By 2009, 90 percent of top-tier internal and external service providers will be distinguished by their substantial process capabilities, as well as their quality and service improvement capabilities (0.8 probability).
By 2011, IT organizations that have not built holistic, integrated quality management programs and values will be substantially underperforming against industry norms (0.8 probability).
Through 2011, quality problems in 75% of IT organizations will be predominantly defects and waste caused by silo-based suboptimization (0.8 probability).
Through 2009, 75% of IT organizations will focus their "quality" initiatives too narrowly on implementing ITIL, CMMI, Prince or PMI's PMBOK (0.9 probability).
Through 2009, two-thirds of IT organizations will overemphasize process at the expense of developing staff and the appropriate values and behaviors (0.8 probability).
1. What does quality mean in IT, and why should you care?
2. What are the building blocks for an integrated approach to quality for IT?
3. What are the best practices from leading organizations, and the most common pitfalls that block success?
Where Is 'Best Practice' IT Quality Today? The ability to choose the appropriate process maturity. The ability to simultaneously maximize productivity, product quality, defect level and time. If you don't find the defects you expected, you know you missed something. Integrates CMMI, ITIL, Six Sigma, lean Of course! But built on powerful culture. You have to live it, breathe it — but above all, believe that "quality excellence" is an imperative. 80%+ reduction in defects, 140%+ increase in productivity over five years (from good base).
Competition — Increasingly based on operational effectiveness and agility
Demands for higher productivity
Future role of IT organization is highly dependent on its ability to build credibility
BPM requires skills in holistic quality capabilities, e.g., Six Sigma
General Trend in Availability Expectations Productivity Time Six Sigma Lean Frame- works Standard Availability High Availability Continuous Operations No Downtime Now 3 Years 5 Years
What Does Contemporary IT Quality Mean: 'Better Outcomes and Experience for Customers' Attributes Optimizes Contemporary IT Quality
Doing the right things well
End-to-end, integrated supply chain
Build quality in, and building trust
Achieving enterprise goals
KPI and value driven
Business demands proof
Defects, Productivity, Waste
Doing things well
Quality control and compliance
Business "believes it"
Traditional IT Quality Processes Focus All processes, people, automation Core IT process maturity
Implications: Moving Beyond Process 'Better Outcomes and Experience for Customers'
The "customer" should be the start and endpoint of quality for IT organizations today. Understanding and meeting expectations is critical.
IT must understand who its customers are and what value means to them.
Every activity must be contextualized and prioritized around an assessment of customer value.
Quality and operational effectiveness are two sides of the same coin, so cannot be separated.
A holistic approach to quality is required.
Don't rely on process just to "control" events and activities.
Process Maturity Cultural Norms Developing Good Judgment People Process Technology Developing Trust — In and With IT Staff
The Quality Journey Quality Management System ISO 9001/TickIT, Prince/PMBOK CMM(I)Agile ITIL CobiT Six Sigma PCMM Investors in People Lean Document what you do, do what you document. Develop a best-practice process. Improve and innovate the process. Build quality around people processes. Reduce waste, increase process speed. 10 years Top Down Bottom Up
A Program to Integrate the Key Elements: People + Process + Tools + Measurement
Cont. Process Improvement
Skills & competency dev.
