes. New opportunities to leverage existing technology. New technology products and/or solutions. Candidate input items for process improvement initiatives, working group projects or pilot efforts.

Lessons Learned provide all projects with the opportunity to share relevant data, information and experiences with their organization. Consequently, centralized Lessons Learned can help others preview, evaluate, apply or adapt:

Successful “how to” engineering hints, work-arounds and methods.

Critical project management, engineering and support skills.

Training performance and services.

Group communication performance.

Process/product review skills.

Procedural clarifications, additions or simplifications of tailored project level processes.

New opportunities to leverage existing technology.

New technology products and/or solutions.

Candidate input items for process improvement initiatives, working group projects or pilot efforts.

Project Management Components

Tools Used MS Project Used for developing and tracking schedules www.microsoft.com Kidasa Milestones Generates management-friendly PowerPoint stoplight chart and forward looking portfolio view from MS Project files www.kidasa.com MindManager Mind maps for brainstorming, lessons learned, decision making www.mindjet.com DevTrack Track defects and items for release www.techexcel.com

MS Project

Used for developing and tracking schedules

www.microsoft.com

Kidasa Milestones

Generates management-friendly PowerPoint stoplight chart and forward looking portfolio view from MS Project files

www.kidasa.com

MindManager

Mind maps for brainstorming, lessons learned, decision making

www.mindjet.com

DevTrack

Track defects and items for release

www.techexcel.com

Tools Used SharePoint Borland Silk Central Test Manager (SCTM) HP Quick Test Professional (QTP) HP LoadRunner VSS SCRUM Works

SharePoint

Borland Silk Central Test Manager (SCTM)

HP Quick Test Professional (QTP)

HP LoadRunner

VSS

SCRUM Works

Benefits Realized

Poor Communication = Poor Results

Gaining Clarity Who is Doing What? When?

Who is Doing What? When?

Clarity in Communication

Clarity in Communication

Benefits Aligned to Sage Principles Agility Standardized project team structure and data allows for faster and more thorough planning as well as more efficient project start ups and tracking Agile development methodology provides more frequent working product releases and flexibility for content prioritization changes Innovation Lessons Learned sessions help point out best practices and process improvement opportunities Business Process Improvement projects focus on solving particular pain points Expanded definition and use of Beta programs produces a better understanding of how our products perform upon implementation The use of Project Management has proliferated to non-software projects resulting in better plans, communications, and controls The use of customer surveys, user groups, and Usability Studies helps us to better understand the needs of our customers

Agility

Standardized project team structure and data allows for faster and more thorough planning as well as more efficient project start ups and tracking

Agile development methodology provides more frequent working product releases and flexibility for content prioritization changes

Innovation

Lessons Learned sessions help point out best practices and process improvement opportunities

Business Process Improvement projects focus on solving particular pain points

Expanded definition and use of Beta programs produces a better understanding of how our products perform upon implementation

The use of Project Management has proliferated to non-software projects resulting in better plans, communications, and controls

The use of customer surveys, user groups, and Usability Studies helps us to better understand the needs of our customers

Benefits Aligned to Sage Principles (cont) Trust/Integrity Senior management regularly meets in Program Reviews to discuss status of all projects from the Master Schedule, solve prioritization and resource contentions, and review trends in issues and risks across projects Readiness Reviews and Certifications provide a forum to review quality data and for all project team members to explain to senior management how they are ready to support both the product and the customer base Disciplined use of the SDLC for all software project has yielded an average variance of less than 3% for both hours of effort and schedule days once a project is baselined at Design Complete (typically 4+ months between baseline and project complete) Simplicity DACI Chart and Process Roadmap communicate our project process and clarifies roles and responsibilities on project teams Keeping current and historical project documents such as a standard set of schedule reports, issues, and risks in a single repository in a standard structure allows managers and project team members to review status at any time Providing Project Management training gives team members clear expectations

Trust/Integrity

Senior management regularly meets in Program Reviews to discuss status of all projects from the Master Schedule, solve prioritization and resource contentions, and review trends in issues and risks across projects

