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What Is Quality


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Agenda …


General discussion on quality
Technologies of business quality programs
Technology is never about the technology, but rather it’s about the relationships involved
Tying quality efforts to strategic planning
Business Structures to encourage quality
What type of leadership is causing quality programs to fall short of their potential?

Published in: Technology, Business
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  • 1. What is Quality? or, Search for the “Holy Grail” “In the next century, a company will stand or fall on its values” Robert Haas, CEO Levi Strauss Lecture Series by Jim Maginnis Organizational Kinetics Copyright 2001 - 2009 1
  • 2. General Agenda  General discussion on quality  Technologies of business quality programs  Technology is never about the technology, but rather it‟s about the relationships involved  Tying quality efforts to strategic planning  Business Structures to encourage quality  What type of leadership is causing quality programs to fall short of their potential? 2
  • 3. Table of Contents: Quality…  …in thought, education, government, software, service, data, ethics, and culture (Lecture 1 of 6)  …in self-reflection, encouragement, double- loop learning, vision, and change (Lecture 2 of 6)  …in risk assessment, process metrics, project management, and problem definition (Lecture 3 of 6) 3
  • 4. Table of Contents: Quality…  …in a system development life cycle, architecture, team building, and release (Lecture 4 of 6)  …in control tools, quality assurance, process reengineering and management (Lecture 5 of 6)  …in integrity, business strategy, leadership, and organizational kinetics (Lecture 6 of 6) 4
  • 5. What is Quality? … in thought, education, government, software, service, data, ethics, and culture It is difficult to sustain honest leadership in a corrupt culture or corrupt leadership in a honest culture. Lecture 1 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 5
  • 6. Discussion on Quality: What Is Quality In Thought And Statement?  Unity, authority, organization, engaging, vividness, economy, sensitivity, clarity, emphasis, flow, suspense, brilliance, precision, proportion, depth, and so on… – Unity can be improved with an outline – Authority can be improved with footnotes and references to seriously reviewed sources – Etc…  Pirsig‟s Metaphysics of Quality 6
  • 7. For Example, What Is A Quality Introduction And Conclusion?  Introduction – Grab interest and inspire the reader – Provide paper thesis, purpose, or message – Problem description, alternatives, and solution – Sell the author as the best person for delivery  Conclusion – Restate thesis – Summary of key lessons learned 7
  • 8. Quality Writing Is A Process  Develop and track efficient work habits – Project journal should include all references  Identify the audience and resources  Clarify in your mind what you want to say – Storyboarding uses a sequence of images  Begin with an abstract, intro, and outline  Flesh out the outline (keep asking why)  Have others read and critique the work  Write each chapter, repeating the above 8
  • 9. What is Plagiarism?  Taking credit for the words / work of another  Quoting someone‟s entire paper is no better  Summarizing/paraphrasing still not original  Many say that without a Doctorate, though, one is not capable of an original thought, but – Percy Spencer held 225 patents, including for the microwave, with only a third grade education – HP and Atari turned Jobs/Wozniak away without college educations, so they started Apple Comp. – Dropouts started Microsoft, Dell, Oracle, Honda 9
  • 10. By what measure does something get into a museum?  By its excellence – ---------------- It‟s the Best! No! It‟s the First Quality is first about being unorthodox  It is when we allow an individual, in fact, to redefine quality for the majority. An item makes it into a museum for its historical significance in changing our perspective.  Einstein was rejected by every instructor through college, ending up a patent clerk 10
  • 11. NOT All Opinions Are Valid! Hypotheses or Check with Valid Opinion Intelligent hunch IPO Analysis and Action (Input) (Processing) (Quality Output) Textbook All questions Theory and Controlled Critical Thinking means are “valid” Experiences identifying assumptions, issues, and criteria for “Wishful Thinking” judgment for making or “Blowing Smoke” sound conclusions “Peacock” or “Weasel” 11 from the evidence.
  • 12. Social Critical Theory  Aimed toward critiquing and changing society by relating the parts of society to its whole just as Copernicus revolutionized astronomy by taking into account the position of the observer  Derived from Kant‟s (1700s) arguments for the use of synthetic reasoning, “thoughts without content are empty, and intuitions without concepts are blind” as well as Marx (1800s), “philosophers have only interpreted the world in certain ways; the point is to change it.” 12 Quality is being an effective change agent
  • 13. How is Murphy‟s Rule involved?  First: “If there is any way to do it wrong, some sod will do it.” or “The universal aptitude for ineptitude makes any human accomplishment an incredible miracle.”  People always refuse the right answers  Mutated: “It‟s not my fault, predictably bad things can‟t be planned for” was written by Larry Niven. This mimetic drift clearly demonstrates Murphy's Law acting on itself!  Corollary: Any system which depends on human reliability is inherently unreliable. 13
  • 14. Instead, Management by Fact  Companies are moving away from relativistic management by opinion or a “soft” science – where only subjective “feelings” define truth » “I know it in my gut!” is the worst reasoning! » Failure seen only in terms of extenuating circumstances  Firms are “teaming” to collect and use hard numbers to achieve desired achievements – Establish baseline and target, calculate gap, find problems, develop and implement a improvement process, track with ~6 key metrics and adjust 14
  • 15. Management by Fact (cont)  Starts with the establishment of a vision with objectives and appropriate measures.  And, industry and customer quality standards  Reduce errors & patching and upgrade time  Identify & answer critical business questions  Key aspect of Total Quality Management  Tools include Oracle‟s E-Business Suite ( and the Balanced Scorecard ( 15
  • 16. America‟s Dark Legacy  The Alien and Sedition Acts of 1798  “The only good Indian is a dead Indian”  Economy based on horrific slave treatment  Suspension of habeas corpus in Civil War  Banning Chinese immigration 1882-1968  Kidnapping & internment camps in WWII  Blacklisting witch hunt in the McCarthy era  Harassment of Martin Luther King, Jr. et al  Corruption of law enforcement and education 16
  • 17. Governmental Corruption  Excludes the poor  Marginalizes the middle classes  Destroys the base of natural resources  Weakens the economy The public continues to be apathetic about crime and misconduct as long as it is contained. Successful reform must thusly be directed at enhancing the national culture. 17
  • 18. Solution Characteristics  Locally empowered actions must cover both the public and private sectors with systems of investigation, prosecution, and education  Oversight of elected and non-elected officials  Sources must be addressed by long-term Societal, Holistic, and Networked Strategy  Powerful auditing organizations backed by specialized anti-corruption legislation  Citizen participation with free & open press 18
  • 19. Problems Solutions Immediatism Long-term policies that incorporate short and medium term results Sectoralism Integral, holistic policies and programs with information territorial approach Bureaucratism Networked, ends-oriented, problem-solving, and opportunity seeking orientation Governmentism Leadership of government, civil society, through consultative, participatory, partnership seeking, networked approach Corruption 100% transparency and 0% tolerance for corruption Lack of Combine traditional and non-traditional Resources resources 19
  • 20. What‟s Wrong With Education?  World‟s worst for 3 R‟s but #1 in self-esteem  The greatest correlation is with teachers! – Student scores vary more than 20% by changing teachers – 2-6 times as by grade, school, or district – Typical teacher is an academic underachiever from bottom third of test scores and can‟t pass GED, ETS Math test, or Mass. Educator Certification – 16th highest paid profession (CNN: “Best Job”)  People refuse to see that quality is measurable, that the problem lies inside the room, and the 20 world cannot be divided by “us and them”
  • 21. How To Get Better Teachers  Milken Teacher Advancement Program (TAP) – Performance-based accountability and merit pay based on long-term student progress – Professional growth with evaluated teaching – Multiple career paths (associate, mentor, master) – Market-driven compensation (e.g.: more for math) – Expanded supply of high quality teachers  9 states (30% of students) have TAP initiatives – Arizona, South Carolina, Colorado, Florida, Georgia, Michigan, Pennsylvania, Texas, Virginia 21
  • 22. Good Teacher Causal Predictors  Coursework and certification in subject area  Prestige of degree institution and advanced degrees, especially for secondary schools  Pedagogical coursework, but ONLY when coupled with advanced content knowledge  High literacy and verbal test scores  But, NOT the National Teachers Exam!  NO value in the national teacher certification! 22
  • 23. What Is Quality?  “A Degree of Excellence” (Webster‟s Dictionary)  Better => The fitness for use, The ability to meet intended customer expectations and produce customer successes With increasing efficiency, and The viral cultivation of quality in all involved 23
  • 24. Quality Discussion Summary  A constant despite no consensus on how to describe it or which paths will best achieve it  Requires originality, change, and accountability which requires that dissention be encouraged  Good objective & subjective metrics come from matching internal freedoms & external controls where everybody leads, is responsible, and acts.  Quality is systemic - not heroes and villains  Modeling integrity with “walking the talk”  Long term results are more important 24
  • 25. The Value of Quality  The Malcolm Baldrige National Award is given by the President to organizations judged to be outstanding in seven areas: leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results.  From 1995 through 1999, winners of the Malcolm Baldrige Quality Award outperformed the S&P 500 by 6.5 to 1 25
  • 26. Key Areas of Quality Concern  Software  Customer Service  Data  Internet Web Production Environment Where All Three Are Combined Presented concepts are just as useful for governmental and community groups. 26
  • 27. Aspects of Software Quality  Flexible: Continuously Evolving  Reusable: Optimal Code Productivity  Maintainable: Able to Be Quickly Repaired  Integration: Couple Products Together Easily  Scalable: able to handle large loads  Consistency: Rapid Learning and Use  Usable: Optimal User Productivity  Reliable: Maximizes System Productivity  Functional: Able to Produce 27
  • 28. Aspects of Service Quality  Timeliness: Customer Waiting  Completeness: Customer Gets All Asked for  Courtesy: Treatment by Employees  Consistency: Same Level of Service for All  Accessibility and Convenience  Accuracy: Performed Right Every Time  Responsiveness: Reactions to the Unusual 28
  • 29. Aspects of Data Quality  Timeliness: Quick to Acquire and Provide  Integrity: Appropriate and Secure  Accuracy: Regular Consistency Checks  Completeness: All the Customer Needs  Duplications: Regularly “Cleaned” Data (on both the front and back ends) 29
  • 30. Ethical Issues Framework – Privacy – Property » Collection, storage, » Ownership and value and dissemination of of information and information about intellectual property individuals – Accuracy – Accessibility » Authenticity, fidelity, » Right to access and accuracy of information as well as information collected appropriate barriers and processed (e.g. fees) to access it 30
  • 31. Characterizations of Quality  Producer and user perspectives  Teams and Quality Management Principles  Change Management and grabbing their hearts  ISO 9001 and Six Sigma statistics processes  Key Financial, Product, Customer Satisfaction, and Process Metrics => Metrics Action Team  Process Control Tools: Root-cause, Fishbone  SDLC Development models and methods  Completing business context and real testing  A competitive weapon and company “glue” 31
  • 32. Perspectives on Quality The Meaning of Quality Producer's User's Perspective Perspective Quality of Quality of Conformance Design Production ----------------- ----------------- Marketing Work Process Sturdy, Easy Cost to Use, Price Product Fitness 32
  • 33. Team vs. Workgroup  Japanese companies have successfully been using quality circles while no one has in U.S. – Quality Circles need to be Workgroup based  Most 12-step programs fail within a church – 12-step is a Team based organizational process  Work Groups have “Bosses” that lead  Teams are based on equal participants that are guided by a pre-agreed Team Charter 33
  • 34. What is a Team Charter?  A team charter is a critical defining method for spelling out and gaining consensus on the role and responsibilities of all team members  Cannot be created after the culture develops  Problem Statement, Project Mission and Scope, Business Case, Values, Resources, Customers, Deliverables, Success Metrics, Key Milestones, Team Member Expertise and Commitments plus Expectations and Consequences, and Communication Plan 34
  • 35. Team Success Causal Predictors  Well Defined Structural Elements – Shared team vision and management – Clear and agreed agenda and roles – Conflict Management Strategy spelled out  Positive Interdependent Behaviors – Group encouragement of innovation and diversity – Effective collaboration and decision making » Information and help is freely shared » All team members are equally responsible – Effective time management during all meetings 35
  • 36. Start by Examining the Processes Process Quality Framework = “Best Practices” – Process Definition and Modeling » ISO 9000:2001 and SEI CMM models » OPEN and Rational Unified Processes (RUP) » IDEAL, Bellcore TR-179, and SPICE methods » Bootstrap, Healthcheck, Trillium, GQM, and Tick-IT » Function, Behavior, Organization, and Information – Assessments (Benchmarking & Data Analysis) – Process Improvement Programs – Continuous Measurable Improvement (CMI) 36
  • 37. Quality Management Principles  Customer Focus: Meeting customer needs with an aim of enhancing their satisfaction (more importantly, though, their successes)  Leadership: Sound leadership skills must be demonstrated within the organization.  Involvement of People: People are the most valuable resource, and thus should be party to all decisions and activities. The more important the information, the more people that should see it (right to know). 37
  • 38. Quality Management Principles  A Process Approach: An object-oriented management outlook of the business as a system of processes and interactions, based on some sort of iterative plan-do-study-act cycle approach.  A Systems Approach: A holistic awareness of the systems in place and relationships will enhance products and services as well as the satisfaction of internal and external customers. 38
  • 39. Quality Management Principles  Continual Improvement: By knowing what the organization does and how well, one can identify ways to continually improve both the systems and their processes.  A Factual Approach: Business performance and the quality of products and services are best improved by the analysis of data, internal audits, and management reviews. 39
  • 40. Quality Management Principles  Mutually Beneficial Supplier Relationships: Sharing organizational and customer needs with suppliers to gain in terms of decreased costs and improved performance.  These principles are intended to… – Provide a clear statement in a business framework – Provide management an understanding of benefits – Provide an understanding that will facilitate a successful culture for the ISO9001 standards 40
  • 41. What is Change Management?  Mapping cultural to technology changes  73% of CEOs see cultural factors as most key  Requires flexible, iterative, dedicated, well- funded processes with full executive support  Human Capital Perf. Management (HCP) is results driven to better employ, deploy, develop, evaluate, and integrate a workforce  Focuses on how things are done rather than just what is done using Balanced Scorecards 41
  • 42. The Change Wheel identifies critical success factors that will facilitate program success 42 (From
  • 43. 43 (From
  • 44. Organizational Culture Unwritten Expectations, Values, Norms  Core attitudes, values, Rules, Policies, Core Beliefs & Assumptions Language and and Slogans Behaviors and behavioral norms Stories, Legends, Control Systems collectively valued by and Heroes Symbols organizational members Rites, Rituals, and Ceremonies and Artifacts – Rituals, rites, ceremonies – Stories, legends, heroes Language – Rules, policies, slogans Rituals Customs – Language and behaviors Organization – Control systems – Symbols and artifacts Legends Values 44
