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Facilitating your process journey …




Beating the Odds: A Tale of One Company’s
       Rapid Rise to Maturity Level 5

                        Henry Schneider
            Process and Product Quality Consulting, LLC

                       Seung Wook Bang
                              LG CNS

             7th Annual CMMI® Technology Conference
                     November 12 – 15, 2007
Facilitating your process journey …


 Agenda




                                                          Success                        Lessons
             Intro       Overview                                                                                 Summary
                                                           Story                         Learned




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC             2
Facilitating your process journey …



 Time to Move Up




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   3
Facilitating your process journey …


 LG Products




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   4
LG CNS is a Reliable IT partner
          that Thinks of the Customer’s Future


                                    Established Year   1987

                                    CEO & President    Chae-Chol Shin
                                                       7,300 people
                                    Employees
                                                       (including overseas subsidiaries)
                                    Sales              2.1 billion USD (2006)

                                    Business Domains   Consulting, SI/SM, NI, ITO, BPO

                                                       5 divisions /
                                    Organization
                                                       3 divisions under the direct control of the CEO
                                    Overseas           USA, Brazil, Europe, India, Indonesia,
                                    Subsidiaries       Japan and China
                                                                                                *As of June 2007


Copyright © 2007 LG CNS Co., Ltd.
Best Service… from Consulting to Operation

                                                        Consulting


                                                                               System
                                                                               Integration/
              IT Outsourcing                ITO                      SI/SM     System
                                                                               Management



                                 Business
                                  Process         BPO                NI      Network Integration
                              Outsourcing



Copyright © 2007 LG CNS Co., Ltd.
Facilitating your process journey …


 LG CNS, LG Insurance Sector


                                             • System maintenance organization for
     LG Insurance                              LG Insurance
        Sector                               • Financial software products



      Process
                                             • CMMI Maturity Level 3 October 2004
    Improvement                              • CMMI Maturity Level 5 October 2005
     Milestones
11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   7
Facilitating your process journey …


 LG Insurance Sector




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   8
Facilitating your process journey …


 Learning


                                                                 It is the true nature
                                                                    of man to learn
                                                                  from mistakes, not
                                                                     from example
                                                                    – Sir Fred Hoyle


11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   9
Facilitating your process journey …



                Critical Success Factors

                                              Korean              Management
                                              Culture             Commitment



                               Short,
                                                                                    Corporate
                             Repetitive
                                                                                    Resources
                               Cycles


                                              Low
                                                                      Six Sigma
                                            Employee
                                                                        Focus
                                            Turnover




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   10
Facilitating your process journey …



             Management Commitment


                                                         Prevalent



                                                          Walk the
                                                           Walk


                                                                                    Teams
                                 Proper
                                                                                    Given
                                Attention
                                                                                    Power

11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   11
Facilitating your process journey …



                   Corporate Resources



                                                                                                                  Provide internal
    Establish local               Leverage                                                                         consulting and
                                                                       Train local staff
        SEPGs                 lessons learned                                                                        appraisal
                                                                                                                      services

                Corporate SEPG group works directly with each LG CNS division


11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC                      12
Facilitating your process journey …


 Six Sigma Focus


                  5.
                               1. Define
                Control                                                                                                               5 Optimiz-
                                                                                                                                      ing
                                                                                                                              4 Quantitatively
               4.                       2.                                                                                    Managed
             Improve                  Measure
                                                                                                                      3 Defined

                         3.
                       Analyze                                                                              2 Managed


                                                                                                1 Initial




11/12/2007                ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC                              13
Facilitating your process journey …



               Low Employee Turnover


                                                                           Team members happy,
              Between 2003 and 2005,
                                                                          enjoyed job assignments,
               the LG Insurance Sector
                                                                              and motivated to
              had the lowest employee
                                                                           improve processes and
               turnover rate in LG CNS
                                                                                procedures




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   14
Facilitating your process journey …


                        Short,Repetitive Cycles

                                  Project Life Cycle

                            Statusing                                      Analyzing



                Testing                             Measuring                                     Reporting



11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   15
Facilitating your process journey …



                              Korean Culture
                                                         Minimal resistance
                                         Strong element of team work
                                                      Strong sense of pride
                                                    Personal identification
                                                  Doing whatever it takes


11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   16
Facilitating your process journey …


 Planning
                                                     In preparing for battle I have
                                                      always found that plans are
                                                        useless, but planning is
                                                       indispensible. – President
                                                         Dwight D. Eisenhower



                                                  Good tactics can save even the
                                                  worst strategy. Bad tactics will
                                                  destroy even the best strategy.
                                                   – General George S. Patton

11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   17
Facilitating your process journey …



                                        Challenges

                                           LG Insurance
                                           Sector faced
                                               many
                                            challenges
                                            with High
                                             Maturity
                                             concepts
11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   18
Facilitating your process journey …


 Achieving Consensus




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   19
Facilitating your process journey …


 Identifying Innovations




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   20
Facilitating your process journey …


 Causal Analysis




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   21
Facilitating your process journey …


 Managing Risks




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   22
Facilitating your process journey …


 Estimation and Load Balancing




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   23
Facilitating your process journey …


 Practical Approaches


                                                                Involve your customer

                                                                        Provide strong
                                                                          leadership
                                                                         Communicate
                                                                          effectively
                                                                   Promote a process
                                                                 improvement lifestyle

                                                                             Have fun!