Readiness Reviews and Certifications provide a forum to review quality data and for all project team members to explain to senior management how they are ready to support both the product and the customer base

Disciplined use of the SDLC for all software project has yielded an average variance of less than 3% for both hours of effort and schedule days once a project is baselined at Design Complete (typically 4+ months between baseline and project complete)

Simplicity

DACI Chart and Process Roadmap communicate our project process and clarifies roles and responsibilities on project teams

Keeping current and historical project documents such as a standard set of schedule reports, issues, and risks in a single repository in a standard structure allows managers and project team members to review status at any time

Providing Project Management training gives team members clear expectations

Defect Improvements Product A Product B Product C **DRE – Defect Removal Efficiency (Critical and High Priority only) = Defects Found During Test / Defect Found During Test + Defects Found in Field 6 months post release

Improvement Case Study Starting situation Year End Processing of payroll data for customers is an intense and important time of year Growth in this area caused concern for performance levels What we did Formed one integrated project team from primary affected stakeholders and identified sister departments and 3 rd party vendors for input and review Formalized project plan to ensure deliverables on track Published a set of policies, deadlines, training, and roles and responsibilities to our customers to help with expectation setting Became more proactive much earlier in the process in cleaning data Established call campaigns based on data validations to help customers avoid last minute problems Cross-trained associates from other areas to take calls Support held daily management meetings to review prior day’s results

Starting situation

Year End Processing of payroll data for customers is an intense and important time of year

Growth in this area caused concern for performance levels

What we did

Formed one integrated project team from primary affected stakeholders and identified sister departments and 3 rd party vendors for input and review

Formalized project plan to ensure deliverables on track

Published a set of policies, deadlines, training, and roles and responsibilities to our customers to help with expectation setting

Became more proactive much earlier in the process in cleaning data

Established call campaigns based on data validations to help customers avoid last minute problems

Cross-trained associates from other areas to take calls

Support held daily management meetings to review prior day’s results

Improvement Case Study (Results) Between the 2006 and 2007 Year End Processing seasons More work 129% increase in number of clients 243% increase in number of forms processed 27% increase in number of calls Same or less staff Available staff decreased by 1 Same or better performance 35% decrease in Abandon Rate 6.7% decrease in Service Level Overall With 27% increase of calls, we decreased abandon calls by 35% and only a 6.7% decrease in service level

Between the 2006 and 2007 Year End Processing seasons

More work

129% increase in number of clients

243% increase in number of forms processed

27% increase in number of calls

Same or less staff

Available staff decreased by 1

Same or better performance

35% decrease in Abandon Rate

6.7% decrease in Service Level

Overall

With 27% increase of calls, we decreased abandon calls by 35% and only a 6.7% decrease in service level

Next Steps in the Journey

Coming Soon Next evolution of test automation Integration of test tools and data SDLC to include more Agile methodology Business Process Improvement projects using Six Sigma’s DMAIC lifecycle

Next evolution of test automation

Integration of test tools and data

SDLC to include more Agile methodology

Business Process Improvement projects using Six Sigma’s DMAIC lifecycle

Summary Introduction to Sage Software and Employer Solutions What is Project Management? State of the Software Industry With and Without Process Components of How We Use Project Management Benefits Realized Next Steps in the Journey

Introduction to Sage Software and Employer Solutions

What is Project Management?

State of the Software Industry

With and Without Process

Components of How We Use Project Management

Benefits Realized

Next Steps in the Journey

Resources and Next Steps Resources: www.pmi.org http://www.pmi-tampabay.org/index.phtml www.sei.cmu.edu www.tampabayspin.com Next Steps: Define your way of performing project management, be consistent in its use, show others, feed improvement information back into the process Consider joining PMI and/or local chapter Consider continued development via courses, books, webinars, forums, etc.

Resources:

www.pmi.org

http://www.pmi-tampabay.org/index.phtml

www.sei.cmu.edu

www.tampabayspin.com

Next Steps:

Define your way of performing project management, be consistent in its use, show others, feed improvement information back into the process

Consider joining PMI and/or local chapter

Consider continued development via courses, books, webinars, forums, etc.

Questions and Answers