  • 45. Translating Core Characteristics  Language Metaphor, jargon, and communication styles  Customs Standard practices and norms  Values Guiding principles, mission statements, and philosophy  Legends Founder stories and critical incidents  Rituals Annual award presentations and promotion ceremonies 45
  • 46. Culture Effectiveness Continuum (Banner & Gagne) Ineffective  Reactive: Meet challenges with action; always struggling to keep up  Responsive: Good in stable environment, but not in dynamic one  Proactive: Analytical, anticipating emerging trends and always adapting  Interactive: Vision based, functions as a whole, focuses on connectedness Effective  Inspired: Goes beyond constraints 46 (From
  • 47. Organizational Socialization  Formal – Orientation Programs – New Employee Training – Employee Handbook – Job Rotation  Informal – On-the-job Training – Supervisor/Coworkers  Mentoring – Experiences – Career Functions – Word-of-mouth – Psychosocial Functions 47
  • 48. Organizational Psychology  All organizations exhibit psycho-pathology – St. John‟s Syndrome and Koinonitis – Manic and Manic-Depression (Bi-polar) » Grandiose plans, sense of invincibility » Respond with structure and performance plans – Schizophrenia » Need to define mission and better time management – Common Paranoia » Even successful intervention will make you unpopular – Narcissistic, megalomaniacal, and theomanic 48 Cohen and Cohen, The Paranoid Corporation
  • 49. Organizational “Shrink”  Any organization that does not perceive its own pathology, will destroy itself – Refuses to see internal problems and then projects troubles on external sources  Mental health starts with consciousness – Serge and others top management consultants refer to this as “presence” – Determine if the current solutions have been coerced 49
  • 50. Stick to Coaching and Not Therapy  Do‟s (focus on future and goals) – Develop a balance by clarifying core values – Help set better and more meaningful goals – Encourage and provide the tools, support, and structure for people to do more on their own  Don‟t (focus on past or present) – Don‟t work on “issues” or delve into the past – Don‟t try to change personality structures – Don‟t try to make better any psychic pain, anxiety, depression, or sexual dysfunction 50
  • 51. Defuse Anger and Agree  Plan Ahead: your bottom line, their substitute, everyone‟s interests, and possible outcomes – Let your secret Plan-B dictate your Plan-A  Emotional control and reduce tension  Persuade by focusing on interests, not positions  Consider Authoritative, Righteous, Win-win, and Relationship-building options…  With both distributive and integrative solutions 51
  • 52. Negotiating with a Narcissist  Repeatedly find agreements, even the weather, and get closure (confirm and leave a topic)  Sitting is better than standing for being calm  Never validate their self-destructive delusions  Avoid trying to disprove their perceptions  Be assertive and keep positive: never say, “No”  No hedging or dilution: no, “I feel awful, but”  Ask questions that include their cooperation 52
  • 53. Handling the Neurotic  All organizations exhibit neuroses – Conspicuous consumption – Constant need to check on employees – Shoot the messenger  Complaining never works as it just makes them more neurotic. Better to overload them with unimportant information and kindness – Prevalent depression → well-being attacked – Denial → meet with one-on-one mirroring – Compulsive → meet with best failure awards 53 – Post-trauma → “distraction therapy”
  • 54. Negotiating with a Personality Disorder  Rigid & adversarial relationship perspectives – Chronic inner distress (fear of abandonment) causes excessive need for controlling others – Experts at blaming others (rather than self) – Lying is often justified to an ends or revenge, likely to call others statements into question, with an intensity likely to fool the naive person  Seeks jobs as councilor, teacher, cop, religious authority, as well as organizational leadership  Only motivated by his own personal reasons 54
  • 55. P. A. S. S. Emotional Needs  Power: often by the “power of the purse”  Affiliation: identity that is different from how they see themselves today  Status: need to feel important and visible  Security: they will be safe  In general, Personality Disorders are more focused, better organized, and with superior social skills (due to need to control others); so, they‟ll win head to head, being smarter 55
  • 56. Handling the Personality Disorder  Reduce anxiety (esp. fear of abandonment)  Calmly maintain control of conversation  Slow down, talk slowly, brainstorm solutions, to keep the conversation simple and focused  Encourage them to be part of the solution to support their feeling of maintaining control  Show how giving up can be winning control by identifying their particular strengths  Bipolar are the most difficult to predict 56
  • 57. Types of Personality Disorders  Borderline Personality Disorder: wide mood swings, rage, idealization and devaluation  Narcissistic Personality Disorder: feels superior and entitled to special treatment  Histrionic Personality Disorder: needs chaos  Anti-social Personality Disorder: disregard for societal rules with very little empathy  Dependent Personality Disorder: preoccupied with helplessness and passivity 57
  • 58. Negotiating with a “Normal”  30% are Neurotic (blaming themselves), 15% Personality Disorder (blaming others)  45% are not primarily motivated by their repressed fears and emotions, but still have a strong emotional content to decision making  What to say when a customer is wrong? “You’re right! ...and there are many people who feel the same way. From years of experience, [NO however] I’ve found that in fact (insert the truth)... etc.” 58
  • 59. Proxemics and First Impressions  Humans (& animals) make territorial claims – Walking behind a desk can be very invasive – Americans are especially space conscious  Malcolm Gladwell‟s book, Blink, showed how critical is our 5-second first impression – When a new prospect finds your web site, you have five seconds to convince them to stay – People enjoy being right, so they will continue on a poor, but immediately attractive, web site 59
  • 60. Discussion Question How is performance currently being measured and data collected in your organization? How is success measured and/or quality defined? Does your organization tend to fix with short-term patches or fully diagnose? Is it more neurotic (blaming employees) or PD (blaming others)? What type of cultural changes might be required for a new perspective on quality? 60
  • 61. 10-Minute Break… Question: What do you get what you cross an instructor with a spud? Answer: A Facili-Tator 61
  • 62. What is Quality? … in self-reflection, encouragement, double-loop learning, vision, and change Change agents create fit products with increasing efficiency while cultivating excellence in all involved. Lecture 2 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 62
  • 63.  “Today‟s illiterate are not be those who cannot read or write, but those who cannot learn, unlearn, and relearn.” --Alvin Toffler  “It is not the strongest or most intelligent of the species that survive, but the one most responsive to change.” --Charles Darwin  “Willingness to change is a strength, even if it means plunging part of the company into total confusion for awhile.” --Jack Welch, GE  “It is the change agent‟s duty to prepare the organization for change. So, he or she must be able to take the pulse of the organization to assess readiness.” --Dr. Richard Bryteson 63
  • 64. Self-reflection and Differentiation  Fahrenheit 451‟s solution was to remember, build mirrors, and contemplate for a year  Six-Sigma helps identify, develop, & nurture effective and efficient internal change agents  Members should first reassess effectiveness of their individual coping strategies  Motivation to change (“unfreezing”) comes usually from growing anxiety with reduced blaming (hitting “bottom” and surviving) 64
  • 65. The Successful Professional is…  Motivated, strong work ethic, feels accountable  Flexible, creative, and open minded  Intelligent, w/ common sense (“street smarts”)  Able to shift to organizational ecology as focus  Open to peer supervision  Likely to volunteer to be trained  Willing to modify policies & dedicate resources  Ability to take the “lead” in decision making 65
  • 66. Personal Pareto Analysis (80% of results comes from 20% of work)  Know what is important to boss and customer  Prioritized H/M/L to-do list that all agree on  Uninterrupted time for correspondence  Personal brainstorming when most alert  Consensus on performance goals with boss  Organized office & calendar, ready for fires  PERT chart for all projects  Delegate, Listen, and Network well  Daily exercise, alone, friends, and good sleep 66
  • 67. Change Agents  We can all be agents of change “The process of – Change-agent skills are as unleashing important to our success as our expertise to implement professional discipline skills organizational – The purpose of our jobs is to change change what needs changing by for the purpose adding value each and every day of improving – Foresight, flexible, and responsive performance” (Swanson &  Competence maintains the system Holton, p. 260)  Expertise changes the system 67 Development
  • 68. Preparing Others for Change  Change Readiness: It is the change agent‟s duty to prepare the group for change by conveying credible positive expectations as well as providing empathy and involvement  Building A Shared Vision: The participants in a change process must see what the pain and work of the change process will bring them – the change agent must build a vision with them and continually communicate it  Develop Political Power: Assess support 68
  • 69. Sources of Power Strategies Individual Sources Power Strategies of Power Knowledge Knowledge Playing it Straight Others’ Others’ Support Using Social Support Networks Personality Getting Around Personality Formal System 69
  • 70. Elizabeth Kubler-Ross Model Deal to skip: Detail benefits Sabotage: Acknowledge anger Blame game: Focus on root Shoot messenger: ID poor behavior cause Withdrawal: Focus on problem Owns solutions: Use as Coach Focus on benefits: Provide recognition Forget it: Review business case Apathy: Emphasize inevitability No Control: Stepwise w/ follow-up Rationalize: Allow to sink in Absenteeism: Reinforce positive (adapted from 70
  • 71. All In A Day‟s Work  A structured approach to changing others begins with a planned mind-body focus to building personal intervention strategies – Stress management, relaxation therapy, etc 71
  • 72. Kurt Lewin‟s Change Theory 72 Unfreezing Changing Refreezing
  • 73. Three Steps of Successful Change  Kurt Lewin asserts that successful change requires unfreezing the status quo, changing to a new state, then refreezing the new change to make it permanent. Moving away from the equilibrium can be achieved in three ways: – The driving forces, which direct behavior away from the status quo, can be increased. – The restraining forces, which hinder movement away from the status quo, can be increased. – The two approaches can be combined. 73
  • 74. Unfreeze – Break Frame of Reference  Create crisis to motivate people for change  Arouse dissatisfaction with the current state – Tell them about deficiencies in the organization – Expect instability as people lose old beliefs  Get people involved in decision making  Users may prefer to leave than endure – These feelings and attitudes need to be managed and understood 74
  • 75. Unfreeze – Emotional Support  Insecurity, anger and self doubt part of user's perception of themselves, the new system and the changes being introduced  Build in rewards – Tie rewards to change/use recognition, status symbols, praise to get people to go along  Strengthen top executive support – Need to break down power centers 75
  • 76. Change / New Ways to Work  Establish new beliefs and behaviours  Line management should provide the direction  Establish clear goals and timelines  Institute smaller, acceptable changes that reinforce and support the bigger picture – Procedures, job descriptions, reporting  Develop management structures for change – Plans, strategies, mechanisms that ensure change 76
  • 77. Change – Second Stage  Begins when employees start to understand changes will benefit them and the company – Recognise and accept the whys and wherefores  Assistance is required at this stage – Assist line management in establishing change – involve users and introduce them to the system – dispel the myths and rumours – communicate to users how to use the system 77
  • 78. Change Communication  Maintain open, two-way communication – What people don‟t know & understand is a problem  Communicate how it will effect people – Allay any unfounded fears users might have  Stop the “rumour mill” – Newsletters, mail, bulletins, meetings – Technicians must often deal with users‟ issues without understanding fully the broad business rationale 78
  • 79. Refreeze – No Going Back!  When the new way to work has arrived  Celebrate “death” of the old system  Cannot assume „refreezing‟ is end of process or ever takes place  Further change must be anticipated….  Develop institutionalizing structures – Organizational appropriate retreats, technologies, and performance appraisals 79
  • 80. Refreeze Support  Not sufficient to install / implement new system with or without enthusiasm of users  Need ongoing support and training for as long as it takes to become institutionalised  Build success experiences – Set and work towards targets for change  Reward desired behavior – reward behavior that reinforces changes – reward use of old system during interim 80
  • 81. FORMAL (OVERT) ASPECTS • Goals • technology • structure • policies and procedures • products • financial resources INFORMAL (COVERT) ASPECTS • perceptions • attitudes • feelings • informal interactions • group norms • values • beliefs and assumptions 81
  • 82. Organizational Culture Recap  It‟s like an Iceberg or an Onion – Little shows on the surface and under many layers  Lasting change requires new beliefs  Organizational Development (OD) aims to: – Deepen the sense of organizational purpose and strengthen interpersonal trust – Encourage problem solving rather than avoidance – Supplement formal authority with knowledge and skill based personal responsibility for change 82
  • 83. Organizational Development (OD) avoids the usual “quick-fixes”  A long-term effort to improve visioning, empowerment, learning, problem-solving, and well-being using a collaborative management of the organization culture via interventions – Intergroup development – Process consultation – Sensitivity training – Survey feedback – Team building  Utilizing the consultant-facilitator role and 83 applied behavioral science, i.e. action research
  • 84. Organizational Surveys  Identify perception discrepancies  Identify group‟s unique qualities – Discovery of organizational strengths – Dreaming of the future organization – Design of a common vision – Destiny for how to fulfill the dream Data Collection Feedback Develop Action Plans Employees Through group Feelings about the complete discussions, build organization are surveys to provide specific plans for summarized and information about overcoming problems problems in their shared with all are identified organization employees and developed 84
  • 85. Other OD Change Activities  Inter-group confrontation: Each group lists its complaints about others as well as what are common complaints against itself  Process consultation: Feedback & coaching to help groups finds their own solutions  Organizational mirroring: Focal group gets feedback about how it is perceived  Role negotiation: negotiate an increase, decrease, or status quo in other‟s behaviors  Life and career building & Team building 85
  • 86. 86
  • 87. Creating a Learning Organization Einstein was once asked, “What is the most powerful force in the Universe?” He said, “Compound Interest.”  Outdated… – R & D as disengaged “Think Tank” – DoD Research (extra 7- 15 years to use research) – Incubators » Not About New Ideas 87
  • 88. Technology Research Slowdown  Management still based on the Roman Army  Still using coal burning plants for additional electricity (such as for electric cars)  Car engines mostly unchanged for 140 years  E-mail basically unchanged in 30 years  Only one new programming language (Java)  Bell Research Labs was broken up  IBM now predominately a service company 88
  • 89. Recursive Improvement Process  Important ideas (vision & strategy)  Champions and teams (passion)  Reliable sources for many smart people from many fields, simple processes, business models, human considerations, etc  Examples… (capture and iterate) – Video Games – by fervent gamers – Open Software Foundation – networks – XML – HTLM to perfection, but only iterative 89
  • 90. Next = Past + Now New Ideas More New Ideas Tool 1 Tool 2 Product 1 Product 2 Product 3 Every product development must include tool development 90