11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   24
Facilitating your process journey …



                                     Bottom Line

                                           Provide dedicated
  Focus on the goal                         and committed                                          Learn from others
                                               resources


                                                                           Provide strong
                    Learn from your
                                                                           management
                       mistakes
                                                                              support


11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC    25
Facilitating your process journey …


 Some Parting Thoughts
                                     I believe the true road to preeminent success
                                      in any line is to make yourself master in that
                                                 line. - Andrew Carnegie


                                    The three great essentials to achieve anything
                                      worthwhile are, first, hard work; second,
                                      stick-to-itiveness; third, common sense. –
                                                     Thomas Edison


                                      It's very important that you find something
                                       that you care about, that you have a deep
                                      passion for, because you're going to have to
                                      devote a lot of your life to it. – George Lucas
11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   26
Facilitating your process journey …


 LG Insurance Sector Video




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   27
Facilitating your process journey …


 Questions




11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   28
Facilitating your process journey …


 PPQC Services
                               Consulting
                               • CMMI
                               • Software Engineering
                               • Systems Engineering
                               • Process Improvement



                               Appraising
                               • SCAMPI A, B, C
                               • Gap Analysis




                               Training
                               • CMMI
                               • Process Improvement
                               • Action Planning Workshops
                               • Measurement and Analysis
                               • Process Area Specific Training
11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   29
Facilitating your process journey …


 Contact Information - 1
      Address:                            Henry Schneider
                                          President/Senior Principal Consultant
                                          Process and Product Quality Consulting, LLC
                                          2111 Heather Green
                                          Houston, TX USA 77062

      Phone:                              281-218-6682

      E-mail:                             ppqc@comcast.net

      Web Site:                           www.ppqc.net


11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   30
Facilitating your process journey …


 LG CNS Services
     Best Service… from Consulting to Operation

                                                            Consulting


                                                                                                                 System
                                                                                                                 Integration/
             IT Outsourcing             ITO                                                 SI/SM                System
                                                                                                                 Management



                       Business
                        Process                BPO                                         NI                Network Integration
                    Outsourcing


11/12/2007                ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC                31
Facilitating your process journey …


 Contact Information - 2
      Address:                            Seung Wook Bang
                                          Quality Consulting Team
                                          Quality Innovation Sector
                                          Technology Service Division
                                          Solution Business Unit
                                          LG CNS #B5-3, DMC
                                          Sangam-dong, Mapo-gu
                                          Seoul, Korea, 121-270

      Phone:                              82-2-6710-4333

      E-mail:                             swbang@lgcns.com


11/12/2007            ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC   32

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Beating the Odds – A Tale of One Company’s Rapid Rise to Maturity Level 5

