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Improving the Performance of R&D Organisations, using Models

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Guest college given in 2003, to give an overview of models for Software Development & Management, and guidelines how to apply them to reach business results.

Guest college given in 2003, to give an overview of models for Software Development & Management, and guidelines how to apply them to reach business results.

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  • 1. Improving the Performance of R&D Organisations, using Models. Hogeschool Zuyd, April 25, Heerlen Ben Linders Ericsson EuroLab Netherlands, Rijen (N.B.) Ben.Linders@eln.ericsson.se, +31 161 24 9885Ben Linders, Ericsson EuroLab Netherlands April 2003 1
  • 2. Overview What will I present: – R&D Organisation Goals – Models, purpose & application – EFQM, CMMI and P-CMM model – Conclusions What can you learn from this: – The business perspective in software development – How models can be applied to reach goals – How they have been successfully applied at EricssonBen Linders, Ericsson EuroLab Netherlands April 2003 2
  • 3. Ericsson EuroLab Netherlands (ELN) • Worldwide Ericsson R&D company • Wide product range: – Base stations, UMTS – Internet Applications – Intelligent Networks and Services, Announcements – Bluetooth, Business Cordless • 850 employees, in the south (Rijen) and the east (Enschede, Emmen)Ben Linders, Ericsson EuroLab Netherlands April 2003 3
  • 4. R&D Organisation Structure Ericsson Market Units vs Product Units: Matrix Organisation Design Centre (ELN) – Design Units working for a Product Unit – Development & Maintenance of Products (projects) – Customer Support Development Unit (7 within ELN) – Product Management – Architects – Design Teams – Test TeamsBen Linders, Ericsson EuroLab Netherlands April 2003 4
  • 5. Goals Ericsson EuroLab Netherlands • Optimal Cost efficiency • Excellent Customer Satisfaction • Excellent Employee Satisfaction • Excellent Operational Performance • Strategic Flexibility/Positioning Balanced Score Card, focus on Operational PerformanceBen Linders, Ericsson EuroLab Netherlands April 2003 5
  • 6. Performance of R&D Organisations R&D organisation must contribute to total business result by: – develop products and services – with acceptable quality – on time, and with acceptable cost R&D is controlled by: Product roadmaps Budget & delivery dates Customer satisfaction & Product Quality Measuring/controlling performance of R&D is needed!Ben Linders, Ericsson EuroLab Netherlands April 2003 6
  • 7. Controlling Performance R&D organisations Steps: Define goals & strategies Set-up/adapt organisation Perform R&D work Measure and assess work against goals Define actions where goals are not met Looks simple ... … it isn’t always so in practice!Ben Linders, Ericsson EuroLab Netherlands April 2003 7
  • 8. Models, what are they? Merriam Webster: – a usually miniature representation of something; also : a pattern of something to be made – an example for imitation or emulation – a description or analogy used to help visualize something (as an atom) that cannot be directly observed A model can help an organisation to: adopt best practices provide a framework to assess performance prevent re-inventing the wheel; save time and moneyBen Linders, Ericsson EuroLab Netherlands April 2003 8
  • 9. Background of models Models are made based upon: Experiences/best practices from organisations Study/research Models represent a standard are owned & supported by a certain body can be used as a “communication language” A model must be applied before an organisation benefits!Ben Linders, Ericsson EuroLab Netherlands April 2003 9
  • 10. Kinds of models • Business focused – Malcolm Baldridge, Nederlands Kwaliteits Model (NKM) – ISO 9000 – European Foundation of Quality Management Excellence Model • Process focused – Six Sigma – SPICE – Capability Maturity Models (CMM/CMMI) • People focused – People CMM (P-CMM)Ben Linders, Ericsson EuroLab Netherlands April 2003 10
  • 11. Business: EFQM • Developed/maintained by the EFQM • EFQM was formed 1988, first quality award in 1991 • Consists of areas describing enablers and results • Focus upon improving business results • European standard for quality, used widely within Ericsson More info: http://www.efqm.org/Ben Linders, Ericsson EuroLab Netherlands April 2003 11
  • 12. EFQM: OverviewBen Linders, Ericsson EuroLab Netherlands April 2003 12
  • 13. EFQM: Strengths & Weaknesses Strengths Focuses upon business results Broad and overviewing model Linking Balanced Scorecard aspects Weaknesses High level, does not always provide hands on solutions Main purpose: Continuously improve business resultsBen Linders, Ericsson EuroLab Netherlands April 2003 13
