Process Improvement and Standardisation in IT -

A Telecoms Organisation Example

David Evans

The Challenges Project variance was unpredictable with

project overrun often resulting in a 40% + overspend with invoicing erratic and unchallenged.

Due to the lack of process and a time and materials engagement model suppliers were being rewarded for poor quality via the ability to ‘bill’ additional time to resolve issues

The suppliers were seen to be ‘in-control’ and perceived to treat their client as an ATM or ‘cash-cow’

ObjectiveThe initiative was underwritten by four objectives:

1. Improve the quality of the deliverables2. Have a clear, repeatable process that is to

be followed by all suppliers3. To gain control of the project spend creating

predictability and certainty4. Assign accountability for project overruns

The method Define the target high-level goals and

methods supporting the capability behind the ability to deliver projects

Measure the existing capability in order to: A: Define a resolution roadmap B: Objectively evidence that objectives have

been met Analyse the results and set a remediation

activity plan Implement the improvement plan Re-Measure the capability and implement a

continuous improvement plan

The Measure CMMI was formally implemented to measure

the current capability and the results shared across the organisationSample for Test

Execution

Sample for a Development Team

The Analysis The CMMI process measurements enabled the

team to develop a prioritised roadmap based upon an agreed Target Operating Model and Timeline.

Target Operating Model Test Execution, Environment and CRM Development

must be in a position to offer up a standardised SDLC/ Project Methodology that represents a CMMI Level 3 maturity level

The Timeline All teams are to be re-measured on an 18 month

timeline observing both process maturity availability and adherence

The Implementation A new process based SDLC was developed on

a team by team basis over a 12 month and € 1M budget that reflected: Whole Lifecycle

The Implementation A new process based SDLC was developed on

a team by team basis over a 12 month and € 1M budget that reflected: The Project Phase

The Implementation A new process based SDLC was developed on

a team by team basis over a 12 month and € 1M budget that reflected: All Tools & Templates

The Results CRM Development, Test Execution, Test Environment

& the Billing Development Team achieved:

Full Process Documentation within 12 Months and all suppliers both following and being assessed against process adherence

All Teams achieved CMMI Level 3 ratings within 14 months Project Slippage & budget variance reduced by 30% Insight into quality issues doubled Root cause analysis resulting from the process work

enabled both future improvement initiatives but also helped to foster a culture of continuous improvement

A standardised process model enabled the transition from time and materials to a fixed cost model

Fixed Cost Model Objective:

To transition the delivery model from a supplier Time & Materials to a Fixed Cost model with the objective of achieving

Reduced project delivery costs Assigned Accountability Predictable cash movements and project funding Variance managed through sponsor approved change

only Further leverage of the defined process roadmap

Fixed Cost Methodology Considerations

The implementation must be timely It needs to accommodate all projects/ suppliers at a single point

in time The entry point was to align with a release management

structure Note. For non-release managed projects tollgate timings were used

To succeed it needs to represent a win-win between supplier and customer The supplier needs to benefit from early completion

SOW’s were requested, reviewed, renegotiated and accepted by the supplier

The customer needs to benefit from late completion/ poor quality Overruns were born by the supplier unless the root cause was the

suppliers at which point a formalised change request process was to be utilised

Fixed Cost Methodology Considerations (continued)

Competition is essential Before each project commenced an RFP was issued to

all five suppliers The responses were reviewed and workshops were held to

answer questions where all suppliers attended to ensure an even playing field

Once a project was accepted the suppliers were expected to adhere to the terms of business

Fixed Cost Implementation All suppliers were addressed as one where it was

made clear that if they did not wish to participate they were free to end their engagement

All suppliers participated in the process formation Purchasing and legal were engaged at day one All existing contracts were placed on notice New contracts were draw under the same terms

of reference for each supplier The supplier-side management team was

retrained in order to be in a position to effectively assess the SOW’s and to engage in and manage the change management process

Results Behind Fixed Cost Transition The transition for all suppliers was completed in six

weeks Non-approved project variance was removed

completely Invoicing became end-of phase only and variances only

paid where approved change requests were available and signed by the project sponsor/ budget holder

The organisation was able to forecast cash movements on a predictable cycle enabling better use of funds

Variance from schedule was reduced and quality rose as suppliers were accountable for their own variances

The fixed cost model enabled a full transition to a full, outsourced managed service delivery model after 24 months.