  • 91. How is This Realized?  Networked improvement community  Recursive and persistent  Comprehensive (products, ethics, quality…)  Systematic (A-Task; B-Improve A; C- Improve B to Improve A)  Research efforts should become increasingly networked and open, creative, persistent, comprehensive, and systematic to enable endless technology revolutions 91
  • 92. Creating a Vision  Discern & describe group‟s core ideologies – What are the core values that inform members what is important in the organization? – What is the organization‟s core purpose or reason for being?  Construct the Envisioned Future – What are the bold and valued outcomes? – What is the desired future state? 92
  • 93. Change Management  Practice of ensuring that all changes are done in a planned and authorized manner – Incident identification, corrective measures for problem, RFC research, infrastructure execution  Ensuring that there is a business reason (or business rule) behind each change  Plans and tests each and every change  Creates a back-out plan should the change result in an unexpected state 93
  • 94. Authorization and Planning RFC Request for change Change Manager medium major minor Change Advisory Executive Board (CAB) Committee CAB Meeting Authorization 94
  • 95. The Change Management Process Implement Manage RFC Preparation Categorise Prioritise Refusal Authorise Build Plan CAB Approve Test Release Refusal Backout Implementation Review 95
  • 96. Feasibility Analysis Economic Organizational Feasibility Feasibility Can we afford it? Is it a good fit? Technical Operational Feasibility Feasibility Does the Will it be accepted? capability exist? 96
  • 97. Six Forces For Change  Workforce is more culturally diverse and many employees are lacking in basic skills  Technology is replacing narrow, routine tasks with those requiring team, multi-tasking efforts  Economic Shocks include the Asian real estate collapse and Russian devaluation of the ruble  Competition is more global, involves more mergers, and includes more Internet commerce  Social Trends include delaying marriage, anti- smoking attitudes, and the popularity of SUVs  World Politics include U.S. embargo of Lybia, 97 Soviet collapse, and Black rule in South Africa
  • 98. Managing Planned Change Goals of Planned Change: Improving the ability of the organization to adapt to changes in its environment. Changing the behavior of individuals and groups in the organization. 98
  • 99. The Effective Change Manager  Anticipates the need for change – Rather than reacting to emergencies  Diagnoses the nature of needed change  Makes tough choices of alternatives – Rather than taking the fastest exit  Manages the change process – Making it effective and efficient – Rather than lurching from one crisis to another 99
  • 100. Change Management Activities Motivating Change Creating Vision Effective Developing Change Political Support Management Managing the Transition Decide metrics at commencement Sustaining associated with Momentum incentives 100
  • 101. Action Research Process Steps:  A combination of research and 1. Diagnosis action involving data gathering, 2. Analysis feedback to the client group, 3. Feedback discussion, planning, and action 4. Action 5. Evaluation  Intentional and goal oriented  Linear and continuous Action research benefits:  Then, second-order,  Problem-focused rather multidimensional, than solution-centered  Heavy employee multilevel, radical, involvement reduces and discontinuous resistance to change 101
  • 102. Managing the Transition  Activity Planning – What‟s the “roadmap” for change?  Commitment Planning – Who‟s support is needed, where do they stand, and how to influence their behavior?  Change-Management Structures – What‟s the appropriate arrangement of people and power to drive the change?  Sustain Momentum with support systems 102
  • 103. Hard and Soft Problems UNBOUNDED PROBLEMS Messes Relationship and team building Organizational Development Models for Change Hard Systems Models for Change Project Difficulties management BOUNDED PROBLEMS Technical complexity 103
  • 104. Who‟s Involved?  Sponsor – person who authorizes  Change Agent – who causes change  Target – Subject affected by the change  TQM and CMI  Re-engineering – Incremental – Quantum leaps in improvements performance – Bottom-up – Driven by Top participative Management decision making 104
  • 105. Flexible Manufacturing Systems  Best used with… – High-tech, initiative, self-managing employees – Organizations that use organic structures, teams  Integration of computer-aided design, engineering, manufacturing to produce low- volume products at mass-production costs  Change happens by changing computer programs, not producing new parts – Pratt and Whitney produced 20 new models 105
  • 106. What Can Be Changed?  Culture – underlying values and goals  Structure – authority relations, coordination mechanisms, and job design  Technology – processes, methods, tools, etc  Physical Setting – workplace space, layout  People – skills, expectations, behaviors Culture Structure Tech Physical People nology Setting 106
  • 107. Learning… …is viewed as a transaction between the learner and the environment in which neither can be regarded as fixed… The target of education is “change and growth in the individual and his behavior.” Bradford, Human Forces in Teaching and Learning 107
  • 108. Types of Changes  Anticipatory based on expected situations  Reactive in response to unexpected situations  Incremental course adjustments  Strategic that alter core shape or direction Establish a strategy Managing Redesign the Learning structure Reshape the culture 108
  • 109. Change Perspectives  Tuning – Most common and least risky – Known as preventive maintenance and kaizen  Adaptation – Incremental changes that are in reaction to external problems, events, or pressures  Re-orientation – Also called frame bending (Nadler and Tushman)  Re-creation – Intense and risky, also called frame breaking 109
  • 110. Reactions to Change  On the wrong track  Laughing it off  Growing self-doubt  Buy-in / constructive CHANGE direction 110
  • 111. The Pugh OD Matrix Behavior Structure Context Org. Poor climate: Wrong structure: Wrong strategy: level Feedback survey Change structure Change strategy Lack of Poor Inter- Distance: Brings cooperation: coordination: group groups closer Role negotiation Improve liaison Poor team spirit: Unclear tasks: Poor resources: Group Team building Redesign work Change Tech- level exercises system nology or Staffing Poorly defined Poor HRM Individ Dissatisfaction: jobs: Job application: ual Counseling enrichment Improve HRM 111
  • 112. Lewin‟s Force Field Analysis Driving Forces E Restraining Forces Q People pressing for U People variables change I resisting change L Structure pressing I Structure variables for change B resisting change Task variables R Task variables I pressing for change resisting change U Technology variables M Technology variables pressing for change resisting change 112
  • 113. Why Do People Resist Change?  Surprise – threaten sense of balance  Inertia – desire to maintain predictability  Misunderstanding and lack of skills – seen negatively without remedial training  Sense of powerlessness – forced change can create anger and passive resistance  Lack of trust – when talk is often not walked  Fear of failure – people doubt their abilities 113
  • 114. Why Resist Change? (cont)  Personality Conflicts – managers disliked by management are poor change conduits  Poor Timing – events can conspire to create resentment about a particular change  Lack of Tact – a lack of sensitivity to feelings can create resistance to change  Threat to Job Security  Conflict with social groups or other goals 114
  • 115. Overcoming Resistance  Education and communication – to prevail over misinformation or poor communication  Participation and involvement – bringing those of opposition into the decision process  Facilitation and support – easing adjustment  Economic incentives – too often, however, this can only result in overpaid burnouts  Negotiation and agreement – exchanging something of value for less resistance 115
  • 116. Overcoming Resistance (cont)  Manipulation and co-optation – distorting facts to make them appear more attractive  Explicit and implicit coercion – the use of direct threats or force upon resisters Overcoming Resistance to Change Education and Participation Communication Facilitation Negotiation and Support Manipulation Coercion and Cooptation 116
  • 117. Advantages of Resistance  Forces management to check and recheck each and every proposal  Helps identify specific problem areas where change is more likely to cause difficulty  Gives management information about the intensity of employee emotions on the issues  Provides a means of release of emotions – which causes employees to think and talk more about the changes 117
  • 118. Change Without Pain Easiest to adjust Knowledge Skills Recombine through training and development Demeanor Network Harder to adjust Recombine through coaching and counseling Aptitude Values Traits Largely fixed Recombine through addition and replacement 118
  • 119. The Status Quo Learning Curve Unfreeze Phase Change Phase Refreeze Phase Productivity Time 119
  • 120. The “Performance Dip”  Change naturally produces a performance dip – Chaos and creation go hand in hand  Managers must make it clear that mistakes are acceptable and avoid any kind of punishment for error in a learning environment – Best Failure Award (failing when doing it right)  Stakeholder management, training, feedback 120
  • 121. [whatever]. A motivating 121 (From
  • 122. Politics of Change  Impetus for change is likely to come from outside change agents  Internal change agents are most threatened by their loss of status in the organization  Long-time power holders tend to implement only incremental change  The outcomes of power struggles in the organization will determine the speed and quality of change 122
  • 123. Change Commitment Model change is implemented during this phase (from 123
  • 124. Helzberg‟s Theory of Motivation Recognition Responsibility Motivators Achievement Advancement Personal Growth Job Interest Norm of work output Involvement Salary/Incentive Working Conditions Company policy and administration Status Security Hygiene Fringe benefits Job title Factors Personal Relationships 124
  • 125. McGregor‟s Theories of Motivation X-theory vs. Y-theory  Man dislikes work and  Work is necessary to will avoid it if he can psychological growth  Must be forced to put  People want to be out the right effort interested by work  One would rather be  People can seek and directed than accept accept responsibility responsibility  Self-discipline is more  Man is motivated by effective and severe anxiety about security  Men are motivated by  Most men have little hope to realise potential creativity - except for  Creativity is widely getting around rules! distributed & underused 125
  • 126. Leadership Responsibilities Level of change Unfreezing Movement Individuals (skills, Reductions in Demonstrate new values and attitudes) numbers skills Training Focus New supervision Structure (pay/merit BPR, Business Changes in reward systems, reporting strategy, Metrics, systems, Systems relationships, work Experiential thinking, Reporting design) training relationships Climate or culture Value Statement, More trust and (openness, conflict Customer focus, openness, Feedback management, decision Feedback on database, Shared making) employees’ views vision, Top support 126
  • 127. Just Like a 5-speed Transmission  1st Gear - Strategy – The “it”  2nd Gear - People – Who to do it  3rd Gear - Process – How to do it  4th Gear - Technology – With what to do it  5th Gear - Continuous Improvement – How to do it better 127
  • 128. Discussion Question What is the difference between goal-driven and purpose-driven quality programs?  Goal-Driven  Purpose-Driven – To-do list of short- – To-be list of long- term tactics term core principles – Success defined by – Success defined by achieving goals staying on the path – Afterwards, – Never ending effort program is finished for improvements 128 Is one better? Or, both equally important?
  • 129. 10-Minute Break… Question: What do you get what you cross an instructor with a spud? Answer: A Facili-Tator 129
  • 130. What is Quality? … in risk, process metrics, project management, and problem definition Corollary to Murphy‟s Law: Any system which depends on human reliability is inherently unreliable. Lecture 3 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 130
  • 131. Info Tech Infrastructure Library  Common vocabulary: applied simultaneously with quality improvement methodologies – Service Delivery – Service Support – Implementation Planning – Security Management – Infrastructure Mgt. – Business Perspective – Application Management – Software Asset Management 131
  • 132. MSF and MOF  Microsoft Solutions Framework – Established in 1991, revised in 1999 and 2003 – Software Dev. and Infrastructure Deployment – Such as: and MSF MSF for CMMI MSF for Agile Third-Party In-House Process Software Dev Offerings Customizations Improvement  Microsoft Operations Framework – Based on mature ITIL and PMI PMBOK – Established in 1999, updated 2002 – Concentrates on management of IT operations 132
  • 133. Key Parts of MSF Team Model Process Model Quality Features Risk Management 133
  • 134. Some MSF V4 Templates  Moved away from MS-branded methodologies – “White Label” approach to customization – Ivar Jacobson‟s Essential Unified Process (EUP) – Osellus‟s RUP and CMMI integrated IRIS – Avanade‟s Connected Methods – Conchango‟s Scrum templates – GotDotNet‟s BSDAgile – Cognizant‟s version of FDD 134
  • 135. MS Operations Framework  Three Models: Process, Team, and Risk  Service Management Functions (SMFs) – Processes and policies across service solutions – Better alignment and scalability  “Adopt and adapt” – IT core business – IT cost allocation – Speed solutions 135
  • 136. MOF Team Role Clusters 136 (from
  • 137. Daily Build  Building the product into an executable form on a daily basis is…  A strong indicator that the team is functional  A way to make the product and its progress visible  The heartbeat of the development process 137
  • 138. Ongoing Process of Testing Golden Release/RTM Release Release Candidates Release Readiness Zero-Bug Release Betas Stability Product Test Specification Scope Complete/Alpha Complete Internal Release n (Alpha, Pilot) Internal Release ... Internal Release 2 Project Plan Internal Release 1 Approved Test Plan 138
  • 139. BrightWork Solutions and Tools  Leading provider for managing projects on the Windows SharePoint Services (WSS) – Issue, Task, Bus. & IT Project, Agile Software, and IT Work Managers & Solution Builder – VSTS for your engineering group, and… – SharePoint solutions for everyone else  Sam Guckenheimer‟s PowerPoint entitled “As simple as possible but no simpler” 139
  • 140. Project Management Software  MS-Project  SureTrak Manager  CA-Super Project  Kidasa Milestone  Open Source – NetOffice Project – GNATT Project (open source) – ToDoList (open source) AbstractSpoon Software 140
  • 141. Time Management  Really Action Management – Time is constant, but we choose our action plan – See Getting Thing Done by David Allen  Personal Information Management (PIM) 141
  • 142. The Risk Management Process  Identify, analyze, plan, track, control, & learn 142
  • 143. The Risk Management Mindset Identification Mitigation 2. Mitigation 2. “Java by Avoidance: Project skills not Project Use Visual Finish high Finish Basic (or by enough.” transfer: Out source) Risk 2 Risk 2 Risk 1 Risk 1 1. Mitigation by Conquest: 1. “May not Avoid / Delay, Demonstrate be possible to image super- superimpose Transfer, imposition (or images Project Accept, or Project by delay or by adequately.” tolerance) Start Tolerate Start 143 Adapted from Software Engineering: An Object-Oriented Perspective by Eric J. Braude (Wiley 2001)
  • 144. Building a Risk Statement Asset Threat Vulnerability Mitigation What are you What are you How could the What is currently trying to protect? afraid of threat occur? reducing the happening? risk? Impact Probability What is the impact to the How likely is the threat given business? the controls? Well-Formed Risk Statement 144
  • 145. Defining Roles / Responsibilities Executive Determine Sponsor acceptable risk “What's important?” Information Assess risks Define security Measure security Security Group requirements solutions “Prioritize risks” IT Group Design and build Operate and “Best control solution” security solutions support security solutions 145
  • 146. Security Risk Mgt Process 4 Measuring 1 Assessing Program Risk Effectiveness 3 Implementing Controls 2 Conducting Decision Support 146
  • 147. Why Use A Project Mgt Method?  Poor estimation of duration and costs  Inadequate planning of resources and activities  Lack of co-ordination of resources & activities  Lack of communication with interested parties, leading to unwanted products being delivered  Insufficient measurables and poor quality control, resulting in the delivery of products that are unacceptable or unusable  Lack of control over progress so that projects do not reveal their exact status until too late 147
