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Inspire IT!

New Governance

and the secret of SPEED

Leon Dohmen

22 April 2015

Content

1. New Governance

2. New Governance and SPEED

3. Questions and Answers

4. Bonus Slides

2

New Governance

Caused by the increasing speed and number of technology innovations,

today, many organizations are battling with the exploration / exploitation

dilemma which leads to business issues and conflicts concerning fitting

IT development and delivery models.

New Governance is a guiding principle to restore the balance between

exploration and exploitation development and delivery concepts.

New Governance is complementary to our CGI Management Framework

http://www.cginederland.nl/expert/leon-dohmen

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New Governance – Basic Constructions (1)

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Preferred (speed)

Partner (quality +speed)

Standard (price)

Excellent (quality)

Deliv

ery

dynam

ics

Low

Hig

h

Low High

Product complexity

exploitation exploration

Service

Automation

- DevOps

- Continuous Delivery

- Lean

- ITIL

- ISM

- PRINCE2

- PMI

- IPMA

- Dynacenter

- Holacracy

- Agile

New Governance – Basic Constructions (2)

In summary, for creating value (with IT outsourcing) 4 basic structures (constructions) are distinct, each with their own Technology, Organization and People (TOP) related attributes. Work constructions can be related to exploitation or exploration concepts. Preferred and Partner focus in particular on SPEED:

Exploitation

• The first structure is called Standard which creates value with cheap services. Organization and technology aspects of the TOP mix are decisive in setting the process alignment. Principles of operational excellence according to the value disciplines of Treacy and Wiersema* are applicable here.

• In the second quadrant, called Preferred, speed is the value-factor. Agreements on having capacity (or technology) flexibly available are necessary. This refers to the value discipline of customer intimacy.

Exploration

• The third structure is called Excellent. Quality of the delivered products and/or services here determines value. Attitude, knowledge and skills of people are the basis for the establishment of the IT (outsourcing) construction. Here apply principles of product leadership best.

• Construction Partner is a mix of 2 and 3. Specific attitude, knowledge and skills are flexible and readily available to determine value through high quality products and/or services and fast delivery.

*Treacy, M., Wiersema, F., 1995. Discipline of Market Leaders, Perseus Books.

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Content

1. New Governance

2. New Governance and SPEED

3. Questions and Answers

4. Bonus Slides

6

Project Madness, Sadness and Happiness?

Quality + Fast <> Cheap

Fast + Cheap <> Quality

Cheap + Quality <> Fast

Quality + Fast = Expensive?

Fast + Cheap = Incomplete and instable?

Cheap + Quality = Slow?

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http://www.blogit.nl/het-outsourcing-dilemma-kwaliteit-snelheid-of-kosten

The secret of SPEED – what seems to work?*

1. Safe and reliable working environment

• No political acting; knowing the way

2. Craftsmanship

• Technical and process subject matter expertise;

• Skilled governance and management

3. Responsibility

• Committed but not compensating lack of craftsmanship = camouflaging incompetence

4. Mandate

• Priority and assignment of resources

5. Standard components

• (Re)use of components for the to build solution

• Tools to automate work execution (e.g. SPADE – IT modernization)

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* To be investigated further

(Undesired) Side Effects from SPEED

Most important identified potential risks

• Lack of quality (incomplete and inaccurate product/service)

• Rework and repairs -> Higher costs

• Lower acceptance (of the product/service)

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Content

1. New Governance

2. New Governance and SPEED

3. Questions and Answers

4. Bonus Slides

10

Our commitment to you We approach every engagement with one

objective in mind: to help clients succeed

http://www.cginederland.nl/

http://www.cgi.com/en

http://www.cginederland.nl/expert/leon-dohmen

Content

1. New Governance

2. New Governance and SPEED

3. Questions and Answers

4. Bonus Slides (Food for Thought)

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New Governance (Possible) Net Benefits*

• Savings in outsourcing contracts and IT delivery: 20 – 50%

• Improved delivery speed: 8 times faster

• Improved productivity: 10%

• Increased customer satisfaction: up to 60%

• Increased employee satisfaction: up to 40%

• Improved process quality: up to 60%

• Improved Knowledge sharing: up to 60%

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Based on research and case studies since 1999

- http://www.slideshare.net/ldohmen/iba-frame-study-results-20100416

- http://www.slideshare.net/ldohmen/shared-objective-versus-collaboration

*Net Benefits is a term introduced by Seddon and adopted by DeLone and McLean)

Quality + Fast <> Cheap?

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Jeff Rumburg and Eric Zbikowski: The Seven Most Important Performance Indicators for Service Desks

A skilled service desk engineer may be expensive for the service desk as department but measured over the total chain

it can be a very different case. Difficulty here is that total chain responsibility is rare and difficult to arrange, especially in

multi vendor situations which is very usual in today’s IT development and delivery landscape.

SPEED and Social Media

Revolutions do not need social media:

The revolution that led to the fall of communism at the end of 1989 took

place with the same impact and the same speed as the Arab Spring at

the end of 2010 and beginning of 2011

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http://www.blogit.nl/revoluties-hebben-geen-social-media-nodig

Thank you for reading!

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