1. “ Raising Your Technical Debt Ceiling Or NOT” Michael Mah Managing Partner QSM Associates, Inc. 75 South Church Street Pittsfield, MA 01201 413-499-0988 Fax 413-447-7322 e-mail: michael.mah@qsma.commichael.mah@qsma.com Website: www.qsma.comwww.qsma.com Blog: www.optimalfriction.comwww.optimalfriction.com CQAA Webcast December 6, 2011

2. (#2) Rayleigh Curve Defect Rate

3. (#3) Rayleigh Curve Defect Rate Elapsed Calendar Time Defect Discovery Rate t Discovered Defects per reporting period at time t Area under the curve is equal to the Total Discovered Defects on the project

4. (#4) Defects and Sources of Technical Debt

5. (#5) Defects and Sources of Technical Debt

6. (#6) Defects and Sources of Technical Debt

7. (#7) Case Study #1

8. (#8) Case Study #1

9. (#9) Case Study #1

10. (#10) Project Sketch – Core Metrics

11. (#11) Trendline Assessment – Defects/Quality Far Fewer Defects: 50% - 66% Below Industry

12. (#12) Trendline Assessment – Build Phase Schedule Schedules are Half Industry

13. (#13) Industry Average Current Performance Delta Project Cost$3.5 Million$2.2 Million-$1.3M Schedule12.6 months7.8 months -4.8 mos QA Defects242121-50% Staffing35 n/a Follett vs. Industry Average

14. (#14) Case Study #2

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20. (#20) Benchmark Assessment — Staffing Smaller Teams

21. (#21) Faster Schedules Benchmark Assessment — Schedule

22. (#22) Benchmark Assessment – Quality Fewer Defects

23. (#23) Monstrous Technical Debt Project

24. (#24) Monstrous Technical Debt Project

25. (#25) Monstrous Technical Debt Project

26. (#26) Defects vs. Industry Average

27. (#27) Nov 19 Forecast to Complete (4 Month Delay)

28. (#28) Industry Average Offshore Average Delta Project Cost$3.5 Million$3.2 Million-$0.3M Schedule12.6 months9.6 months-3.0 mos QA Defects242677+280% Staffing3550+15 * Normalized to same project size Comparison to Industry Average

29. (#29) Some Practical Advice

30. (#30) Build a Little Less

31. (#31) Take a Little More Time

32. (#32) Get Smart People

33. (#33) Use Small A-Teams

34. (#34) Give Them the Best Tools

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45. (#45) www.qsma.com

46. (#46) Who We Are: QSM maintains the world’s largest benchmarking database of 10,000+ completed software projects collected worldwide. We put industry productivity statistics on the desktop. The QSM SLIM database contains projects in all industries, waterfall, Agile, offshore/outsourced, in-house, new development, and maintenance. SLIM tools enable managers to measure and estimate Agile and/or waterfall projects, and determine ROI.

47. (#47) Partial List of Clients British Telecom SAP Microsoft Intel AT&T/BellSouth BMC Software Motorola VerizonWireless Roche Diagnostics Fiserv Corp IBM Global Misys Healthcare JPMorganChase Boeing Bank of NY Mellon Lockheed Martin Progressive Insurance DirecTV

48. (#48) footer T he SLIM-Suite SLIM- Estimate: Size, Schedule, Cost & Quality Estimating SLIM-DataManager Software Project Metrics Repository SLIM-Control: Variance Analysis & Adaptive Forecasting SLIM-Metrics: Industry Benchmarking & Process Improvement SLIM- MasterPlan: Incremental Development & Project Aggregation The SLIM-Suite

49. (#49) For Additional Information Michael Mah email: michael.mah@qsma.com website: www.qsma.com blog: www.optimalfriction.commichael.mah@qsma.comwww.qsma.comwww.optimalfriction.com twitter: @michaelcmah Tel: 1 413-499-0988