  • 148. What is PRINCE2?  PRojects IN Controlled Environments is a standard project management methodology to apply PM skills for a structured approach to release rollouts and service improvement 148
  • 149. What is ISO 9001:2000?  Updated to align with ISO 14001, OHSAS 18001, and the Malcolm Baldridge criteria  Do we know what we did today well enough to be sure we can do it again tomorrow?  Can be as simple as a single creative page  Retaining only the information that shows activities are being satisfactorily carried out, independently audited, with Exec‟s invested 149
  • 150. Computer-Supported Collaborative Learning (CSCL)  Help students effectively learn together – Assumes that “Learning begins with a problem to be solved rather than content to be mastered”  Communications and Collaboration Tools – eMail, Web, calendaring, chat, databases – Exchange, GoToMeeting, Domino, iMarkup, K2 – Still need face-to-face meetings Electronic Electronic Collaborative Work Communications Conferencing Management Tools Tools Tools 150
  • 151. Capability Maturity Models  Capability maturity models (CMMs) – Carnegie Mellon‟s CMM – Capability Maturity Model Integration – ISO 15504, or SPICE (Software Process Improvement and Capability dEtermination)  About what to measure (KPAs in level 2) to ensure that we do it better tomorrow  Can be used with MOF to benchmark the capability of one‟s SMFs 151
  • 152. Personal Software Process (PSP)  Basically CMM level 4/5 for an individual – Emphasizes learning by doing, past performance, defect reduction, estimation accuracy, motivation – Largely based on reviews at every stage via planning, development, and post mortems » Tracking problems, earned value: time, size of product – “Engineering Disciple,” not Cognitive Psychology  Team Software Process for group dynamics – Support structure with role definition & coaching » Team building, status meetings, post mortems, synergy 152
  • 153. From CMM / PSP to Six Sigma  Six Sigma for company (vs individual or team)  While CMM /PSP focuses on the what, Six Sigma is about evaluating processes for … – how best to forecast and validate improvements, – who (anyone honest and can handle the math) – why (with CTQs from VOCs).  More externally focused (vs inwardly CMM)  Formal Configuration & Release Management 153
  • 154. What is Six Sigma? LSL USL 6s s Standard deviation  A measure of business capability – Tightly controlled process » Six standard deviations (or sigma) between mean and nearest specification limit » Defect rate of 3.4 defects for every 1 million opportunities ORGANIZATIONAL TRADITIONAL SIX SIGMA ISSUE APPROACH APPROACH Problem resolution Fixing (symptoms) Preventing (causes) Behavior Reactive Proactive Decision Making Experience-based Data-based Process adjustment Tweaking Controlling Employee training If time permits Mandated Chain-of-command Hierarchy Empowered teams Direction Firefighting Benchmarking and Metrics 154
  • 155. Why is Four Sigma Not Enough?  9 hours per year of unsafe drinking water  107 incorrect medical procedures a day  200,000 incorrect drug prescriptions per day  18,322 pieces of mishandled mail an hour  2 million documents lost by the IRS a year  Two short or long landings at any major airport each day How do such situations improve… 155
  • 156. The Target: In Other Words… 156
  • 157. Inputs, Outputs, & Y=f(x):  X = input to the process  Y = Output to the process  Six Sigma helps explain  We typically measure which of the controllable Xs performance by measuring have the most influence on the Ys of a process! the Y! Alias: Critical Xs  Example:  Example: We weigh – Exercise (type, amount…) ourselves on a scale. – Diet (type, amount, calories, – At or below target weight carbohydrates, fats, proteins) – Medical ? – Others Above target weight 157
  • 158. The Six Sigma Process Practical Problem Define  Define the project scope  Select the output characteristics for the Y‟s  Assess the performance specifications Practical Problem Measure  Validate the measurement systems  Establish the initial capability for the Y‟s Statistical  Define the performance objectives Problem Analyze  Document the potential X‟s  Analyze the sources of variability Statistical Solution Improve  Screen the potential causes  Identify the operating conditions  Determine the capability for the X‟s Statistical Control  Implement the process controls Control  Document what you have learned 158 Warning: Requires a cultural change for best results
  • 159. Six Sigma Roadmap Matrix Define Measure Analysis Improve Control Develop Collect Develop focused Create Develop & baseline data problem possible document charter on defects and statement solutions for standard possible cause root causes practices Map the Plot defect data Explore Select Train teams over time and potential causes solutions process analyze for special causes Understand Create & Organize Develop plans Monitor stratify potential causes performance voice of the frequency plots Pilot plans Collect data Create process customer & do Pareto Implement for updating analysis Use statistical plans methods to procedures Calculate Measure quantify cause results Summarize and process sigma & effect communicate Create detailed relationship Evaluate results process maps benefits Recommend 159 future plans
  • 160. Searching for Balance 6 s 5s 4s 3s 2s / 1s 160
  • 161. 6 Sigma Problem-Solving Tools Defects % PPM 99.9996% 3.4 6s Design for 6 Sigma (DFSS) 99.9767% 233 5s Process Entitlement 99.379% 6,210 6 Sigma Tools: 4s •Process Characterization: statistics •Process Optimization Modeling Seven basic tools: Pareto, Fishbone, 93.32% 66,810 Check Sheets, Histograms, Flowcharts, 3s Brainstorming, and Control Charts 69.13% 308,700 2s Experiential or “Tribal” 30.23% 697,700 1s knowledge Current Process Capability 161
  • 162. Voice of the People  Traditionally, Marketing defined customer needs, but isolated workers can forget the importance of ease of use and durability  Customer Relationship Management implies that everyone is involved with CS  Customers are ideally in development team  About 20 customers should be included  ISO 9001:2000 adds Customer Satisfaction 162
  • 163. Critical to Quality (CTQ) Chart Function: Critical to Quality (CTQ) Weighting Count Score Customer Service Calls unanswered No unanswered calls Count X 2 56 112 Delay in answering Greater than 30 seconds Count 144 144 Question not answered, call back required No call backs Count 23 23 Shipping Late shipments No late shipments Count X 2 56 112 Incorrect item/quantity No incorrect items Count X 2 4 8 Incorrect address No incorrect addresses Count X 2 6 12 Shipper error No errors Count X 2 20 40 Production/QC Product defects reported No defects Count X 2 112 224 Planning/Inventory Backorders <2 days No backorders Count X 2 61 122 Backorders >2 days No backorders Count X 4 18 72 163 Monthly Customer View Score 869
  • 164. 0 164
  • 165. Example Kano Chart SMS texting is a Must for a mobile phone 165
  • 166. Cost of Poor Quality (COPQ)  Cost of fulfilling the gap between the desired and actual product/service quality  Cost of lost opportunity due to resources used to rectify the defect Sigma COPQ  Labor, rework, disposition, Level (of Sales) and material costs spent up to 3 25-40% the point of rejection 4 15-25%  Appraisal, Internal Failure, 5 5-15% 6 <1% Prevention, External Failure 166
  • 167. The Scientific Method  Observe a marketplace or business environment aspect  Conjecture a working hypothesis  Make predictions based on hypothesis.  Test predictions by conducting experiments or making more observations. Use statistical tools to help separate information from noise.  Modify hypothesis inductively & empirically.  Repeat last three steps until “no” discrepancies “Show me the data” attitude prevails 167
  • 168. Who Does What?  Champions and Sponsors – Select best projects for corporate objectives and implement with support and eliminating barriers  Master Black Belts (1 per 1,000 employees) – Understands theory, trains, & leads project reviews  Black Belts (20 per Master, 6-7 projects) – Hands-on project leadership and execution – Train and mentor the local organization  Green Belts (5-10% of time, – Deliver successful focused departmental projects 168
  • 169. Information Overload  Not all information is valuable – 2/3 of managers report stress from too much info – 2/3 state relationships suffer from too much info – 1/2 suffer from ill heath due to too much info – 1/2 state decisions are delayed while costs are too high from too much information – Most claim only about 6 metrics really matter  Defect focus can hinder innovation and is often at the cost of a system view and quality 169
  • 170. What Knowledge is Required?  College-level Mathematics and Statistics – Proficient in at least one Statistical Package  Strong Technology Orientation – One or more OS's and Multiple DBMSs – Office Automation and Groupware Software  Project and Quality Management  Supply Chain and Lean Manufacturing  Organizational Psychology and How to Attract, Reward, and Retain Employees  Communication and Teaching Skills 170
  • 171. Semi-annual Black Belt Reviews  Technical Application (20%), by Masters – Project planning / management, use of tools, documentation, process mapping, gateway reviews, control plans, methodology execution  Project Success (40%), by Sponsors – On time, deliverables are easy to implement and support, certified, and number (1 for in-training, 2 for graduates, 3-4 for experienced)  Leadership (40%), by Sponsors – Challenging, enabling, modeling, encouraging 171
  • 172. Deliverable: Summary Report IEC Presentation / Summary Report Outline  Savings Upon  Title Implementation  Team Roster – Cost to Implement  Problem Statement – Annual Savings  Objective » 1st, 2nd year  Primary/Secondary Metrics  Implementation Plan  Key conclusions – Key Milestones – Measure – Completion dates – Analyze – Responsibilities  Recommendation  Necessary Approvals  Impact on  Authorization to Orders/Procedures Proceed 172
  • 173. Why Does It Fail? 1. Management missing faith in employees 2. Long-term, risk-adverse culture 3. Benefits are not shared (mostly at the top) 4. Failure to “walk the talk” for a set of common values  Intensity is no substitute for integrity 5. Insufficient and/or undirected training 6. No well-articulated vision 173
  • 174. Deliverable: Back Up Information Implementation Schedule Improve & Control Plan PBL Plan Cost Estimate Backup Bases/Qualification/Assumptions Detailed Estimate (Implementation Costs and Yearly Savings) Measure & Analyze: Analysis of improvement between “as is” and “should be”, fishbones, paretos, xy matrix, FMEA, Gage R&R, Statistical backup Process Maps “as is” and “should be” Summary Report 174
  • 175. 175
  • 176. Continuous Measurable Improvement is Key  Optimized – Continuous process improvement is enabled by quantitative feedback from the process and from piloting innovative ideas and technologies.  Repeatable – The software processes for management and engineering activities is documented, standardized, and integrated for the organization. Basic project management processes are used to track cost, schedule, and functionality. 176
  • 177. Use a Structured Framework 3. Establish OPI Plan 4. Identify All Projects 5. Provide Executive Level Program “Awareness” 6. Conduct CSWP Awareness Training 7. Conduct Workshops 8. Select Candidate Projects for Assessment 9. Conduct Project KPA Completeness Class 1. Establish Management 10. Establish & Implement Commitment & Goals Project Action Plans 2. Define Process 11. Update Tailor Reports Improvement Roles and 12. Plan, Prepare, Conduct for Responsibilities Next Improv. Cycle 177
  • 178. Perfectionists are not perfect  80% efficient call centers are best – Allow for breaks and vacations – Allow for training and time management  Last 5% usually takes the greatest effort and so often does not produce a return on the time and capital invested => quality is about knowing when to declare victory  Just paying more to work in a hostile environment merely produces burn-outs 178
  • 179. Use Process Measurement Metrics (But, do not use them for reward or punishment)  Financial (or Project Value) Metrics  Product (or Systems) Metrics – Size (LOC, Function Points, Etc.); Number of Defects; Effort (Person-hour); Complexity;  Customer Satisfaction Metrics – Check Customer Priorities for Quality Aspects – Brand Name and Advertising Responses  Process (or Leadership) Metrics – Intermediate Work Products and Records (Test Results or Compare Time to Fix a Bug / Predicted) 179 – CPI (Cost Performance Index) / SPI (close to 1.0)
  • 180. Focus on Flow of Value Cumulative Flow 240 220 200 180 Control height of Features 160 work in progress 140 120 100 80 60 40 20 Value measured 0 on completion 2-Mar 9-Mar 16-Mar 10-Feb 17-Feb 24-Feb Time Backlog Started Designed Tested Complete 180 David J. Anderson, Managing with Cumulative Flow, 2004
  • 181. Quality Problem, Go to the MAT!  Metrics Action Team (MAT) Goals – Define and Measure the Best Practices – Identify and Acquire the Best Equipment – Get and Promote the Best People  Focus Efforts on Key Process Areas – Process Change Management – Product Quality Management – Product Configuration Management – Peer Reviews 181
  • 182. Description of the Ideal MAT  Any Employee Can Submit Change Requests  MAT Consists of All Functional Managers  Meets Once a Month to Review All Reports  Able to Step Back and Do Independent Reviews to Uncover Key Program and Systemic Corporate Issues  Output Is an Update Issues Report to the Executive Team and Program Management  Changes Organizational Decision Making 182
  • 183. Feed-Forward Exercise  Pick one behavior you would like to change  Describe the behavior to one other person  Ask for feed-forward info. (NO feedback) – Two suggestions for the future that might help achieve a positive change in selected behavior  Take notes with no comments  Reverse roles  Switch partners 183
  • 184. Modern Testing Tools  Year 2000, Web, Test Management Tools  Requirements-Based Testing Tools  Regression / Coverage Analysis Tools  Dynamic and Static / Load Testing Tools  AutoTester‟s Test Station  Technology Builders‟ Caliber-RBT  McCabe‟s Visual Toolsets  Mercury Interactive XRunner  Rational SQA Suite, PureCoverage, Etc. 184
  • 185. Understand the Current System  Performance - quick to use and respond  Information - (and data) pertinent, accurate, well formatted  Economy - cost-effective service  Control - secure protection against fraud  Efficiency - good use of resources  Services - reliable, accessible, flexible  What needs improving? Define scope. 185
  • 186. Discussion Question How useful do you consider the existing metrics and standards currently used within your organization to be? What other rubrics might be better? 186
  • 187. 10-Minute Break… Question: What do you get what you cross an instructor with a spud? Answer: A Facili-Tator 187
  • 188. What is Quality? … in a system development life cycle, architecture, team building, and release SDLC was developed because chaotic and vague processes where success depends on individual heroics most commonly characterize development efforts. Lecture 4 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 188
  • 189. What is a Defect?  Six Sigma: any product, service, or process variation which prevents meeting needs  PSP: unintended change, even when a program is changed by even one character  ISO 9000: non-fulfillment of requirements related to an intended or specific use  Software Reliability: error is a discrepancy between an observed and true value, failure is an inability to perform caused by a fault 189
  • 190. The Cost of Each Software Bug  $1 in Specification  $10-100 During Coding  $10 During Design  >$100 Test / Maintenance Whether it‟s a Bug, Defect, Fault, Problem, Error, Incident, Anomaly, Variance, Failure, Inconsistency, or an Enhance-able Feature 190
  • 191. System Development Life Cycle SDLC was  Prelim Investigation developed because (scope / objectives) programs were…  Feasibility Study  Systems Analysis  Finishing late  Design high/detail  Finishing over  Procurement budget  Development  Not satisfying users  Testing / QA  And, Heroics based  Implementation  Eval / Support 191
  • 192. System Development Life Cycle Planning Obsolete solution Problem to be solved Related problem to be solved Support Analysis New solution to same problem Implementation error to be fixed Problem Acceptable Analysis Implemen solution and Design tation Solution 192 Requirements
  • 193. A couple decides to have a baby  Conception: idea of having a child is formed  Initiation: preliminary study of spouse‟s needs  Cost/Benefit Analysis: check bank balance if it is sufficient or if a credit card facility is needed?  Detailed Analysis: check health, genetics, etc.  Design: plan a) which hospital, b) which doctor, and c) schedule to start development phase, etc.  Development: Where everyone wants to start!!  Software testing: visit doctor periodically (not just checking website) for the necessary testing  Implementation: child is born (not a robot)  Evaluation and maintenance: raise child ($$$) 193
