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Overcoming Contradictions Through Improved
        Governance, Risk Management and Compliance
                            ...
IBM Rational Software Conference 2009


Contradictions result from the quest for information
                             ...
IBM Rational Software Conference 2009



Move from a cost center to a business value driver

     Business
     Value




...
IBM Rational Software Conference 2009


Effective Information comes from proper metrics
communicated back to the business
...
IBM Rational Software Conference 2009



Software Measurement Status - Today


   Fortune 500 companies with productivity ...
IBM Rational Software Conference 2009



Is this REALLY the problem?

     Companies that measure:                        ...
IBM Rational Software Conference 2009



Maybe we should blame the Project Managers?


                Less than 25% of pr...
IBM Rational Software Conference 2009



How about “lesser known” Metrics?

                  WSR (Work-to-Sleep Ratio)
  ...
IBM Rational Software Conference 2009



Beware: Metrics Must Be Used Properly

      Cost per Defect (Penalizes quality)
...
IBM Rational Software Conference 2009



How do we succeed using measurement?
                   Fill in the blank. “The m...
IBM Rational Software Conference 2009


But measurement is difficult amongst the chaos
                    Achieve Profit ...
IBM Rational Software Conference 2009


This fidelity mandates a control framework
                                       ...
IBM Rational Software Conference 2009


4 Fundamentals for implementing a control framework

      1. System definition: A...
IBM Rational Software Conference 2009

 A Discriminating System
 Lets You Measure, Assess and Improve Information Blindspo...
IBM Rational Software Conference 2009


Defining a best practice…

        “The likelihood of delivering a product on time...
IBM Rational Software Conference 2009


And more specifically…
  The indicators that impact time                          ...
IBM Rational Software Conference 2009



Best Practice Interpretation: Project Health
  Metric                   Weight   ...
IBM Rational Software Conference 2009



Best Practice Interpretation: Project Quality
  Metric                   Weight  ...
IBM Rational Software Conference 2009



  Rational Executive Dashboard
                                                  ...
IBM Rational Software Conference 2009

                                                       IBM Rational User Technologi...
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   21
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   22
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   23
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   24
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   25
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   26
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   27
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   28
IBM Rational Software Conference 2009




                         Overcoming Contradictions…   EXEC12   29
IBM Rational Software Conference 2009




© Copyright IBM Corporation 2009. All rights reserved. The information contained...
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Overcoming contradictions mike-o_rourke

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Transcript of "Overcoming contradictions mike-o_rourke"

