1. How to Establish Improvement Targets Annie Combelles CEO Q-Labs

2. 2 Agenda  Meeting Q-Labs  Process Improvement Highlights  Two Real Cases  Conclusions

3. 3 The Q-Labs Group Your Partner to give your Systems and Software a Competitive Advantage. 120 Employees in 5 countries France Germany Sweden United Kingdom USA

4. 4 Clientele and Offerings Q-Labs’ clients are companies where software and systems are critical business drivers  Broad Sector Experience: Aerospace, Automotive, Defence, Finance, Information Technology, Health, Systems Integrators, Telecom  Finance Sector Clients: BNPP, AXA, ABN AMRO, Credit Lyonnais Process Improvement Quality Support Project Support Independent Appraisals

5. 5 All you must know about the CMMI tool

6. 6 What is Process Improvement? A Mindset A wish to change A discipline A maturity level to demonstrate Just fad

7. 7 Process Improvement is A project An investment A long journey A team effort ROI!

8. 8 Resistance? I have no time for this, come back later There is no better time than now to implement process improvement on your project Discuss the project and uncover project pain points I don’t believe in it, I don’t see the benefit Show ROI data for process improvement Have other project managers that have benefited from process improvement talk to the PM My customer is happy, I don’t need to change anything Discuss the project and uncover project pain points Don’t you want to make your customer even happier? It doesn’t apply to my project, we’re different Have the PM describe the project and how it is managed. Then identify opportunities where process improvement would help

9. 9

10. 10 Key success factors 1. Maintain executive support. Strong consistent support is crucial. 2. Leverage best practices. Use what is available and “steal with pride.” 3. Align process improvement with business objectives. Leverage existing objectives.

11. 11 Targets and Continuous Improvement (need to change) (know where we are and how to do it) Need to Improve Project Management Project Management Development Processes Development Processes Process Management Process Management External Drivers Action Plan Assess- ment Assess- ment Existing Processes CMM (applicability) (improvement actions) R&D Projects Projects Weaknesses Strengths (feedback loop) Benchmarking Targets

12. A Few Real Cases

13. 13 Alcatel  A project  A support from Excom to drive Jupiter Implement the CMM/CMMI following improvement objectives Use standardized reporting based on core metrics and dashboard to avoid lengthy communication gaps Set realistic targets for schedule, quality, cost and content Track projects against these targets on a quarterly basis with a clean upwards aggregation Take timely and effective corrective action based on business objectives, assessment results, and action plans

14. 14 Quantitative Product Targets ’02  Better early defect detection than '01 and close to targets Mainly due to early validations activities (document and code reviews) put in place  Better accuracy delivery than ‘01 and close to targets  Efficiency during test activities far from targets Improvement actions related to efficiency during Test were put in place later than expected and influence will be during ‘03  Same level of overrun on costs as ‘01and far from targets '01'02 Objetiveactualtargetactual Productivity40% incr. of Development vs. Total effort ratio35%50%53% 50% efficiency gain in Test (i.e. ph/def. Total)502533 30% efficiency gain in FIT (i.e. ph/def. total; detection + correction)221528 Quality6% improvement on Delivery quality93%98%96% 50% improvement of Development Defect Detection effectiveness50%75%68% 10% improvement of Test Defect Detection effectiveness84%92%88% Accuracy18% increase of Delivery Accuracy (time)76%90%86% (Respect 23% increase of Delivery Accuracy (contents)80%98%100% Commitments) 28% decrease of Cost overrun14%10%13%

15. 15 A tracking system Target

16. 16 BNPParibas A Division of 400p developing a proprietary ERP 58 countries 61 locations 150 BANKING ORG. 600 AGENCIES 10 000 users 1 900 000 clients 3 000 000 accounts 3 000 000 transactions/day

17. 17 ATLAS Improvement Objectives  Pursue effort to be highly professional Improve the level of service delivery (to clients, requirements stakeholders and operations) Improve quality of deliveries Control cost and schedule better  Improve project management capability Better communication between teams Better risks management Build assets  The improvement project is part of a global initiative of the Bank named Vision 2007

18. 18 CMM Training Improvement Roadmap Appraisal Action Plan Appraisal Action Plan Cycle 4 Improve -ment deploy ment Cycle 4 Improve -ment deploy ment Cycle 1 On going actions are embedde d into the PI plan New processes piloted: Requirem ents managem ent Cycle 1 On going actions are embedde d into the PI plan New processes piloted: Requirem ents managem ent Cycle 3 Process es are complet ed Commu ni-cation to reqts stakehol ders QA is impleme nted Cycle 3 Process es are complet ed Commu ni-cation to reqts stakehol ders QA is impleme nted Cycle 2 Existing processes in use are documented Product roadmap concept launched Cycle 2 Existing processes in use are documented Product roadmap concept launched Senior Management Support L2CertificationL2Certification GO - NOGO oct 2002 dec 2002 jan 2003 mar 2003 april 2003 june 2003 july 2003 sept 2003 oct 2003 jan 2004

19. 19 Improvement Progress Observed  Change requests are managed and controlled Priorities handled Information shared between dev stakeholders Packaging team involved  Planning Informed decision regarding Change requests Estimates are accurate  Interface with clients Decisions are justified based on facts  Institutionalization Dashboard in use at all levels All teams involved  Expectations regarding CMMI L3 Continuous effort to work more effectively

20. 20 Conclusions  40% of projects are stopped, 50% overcome budget  Below 50% of IT investments impact organizations profit (source: London School of Economics)  It is time to measure, take corrective actions and measure again the impact on the bottom line