  • 194. System Development Life Cycle The ultimate goal of SDLC is a world where no one thinks Dilbert is funny because no one has ever seen such stuff 194
  • 195. Formal 6-step Waterfall Model 1. Idea Phase (Document System Concept) – Formal Conceptual Design Review 2. Identify System Requirements and Analyze – Formal Requirements Review 3. Architectural Design (Break into Pieces) – Preliminary and Critical Design Review 4. Develop Components; Test Individually – Only after completion of previous reviews 5. Integrate and Test (System Testing) 6. Final Product Deployed into Operation 195
  • 196. Key Points of Waterfall Model  Review by all parties before moving on  Emphasis on specifying what the product will be without design/coding experience  Discrete steps – no overlap  No way back after a step has been completed – “do once and be done”  Problems (including under-capacity) are not discovered until system testing 196
  • 197. Iterative Waterfall Methods  Iterative Waterfall: “Analyze a little, design a little, construct a little, test a little…” – Planning – Implementation – Analysis – Promotion – Design / Re-design – Review  Other Sub-Models Include: – Staged Delivery (Implement in Pieces) – Design-to-Schedule (Waterfall with Subprojects) – Evolutionary Prototyping (Until Acceptable) 197
  • 198. Rapid Application Development For large, data-driven projects with focus groups and varying worker capabilities – Task structures that encourage parallel activities – Groupware and knowledge coordinator (SWAT) – Joint Req. and App. Planning (JRP and JAD) – Customer validation instead of spec verification – Reuse with automated OO prototyping systems – Use of cost estimators like COCOMO II – Utilizes capability maturing model (CMM) – CASE tools, ERD, 4GL, integrated environments 198
  • 199. Aspect-Oriented Programming (AOP)  By Gregor Kiczales‟ team at Xerox PARC  Or, aspect-oriented software dev. (AOSD)  Breaks a program into distinct parts that overlap in functionality as little as possible – AOP does so using primarily language changes » AspectSharp, Compose, Seasar, .Spect, Phx.Morph – AOSD alternately uses a combination of language, environment, and methodology »a 199
  • 200. AOP Technologies IBM AspectJ ™ BEA WebSphere JRockit PROSE Axon HyperProbes JVM JAsCo Nanning JBoss DynAOP JMangler (J2EE) Eclipse Products Italics = Microsoft- Steamloom EAOP Jakarta SiteVision sponsored JAML CeaserJ (although none Hivemind Spring Jiazzi (J2EE) are shipped) Arachne JAC Java .NET Phx.Morph TinyC2 AspectC Wicca Rapier.NET AspectC++ C++ Aspect# FeatureC++ Weave.NET Wool Meta.NET No “real” AspectDNG Loom.NET XWeaver Other JAsCo.NET products Aspects Eos Aspect.NET AspectS PostSharp SetPoint CLAW Poly Apostle AOPHP Compose* Hyper/J PHPaspect AspectCOOL SourceWeave.NET Pythius PEAK AopDotN AOP.NET DemeterJ etAddin Encase Composition AspectScheme AspectL AOP-Engine Filters AspectCocoa AspectR Concern Manipulation Environment 200 From
  • 201. Why is Microsoft waiting?  Comprehensibility – Must be able to predict behavior – Must be easy to understand (Einstein, Elvis, Mort) – Integration into existing tools and processes – Aspects in-the-large (reuse, composition, mining)  Debuggability – Source-level debugging is critical – Both obliviousness and intimate AOP debugging – Debugging injected code 201
  • 202. Why is Microsoft waiting? (cont)  Testability – AOP introduces new fault models  Serviceability – EXE/DLL boundary no longer signifies ownership – How to isolate faults and assign blame? – Version currently linked to size/date – How to patch woven programs?  See 202
  • 203. Prototyping / Extreme Programming Prototyping is best Business Identify an End User's Information for in-house face- Alignment Requirements to-face customers Develop with frequent Prototyping Information System Prototypes releases from Cycle Revise to Better paired, mature, Meet End autonomous Maintenance User Requirements workers for small Cycle Use and Maintain the Accepted projects with System constantly changing requirements 203 about 20% of projects
  • 204. Prototyping Payoff $’s saved from building optimal prototype full expenditure project on expenditure prototype % expenditure 100% 0% on prototype GUI only waste of resources 204
  • 205. Payoff for Clothing Application 205
  • 206. PM Spiral Method  Determine objectives, alternatives, and constraints  Identify & resolve risks  Evaluate alternatives  Develop and test  Plan the next level  Decide on best approach for next level  Repeat… 206
  • 207. Example of Process Comparison Process Motor control applications Waterfall Spiral, 2-4 Spiral, 5-10 iterations iterations Company average -- Defects per thousand source lines of code at delivery time injected at ... ... requirements time 4.2 3.2 2.4 ... architecture time 3.1 2.5 3.7 ... detailed design time 1.1 1.1 2.2 ... implementation time 1.0 2.1 3.5 TOTAL 9.4 8.9 11.8 207
  • 208. Process Improvement Progression (is a loop that never ends)  Plan The – Problem Selection Shewhart – Quality Indicator Goals Cycle – Cause - Effect Analysis  Do: Most Elegant, Effective, & Safe Solutions  Check or Study Or, The – Quality Indicators Deming – Causes Reduced Wheel  Act: Standardize & CI 208
  • 209. Deming Cycle (PDCA) 1 PROBLEM PERCEPTION PLAN WHAT 2 EVALUATION OF CURRENT SITUATION 1) Process Definition 2) Process WHY 3 ANALYSIS OF CAUSES Simplification WHO WHEN WHERE 4 PLANNING OF COUNTER-MEASURES 3) Characterization HOW and Idealization DO 5 IMPLEMENTATION OF COUNTER-MEASURES 4) Control (SDCA) CHECK 6 RESULTS EVALUATION 5) Fix Root Causes 7 STANDARDIZATION 6) Improve ACTION 8 SUMMARY & NEW PLANS 7/8) Re-design? ©1987-2000 Arthur M. Schneiderman All Rights Reserved. 209
  • 210. Requirements for Quality Top Management Systematic Sense of Urgency Commitment Method leadership profit opportunity proven results changed objectives competition kaizen hands-on management fuel for change data driven visibility cross-functional support Company Wide Organization/ Pilot Projects Involvement Systems overcome skepticism weakest link training build credibility internal customers guiding get ball rolling policy deployment : develop champions vendors/customers monitoring rewarding ©1987-2000 Arthur M. Schneiderman : 210
  • 211. Does Form Follow Function? (change-oriented life cycle)  Louis Sullivan meant not only the technical & utilitarian but also values and spiritual needs  But, one can not anticipate function – Brand  Reusable Code, Objects, Class Libraries, Services or Applications, and Next, Devices  Adaptive Software Dev (ASD) – Lean Development – SCRUM and Crystal methods – Agile Programming – Extreme Programming (XP) – Continuous learning and adapting 211
  • 212. Systems Analysis (Holistic) Actively Organizational learning to Technology better use the best people, Productivity practices, and technology to Key positively Areas of People Process Systems influence Analysis productivity. Present Functional System Requirements 212
  • 213. Involving all Aspects of the Enterprise Architecture 213
  • 214. Information Architecture Plan  Especially critical in today‟s multi-vendor, distributed environment  Common vision on mandatory standards and key information & communication interfaces  Derive IT Architecture from department‟s strategic and business requirements  A long term process based on as many IT and business staff as practicable with continuous review and update 214
  • 215. What is an IT Architecture?  IT Architecture “A blueprint to guide how IT elements Components should work – Business flows together” and relationships – Application development – Data descriptions – Network / Telecom – Operating System(s) – Security and privacy – Risk factors – Migration Plan 215
  • 216. Models, Protocols, and Standards Standards are, in  Reference Model (e.g. OSI) essence, the – a generic framework blueprint for the – logical breakdown of an activity Information  Protocol (e.g. TCP/IP) Architecture – details of how to accomplish specific task – required to implement models  Standard (e.g. IEEE 802.3) – what a reference model and its protocol become when approved by an important standard-setting group (de jure standard) or are adopted by the 216 marketplace (de facto standard).
  • 217. Who Sets Standards?  Federal government: – by law can establish regulatory standards – National Institute for Standards and Technology  National standards bodies – ANSI, IEEE, or ISO  International standards bodies – ISO (International Organization for Standardization) – International Telecommunication Union  Other vendor groups, professional associations, trade associations, etc – IEEE, VESA, ATM Alliance, SQL group, IETF 217
  • 218. Standards Openness Continuum Closed  Proprietary and closed (unpublished) – Intel chip, MS Windows – IBM mainframe  Proprietary but licensed (for fee) – postscript  Proprietary but published (free or token fee) – IBM‟s original ISA bus – SUN‟s NFS (network file system) – Intel‟s PCI (peripheral component interconnect)  Non-proprietary consortia or similar – VESA bus – ATM (asynchronous transfer mode) protocol – DVD Open  „Official‟ de jure (open) standards products (published) – Ethernet, ISDN, DSL 218
  • 219. Internet Enabled Architectures Policies and Standards Network Management Software Management Firewalls Content Software Authoring Passwords Security Encryption and Data Tools Tools Infrastructure TCP/IP Hypermedia Servers Browsers 219 Network Databases
  • 220. Consider Two Design Options Bare “Cadillac” Bones Win- Implementation Win- UNIX UNIX dows Environments dows Off Off In Out Con- In Out Con- the the House Source sult House Source sult shelf shelf - - Sources - - 220
  • 221. Internal vs. External Sourcing  Feasibility and Cost/Benefit  Available Resources: What can you do?  Development Time  Developmental and Operational Costs  Efficiency and Ease of Use  Compatibility and Security  Emotional: What do you want to do?  “Evaluation_Tools”… 221
  • 222. SCRUM Meetings to Get Started Skills for Community-based Resource Utilization and Management A “lightweight” Murphy-fueled process ideal for self-organized, equal participant, temporary teams 222
  • 223. SCRUM Basics  15 minute scrums every day in the same location and at the same time - preferably first thing in the morning (or after product build, quick test, and defect report).  Ask all participants only three questions: – What did you do since the last scrum? – What are you going to do between now and the next scrum? – Is anything in the way of you doing your work?  Address other issues outside the scrum. 223
  • 224. SCRUM Basics (continued)  Managers are not allowed to speak.  The “scrum master” has the power to excuse any team member of externally assigned work that will throw the team's schedule off track.  The work must either be fit into the next sprint or be assigned to someone not on the team.  Teams must have something concrete after each of the 3-8 sprints for management (for the 5 phases of development). 224
  • 225. Optimal Team Size Team Synergy Effectiveness Approximate Potential With per designer Good Coaching optimal range Paired Designer communicates regularly with 11 people. Workers Interaction overhead Designer communicates outweighs benefits of regularly with no one. team communications No communication time lost, but developer is too isolated and has no help 1 4 8 With No Coaching Number of people with whom developer must frequently interact Key: = engineer 225 Adapted from Software Engineering: An Object-Oriented Perspective by Eric J. Braude (Wiley 2001),
  • 226. A Demo After Each Sprint to…  Show the customer (or steering committee) what‟s going on and fully engage them  Provide the developers a sense of ownership and accomplishment  Integrate and test a reasonable portion of the software being developed through QA  Ensure real progress – with a reduction of the backlog and not just the production of more papers and hours spent  Lessons learned and adjust “the Plan” 226
  • 227. Four Stages of Team Development: Forming - Introductions, Purpose, Process, Norms Storming - Managing conflict Norming - Developing the “how” we will work together, opening up and sharing ideas Performing!!! (by Bruce Tuckerman) 227
  • 228. Specialize Professional Roles (just like football vs. rugby)  Programmers (that XP calls “designers”)  Systems and Business Analysts  Systems Architects and Designers  Database and System Administrators  Network and Security Specialists  Testers, Quality Assurance, and Support  Documentation Specialists and Trainers  System Owners (Operators, Sales Staff)  Managers, Process Action Teams (PAT)  Technical (Engineers, Mathematicians, etc) 228
  • 229. What is Kaizen?  Kaizen in the United States usually refers to an event that consists of three to five days of intense improvement activities directed at a specific area of a business.  Taken from the Japanese words kai and zen where kai means change and zen means good. The popular meaning is continual but gradual improvement of all areas of a company not just quality. 229
  • 230. Kaizen “Commandments”  Abandon fixed idea; Think of ways to make it possible; No excuses (military: “yes sir,” “no sir,” or “I should have known, sir.”)  Go for the simple solution; Quickly consider mistakes; Use your wits not your wallet.  Problems are opportunities; Repeat “why?” five times; Seek ideas from many people.  There is no end to improvement 230
  • 231. Example of “Five Whys”  Marble is deteriorating – Why?  Frequent detergent cleanings – Why?  Bird droppings – Why?  Attracted by spiders – Why?  Attracted by midges – Why?  Attracted by lights – So?  Delay turning on the lights until later at dusk 231
  • 232. The Systems Analyst Building a System Architecture is like… User Analyst Analyst Programmer Finished Request Initial Detailed Build Product Requirements Specification System Building a house… Client Architect Architect Builders Finished Request Initial Floor Plan Final Floor Plan Build Home House 232
  • 233. Start with Build / Release Management  How will data be stored and shared? – Documentation & code repository structure  Release specifications must not change  Life cycle status and state accounting – How many files did this bug affect? – Will all currently needed files get installed?  Source code and version control  Problem and configuration auditing  Integrated Programming Environment & tools for compile-execute-query cycle 233
  • 234. Release Management Development Controlled Test Live Environment Environment Environment Design, Fit for Distribution Release Release develop, Purpose Roll-out Comms., & Policy Planning build, Testing & Planning Preparation Installation configure Release & Training release Acceptance Configuration Management Database and Definitive Software Library 234
  • 235. Release and Roll-out Definitive Software Library CI records CM System Release Record Build New Release Test New Distribute Release release 235
  • 236. 236
  • 237. Discussion Question What is the value-add of a quality program? What specific recommendations might you make to your management about starting an organizational fitness effort? 237
  • 238. 10-Minute Break… Question: What do you get what you cross an instructor with a spud? Answer: A Facili-Tator 238
  • 239. What is Quality? … in control tools, quality assurance, process reengineering and management Process control tools: Check Sheets and Fishbone Diagrams, Root-Cause Analysis, Flowcharts, Histograms, Scatter Diagrams, Pareto Analysis, Control Charts, and Orthogonal Defect Classification. Lecture 5 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 239
  • 240. Use Process Control Tools  Check Sheets and Fishbone Diagrams  Root-Cause and Cause-and-Effect Analysis  Flowcharts, Histograms, Scatter Diagrams  Pareto Analysis (Prioritize Quality Factors)  Tuguchi Analysis (Designing Experiments)  Control Charts (Mean, Range) and Graphs  Orthogonal Defect Classification  Development Tools: CASE and XML  Software Rate Charts (Ormond at Hughes) 240
  • 241. Root-cause Failure Analysis  Formally define the problem – Who (operator, engineer, customer, bystander) – What (equipment, complaint, anomaly) – Where (which module, subsystem, facet) – When (noting any time pattern) – How (classification of defect) – How much (hard failure vs. percentage of defects)  Fishbone possible activities or failed controls  Bar chart defect frequencies for most likely 241
  • 242. Stratified and Location Lists  A clear problem definition and brainstorming possible causes forms the basis for creating a listing of possible defect frequencies  Various list will be used to create histograms  Stratified Lists will matrix such a defect list by logical criteria (such as by attribute)  Location Lists will likewise do so by the subsystem in which the problem occurred  Pareto Analysis by sorting by chance to occur 242
  • 243. Affinity Diagramming Living Things Animals Plants Food for Parts of Living Living Things Things people trees fat hair mice flowers protein scales bugs grass bones snakes vitamins lettuce fur lice 243
