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The LEGO Strategy: Guidelines for a Profitable Deployment

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When dealing with improvements, organizations seek to find a break-even point for their applications as early as possible in order to maximize the return from their investment. However, in some cases such a strategy can lead to a long term failure by not realizing the full benefits, when focusing only on a short term. The LEGO (Living EnGineering prOcess) approach – a method for building your own process meta-model based on multiple inputs – is a way to make an organization more efficient and effective, optimizing resources, as well as time and costs through looking at its entire Business Process Model. This paper introduces the elements for designing a strategy for a more valuable deployment of a process improvement initiative, in order to optimize the choice of the models and elements to be considered as an input to the LEGO approach

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The LEGO Strategy: Guidelines for a Profitable Deployment

  1. 1. EuroSPI2 2012 – 19° EuroSPI Conference Vienna (Austria), 25-27 June, 2012 Guidelines for a Profitable Deployment www.eng.it Luigi BBuugglliioonnee Christiane GGrreessssee vvoonn WWaannggeennhheeiimm Fergal MMccCCaaffffeerryy Jean C.R. HHaauucckk The LEGO Strategy
  2. 2. www.eng.it DKIT At a glance Dundalk Institute of Technology is a 90 acre campus situated between Dublin and Belfast (each approximately 50 miles away). The Institute consists of 4 Schools: 1. Business & Humanities 2. Informatics & Creative Arts 3. Engineering The Regulated Software Research Group which is 4. Health & Science part of LERO (the Irish Software Engineering Research Centre) is part of the School of Informatics & Creative Media
  3. 3. FFiinnaannccee IInndduussttrryy TTEELLCCOO UUttiilliittiieess PPAA & HHCC 4466 Managed Operations Broadband & Media www.eng.it Engineering At a glance ERP IT Security ECM Plant Management System SSyysstteemm IInntt.. & CCoonnssuullttaannccyy OOuuttssoouurrcciinngg SSooffttwwaarree 7700 1100 2200 8800 2200 5544 2277 1199 8800 1100 1100 % % %% RReesseeaarrcchh aanndd DDeevveellooppmmeenntt 3355 1199 _The first Italian ICT player _ more than 730 M/€ revenues _ 1000 clients _ 6,300 IT specialists wwwwww.e.enngg.i.tit
  4. 4. www.eng.it UFSC At a glance Federal University of Santa Catarina Florianópolis/Brazil [http://www.ufsc.br] • 48 Master courses • 38 PhD courses • 62 Undergraduate courses • EUR 268 million annual budget • 25,737 Undergraduate students • 8,543 Graduate students • 34,280 Students [http://www.youtube.com/watch?v=V6E1Z5DEuvk] INCoD is to be a reference institute for excellence in research, validation and dissemination to support digital convergence. [http://www.incod.ufsc.br] The Software Quality Group focuses on scientific research, development and transfer of SE models, methods and tools. [http://www.gqs.ufsc.br]
  5. 5. The LEGO Strategy Goals of the presentation G1. Discuss the benefits from a well established long-term strategy (not only tactic…) G2. Propose the LLEEGGOO approach for making organizations more effective and efficient, optimizing resources G3. Show the needed elements for designing a strategy for a better deployment of a process improvement initiative 5 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck
  6. 6. Agenda The LEGO Strategy 6 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Introduction – What is Strategy? – IT Projects: State-of-the-art • Why Process Improvement Programs Fail? – The Three Waves and Most Recurring Problems – Further Attention Points • Looking for a Solution: Back to the Strategy – Reactive vs Proactive Models – The LEGO approach – Looking for a Strategy • Establishing a Strategy from Historical Data – Positioning the LEGO approach in the PDCA Cycle – Focusing on Strategy: Making it Work • Conclusions Next Steps • Q A
  7. 7. Introduction What is Strategy? 7 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck
