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Migrating Solutions to India Effective Transition of Development Bryan Muilenburg, MBA, PMP Technical Program Manager, India Transition October 13, 2011 Chris Heil, PMP Director, India Engineering

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Migrating Solutions to India

Effective Transition of Development

Bryan Muilenburg, MBA, PMP

Technical Program Manager, India Transition

October 13, 2011

Chris Heil, PMP

Director, India Engineering

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 1

Objectives

Provide strategies for transitioning development to India

Provide foundation for a successful plan

Help avoid potential pitfalls

Create a sustainable model

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 2

Cerner Corporation

Started in 1979, based in Kansas City, MO

Leading global supplier of healthcare solutions, healthcare devices and related services

Focus on creating a safer and more efficient healthcare system

Key solutions include:

• Computerized Physician Order Entry (CPOE)

• Electronic Medical Records (EMR)

• Personal Health Records (PHR)

Clients in 25 countries serving more than 9000 unique facilities

Hospitals

Physician Practices

Retail Pharmacies

NASDAQ – CERN

$1.8B revenues in 2010

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 3

Cerner Development Profile

8 Global Development offices

England, Ireland, France, Germany, India, US (MO, VA, CA)

Majority of development in Kansas City, MO and Bangalore, India

70+ unique solutions

1600+ associates on development teams

Core technologies

Java, C++, C#, VB6, JavaScript

Oracle

AIX, Linux, Windows Server

India Transition

Cerner’s Journey

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 5

Driving Factors

Create a 24x7 development operation to better support

Global client needs

Grow Development Organization

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 6

Initial Plan – Pre-Agile Transition

Staged team growth to support goals

Maintain current Global teams

Grow India teams based on demand

Train India leaders in KC

Create training and mentorship programs with existing domain experts

Build relationships with face-to-face interaction

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 7

Initial Results

Opened India Development Office in 2005

Pockets of success but inconsistent results

Ownership of code

Accountability for delivery

• Too often India teams felt they needed to “ask permission”

• Resulted in low mutual trust

Training programs successful

Associates enjoyed face-to-face interaction and built solid

relationships

Post Agile Transition

Lack of co-located teams significantly impaired speed and quality

Communication delays escalated

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 8

Revised Agile Strategy

Evaluate solution portfolio and select solutions to fully

transition

Create full ownership and accountability on India teams

Empower India teams

Increase Trust

Create a phased transition plan with overall program

management

Track and measure progress

Assist with best practice implementation across teams

Central responsibility for transition success

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 9

Revised Agile Strategy

Team Staffing Strategy

Incremental hiring was not successful for quick transitions

Fully staffed teams at start of transition

Maintain and improve solid training program

Expand travel during transition as needed

Created team-specific learning plans

Agile influences

Co-locate teams

Reduce or eliminate communication delays

Retrospectives to inspect and adapt

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 10

Agile Transition Tracking

Solution Level Roadmaps

Goals for Completing each Transition Phase

Expected Travel Requirements

Anticipated Capital Expenditures

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 11

Agile Transition Tracking

Management via VersionOne

Iteration Planning

• Goals Created for Each Metric

• Backlog of User Stories which will Facilitate Knowledge Transfer Tied to Goals

• Commit to KT Stories for Next Iteration during Iterative Planning Sessions

Iteration Review/Retrospective

• Review Completed Tasks

• Lesson Learned

Will Evaluate with Solution Leadership Bi-Weekly to Ensure the Transition is Still on Track (Roadmap)

Feedback from ALL Members of the Team will be CRITICAL to making the Transition a Success --- BEST PRACTICE LIST

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 12

Customized Learning Plans

Created Customized Learning Plans for each Team

Transitioning

Met with Technical and Functional Leaders on each Team to Identify

Learning Requirements:

• Formal Courses

• Work Practicum

Attached Expected Completion Dates to each Requirement

Track Progress Against Identified Dates

Use Agile Tracking to Plan and Complete Learning

Requirements

Pull into Iteration during Iteration Planning

Use Daily Scrums to Identify/Remove Roadblocks

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 13

Management Plan

Agile Ceremonies

Bi-Weekly Sync with Solution Leadership

Monthly India Transition Leadership Sync

Monthly Updates to IP Leadership

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 14

Solution 1 Update Current Phase: 1

Notable Risks:

None at this time

Status: This team is actively completing iterations to progress towards their transition milestone dates. The team

is working on several defects as well as an enhancement project. The India KA and SA are planning a trip to KC

and believe this will be extremely beneficial in building out the rest of the transition plan.

Solution Transition Roadmap

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 15

Millennium Transition Training Plan Progress

© 2011 Cerner Corporation. All rights reserved. This document contains Cerner confidential and/or proprietary information which may not be reproduced or transmitted without the express written consent of Cerner. 16

Progress Against Plan

9 Teams Planned for 2011

4 Currently Completed

4 On Track to Complete this Year

1 Currently at Risk

12 Teams Planned for2012

11 Teams are Currently Transitioning

1 Team Still in Planning

15 Teams Planned for 2013

2 Teams Planned for 2014

Additional Topics

Questions and Answers