  • 244. Tips for Fishbone Diagrams Don’t go beyond the group’s area of control. Major Major Cause Cause Use the major cause categories as catalysts, e.g., “What in materials Why is causing…?” students earn Make sure everyone poor Supporting grades? agrees completely on the problem statement. Ideas Don’t try to swallow the whole “fish” and only Major Major bite-off what is fleshed Cause Cause out on each bone. 244
  • 245. Process Decision Program Chart  PDPC is useful for contingency planning when the team has stalled or lost focus and needs a step-by-step planning process  Extends response diagram a couple of levels by further identifying non- obvious risks and countermeasures 245
  • 246. Quality Improvement Story Board The Strategic Plan refers to all aspects of organization Brainstorming is a procedure that allows a group to level planning and the deployment of action plans. This express problem areas, ideas, solutions, or needs. It 1. Describe the OFI identified in includes primarily the development and deployment of allows each participant to state their opinion in a non- 2.a. Identify the team members who will 3. Collect data regarding the an organizational mission, key measures of threatening environment. Brainstorming helps a group mission the Baldrige Assessment.* fulfillment, and strategies that take into account key create many ideas in as short a time as possible. address the issue. Define the Team current situation. Use any or all of student and stakeholder requirements. Strategic Planning has a Brainstorming can be used in two ways: structured or Name Team Members Role the following: A Run Chart is used to monitor a process to see unstructured. John Team Leader whether or not the long-range average is results-oriented A Bar Chart displays collected data on focus and seeks to STRATEGIC PLAN Mary Bob Coach Teacher changing. parallel horizontal bars for comparative align all daily work Susan Custodian analysis. Lengths are proportional toRun Charts are the simplest quality tool to Bill Secretary within the Jane Driver collected data. construct and use. organization with Wayne Student RUN CHART the over-all Operational definitions give a clear communicable BAR CHART organizational A Problem Statement is tool used to a concept which enables individuals to meaning b. Establish operational definitions to guides of be used. Measurement direction. work on a system based on basic Category way to to document a Probletunity. The Nominal Group Technique [NGT] provides a Brainstorming Surveys are used when a project is give everyone in the group an equal voice in understanding. There are no gray areas. Average planned, to prove the need and demand selection. Problem Statement is problem of A CHECKLISTS or sheets are simple easy-to-understand the customer, or to test a group for divided into three parts: the forms used to determine whether and with what Problem frequency specified events are taking place. Check lists determining current situation or existing Survey Results In Percent Time SURVEY Statement supply the necessary data for creating Run Charts and quality. state of the problem, the Total other continuous improvement tools. Aimpact 1 1 problem has on 1 3 the 6 Compile the results 1. xxxxxxxxxx Bthe organization, and the 3 4 4 2 13 2. xxxxxxxxxx using a Checklist CHECKLIST 3. xxxxxxxxxx Cdesired 3 3 2 1 state one would like 9 and display them Date Total Dto achieve by solving the 4 2 2 4 12 using a Bar Chart, Operational problem or improving the Category 1 Data Data Column Chart, or Definitions process. Pareto Chart. NGT Category 2 Data Data Category 3 Data Data *Use BOTH the Building Bullet Book and the Baldrige Category 4 Data Data Feedback Report along with the annual Baldrige Survey Results to identify OFIs. Pilot Projects provide evidence that proposed 6. Report results. 4. Identify causes for the current 5. Develop a plan for improvement and innovations or improvements will work. Pilot Projects are the “DO” of the Plan-Do-Study-Act situation. how success will be measured. [PDSA] Cycle. The Affinity Diagram is the result of an interactive data collection method which allows groups of people Force Field Analysis is CAUSE & EFFECT DIAGRAM [FISHBONE] a visual listing of possible to identify and process large quantities of ideas in a forces driving or A Cause & Effect Diagram is used when you need to very short time. It is a non-judgmental way to collect FORCE FIELD ANALYSIS preventing change. identify, explore, and display the possible causes of a and process ideas. A question is posed. Team Driving Restraining specific problem or condition. “Fishboning” members individually Brainstorm silently writing ideas A Force Field Analysis is Forces Forces represents a sophisticated form of brainstorming. on 3”x3” sticky useful if a quality improvement team wants notes. Cause Cause Affinity Diagram to find out what is driving, slowing, or not Team members randomly place Action Plan refers to a series of connected steps that allowing change at all. them in the middle are designed to accomplish a goalaor objective. Action Hint: removing restraining force will of the table. EFFECTIdeas are grouped and/or plans include details make for more progress of shorter- and longer-term Imagineering is a Brainstorming technique used Pilot Project is used to monitor a process to see A Run Chart performance projections,creating driving than responsible personnel, resource into like categories. forces. to identify what an individual or group envisions as whether or not the long-range average is commitments and time horizons for accomplishment. Finally, a header the perfect project, process, orAsystem. Another collected data on Bar Chart displays changing. Action plan development represents the critical stage note is placed at term used for Imagineering is idealized design. for comparative parallel horizontal bars Run Charts are the simplest quality tool to Cause the top of each in planning when analysis. Lengths are proportional to Cause Cause column. The facilitator or leader construct and use. strategic ACTION PLAN Imagineering collected data. must clearly state the RUN CHART objectives and objective of the BAR CHART and/or goals are made Imagineering session. Measurement specific so that Category effective Example: Average organization-wide “What would be the perfect understanding and learning environment?” deployment are Survey Results In Percent possible. Time 246
  • 247. MEAP % Of What is Being Measured When an Intervention? Change Target 100% Performance Proficiency Exceeding Level Expectations Performance Projection Slope Not Meeting Expectations, Current Intervention or Performance Intersession Level Required Time 247
  • 248. What is an Intervention?  Tiger Team short-term intensive focus on a single, recurrent self-defeating problem – Education, measurements, goal setting, problem definition, structure, challenge irrational beliefs and unrealistic expectation, breaking cycles  Reflective process to establish key goals, criteria for evaluation, and model for change  Termination of effort upon meeting goals, progress not maintain, or participants refuse 248
  • 249. Tiger Team Best Practices  Clear procedures for activating the team  Determine nature and scope of incident  Define and assign team roles  Produce, approve, and implement plan – Identify Achilles heels and potential costs – Vulnerability Report with initial work-around  No more than days to weeks for results – Exit plan (even if plan not approved) 249
  • 250. Tiger Team Performance Metrics  Discovery to verification  Verification to reporting  Reporting to acknowledgement  Reporting to change release ADJUSTING  Reporting to CHANGE advisory release CHANGE  Total = discovery + verification + CHANGE max (releases) 250
  • 251. Creating A Software Checklist  Start With a Sample Of Defects  Then, Create a Defect List  Frequency Distribution => Where To Look  Create List Of Defect Triggers  Frequency Distribution => How To Notice  Evaluate Checklist Effectiveness  Regularly Update And Keep To a Page  See 251
  • 252. Defect Trigger Basics  Defect Life Cycle Error => Fault => Activation => Failure  Trigger that activates / discovers defect  Inspector/Tester classifies according to condition that allows a defect to surface – What were you thinking about? – Why did you write the test case?  Knowing the best triggers for specific defect types enables earlier detection 252
  • 253. Software Inspection Steps  Author assembles the materials for the moderator, who ensures entry criteria is met  Reviewers learn the product and use inspection checklist. Reader introduces system in meeting  Reviewers meets to classify defects & decide: – (1) accepted (exit criteria) – (2) accepted with rework – (3) reworked and re-inspected 253
  • 254. Software Inspection Steps (cont.)  Recorder: tracks attributes: location, severity (major, minor, negligible), how found (symptom and mechanism ), type, end result for customer, cause, cost, skill level, when created, detected, and corrected  The author may revise and moderator verify  Moderator verifies that exit criteria is met  Reviewers meet facilitator in lessons-learned mentoring session to review methods used 254
  • 255. Defect Prevention Process (DPP)  Formal kickoff to review defect checklists  Author, while doing rework lists causes and suggestions for prevention  Causal analysis meeting to brain storm process improvements (with facilitator)  Action team is responsible for prioritizing, tracking, and implementing all suggestions for improvements 255
  • 256. Defect Casual Analysis (DCA) Analyze data for systematic error patterns in order to identify underlying causes so as prevent or enable earlier detection 256
  • 257. Example Common Causal Types  Education, lack of knowledge  Oversight  Communication Failure  Tools  Transcription Defect  Non-Functional  Time pressure or management mistake  Incomplete defect inspection by programmer 257
  • 258. Defect Casual Analysis Meeting  Moderator, Recorder, Author, Reviewers  Input: – Defect Database – Classification Scheme  Output Report: – Describe Systematic Errors – Defect List and Root Cause For Each – Proposed Actions for Each 258
  • 259. Specifications Fishbone Diagram 259
  • 260. Example DCA Results (at HP)  Identified Root Causes: – an unclear understanding of customer segments – a lack of clearly assigned responsibilities – several changes in the hardware – the absence of document standards  Action Items: – customer visits to better learn customer needs – assign configuration responsibility to one person – task force for new specification format 260
  • 261. Evaluating DCA Process (at HP) 261
  • 262. Combine Defect Triggers and Tests 262
  • 263. For ODC-based Test Planning  Define new tests where currently no tests exist but a number of defects are found  Reduce testing where high numbers of tests but no defects are found  Increase testing, and perhaps further analysis (e.g., code inspections), where a low number of test cases are uncovering a large number of defects. 263
  • 264. Service / Support Demand Insight 264
  • 265. Checklists Must Be Adaptive  Updated after every inspection and are tailored to specific individual developers, development environments, and projects  May change for new technology, personnel, or projects / processes  Exhibits a higher detection rate than inspections using a static checklist both in terms of counts of defects and defects per loc. 265
  • 266. Adaptive Checklists (continued)  Three Types of Checklists: – Software Checklists For Each Language – Automatic Checklists (Lint-like Tools) » Are Nested IFs Indented? » Are Functions Called With Correct Parameters – Separate Entry/Exit Criteria Checklists » Build Logs Free From Error Messages? 266
  • 267. Business Process Reengineering  Reengineering is reinventing the enterprise by challenging its existing doctrines, practices, and activities and innovatively redeploying its capital and human resources into cross-functional processes.  Identifying Processes for BPR – Identify key business processes – Identify activities that can be radically improved through reengineering. 267
  • 268. Reengineering Goals  Increasing productivity  Optimizing value to shareholders  Achieving quantum results  Consolidating functions  Eliminating unnecessary levels and work  To optimize the organization‟s competitive position, its value to shareholders and its contribution to society.  To improve by at least 50% 268
  • 269. Increasing Productivity  Increase productivity by creating innovative and seamless processes that occur in a natural order with an uninterrupted flow  Replace vertical “stovepipes” of tasks and responsibilities with a cross-functional, flatter, network structures  Replace the classical top-down approach to control and decision making with one that is organized around core processes, is closer to the customer, and typified by empowerment 269
  • 270. Increasing Productivity (cont)  Eliminate traditional boundaries, which create gaps and “pass-offs” in work  Innovations functions like product design, manufacturing, and customer service. – Improved internal cooperation and communication – Improved matching of employee skills and empowerment to responsibilities and processes – Increased employee knowledge of the organization‟s direction, its role in the marketplace, its competitors, and its identity 270
  • 271. Reengineering Principles  Organize around outcomes, not tasks – One person perform all the steps in a process  Have end users perform the process – Provide the tools and training for customers to print their own reports → self-service – By using expert systems and databases, departments can make their own purchases without sacrificing the benefits of specialized purchasers; using a database of approved vendors, an operating unit could directly place an order with a vendor and charge it on a bank credit card 271
  • 272. Reengineering Principles (cont)  Subsume information-processing work into the real work that produces the information. – This principle suggests moving work from one person or department to another.  Treat geographically dispersed resources as though they were centralized. – HP had more than 50 manufacturing units with their own separate purchasing department. HP‟s solution was to maintain the divisional purchasing organizations and to introduce a corporate unit to coordinate them. Others have done likewise with separate Marketing depts. 272
  • 273. Reengineering Principles (cont)  Forge links between parallel functions and coordinate them while their activities are in process rather than integrating their results after they are completed. – Put the decision point where the work is performed and build control into the process. – People who do the work should make the decisions with built-in control. Pyramidal management layers can be compressed and the organization flattened.  Capture information once and at the source. – Eliminate redundant data entry and databases. 273
  • 274. Process Management  Adds a more focused approach than BPR – Similar to SDLC with steps for Process Mapping, Diagnosis, Design, and Implementation  Tools – Process Failure Modes Analysis » Root causes tend to appears as symptoms – Process Quality Function Deployment – Computer Simulation and Optimization techniques 274
  • 275. The Business Context with TQM (Goal is “Zero Defects”)  Statistical Quality Control  Customer Defined Quality  Top Management Leadership  Quality Defined As a Strategic Issue  All Employees Responsible for Quality  Continuous Improvement  Shared Problem Solving  Training and Education for All Employees 275
  • 276. TQM Involves Entire Organization  Marketing, Sales, and R&D  Engineering and IT  Purchasing  Personnel  Management  Production / Delivery  Customer Service TOP EXECUTIVE SUPPORT CRITICAL! (lack of CEO support #1 reason efforts fail) 276
  • 277. “No” Is The Hardest Word (not sorry)  Say no to desperate colleagues and harried bosses to reduce overloading your schedule and muck up more important goals  Focus first on meeting stated objectives  Be ruthless: cut out or delegate anything on your to-do list that doesn't have long-term consequences for your work  Work smarter, not harder, on fewer ideas 277
  • 278. Testing Process Selects Quality  1 Successful Commercial Product Requires 60 Good Ideas! – 45 Should be Cut by Screening Review – 8 Cut by Business Requirements Analysis – 4 Cut by Development – 1 Cut by Testing – 1 Cut by Commercialization Process Expenditures on Products & Relationships That Should Not Exist Often Limit Business Success 278
  • 279. 60,000 Decay of New Product Ideas for 60 drugs Screening and 55 concept One testing successful Number of ideas new product 20 Business analysis Commercialization 15 Development Testing 10 5 10 20 30 40 50 60 70 80 90 100 279 Cumulative time (percent)
  • 280. Idealized Reliability Bathtub Curve ( poor QC => useful life => wearing out ) (Upgrade or new product) (Burn-in or beta testing) (Normal shipping period) 280
  • 281. Quality Control vs. Quality Assurance  The goal of a QC tester is to find bugs, as early as possible, and get them fixed.  Reliability is about the entire life cycle  The goal of Quality Assurance person is to create and enforce standards to improve the development process to prevent bugs from ever 281 occurring.