  8. 8. Introduction IT Projects: State-of-the-Art (11/2) Example: CHAOS Reports Example: CHAOS Reports 2 2000022--0088 D Daatata FFaailieledd p prroojejecctsts s seeeemmss t oto i ninccrreeaassee Several top-5 (or top-10) lists for main causes: http://goo.gl/LT5Wc http://goo.gl/ZCk6T http://goo.gl/xde73 http://goo.gl/hBFMp http://goo.gl/NohkZ ... Several top-5 (or top-10) lists for main causes: http://goo.gl/LT5Wc http://goo.gl/ZCk6T http://goo.gl/xde73 http://goo.gl/hBFMp http://goo.gl/NohkZ ... 8 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck
  9. 9. Introduction IT Projects: State-of-the-Art (22/2) Weak alignment between perspectives Few attention to COQ (Cost of Quality) Some questions: •Thus, aren’t strategies really applied in organizations? • Which are the main root causes for failure? • Could MCMs (Maturity Capability Models) help in improving the whole picture? Some questions: •Thus, aren’t strategies really applied in organizations? • Which are the main root causes for failure? • Could MCMs (Maturity Capability Models) help in improving the whole picture? 9 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck Weak alignment between perspectives Few attention to COQ (Cost of Quality)
  10. 10. Agenda The LEGO Strategy 10 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Introduction – What is Strategy? – IT Projects: State-of-the-art • Why Process Improvement Programs Fail? – The Three Waves and Most Recurring Problems – Further Attention Points • Looking for a Solution: Back to the Strategy – Reactive vs Proactive Models – The LEGO approach – Looking for a Strategy • Establishing a Strategy from Historical Data – Positioning the LEGO approach in the PDCA Cycle – Focusing on Strategy: Making it Work • Conclusions Next Steps • Q A
  11. 11. Why PI Programs Fail? The Three Waves Most Recurring Problems Y2K 11 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck Mid ’90s 1 Mid Y2K 2 1. Get certified by ISO 9001/9002 2. Get compliant by MCMs (e.g. CMMI, SPICE, etc.) 3 3. Multimodel Approach (e.g. SEI’s PRIME, etc.)
  12. 12. Why PI Programs Fail? Further Attention Points Some misconceptions and issues can be: •• An ISO management system ssttaannddaarrdd iiss aabboouutt rreeqquuiirreemmeennttss,, nnoott pprroocceesssseess Maybe trivial, but not always clear a management system standard is not directly comparable •• RRuunn aa RRCCAA aatt tthhee ssttrraatteeggiicc lleevveell ttoo eessttaabblliisshh tthhee mmaaiinn lliisstt ooff iissssuueess ttoo bbee ffiixxeedd wwiitthh pprriioorriittyy ffoorr aa ssuussttaaiinnaabbllee,, mmiidd--lloonngg tteerrmm iimmpprroovveemmeenntt pprrooggrraamm 12 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck with a process model •• SSttaaggeedd rreepprreesseennttaattiioonnss iinn MMCCMM hhaass pprrooss ccoonnss Some core processes are not visible till the end E.g. in CMMI the process about RCA (Root-Cause Analysis) is CAR (ML5) Common acceptance about a high-level equivalence between ISO 9001:2008 certification and CMMI ML2-3 RCA is a mandatory requirement for get certified with ISO 9001:2008 •• ‘‘HHoorriizzoonnttaall’’ MMCCMMss ccaann mmiissss ssoommee ddeettaaiillss Horizontal vs Vertical MCMs: http://slidesha.re/JotY6V Yet done a preliminary analysis of main CSFs? • Run a RCA at the strategic level to establish the main list of issues to be fixed with priority for a sustainable, mid-long term improvement program
  13. 13. Agenda The LEGO Strategy 13 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Introduction – What is Strategy? – IT Projects: State-of-the-art • Why Process Improvement Programs Fail? – The Three Waves and Most Recurring Problems – Further Attention Points • Looking for a Solution: Back to the Strategy – Reactive vs Proactive Models – The LEGO approach – Looking for a Strategy • Establishing a Strategy from Historical Data – Positioning the LEGO approach in the PDCA Cycle – Focusing on Strategy: Making it Work • Conclusions Next Steps • Q A
  14. 14. Looking for a Solution Reactive vs Proactive Models •• Possible oorrggaanniizzaattiioonnaall ‘‘ppoossttuurree’’ Reactive compliance Proactive improvement (+ compliance) •• CCeerrttiiffiiccaattiioonnss Should be the ‘natural’ consequence of a proper acting in applying common-sense rules and principles, not the target for an improvement program •• MMaaiinn eelleemmeennttss ttoo ffooccuuss oonn…… People (e.g. CMMI-DEV RD about req. elicitation) DIKW (Data-Information-Knowledge-Wisdom) as a path toward a complete and satisfactory Knowledge Management process (e.g. from ITIL v3 2011 ST core book) 14 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck
