• Like

Thanks for flagging this SlideShare!

Oops! An error has occurred.

The dollars are in the details measuring the cost of requirements grb - v1.0


The Dollars Are in the Details: Measuring the Cost of Requirements Business requirements are a fundamental component in project management because it forms the basis of project and product scope. …

The Dollars Are in the Details: Measuring the Cost of Requirements Business requirements are a fundamental component in project management because it forms the basis of project and product scope. Development and management of requirements also impact the overall financial success of a project because each requirement comes at a cost. Requirements management and development (RMD) offers an approach for enhanced traceability, visibility and verifiability that can help you avoid unnecessary project costs. This presentation will explain how RMD can increase the quantifiable probability of providing the desired deliverables and expectations to meet overall organization goals and objectives, improve goods and services, enhance governance compliance, develop better aligned and prioritized requirements, and match the right resources with the right competencies.

Published in Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads


Total Views
On SlideShare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. The Dollar$ are in the Detail$: Measuring the Cost of Requirements Glenn R. BrûléExecutive Director of Client Solutions, ESI International gbrule@esi-intl.com http://www.linkedin.com/in/toglennsnetwork www.esi-intl.com
  • 2. Agenda Breaking the Bank SAFE Count on it… building talent, driving results 2
  • 3. Breaking the Bank
  • 4. Consistently Challenged 100% 80% 60% Failed Challenged 40% Successful 20% 0% 1994 1996 1998 2000 2002 2004 2006 2009 Chaos Reports ~ 2009 – 75% of our Projects are NOT successful! building talent, driving results
  • 5. Writing checks we can’t cash?Why do we have to measure ourcosts? – Maintain/Grow market share Are the products meeting customer expectations? – Quality? – Costs of product to consumers vs. the cost to build the products – Can we increase the profitability? – Are we building the right products? – Are we efficient at building the right products? Right people Right processes Right tools? building talent, driving results
  • 6. A Balanced Portfolio Organizational Goals and Objectives Customer Value Analysis Goods & Portfolio Management Services Core Competencies Business Policies & Rules Process Tasks & Activities building talent, driving results 6
  • 7. So What’s the Point?Increased quantifiable probability of Organizational Goalsproviding the desired deliverables and and Objectivesexpectations to meet overall organizationalgoals and objectives through a clear Goods & Servicesunderstanding of our corecompetencies Business Policies & RulesImproved goods and services by virtue of Processstandardized methodology/approach andmore complete overall work, less iterationsby understanding the output from ourcustomer value analysis activities Tasks & ActivitiesIncreased flexible structure checks andbalances that ensure we are compliant withgovernance, internally or externally building talent, driving results 7
  • 8. So What’s the Point?Better requirements and more closelyaligned and prioritized to work being Organizational Goals andperformed Objectives Goods & ServicesStronger, well-aligned requirements toalleviate rework down the line Business Policies & RulesHaving the right resources with the right Processcompetencies, completing the right tasksthat they are capable of is critical to ensuretraceability of deliverables to overall goals Tasks &and objectives. ActivitiesFinally, any one of these areas are areasfor quantifiable consideration building talent, driving results 8
  • 9. Nickels and Dimes…Organizational goals and objectives Processes – Increase market share by 15% from 7% – Increase efficiencies within our own process to – Increase revenue by 10% decrease cycle time or number of iterations or the – Decrease the time it takes to respond to a customer costs of each iteration within an SDLC inquiry from 10 minutes to 2 minutes TasksGoods and services – Are we focused on too many tasks at the – Increase customer sat by 15 % same time – Decrease defects in products by 10% from 15% – Are the tasks prioritized – Are the tasks related to a real business valueBusiness Policies and Rules – Are the right people performing the right – Sampling of compliance with rules tasks? – Are they prohibitive or restrictive, or to ad-hoc – could we improve or optimize performance here. building talent, driving results 9
  • 10. Requirements Management andDevelopment Assurance Model © ESI International, Inc. 2009 building talent, driving results 10
  • 11. Top Down Metrics? GO Enterprise Analysis Enterprise Architecture SOA Change Management Portfolio Program Governance Management Management ITIL, RUP, AGILE, LEAN, Six Sigma, CMMI Process Project Business Analysis Management Management BUSINESS IT © ESI International, Inc. 2009 building talent, driving results 11