  • 282. Product Cost vs. Product Reliability Balancing the cost of improved design and production with lower life cycle costs 282
  • 283. The Cost Benefit of Trust  Static rule-based approach to auditing standards allows a culture of complacency  Open systems like orthogonal inspection checklists instead encourage self-monitoring  GM must employ ten times as many people as Toyota to produce a similar number of cars as GM uses strict controls while Toyota depends on trust to sustain long-term relationships – Toyota made $12 billion while GM lost $10 billion 283
  • 284. What are other Quality Benefits? (Besides Being a Competitive Weapon)  Commitment, Pride, and Morale – Tap Into the Enthusiasm of the Staff to Achieve Organizational Goals – More Autonomy & Better Project Understanding  Communications – Improve Relationships Within the Organization  Development Capability and Predictability – Enhance the Skills of Staff to Achieve Results – Additional effort/risk in design and testing, but much less in production, integration, and support 284
  • 285. Past Learned Lessons  Need to formalize technology management and standardize data collection and review processes  Often need to fill training gaps and strengthen QA support  Seek increased participation in identifying requirements 285
  • 286. Past Learned Lessons (Cont.)  It‟s a long-term effort requiring leadership and commitment from executive management  Middle management and technical community must buy in and stay involved (publish short-term results)  Substantial improvements can be made even in a hostile environment (such as with severe and consistent downsizing or “I‟ve got real work to do” attitudes) 286
  • 287. “Who Runs The Business?” In companies Open Book Management (OBM) that truly respect – Educate everyone about the critical financial numbers and ratios that and trust their measure and drive performance employees, the – Institutionalize ways for current, answer is not abundant, and accurate information to “the president,” be often communicated to all 2. or “the senior – variable pay, Intensive Huddle profit sharing, 1. System management equity Critical Numbers Know team” but – Empower all How Real-Time Education 3. “We all do.” Real employees Ownership Sharing Right to know not 4. Player-Coach Leadership 287 Need to know
  • 288. Project Management Prospective Functional Organization Projectized Organization Chief Chief Executive Executive Functional Functional Functional Project Project Project Manager Manager Manager Manager Manager Manager Project Coordination STAFF Staff STAFF STAFF STAFF STAFF Staff STAFF Staff STAFF STAFF STAFF STAFF STAFF STAFF STAFF STAFF STAFF Project Coordination (ALL CAPS represent staff engaged in project activities) (ALL CAPS represent staff engaged in project activities) The Matrix Organization structureBalanced Matrix Organization Weak organization often constrains resource availability and is characterized as Chief Chief spanning from functional to projectized Executive Executive (which is popular with consulting companies). 288 Functional Functional Functional Functional Functional Functional
  • 289. Project Coordination STAFF Staff STAFF STAFF STAFF STAFF Staff STAFF Staff STAFF STAFF STAFF STAFF STAFF STAFF STAFF STAFF STAFF Project Management Prospective (cont) (ALL CAPS represent staff engaged in project activities) Coordination (ALL CAPS represent staff engaged in project activities) Weak Matrix Organization Balanced Matrix Organization Chief Chief Executive Executive Functional Functional Functional Functional Functional Functional Manager Manager Manager Manager Manager Manager STAFF Staff STAFF STAFF Staff STAFF Staff STAFF Staff Staff STAFF Staff STAFF STAFF STAFF PROJ MANAGER STAFF STAFF Project Coordination Project Coordination (ALL CAPS represent staff engaged in project activities) (ALL CAPS represent staff engaged in project activities) An organization with a blend of functional Strong Matrix Organization Composite Organization and projectized characteristics is Chief Chief called a matrix organization. The balanced matrix Executive Executive suits IT services with as-needed project teams 289 Manager of Project Functional Functional Manager of Project Functional Project
  • 290. STAFF Staff STAFF STAFF Staff STAFF Staff STAFF Staff Staff STAFF Staff STAFF STAFF STAFF PROJ MANAGER STAFF STAFF Project Coordination Management Prospective (cont) (ALL CAPS represent staff engaged in project activities) Project Coordination (ALL CAPS represent staff engaged in project activities) Strong Matrix Organization Composite Organization Chief Chief Executive Executive Manager of Project Functional Functional Manager of Project Functional Project Managers Manager Manager Managers Manager Manager PROJ MANAGER Staff STAFF PROJ MANAGER Staff STAFF PROJ MANAGER STAFF Staff PROJ MANAGER STAFF STAFF PROJ MANAGER STAFF STAFF PROJ MANAGER STAFF STAFF Project Coordination Project Coordination Project Coordination (ALL CAPS represent staff engaged in project activities) (ALL CAPS represent staff engaged in project activities) Matrix management was made popular by DoD (Dept of Defense) contractors to support the requirement of the government to deal with a single product or program manager. 290
  • 291. Project Manager Characteristics Matrix Composite Characte Functional or ristics Weak Balanced Strong Projectized Little or Part- Moderate Full- Total PM Role None time Power time Control Project Common Project Project Project Program Coordinat Title Leader Manager Director Director or Virtually Part- Full- PM Staff Part-time Full-time none time time 291
  • 292. 292
  • 293. Quality not a technology problem  The most common development project is for Accounts Receivables (as everyone needs to get paid). Thus, there are probably hundreds of such projects under development at this time.  Almost three quarters are failing – not due to a lack of AR technology but social/team skills.  Management is likewise not about planning, organizing, and controlling but about social aligning, motivating, and “When projects fail, inspiring for synergy. it‟s rarely technical.” 293 Jim Johnson, The Standish Group
  • 294. Software Project Failure Rates Challenged Failed Average cost 28% overrun: 189% 46% Projects re- started: 94% Time overrun: 222% 26% Functionality Succeeded delivered on average: 61% (from The Standish Group) 294
  • 295. Root Causes of Failure  Separation of goal and function  Separation of business and technology  Lack of common language and process  Failure to communicate and act as a team  Processes that are inflexible to change  Solution? A good and tested framework! From ctos/ARQ55GestiondelaArquitecturaMicrosoftFrameworksMSFMOF.ppt 295
  • 296. Getting Their Attention… Hyperion Solutions Corp. was in trouble. They were losing money, and the stock was in the tank. CEO Jeffrey Rodek invited his top managers to dinner at the top of the San Francisco Fairmont. Along with the gorgeous view they all unexpectedly got only bread and water instead of the Fairmont‟s sumptuous selections, with Rodek telling them, “We don’t deserve any better.” 296
  • 297. Push-Pull Sales Approaches Push PUSH Results Tells Pull Boss Sells Time Tests AUTOCRAT (Tannenbaum, A S, et al. Consults Employee 1974. Hierarchy in Organizations. Jossey- Joins Bass. Shelfmark HD38.T29) PULL DEMOCRAT 297
  • 298. Adoption Curve 20% 60% 20% Accept a Wait and see Reject a change, no change, no matter what matter what Innovator Early Early Late Late Adopter Majority Majority Adopters 298 Based on work by Everett Rogers, Jon Preddie, and others
  • 299. The Object Oriented Point of View  OOM is about entity characteristics and relationships instead of top-down tasks  Traditional focus is on factories, trucks, machines and the tasks they can perform  Core to the “new” economy is intellectual property and relationship potential  “Goodwill” is about paying $20 million for a company w/ $10 million factories & machines (Raytheon‟s asset list is over 50% Goodwill)  Likewise, Activity Based Costing (ABC) 299
  • 300. What Is Key To Success? In a congressional review of September 11th, “the CIA was faulted for lacking cutting-edge technology, a solid system for disseminating actionable information that should be shared, enough skilled linguists, and good career paths.” (CNN July 17, 2002) – Full Application of Available Technologies – Effective and Broad Communications Systems – Attract, Reward, and Keep Skilled Employees 300
  • 301. What Is Required? Available Now Still Needed  Knowledge Systems  <= Use These More – To Capture  New Interactive  Groupware Meta-structures – To Integrate – Knowledge Growth  TQM  New Legal, Business, – To Coordinate and Personal Models – Relationship Growth  Balance of Models, – Building Carriers of Methods, Controls Ethical Values as Viral Change Agents 301
  • 302. Discussion Question What is the most important process to your company? What are the driving forces? Where would you suggest changes start? (commitment doc, marketing plan, IT plan) 302
  • 303. 10-Minute Break… Question: What do you get what you cross an instructor with a spud? Answer: A Facili-Tator 303
  • 304. What is Quality? … in integrity, strategy, leadership, and organizational kinetics Business problems are usually the result of insufficient authority and access, low morale and trust, or insufficient concern for quality. Lecture 6 of 6 by Jim Maginnis Copyright 2001 - 2006 Table of Contents 304
  • 305. Quality also means INTEGRITY To be “true” to oneself, one needs admirable goals, A clear understanding of where one will and can stand, A process of honest review, And a day-to-day plan for how to get things done and paid for. 305
  • 306. In business, these concepts Are formalized in… 306
  • 307. Mission Statement An unidentified soldier in WWII that could not state his mission was automatically shot. 307
  • 308. SWOT Analysis Strengths, Weaknesses, Opportunities, and Threats. 308
  • 309. Marketing Plan That is updated quarterly. 309
  • 310. Implementation Plan With good time and resource performance metrics. 310
  • 311. Financial Plan Including a Working Capital Policy. 311
  • 312. These five concepts, however, Can carry a real punch Only when they are based on a Strong and legitimate … 312
  • 313. Vision “Great minds have purposes, others have wishes.” - Washington Irving “Where there is no vision, the people perish.” - Proverbs 24:18 313
  • 314. 314
  • 315. Strategy: Balanced Scorecards An organizational tool that translates a mission strategy into objectives and measures organized by four different long term perspectives: Customer, Financial, Business 315 Processes, Learning & Growth
  • 316. Balanced Scorecard History Enterprise-wide Measurement Alignment and Strategic and Reporting Communication Management 1992 1996 2000 Articles in Harvard Business Review: Acceptance and Acclaim:  “The Balanced Scorecard —  “The Balanced Scorecard” Measures that Drive Performance” is translated into eighteen January - February 1992 languages  “Putting the Balanced Scorecard to  Selected by Harvard Work” September - October 1993 Business Review as one of the “most important  “Using the Balanced Scorecard as management practices a Strategic Management System” of the past 75 years.“ January - February 1996 1996 2000 From 316
  • 317. Based on an Understanding of the Basic Building Blocks of the Strategy Financial Perspective Return on 1. The economic model Revenue Strategy Investment Productivity Strategy of key levers driving Sources of Growth Sources of Productivity financial performance Customer Perspective Value Proposition 2. The value proposition Qualit Relatio- Price y Time Function Image ship of target customers Internal Process Perspective 3. The value chain of Build Deliver Service the Make the Exception core bus. processes the Sale Brand Product ally 4. The critical enablers Learning & Growth Perspective of performance Staff Competencies + Technology Infrastructure + Climate for Action improvement, change 317 and learning
  • 318. Strategy Map or Tree  aka “Cause-and- effect” or Linkage Diagram  Interrelationship of logic, metrics, & strategy; or, “Why are we doing this?” Quality Improvement Strategic Theme: Operating Efficiency Objectives Measurement Target Initiative Processes Financial Profitability • Profitability • Market Value • 30% • More • Seat CAGR More Customers Revenue • 20% GOALS Fewer Planes Customers • Fewer • Plane Lease CAGR planes Cost • 5% CAGR (Customer Customer • Flight is on - • FAA On • #1 • Quality Successes) Flight time Time Arrival managem Lowest Is on Time Prices • Lowest Rating • #1 ent Score prices • Customer • Customer Culture Ranking by loyalty card mrkt survey program Internal • Fast ground turnaround • On Ground Time • 30 Minutes • Cycle time optimizati IS Fast Ground Turnaround • On-Time • 90% on PROBLEM METRICS Departure program SOLVING Projects (improving Learning • Ground crew • % Ground • yr. 1 70% • ESOP what you alignment crew trained yr. 3 90% • Ground (Deming Ground Crew • % Ground yr. 5 crew Cycle) measure) Alignment crew 100% training 318 stockholders's_Version_of_the_Strategy_Map.htm
  • 319. Competitive Forces Analysis Threat of Potential new entrants entrants Bargaining power Industry of buyers competitors Suppliers Buyers Bargaining Rivalry Among Existing Firms Threat of power of suppliers substitute products or Substitutes services 319
  • 320. Competitive Forces Analysis 1. What are the boundaries of the industry? Questions 2. What is the structure of the involved industry? in designing 3. Which firms are our viable competitors strategies 4. What are the major determinants of competition? 320
  • 321. SWOT Analysis Internal What strategies  Strengths should be employed  Weaknesses to optimize your strengths and take External advantage of your  Opportunities competitor's  Threats weaknesses? To be a strategy or purpose driven organization 321
  • 322. INTERNAL FACTORS Strengths (S) Weaknesses (W) EXTERNAL FACTORS WO Strategies SO Strategies Generate Generate strategies here that strategies here that Opportunities (O) take advantage of use strengths to opportunities by take advantages of overcome opportunities weaknesses ST Strategies WT Strategies Generate Generate Threats (T) strategies here that strategies here that use strengths to minimize avoid threats weaknesses and avoid threats 322
  • 323. Critical Success Factors “What criteria “How can we determine who will be acquire this our most profitable Customers customer in the customers?” Acquisition most efficient and effective way? Customers Relationship Customers Selection Marketing Retention “How can we “How can we keep increase the loyalty Customers this customer for as and the profitability Extension long as possible?” of this customer?” Gartner’s Model of Customer Interaction 323
  • 324. Vision by Pres Mission by Execs States what the company Stated what the company Purpose intends to be like and intends to do and intends to intends to become achieve Guide the development and Guide the development and Use implementation of cultural implementation of strategic and marketing plans business and financial plans On what the company is to On what the company is to Emphasis be, in the internal do, in the external environment, on a environment, on one-time continuing basis basis for reachable goals On people, principles, On customers, products, Focus values, beliefs, and other competitors, and other elements of the Internal elements of the External Environment Environment Very short, simple, and Highly specific, detailed, and Nature vivid, so that everyone can measurable, so that understand, remember, and successful execution of visualize it for motivational strategic plans can be purposes accurately assessed 324 Managing Corporate Culture, Innovation, and Intrapreneurship Odwin, Howard W. 1997
  • 325. A Values Statement by All (Or Guiding Principles) A substantive effort by all members to identify the key values above money that will support the creation of an organization that performs well, sustains itself, and creates a positive environment. Such as: – Be open to change and risk failing to get better – Support trust, openness, honesty, & credibility – Management style, cultural beliefs, motivations – Leadership to bring out the best in people 325 Talent wins games; leadership wins championships
  • 326. Quality Relationships  Personal Autonomy => Authority  Integration and Teamwork => Access  Honest and Meaningful => Morale and Trust  Model Serving Humility => Least deviation from stated intentions as well as known customer expectations and needs for success Business problems are often the result of insufficient authority and access, low morale and trust, or low quality concern 326
  • 327. Common Relationship Terms “Total Participation” 3-Commandments FUD Factor Respect Fear, Uncertainty, Integrity and Doubt Generosity Dilbert-isms Motivation: FAIC Cynicism Distrust DNA of Change Misunderstanding Quality is never a technological problem, 327 but always a people problem