  15. 15. Looking for a Solution The LEGO Approach 11. .MMCCMM R Reeppoossitiotoryry 2. Process 15 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck 2. Process Architecture Architecture 3. Mappings 44. .AAppppraraisisaal lM Meeththoodd Comparisons 3. Mappings Comparisons 1. Identify goals 2. Query the MCM repository 3. Include new elements 4. Adapt Adopt Source: Buglione L., Gresse von Wangenheim C., Hauck J.C.R., Mc Caffery F., The LEGO Maturity Capability Model Approach, Proceedings of 5WCSQ, 5th World Congress on Software Quality, Shanghai (China), Oct 31- Nov 4 2011
  16. 16. Looking for a Solution Looking for a Strategy TThhee S STTOOMMooddeel l LLeevveell SScceennaarriioo ##11 –– GGooaallss SScceennaarriioo ##22 -- GGooaallss • Run periodical appraisals using the resulting (LEGO) meta-model mapped on the organizational Business Process Model (BPM) • Run quarterly audits based on ISO 19011:2011 guidance 16 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck O - Operational • Become compliant with main best practice models/frameworks after taking the best of them using the LEGO approach • Become ISO 9001 certified within 2 years T – Tactical • Be the best ICT provider in a certain market • Provide quality S – Strategic product/services
  17. 17. Agenda The LEGO Strategy 17 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Introduction – What is Strategy? – IT Projects: State-of-the-art • Why Process Improvement Programs Fail? – The Three Waves and Most Recurring Problems – Further Attention Points • Looking for a Solution: Back to the Strategy – Reactive vs Proactive Models – The LEGO approach – Looking for a Strategy • Establishing a Strategy from Historical Data – Positioning the LEGO approach in the PDCA Cycle – Focusing on Strategy: Making it Work • Conclusions Next Steps • Q A
  18. 18. Establishing a Strategy LEGO in the PDCA Cycle •• SSoommee nnootteess…… ‘+’ potential added value Coloured actions additional steps for implementing a strategy against the typical PDCA-based improvement 18 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Some notes… ‘+’ potential added value Coloured actions additional steps for implementing a strategy against the typical PDCA-based improvement
  19. 19. Establishing a Strategy Focusing on Strategy: Making it Work (11/6) Source: Buglione L., Strengthening CMMI Maturity Levels with a Quantitative Approach to Root-Cause Analysis, Proceedings of the 5th Software Measurement European Forum (SMEF 2008), Milan (Italy), 28-30 May 2008, ISBN 9-788870-909999, pp. 67-82, URL: http://goo.gl/T4ROJ 19 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck
  20. 20. Establishing a Strategy Focusing on Strategy: Making it Work (22/6) Possible sources with best Possible sources with best practices for finding practices for finding solutions to a root-cause solutions to a root-cause RRoooot-t-CCaauusseess 20 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck
  21. 21. Establishing a Strategy Focusing on Strategy: Making it Work (33/6) MMooddeell VVeerrssiioonn PPrroocceessss GGooaall PPrraaccttiiccee FFrreeqquueennccyy IImmppll.. PPrriioorriittyy Id. PPAA SSGG//GGGG SSPP//GGPP CCaauussee--EEffffeecctt 1 CMMI-DEV 1.3 MA – Meas Analysis SG 1 1 B 2 CMMI-DEV 1.3 MA – Meas Analysis SG 2 1 B OPD – Org. Process SP 1.4 1 B Definition 4 CMMI-DEV 1.3 PI – Product Integration 1 E 5 CMMI-DEV 1.3 PP – Project Planning GP 2.5 1 C 6 CMMI-DEV 1.3 RD – Req. Development SP 1.1 2 A 7 CMMI-DEV 1.3 RD – Req. Development SG 3 1 A 8 CMMI-DEV 1.3 REQM – Req. Management SP 1.3 1 D 9 CMMI-DEV 1.3 REQM – Req. Management SP 1.4 1 D 10 CMMI-DEV 1.3 VER – Verification SP 1.3 1 E 11 CMMI-DEV 1.3 VER - Verification SG 1 1 E •• SSoommee nnootteess…… Establish a priority by frequency + causal relationships among processes E.g. see CMMI-DEV ‘Related PAs’ section within each PA description at the beginning 21 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck 3 CMMI-DEV 1.3 • Some notes… Establish a priority by frequency + causal relationships among processes E.g. see CMMI-DEV ‘Related PAs’ section within each PA description at the beginning