  • 1. Facilitating your process journey … Beating the Odds: A Tale of One Company’s Rapid Rise to Maturity Level 5 Henry Schneider Process and Product Quality Consulting, LLC Seung Wook Bang LG CNS 7th Annual CMMI® Technology Conference November 12 – 15, 2007
  • 2. Facilitating your process journey … Agenda Success Lessons Intro Overview Summary Story Learned 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 2
  • 3. Facilitating your process journey … Time to Move Up 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 3
  • 4. Facilitating your process journey … LG Products 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 4
  • 5. LG CNS is a Reliable IT partner that Thinks of the Customer’s Future Established Year 1987 CEO & President Chae-Chol Shin 7,300 people Employees (including overseas subsidiaries) Sales 2.1 billion USD (2006) Business Domains Consulting, SI/SM, NI, ITO, BPO 5 divisions / Organization 3 divisions under the direct control of the CEO Overseas USA, Brazil, Europe, India, Indonesia, Subsidiaries Japan and China *As of June 2007 Copyright © 2007 LG CNS Co., Ltd.
  • 6. Best Service… from Consulting to Operation Consulting System Integration/ IT Outsourcing ITO SI/SM System Management Business Process BPO NI Network Integration Outsourcing Copyright © 2007 LG CNS Co., Ltd.
  • 7. Facilitating your process journey … LG CNS, LG Insurance Sector • System maintenance organization for LG Insurance LG Insurance Sector • Financial software products Process • CMMI Maturity Level 3 October 2004 Improvement • CMMI Maturity Level 5 October 2005 Milestones 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 7
  • 8. Facilitating your process journey … LG Insurance Sector 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 8
  • 9. Facilitating your process journey … Learning It is the true nature of man to learn from mistakes, not from example – Sir Fred Hoyle 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 9
  • 10. Facilitating your process journey … Critical Success Factors Korean Management Culture Commitment Short, Corporate Repetitive Resources Cycles Low Six Sigma Employee Focus Turnover 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 10
  • 11. Facilitating your process journey … Management Commitment Prevalent Walk the Walk Teams Proper Given Attention Power 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 11
  • 12. Facilitating your process journey … Corporate Resources Provide internal Establish local Leverage consulting and Train local staff SEPGs lessons learned appraisal services Corporate SEPG group works directly with each LG CNS division 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 12
  • 13. Facilitating your process journey … Six Sigma Focus 5. 1. Define Control 5 Optimiz- ing 4 Quantitatively 4. 2. Managed Improve Measure 3 Defined 3. Analyze 2 Managed 1 Initial 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 13
  • 14. Facilitating your process journey … Low Employee Turnover Team members happy, Between 2003 and 2005, enjoyed job assignments, the LG Insurance Sector and motivated to had the lowest employee improve processes and turnover rate in LG CNS procedures 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 14
  • 15. Facilitating your process journey … Short,Repetitive Cycles Project Life Cycle Statusing Analyzing Testing Measuring Reporting 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 15
  • 16. Facilitating your process journey … Korean Culture Minimal resistance Strong element of team work Strong sense of pride Personal identification Doing whatever it takes 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 16
  • 17. Facilitating your process journey … Planning In preparing for battle I have always found that plans are useless, but planning is indispensible. – President Dwight D. Eisenhower Good tactics can save even the worst strategy. Bad tactics will destroy even the best strategy. – General George S. Patton 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 17
  • 18. Facilitating your process journey … Challenges LG Insurance Sector faced many challenges with High Maturity concepts 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 18
  • 19. Facilitating your process journey … Achieving Consensus 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 19
  • 20. Facilitating your process journey … Identifying Innovations 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 20
  • 21. Facilitating your process journey … Causal Analysis 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 21
  • 22. Facilitating your process journey … Managing Risks 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 22
  • 23. Facilitating your process journey … Estimation and Load Balancing 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 23
  • 24. Facilitating your process journey … Practical Approaches Involve your customer Provide strong leadership Communicate effectively Promote a process improvement lifestyle Have fun! 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 24
  • 25. Facilitating your process journey … Bottom Line Provide dedicated Focus on the goal and committed Learn from others resources Provide strong Learn from your management mistakes support 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 25
  • 26. Facilitating your process journey … Some Parting Thoughts I believe the true road to preeminent success in any line is to make yourself master in that line. - Andrew Carnegie The three great essentials to achieve anything worthwhile are, first, hard work; second, stick-to-itiveness; third, common sense. – Thomas Edison It's very important that you find something that you care about, that you have a deep passion for, because you're going to have to devote a lot of your life to it. – George Lucas 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 26
  • 27. Facilitating your process journey … LG Insurance Sector Video 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 27
  • 28. Facilitating your process journey … Questions 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 28
  • 29. Facilitating your process journey … PPQC Services Consulting • CMMI • Software Engineering • Systems Engineering • Process Improvement Appraising • SCAMPI A, B, C • Gap Analysis Training • CMMI • Process Improvement • Action Planning Workshops • Measurement and Analysis • Process Area Specific Training 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 29
  • 30. Facilitating your process journey … Contact Information - 1 Address: Henry Schneider President/Senior Principal Consultant Process and Product Quality Consulting, LLC 2111 Heather Green Houston, TX USA 77062 Phone: 281-218-6682 E-mail: ppqc@comcast.net Web Site: www.ppqc.net 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 30
  • 31. Facilitating your process journey … LG CNS Services Best Service… from Consulting to Operation Consulting System Integration/ IT Outsourcing ITO SI/SM System Management Business Process BPO NI Network Integration Outsourcing 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 31
  • 32. Facilitating your process journey … Contact Information - 2 Address: Seung Wook Bang Quality Consulting Team Quality Innovation Sector Technology Service Division Solution Business Unit LG CNS #B5-3, DMC Sangam-dong, Mapo-gu Seoul, Korea, 121-270 Phone: 82-2-6710-4333 E-mail: swbang@lgcns.com 11/12/2007 ®2007 ***Proprietary*** All Rights Reserved - Process and Product Quality Consulting, LLC 32