  • 328. “If you don‟t know where you‟re going, you‟re probably not gonna get there.” --Forrest Gump Environmental Scan • Activity Based Costing • Economic Value Added Strengths / Weaknesses • Forecasting • Benchmarking Opportunities/Threats • Market Research • Best Practices Values • Six Sigma • Statistical Process Control • Reengineering Mission & • ISO 9000 Vision • Total Quality Management • Empowerment • Learning Organization Strategic Issues • Self-Directed Work Teams Strategic Priorities • Change Management Objectives, Initiatives, and Evaluation 328
  • 329. To Complete Strategic Planning…  Identify key success factors  Evaluate current financial strategies  Identify business process problems  Build plan for strategic direction changes – Whether to take more or less risky approaches – Learn how to “Milk the Cow” – Identify quality performance metrics – Enhance communications of actionable items – Make better use of appropriate technologies – Improve HR and incentive effectiveness 329
  • 330. Group Systems Importance  Teams may be the basis for future organizations: organization will be composed mainly of specialists who direct their own performance through feedback from others (colleagues, customers, HQ); like a hospital  Thus, organizations are becoming flatter, with fewer HQs staff and many specialists (such as IT and HR) out in operating units 330
  • 331. Being Driven By Three Factors 1. Knowledge workers are becoming the dominant portion of labor and they naturally under perform in the traditional command- and-control form of organization 2. New economy competitive forces require all companies to find ways to be exponentially more innovative and entrepreneurial 3. Information technology is forcing shifts in company culture and business focus 331
  • 332. Case Example: Burr-Brown  24 IBM PS/2  48 people, 2 per workstation  Electronic Brainstorming - to generate ideas, simultaneously and anonymously  Issue Analyzer - to organize ideas  Voting tool - to rank ideas  Topic commenter to attach ideas in system  Policy formation code to study alternatives 332
  • 333. Results Of Group Support System  It increased involvement - decision room allowed them to do in three days what would have taken them months  The planning process was more effective - because of anonymity and planning process itself was educational  Brainstorming effective, anonymity elicited candor, and objectivity 333
  • 334. Characteristics of Groups  Membership: groups can be open, where almost anyone can join, or closed, where membership is restricted  Interaction: group can be loosely coupled, where the activity of each member is relatively independent of the other members, or tightly coupled, such as a project team where the work of each member is tied closely with the work of the other members  Hierarchy: group can be just one part of a “chain of command”; ex. planning committees 334
  • 335. Types of Groups  Authority: involve formal authority (often hierarchy), such as boss and subordinates; membership closed; coupling tight  Intradepartmental: can have members all doing essentially the same work, often under the same boss; membership closed; interaction can range from tight to loose coupling; hierarchy 335
  • 336. Types of Groups (continued)  Project teams: generally have members who work full-time to accomplish a goal within a specific schedule; membership closed; coupling tight; still some hierarchy  Interdepartmental workgroups: pass work from department to department (purchasing, receiving, accounts payable) in a chain, forming a super group; membership closed; coupling tight; no real hierarchy 336
  • 337. Types of Groups (continued)  Committees and task forces: formed to deal with a subject area or issue, then disband; does not require full-time work by the members; membership not too closed; interaction not as tightly coupled  “Communities of practice”: group of people who work or play together for so long that they have developed an identifiable way of doing things; ex. volunteer organization 337
  • 338. Types of Groups (continued)  Business relationship: relationships with customers, groups of customers, suppliers, and so on; membership open; interaction loosely coupled; no hierarchy  Peer groups: meet to exchange ideas and opinions; activities of each member are largely independent of the activities of the other members; membership can range; interaction loosely coupled; no hierarchy 338
  • 339. Types of Groups (continued)  Networks: groups of people who socialize, exchange information, and expand the number of their personal acquaintances  Electronic: include chat rooms, user groups, and virtual worlds, all groups that have formed on the Internet to socialize, find information, entertain themselves, gain comfort, or just experiment with the new online world; membership wide open; no hierarchy; loosely coupled 339
  • 340. Hierarchies vs. Networks  Hierarchies, such as in business, government, law enforcement, and military organizations, are more efficient in targeted planning and task execution – And, are more amenable to legal and physical control  Networks, on the other hand, are far more efficient at rapid adaptation to ever changing conditions – But, are more susceptible to infiltration and disruption  Often add moral control (terrorists and criminals) – To control by establishing limited hierarchies of trust through shared responsibility for individual actions (or, by who you know) as well as well-tested apprenticeship – Six-sigma Team Charter a more sustainable approach 340
  • 341. Peters and Waterman Making decisions even Bias for Action Without all the information Stay Close to Focus on Customer Service The Customer Autonomy and Risk-taking and small Entrepreneurship “Sub” companies Productivity Treat employees with Through People Dignity and respect 341
  • 342. “In Search of Excellence” Managers know the core Hands-on Mangt Business function Sticking to Do not diversify The Knitting Simple Form, Few layers of management Lean Staff Both Loosely and Tight belief in norms for Tightly Organized Loosely coupled cells 342
  • 343. That sounded good, but…  In 1984, BusinessWeek “Oops!” cover story  25% of companies fell from the “best” list  GE didn‟t make the list, but Lanier did with dedicated word processors against Apple IIs & AppleWriter and IBM PCs & WordStar  DEC, Data General, Amdahl, Wang also gone  Atari fell with the worst game ever (ET)  Xerox: good managers, but not one success  In 2002, Peters admitted data was faked 343
  • 344. What‟s the real answer?  Famous Management Gurus – Fredrick Taylor => productivity and efficiency – Peter Drucker => Management by Objectives – James Champy => Re-engineering / downsizing  What‟s before P&W characteristics? – Diversity in management and staffing (HR) – Encouragement for out-of-box thinking – Fanaticism for quality – Best Tools 344
  • 345. Corporate (or Individual) Character!  Ability to support diversity (not all executives being young white males who are STJs) – Able to attract and support “strange” people  Track record for creative, out-of-the-box thinking with speed in selecting the best ideas  A fanaticism for quality: entitling only those opinions based on hard numbers and facts  Inclination to develop external checks/balances  Skilled user of the best (and appropriate) tools 345
  • 346. Too Often CFO‟s Are In Charge  McNarmara (Secretary of Defense) was perhaps the beginning of bean counting to the point of leaving people out of the picture  CEO of General Motors once announced the company was not in the business to make cars, but in the business to make money!  Quite often, the CFO is 1st or 2nd in charge Focus on numbers, bureaucracy, & control 346
  • 347. When It Should Be Marketing  HP‟s Management By Wandering Around  Spiritual Well-Being Theory  IT IS NOT (via customer satisfaction): – Economic growth, market dominance, strategic differentiation, or maximized shareholder value  IT IS (via customer success): – Excellence, quality, art, beauty, heart, people throwing themselves on the line, upside-down organizational charts, servant-leadership, understanding the importance of relationships  => People, Customers, and Relationships! 347
  • 348. Blake - Mouton Management Grid Team Leader if Many think they would prefer rewards based discipline from Positive examples, everyone can succeed, admirable and "best friend" managers acheivable goals, team spirit optimal, but various Country Club Team Leader situations call for each style PEOPLE Leadership styles to be played to Impoverished Authoritarian provide for self-reliance, TASK discipline, and Delegate and disappear style with no support commitment Little cooperation, schedule focus, people do what they are allows team to suffer a series told, fixes start with who to independence. of internal power struggles blame, intolerant of dissent 348 Big Dog's Leadership Page - Concept of Leadership (
  • 349. Poorly Performing CEOs  Too little oversight, overly ambiguous, do not hold managers accountable  Managers were either overmatched or under-matched in incorrect roles  Preferred intimidated “yes-men” managers  Strategic wishful thinking regarding trends, customers, and competition  Cumbersome decision making processes Fortune Magazine June 21, 1999 349
  • 350. Who Is Leading Us to Failure? No Company Ever Failed Due To Poor Employees - The Problem Is Always Above The Neckline  “If you had to brand managers with psycho jargon, they‟d be STJ on the widely used Myers-Briggs personality test” - Ted Bililies, Psychologist  “Finance and administration are very likely to be STJ departments.” - William Bridges, Character of Organizations 350
  • 351. Past U.S. Presidents STJ (21) STP (13) NT (6) NF (0) Washington Roosevelt Adams None! Wilson Kennedy Lincoln Truman Johnson Grant Nixon Reagan Hoover Ford Clinton Eisenhower Carter Et al Bush Et al 351
  • 352. Advantages of STJ‟s Left Brained “Lions” Right Brained “Sheep” S N – Practical, Detailed – Flaky, Whimsical – Realistic – Ungrounded T F – Critical Thinker – Touchy-feely – Tough-minded – Sentimental J P – Decisive – Disorganized – Commanding – Tentative – Follow Through – Deadline Dysfunctional 352
  • 353. But, Too Much Stress  “Striving for efficiency, [lions] may produce a work force full of hostility, stress, and absenteeism.” - Krueger, Type Talk at Work  British research has linked workplace ruthlessness and bullying to between one-third and one-half of all stress related illness. - Joyner,  #1 fear is to die without a meaningful life = upsurge in volunteerism – Leider & Kotter 353
  • 354. Then, Creativity Dies  “Creativity in the workplace gets killed much more often than it gets supported.” - Teresa Amabile, Harvard Professor – Surveillance and Negative Judgment – Lack of Freedom (No Control Over Destiny) – Indifference (Lack of Support) – Competition (Political Problems Shut Down Communications Between Coworker) – Time Pressure Externally Imposed – Rewards As Bribes (Manipulated) 354
  • 355. Profile of “Creatively Challenged” SJ NP  Order  Finance  Flexibility  Autonomy  Complexity  Creativity  Fun 355
  • 356. Creativity Index = 3SN+JP-EI-.5TF  Profession  Score Architects 366 Playwrights 340 Research Scientists 321 Med School Students 276 Engineering Students 275 Inventors 258 Managers 247 Ave. Marin Residents 226 Business Executives 221 at the bottom! 356 Gough, 1981 Institute for Personality Assessment Research
  • 357. Cultural Fit  Many companies are beginning to give Myers- Briggs personality tests to applicants to ensure a fit with the existing culture  Cultural difference, however, should get worked out in less than six months and this effort only reduces workplace diversity  Quality requires a greater focus on flexibility, creativity, and fun, although diversity does require greater conflict resolution and communication skills 357
  • 358. RHETI Enneagram Types  Reformer: rational, orderly, high standards  Mentor: generous, interpersonal, service  Achiever: adaptable, driven, attractive  Designer: expressive, self-absorbed, artistic  Investigator: perceptive, provocative, curious  Troubleshooter: loyal, avoid risks, network  Enthusiast: upbeat, multitasking, long winded  Challenger: decisive, confrontational  Peacemaker: easygoing, passive, stable 358
  • 359. Every Enterprise Needs… … vision and confidence (Challenger), the ability to bring people together and listen to them (Peacemaker), ethical standards and quality control (Reformer), the ability to serve and anticipate people‟s needs (Mentor), effective marketing and promotion (Achiever), a well designed product and sensitivity to its emotional impact (Designer), technical expertise and innovative ideas (Investigator), teamwork and self-regulating feedback (Troubleshooter), as well as energy and optimism (Enthusiast). 359
  • 360. The Situation  According to Morningstar, 2000 “Over the past five years, just 3.75% of equity mutual funds have beat the market causing investments to flood into index funds.”  After the book, “Search for Excellence” Over 25% of the top 100 best run companies were dropped from the list within a few years.  Personal development of employees is more successful for motivation than larger salaries 360
  • 361. Experts Agree on What‟s Needed  Innovative and Creative Environments  Being Vision-based and Mission-focused  A Broad Perspective, “Total Participation”  Speed is Ever Increasing in Importance  Foundation of Trust and Commitment  Being Flexible and Adaptable  Creating a balance between internal freedoms and externally imposed structure 361
  • 362. Common Principles of Change  Establishment of A Sense Of Urgency  Values More Vital Than Making Money; When Taken Care Of, Profits Will Follow  Add Business Language: Caring, Trust…  Active Listening Becomes Fundamental  Broadening of Stakeholder Attitudes  Strong and Legitimate Guiding Vision  Existing Business Functions Realigned 362
  • 363. Organizational Kinetics  A Theory that organizations will rapidly move in straight lines until social walls are impacted by collisions with other groups  Inertia refers to the tendency to maintain the status quo within an organization  The best force to improve corporate health is the addition of competent competition  Local empowerment & well-being are also key 363
  • 364. Dynamic Organization  Proactive and Agile “Creates Change” – Peter Drucker: “The best way to deal with the future is to create it. By the time you catch up to change, the competition is ahead of you.”  Relevant and Economical Monitoring / Sharing with Results Prioritization  Fast, Active, and Constant Learning – Job rotation, cross-training, special assignments – Half life of employee knowledge 364
  • 365. Inert Organizations  Rarely are innovations in business (even ones that have widespread acceptance) adopted by anyone besides the innovator  Single communication channel  Focused on very survival, not on growth  Executives are bureaucrats rather than experts in the promotion and protection of values and organizational culture that constantly test their actions and goals 365
  • 366. Resurgence in Testing  Psychological measurement  Personality assessment – Myers-Briggs Type Indicator (MBTI) to predict team building and interpersonal effectiveness – Five Factor Model of Extraversion, Emotional Stability, Likeability, Conscientious, & Intellect  More Integrity tests w/ polygraphs not allowed –  Last 25 years of research shows not valid!! 366
  • 367. Other Ideas  Base corporate ownership and profit sharing on intellectual property and “sweat” equity - capital only enters the system as loans – Both personal income and business investment  Character Education – Leadership and Character Education – Fifth Discipline‟s “learning organization” – Martial Arts: Taking the Fall “Managers are people who do things right, while leaders are people who do the right thing.” – Warren Bennis, Ph.D. “On Becoming a Leader” 367
  • 368. Incentive Programs  Why is a person failing? – The worker does not know what the job is – The worker does not know how to do the job – Something or someone interferes with the worker‟s ability to do the job  Most companies utilize a 15-20% variable pay tied to team performance metrics  Better working conditions  Intrinsic motivators (e.g. mentors, coaches) 368
  • 369. To Summarize ... 1. Management must inspire passion, a quest for learning, fanaticism for quality, and a willingness to work outside the comfort zone. 2. Address corporate pathologies and neuroses. 3. Rather than rigid and boring managers who over-manage and under-lead, a greater focus is needed for character and values. 4. Success is often thwarted by discouraging flaky, disorganized, touchy-feely types (e.g. 369 using Myers-Briggs tests to limit diversity).
  • 370. Discussion Question Are you a better employee, a better parent, and a better neighbor and yet still getting better all the time? Is your life a statement of quality? How do you measure that? Where might you best begin in your personal life to start an formal commitment to continuous measurable improvements? (mission statement, SWOT analysis, metrics) 370
  • 371. Questions? “Software is designed and built far less efficient and trustworthy than hardware. Without a paradigm shift in software generating efficiency and robustness, it is expected that the growth of the complexity of software will cause a crash in the industry within the next five to six years.” J.A.J. van Leunen, CEO TWP Corporation 371
  • 372. Index 372