  • 12. SAFE
  • 13. Organizational Starting PointCMMI Model 1. Initial 2. Repeatable 3. Defined 4. Managed 5. OptimizingRequirements Standard practices Process is Measurements Continue processManagement and and templates formalized collected and improvementDevelopment (predictable) assessedpractices performedinconsistently building talent, driving results 13
  • 14. Measures for Maturity CMMI Levels 4-5 CMMI Levels 2-3 CMMI Level 1 building talent, driving results 14
  • 15. Measures for Maturity Phase III Phase II Mature Continuous Maturing Improvement Capability Phase I: Rollout Stage building talent, driving results 15
  • 16. An inventory for “measurable” CMMI Level Framework Environment Resources Business Alignment Standards and Organization and Competency and Career Level II Enterprise Analysis Methodologies Structure Development Level III Metrics Governance Training and Development Portfolio Management Level IV Tools Assessment Coaching and Mentoring Program Management Customer Relationships Level V Knowledge Management building talent, driving results 16
  • 17. Rules of the RoadRemember…this is a journey…..1. Measure to your level of maturity.2. It is best when a baseline can be obtained. • If not, then just start and use initial findings that as your baseline. • Look at 5-10 projects of a representative sample • Change requests, help desk tickets, iterations, approval processes,3. Know what your measures mean; i.e. what value the measurement provides to the organization.4. Consistency is important. - stick with what you can put into place • Even if you learn that the measure needs to be altered; it might be prudent to continue to measure consistently for a period of time vs. changing it without getting good baseline information.5. Benchmark externally whenever possible. • What are the industry standards to compete on these levels – this is a true – thinking outside of the box type of concept! building talent, driving results 17
  • 18. Count on it…
  • 19. A Penny for your thoughts…What are you tracking and measuring? How often?Who sets the standards?How realistic are they?How clear are they?How quickly do you need to report?How often?What variance is acceptable? (+/-)At what level of variance must you take action?What rewards and “penalties” will enforced? © ESI International, 2006. building talent, driving results 19
  • 20. Determine an approach that isSMART!SpecificMeasurableAgreed UponRealisticTimely © ESI International, 2006. building talent, driving results 20
  • 21. Measures for Each LevelPhase I: Rollout Stage Level of Organizational Change, i.e. Number of People Trained, Number of Organizations using RMD processes Number of Requirements Failing an ‘Acid Test’ or other test to determine a ‘good’ requirement.Phase II / Maturing Number of Requirement Defects (Poor or Missing Requirements)Capability: Number of Requirements Changes resulting in Project ‘Rework’ Customer Satisfaction of DeliverableMature / Continuous % Requirements/Defects compared to other ProjectsProcess % Requirements/Change Controls compared to other ProjectsImprovement: Overall Cycle Time (value of good requirements to satisfactory and speedy completion of deliverable) Defects in post-production environment Prediction of future activities accurately Six Sigma – optimization tool Phase III Mature Continuous Phase II Improvement Maturing Capability Phase I: Rollout Stage building talent, driving results 21
  • 22. Have a “controlled” approachAll methodologies/approaches can leveragemetricsHave a Process of comparing actual performancewith planned performance, analyzing variances,evaluating alternatives, and taking correctiveaction as neededConcerned with three elements of allaspect of the overall development ofdeliverables. From GO to tasks andactivities. – Performance – Cost – Time Ward, Project Management Terms, p. 48 Meredith & Mantel, Project Management, p. 508 © ESI International, 2006. building talent, driving results 22
  • 23. Some Finer Points ofMeasurementConsider amount of time/effort Business Architecturespent in each phase of your SDLC Verification & Elicitation ValidationConsider the number of iterationsof each phase or overall iterationsConsider the number of changerequests over the course of your Development AnalysisSDLC DesignConsider the amount of “rework ineach phase building talent, driving results 23
  • 24. Cost of Different Types Requirements Total Cost of Requirements + Total Cost of Effort = Total Cost of Solution building talent, driving results 24
  • 25. Summary:Consider the depth and breadth of“measurables” from the “top down”Match your approach tomeasurements according to the levelof overall requirements maturityBe SMART about your approachThis is a journey…metrics provide theroadmap to know when you’veachieved your goal! building talent, driving results 25
  • 26. Questions? Glenn R. BrûléExecutive Director of Client Solutions, ESI International gbrule@esi-intl.com http://www.linkedin.com/in/toglennsnetwork www.esi-intl.com