Tooling & Automation
Implementation of Industry
Standard Best Practices
ISO 9001 certification
Org. Capability Reactive: frameworks Initial: tool & automation issue Proactive: people Optimizing: strategic program
Behavioral Change: Barriers to Process Excellence – Mostly People-Oriented Process Technology People Complexity of Barrier Fragmented tools No standards Poor ESP integration Inconsistent processes Poor leadership Custom-made integration Unintegrated processes Lack of skills People unable to change People refusing to change Poor process quality Low morale Inappropriate tools Unrealistic customer expectations Closed culture Poor customer perception Inappropriate competencies People unwilling to change High Low Source of Barrier Poor governance Funding Service culture
The Quality Building Blocks: The 'Architecture of Quality' Vision Goals & Objectives Measurement Framework Quality Improvement Methods and QMS (Six Sigma, Lean) Values Leadership Policy Organisational Change Mgmt. Governance, Program Oversight (QA) and Communication Core IT Processes Fulfilment Processes Admin, Planning & Resource Mgmt. Processes Staff Recruitment, Development, Metrics, Rewards and Recognition Industry Frameworks and Standards (ITIL, CMMI, EFQM, etc.) Build Trust to Make Good Decisions
Quality, Productivity and Speed: Simultaneous Optimization
Failing to link quality, productivity and speed will result in quality for the sake of quality
Mature IT organizations are achieving substantial improvements in productivity and waste reduction
Using lean and Six Sigma
Why Six Sigma and Lean? Both: Tackle process maturity Drive productivity Six Sigma: Tackles defects and variance in a process Lean: Tackles waste and increases speed Operational Effectiveness Quality (Defects) Productivity Speed
Building the Values and Behaviors: Building Good Judgment Recruitment Induction Coaching and Mentoring Ongoing Training Personal Measures Rewards and Recognition The Tools That Are Used by the Leaders Building Trust To Enable Empowerment Personal Link to Business Value Organizational Change Competency Development
Do You Know How You're Doing? YTD 2006 IT Key Performance Indicators Overall Customer Satisfaction: 89% 350% 300% 250% 200% 150% 100% 50% 0% Actual vs. Estimate Actual / Estimate Outstanding Calls 350 300 250 200 150 350 300 250 200 150 350 300 250 200 150 Outstanding Calls Target Training Days 3 2.5 2 1.5 1 0.5 0 3 2.5 2 1.5 1 0.5 0 3 2.5 2 1.5 1 0.5 0 Days per head Target days 6 8 10 12 14 16 18 Cost / Enq Target IT Costs per External Customer Inquiry 98.6% 98.8% 99.0% 99.2% 99.4% 99.6% 99.8% Actual Target Critical Services Availability 84% 86% 88% 90% 92% 94% 96% 98% Target Zero defect changes Operational Change Effectiveness IT Value Added 1000% 800% 600% 400% 200% 0% 1000% 800% 600% 400% 200% 0% 1000% 800% 600% 400% 200% 0% Value Added Target Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 0 2 4 6 8 10 12 14 16 Development Productivity Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Actual Target Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Function pts / Day Target Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May B E T T E R B E T T E R B E T T E R B E T T E R B E T T E R B E T T E R B E T T E R B E T T E R
Best Practice Operational Effectiveness: Necessary, but Not Sufficient Future Best Practice Continuous Improvement Extends Best Practice Cost Quality Low High Low A Less Than Best Practice High Source: Adapted from Michael Porter, "What is Strategy?" Harvard Business Review, November-December 1996 B Current Best Practice Copy Best Practice Achieving best practice requires optimizing cost and quality Sustained Differentiation C Strategic Choices Interwoven Proceses
No.1 Internet Search Free Scalable Inno- vation Google Brand Simple No Frills Good Search Results Ad Revenue Platform Comple- mentary Tools Hire the Best Way of Life Freq. Releases High Wages Rule Breaking Do No Evil Risk Taking Cost & Product- ivity
Case Study: BPO Services Combining Agility and 'Right First Time, Every Time'
Principles of Quality Program
Business value driven
Build integrity in
Know how you're doing - precisely
Judgment first, process second
Used lean in AD. Used idea of "business impairment" in ongoing service delivery
Testers, infra., ops., app. support and app. dev., and quality activities integrated into project teams
Used consultants selectively, but all efforts based on internal research
Use internal people from outside IT to critique and identify improvement opportunities
Built on process standardization, then automate, e.g., scripted testing, release
Strong focus on developing people
Case Study 2: Information Services — A Good Start Project Management Control IT Quality Framework ISO/IEC 20000 Service Mgmt. Processes Service Improvement Program CMMI ISO 9001 /TickIT Six Sigma Project Method Prince 2 ISO 27001 Service Security Development ISO Accreditation EFQM IS Cost Model Continuous Improvement Program Financial FAST SOX Six Sigma
Increasing Process Maturity and Lean Culture Drive Huge Changes in Innovation Focus Toyota/Lean Top-Down Focus on New Products and Applications Focus on Consistent Standard Processes Empowered Workers and Lean Culture Drive a High Rate of Process Innovation Process Maturity Time Low High Innovation Focus
Quality Management Tomorrow — 'Andon' — Putting Control on the Front Line By 2012, Toyota's Andon principle, where production is stopped when a staffer spots a quality problem, will be implemented in an IT operations and project environment (0.6 probability).