An average sized client was experiencing poor customer satisfaction due to issues with budget, schedule, and quality. They implemented CMMI with a consultant and achieved a maturity level of 3. This led to significant improvements in metrics like reducing penalties from $600,000 to $0, increasing first time quality from 67% to 99%, and reducing budget overruns from 40% to 3%. It also increased profitability from -36% to +21% and reduced staff attrition from 40% to 10%. The cost to implement CMMI was $1.1 million but it provided $3.5 million in increased business value, a return of over 3 times the investment.

1. A CMMI-Based Process Improvement Effort
Doesn’t Cost, It Pays!
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2. Chapter 1 - The Challenge
• Average Midsized Client
• Poor Customer Satisfaction (CSAT)
– Budget
– Schedule
– Quality
• Future Business Imperiled
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3. Chapter 2 - The Solution
• Recommendation / Insistence On Adopting CMMI
• Implemented CMMI With Consultant
• Conducted SCAMPI Appraisal
• Achieved Target Maturity Level 3
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Investment
Cost Overruns
Lost Business
Staff
Penalties
Business Development Costs Decreased
Additional Work
Overtime Decreased
Profit Increased
Penalties Decreased
Predictability Increased
Staff Turnover Decreased
Clients Became Referenceable
Productivity Increased
Benefits
Chapter 3 - The Results
Costs

5. The Numbers 2010 to Present
SLA Penalties = $600,000 (5%)  $0
Schedule Performance = 33% late;  3%
First Time Quality = 67%  99%
Budget Performance = 40% Overrun  3%
On 80,000 Hours, Reduced Resource Costs  $2M
Test Hours : Development Hours = 3:1  0.8:1
Development Profitability = -36%  +21%
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6. The Numbers 2010 to Present
Plan & Define Projects 25% Faster; 40% Reduced Cost
Reduced Attrition = 40%  10%
$6M  Client Awarded Unanticipated Additional Work
Annually For 3 Consecutive Years
Didn’t Have to Bid on Additional Work
Cost to Implement CMMI $1.1M
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7. The Human Equation
• Clients Became References
• Overtime Decreased
• Turnover Decreased
• Attracted Top Talent
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8. It Doesn’t Take A Genius
• $1.1M to achieve ML3
• $3.5M increased business value
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3.5 : 1
Value : Cost

9. For More Information
Please Contact Us At:
Assess-IT, Inc.
www.assess-it.com
info@assess-it.com
510-717-9655
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