  1. 1. Overcoming Contradictions Through Improved Governance, Risk Management and Compliance Michael O’Rourke Vice President of Development, Rational Software mikeorou@us.ibm.com Executive Track – EXEC 12 © 2009 IBM Corporation
  2. 2. IBM Rational Software Conference 2009 Contradictions result from the quest for information Product Product Variance Profitability And Health Distributed and Workforce Outsourced Development Optimization 52% of users 59% of managers 42% of managers don’t have miss use wrong confidence information information in their information1 they should have used2 at least once a week2 1AIIM 2008 Survey 2Accenture 2007 Managers Survey Overcoming Contradictions… EXEC12 2
  3. 3. IBM Rational Software Conference 2009 Move from a cost center to a business value driver Business Value 5X more value realized by organizations using information effectively Maturity of Information Use Overcoming Contradictions… EXEC12 3
  4. 4. IBM Rational Software Conference 2009 Effective Information comes from proper metrics communicated back to the business Customer & Financial Workforce Dynamic Multi-channel Create an Product Risk Insight Optimization Supply Chain Marketing 5 Information Agenda Profitability Business Optimize 4 Business Performance Optimization Establish, Govern & 3 Deliver Trusted Information Optimize Content-based 2 Operational & Compliance Processes Manage Data Flexible Architecture 1 Over its Lifetime ™ DB2® Informix® FileNet® InfoSphere Cognos® software software software software software Overcoming Contradictions… EXEC12 4
  5. 5. IBM Rational Software Conference 2009 Software Measurement Status - Today Fortune 500 companies with productivity measures: 30% Fortune 500 companies with quality measures: 45% Fortune 500 companies with complete measures: 15% Fortune 500 companies with missing measures: 85% Number of software measurement personnel: 5,500 Number of software projects measured: 160,000 Number of software projects not measured: 50,000,000 - Capers Jones Overcoming Contradictions… EXEC12 5
  6. 6. IBM Rational Software Conference 2009 Is this REALLY the problem? Companies that measure: Companies that don’t: On-time projects: 75% On-time projects: 45% Late projects: 20% Late projects: 40% Cancelled projects: 5% Cancelled projects: 15% Defect removal: > 95% Defect removal: Unknown Cost estimates: Accurate Cost estimates: Optimistic User satisfaction: High User satisfaction: Low Software status: High Software status: Low Staff morale: High Staff morale: Low - Software Productivity Research (2007) Overcoming Contradictions… EXEC12 6
  7. 7. IBM Rational Software Conference 2009 Maybe we should blame the Project Managers? Less than 25% of project managers have formal training Less than 20% of project managers have access to cost / project estimating tools. Less than 10% of project managers have access to validated historical data - Software Productivity Research (2008) Overcoming Contradictions… EXEC12 7
  8. 8. IBM Rational Software Conference 2009 How about “lesser known” Metrics? WSR (Work-to-Sleep Ratio) DODO (Days On per Day Off) HBT (Handbasket Temperature) GALB (Going-Away-Lunch Budget) or GAAB (Going Away-Alcohol- Budget) Dilbert Barometer The Laugh Meter - Martin L. Shoemaker Overcoming Contradictions… EXEC12 8
  9. 9. IBM Rational Software Conference 2009 Beware: Metrics Must Be Used Properly Cost per Defect (Penalizes quality) Lines of Code (Ambiguous) Cost per Line of Code (Penalizes new languages) Lines of Code per Month (Ignores non-code work) Staff Work Hours per month (Ignores non-work tasks) Industry averages (Vague and ambiguous) - Capers Jones Measurements must be SMART (Simple, Measurable, Actionable, Realistic, and Timely) Overcoming Contradictions… EXEC12 9
  10. 10. IBM Rational Software Conference 2009 How do we succeed using measurement? Fill in the blank. “The measurement _____.” …is meaningful and potentially …supports multiple kinds of benefits the customer, manager software, metrics, activities and and performer. deliverables. …demonstrates quantifiable correlation …supports a direct link between between process perturbations and assessments and quantitative data. business performance (e.g. it is as accurate as financial data) …explains why projects vary and by how much. …is a natural by-product of the …is supported by automation. process (no night job). “Organizations exercising world-class performance management practices enjoy a 2.4 times market returns of typical companies” BusinessWeek Study: The Payoff of Pervasive Performance Management Overcoming Contradictions… EXEC12 10
  11. 11. IBM Rational Software Conference 2009 But measurement is difficult amongst the chaos Achieve Profit Market Share Business Alignment Quality Success can only come from a tight linkage Headcount Time to Market Readiness Renewals from the development and Feedback process to delivery Business Revenue Performance Defects Objectives Expense the business. Enablement Satisfaction Consumability Executive Products Productivity Deployment Calls Project Schedule Code an annual report synthesizesContinuous Integration LikeCoverage Requirements Churn Tests Passed/Failed the state of Tests per Build Iteration overall business....a development report the Burndown Operational Code Churn Work Item Completion Objectives Build Health needs to do the same.... Code Growth Defect Age Management Defect Density Tests for Requirements Defect Priority Communicate the relativemanagement iterative agile test driven developmentchange facts to give all change set bill of materials VELOCITY dashboard WORK ITEMthis stakeholders insight as to the health of code scan Processes & test script requirements project schedule team meeting chat waterfall critical part of their business. Practices UNIT TEST Development requirement build definition defect TEST CASE deploy image change Artifacts set bill of materialsSTREAM custom dashboards design model WORKSPACE Eclipse plug-ins test script SNAPSHOT development assets Demo image Overcoming Contradictions… EXEC12 11