  22. 22. Establishing a Strategy Focusing on Strategy: Making it Work (44/6) PPrroocceessss FFrreeqquueennccyy PPrriioorriittyy RD 3 A MA 2 B REQM 2 D VER 2 E OPD 1 B PP 1 C PI 1 E •• SSoommee nnootteess…… • Some notes… Plot processes by frequency Plot processes by frequency 22 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck
  23. 23. Establishing a Strategy Focusing on Strategy: Making it Work (55/6) PPrriioorriittyy PPrroocceessss FFrreeqquueennccyy A RD 3 B MA, OPD 3 C PP 1 D REQM 2 E VER, PI 3 •• SSoommee nnootteess…… Grouped processes by cause-effect can be another element for grouping corrective/improvement actions E.g. MA + OPD historical data (gathering) and proper definitions of measures at the beginning or during the project lifetime E.g. VER + PI few integration tests run (VER) and a format data incompatibility (PI) 23 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Some notes… Grouped processes by cause-effect can be another element for grouping corrective/improvement actions E.g. MA + OPD historical data (gathering) and proper definitions of measures at the beginning or during the project lifetime E.g. VER + PI few integration tests run (VER) and a format data incompatibility (PI)
  24. 24. Establishing a Strategy Focusing on Strategy: Making it Work (66/6) 24 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck
  25. 25. Agenda The LEGO Strategy 25 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Introduction – What is Strategy? – IT Projects: State-of-the-art • Why Process Improvement Programs Fail? – The Three Waves and Most Recurring Problems – Further Attention Points • Looking for a Solution: Back to the Strategy – Reactive vs Proactive Models – The LEGO approach – Looking for a Strategy • Establishing a Strategy from Historical Data – Positioning the LEGO approach in the PDCA Cycle – Focusing on Strategy: Making it Work • Conclusions Next Steps • Q A
  26. 26. Conclusions Next Steps The LEGO Strategy Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances. (SSSSuuuunnnn TTTTzzzzuuuu) 26 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Strategy A ‘flavour of the month’ approach cannot look to the mid-long term Must fit with the organizational size and main attributes Must be aligned with the ‘MVV’ (Mission-Vision-Values) of the organization • Process Improvement programs Often based on ‘horizontal’ models, missing the depth for some improvement actions Need to ‘go deep’, merging elements from several models and frameworks The LEGO (Living EnGineering prOcess) approach http://slideshare.re/nssLR8 [5WCSQ, Shangai, Nov 2011] Choose and integrate the ‘pieces of the puzzle’ you need for your goals the target is your QMS, not the model(s) you’re using The ‘LEGO Strategy’ Run a RCA in the ‘Plan’ phase in an improvement plan Coordinate the three STO (Strategic – Tactical – Operational) levels Derive the strategy from your historical data ...why don’t try? Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances. (SSSSuuuunnnn TTTTzzzzuuuu)
  27. 27. Agenda The LEGO Strategy 27 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck • Introduction – What is Strategy? – IT Projects: State-of-the-art • Why Process Improvement Programs Fail? – The Three Waves and Most Recurring Problems – Further Attention Points • Looking for a Solution: Back to the Strategy – Reactive vs Proactive Models – The LEGO approach – Looking for a Strategy • Establishing a Strategy from Historical Data – Positioning the LEGO approach in the PDCA Cycle – Focusing on Strategy: Making it Work • Conclusions Next Steps • Q A
  28. 28. Lessons Learned... 28 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck URL: www.dilbert.com The LEGO Strategy
  29. 29. Q A VViieelleenn DDaannkk ffüürr IIhhrree AAuuffmmeerrkkssaammkkeeiitt!! TThhaannkkss ffoorr yyoouurr aatttteennttiioonn!! 29 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck The LEGO Strategy
  30. 30. Our Contact Data 30 EuroSPI2 2012 – Vienna (Austria), 25-27 June, 2012 © 2012 Buglione, Gresse von Wangenheim, McCaffery, Hauck Luigi Buglione Engineering.IT/ETS luigi.buglione@eng.it Jean Carlo R. Hauck UFSC jeanhauck@gmail.com Fergal McCaffery DKIT fergal.mccaffery@dkit.ie The LEGO Strategy C. Gresse von Wangenheim UFSC gresse@gmail.com

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