  • 14. EFQM: Ericsson Experiences EFQM has been used to define the Ericsson quality system (together with ISO 9001). Has helped Ericsson focus upon business results, and the drivers important to reach these results Helped introducing the Balanced Score Card, which is now an important tool for goal settingBen Linders, Ericsson EuroLab Netherlands April 2003 14
  • 15. Process: CMMI • Developed/maintained by the Software Engineering Institute, at Carnegie Mellon University, Pittsburg USA • First version (CMM V1.1) in 1993, currently CMMI V1.1 (Q2 2002) • 5 maturity levels, with process areas that describe practices • Several assessment methods • Supported by many (consultancy) organisations • Defacto worldwide standard for software/system development More info: www.sei.cmu.edu/cmmi/Ben Linders, Ericsson EuroLab Netherlands April 2003 15
  • 16. CMMI: OverviewBen Linders, Ericsson EuroLab Netherlands April 2003 16
  • 17. CMMI: Strengths & Weaknesses Strengths Build from experiences of many software organisations Many detailed descriptions of practices Used by many organisations Weaknesses No direct focus on business results Main purpose: Improving R&D processesBen Linders, Ericsson EuroLab Netherlands April 2003 17
  • 18. CMMI: Ericsson Experiences CMM/SW has been used from 1994 onwards. Ericsson Rijen was first Ericsson (and European?) company to be assessed on level 3 in 1995. Level 4 assessment in 1998, assessment helped unit to focus more on business benefit CMMI pilot assessments in 2000 (early adopter) Has helped Ericsson to define software processes, and to assess and improve them. Results have been accomplished both in projects and in the process support organisationBen Linders, Ericsson EuroLab Netherlands April 2003 18
  • 19. People: P-CMM • Developed/maintained by the Software Engineering Institute, at Carnegie Mellon University, Pittsburg USA • Version V1.0 in 1995, current version V2.0 (Q4 2001) • 5 maturity levels, with process areas that describe practices • One assessment method, limited number of assessments done • Supported by some (consultancy) organisations More info: http://www.sei.cmu.edu/cmm-p/Ben Linders, Ericsson EuroLab Netherlands April 2003 19
  • 20. P-CMM: OverviewBen Linders, Ericsson EuroLab Netherlands April 2003 20
  • 21. P-CMM: Strengths & Weaknesses Strengths Integrated experiences/practices in people management Focuses upon the “soft” issues Weaknesses Used only by a limited number of organisations, limited experience Main purpose: People focus for R&D organisationsBen Linders, Ericsson EuroLab Netherlands April 2003 21
  • 22. P-CMM: Ericsson Experiences P-CMM has been used from 1997 onwards. Assessments in 1999 and 2001, used to improve Human Resource Management within R&D Results have been accomplished in teamwork and communication.Ben Linders, Ericsson EuroLab Netherlands April 2003 22
  • 23. Applying Models Instead of re-inventing the wheel, build a car using wheels! Benefits: Quicker results, with less cost Focus upon application and results, not on theory Faster Problems: Cheaper Not invented here Better Model interpretation “We do things differently around here” Resistance to changeBen Linders, Ericsson EuroLab Netherlands April 2003 23
  • 24. Dealing with Problems Applying Models Signal: Resistance is always there, spot it. Listen: Please tell me what the real problem is. Ask/act: How can I help, what do you need? Approach, discuss, solve • You think we are different? Why? • Shouldn’t we reuse what is available? • We have to change, but we can discuss how! • Look what we have reached. Let’s celebrate!Ben Linders, Ericsson EuroLab Netherlands April 2003 24
  • 25. Change Agents Toolbox Main Skills • Listening • Motivating • Stimulating Co-operation • Evaluating • Feedback Use with care • • Advising • Authority • Persuasion Patience • PoliticsBen Linders, Ericsson EuroLab Netherlands April 2003 25
  • 26. Conclusions Business Focus An R&D organisation has to assure that it delivers the right products, with acceptable cost, on time, and with sufficient quality. Otherwise the company will go out of business... Model Knowledge Models can help improving performance, but no model covers everything. Combine, use what is useful. Application Focus must be upon applying models, and reaching results!Ben Linders, Ericsson EuroLab Netherlands April 2003 26
  • 27. Finally • Have you learned: – The business perspective? – How models can be applied? – Experiences from Ericsson? • Any further questions? Ben Linders Ericsson EuroLab Netherlands, Rijen (N.B.) Ben.Linders@eln.ericsson.se, +31 161 24 9885Ben Linders, Ericsson EuroLab Netherlands April 2003 27