  12. 12. IBM Rational Software Conference 2009 This fidelity mandates a control framework Performance Measurement Value Value Metrics Business Objectives measures e.g., ROI, ROA for SSD Efficiency Operational Effectiveness Metrics feedback Operational Objectives measures e.g., Time to market, productivity Control Process Definition / Practices measures Control Control Governance Rational Method Composer Metrics Metrics Dashboard subjective objective compliance Process Enactment / Governance Enforcement / Process Awareness Jazz Platform Overcoming Contradictions… EXEC12 12
  13. 13. IBM Rational Software Conference 2009 4 Fundamentals for implementing a control framework 1. System definition: A discriminating C/ALM system for linking, tracing and accessing information across your SDLC. 2. Best practices: Best practices for monitoring, measuring and reporting throughout the enterprise 3. Interpretation: A capability to interpret your measures correctly and accurately the health of your development practices 4. Operations: Guidance to define the right actions, workflows and policies to improve your measured results and be compliant Overcoming Contradictions… EXEC12 13
  14. 14. IBM Rational Software Conference 2009 A Discriminating System Lets You Measure, Assess and Improve Information Blindspots Where You Improving Should Be! Where You Are Why You Are Assessing Productivity Rates Process Assess Measuring Quality Levels Product Health Quantitative and Qualitative Data Information Gaps Change & Rational Quality Build & Architecture Security Project Headcount Sales Customer Manual Configuration Definition & Management Release Management & Data & & Support Data Management Management Management Compliance Financials Pipeline Software Lifecycle Artifacts 3rd Party Data Artifacts Overcoming Contradictions… EXEC12 14
  15. 15. IBM Rational Software Conference 2009 Defining a best practice… “The likelihood of delivering a product on time, within budget, with acceptable revenue or benefits and an acceptable level of support costs.” The definition points us to what we need to project Time to complete Cost to complete Expected revenue/benefits Expected support and ownership costs The other indicators (expected effort, probability of on-time completion and percent complete) can be driven from these Overcoming Contradictions… EXEC12 15
  16. 16. IBM Rational Software Conference 2009 And more specifically… The indicators that impact time The indicators that impact to complete – expected revenue / benefits – Critical situations Benefits of requirements Defect density/severity analysis Benefits of demonstrable capabilities by Defect repair latency iteration (iteration status) Build health Benefits of RFE 30/90-day SLA Velocity IPD timeliness Iteration status Variance in time-to-complete estimates by task The indicators that impact cost The indicators that impact to complete – expected support and Staffing actuals vs. plan (is also an indicator of ownership costs – project size) APAR backlog Capital expense actuals vs. plan RFE 30/90-day SLA Earned value Build health Time-to-resolution for internally-found defects and APARs Overcoming Contradictions… EXEC12 16
  17. 17. IBM Rational Software Conference 2009 Best Practice Interpretation: Project Health Metric Weight Source Measure Defect Backlog 10 Change Mgmt 3 Months Enhancement SLA 10 RFE Website 60 Days Cost of Support 10 Analysis 25% Total Critical Situations 05 Support DB <1 Month Defect Density 10 Analysis By component Project Defect Repair Latency 05 Support DB By product maturity Health Build Health 10 Analysis 90% Clean Project Velocity 10 SCM Tool Better than Average Staffing Actuals 10 Financials 10% Variance Process Timeliness 05 Process DB <10% off plan Milestone Status 10 Agile Planner 90% of plan Severity Analysis 05 Analysis Depends on timeframe Overcoming Contradictions… EXEC12 17
  18. 18. IBM Rational Software Conference 2009 Best Practice Interpretation: Project Quality Metric Weight Source Measure Defect Backlog 10 Support DB 3 Months Test Escapes 10 Analysis 60 Days Functional Test Trends 10 Analysis 25% Total Critical Situations 05 Support DB <1 Month System Test Trends 10 Analysis By component Project S-Curve Progress 05 Quality Mgmt By product maturity Quality Automation Percentage 10 Analysis 90% Clean Customer Testcases 10 Quality Mgmt Better than Average Consumability Scorecard 10 Spreadsheet 10% Variance Defect Latency 05 Change Mgmt <10% off plan Quality Plan Commitments 10 Spreadsheet 90% of plan Test Coverage 05 Analysis Depends on timeframe Overcoming Contradictions… EXEC12 18
  19. 19. IBM Rational Software Conference 2009 Rational Executive Dashboard Rational DB2 Insight Oracle Where You Are Why You Are Productivity Rates Process Assess SQL Server Product Health Quality Levels REST Open Services / ODBC / XML Quantitative and Qualitative Data Rational Rational Rational Rational Rational Rational Rational Project Headcount Sales Customer Manual ClearQuest Requirements Team Concert Quality Test Manager Requisite Pro ClearCase Data & & Support Data Composer Manager Financials Pipeline Rational Data Sources 3rd Party Data Sources Overcoming Contradictions… EXEC12 19
  20. 20. IBM Rational Software Conference 2009 IBM Rational User Technologies Check out the Executive Dashboard that allows IBM executives to manage product development and delivery. Based on MCIF and Rational Insight, the Executive Dashboard pulls in live data from a variety of sources for Jazz-based products, such as Rational Team Concert, Rational Requirements Composer, and Rational Quality Manager. This is a chance to share your reality with us through direct and specific feedback! Sign up at tinyurl.com/djoj9b or in person at Europe 5 Overcoming Contradictions… EXEC12 20
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  30. 30. IBM Rational Software Conference 2009 © Copyright IBM Corporation 2009. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, Telelogic, the Telelogic logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others. Overcoming Contradictions… EXEC12 30
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