Improving The Delivery Supply Chain: How A Start Up Became a Global Player
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How a start up software firm evolved into a global powerhouse - but not before they made their delivery supply chain structured and scalable to accommodate the growth
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Improving The Delivery Supply Chain: How A Start Up Became a Global Player
- 1. Case Study: Software Firm Switching Gears to Become a Global Player by ONIT Management Consulting EDWARD BYERS, PMP, SSGB edward.byers@onitmc.com www.onitmc.com 1
- 2. Table of Contents I. Background Information on the Company & Task at Hand II. Interview Discoveries III. Concerns of Inefficiencies IV. Observations V. Recommendations I. Immediate Changes II. Procedural & Organizational Changes VI. Results Background Discovery Concerns Observations Recommendations Results2 2
- 3. Background Information Background Discovery Concerns Observations Recommendations Results A 300 employee software company sought to take its business to the next level The firm realized the ad hoc way of doing business wasn’t sustainable or scalable. Each delivery shouldn’t require “re- inventing the wheel” Company brings a handful of experienced senior managers and executives on board 3 3
- 4. •R&D •Product Management •Sales •Product Operations PMC interviewed Senior Managers from: Discovery Background Discovery Concerns Observations Recommendations Results4 4
- 5. Inefficiencies Revealed in Interviews Background Discovery Concerns Observations Recommendations Results • Communication tended to be ad hoc & informal Lack of Communication Between Departments •No formal handoff/approval process throughout the supply chain •Fractured Sales Process because of a lack of discipline in regards to engagement of firm resources •Lack of Documentation in regards to product and delivery issues Lack of Organizational Discipline •Project management skillsets and maturity questioned Lack of “Ownership” of Projects •Fractured Sales Process because of a lack of discipline in regards to engagement of firm resources •Lack of Documentation in regards to product and delivery issues No formal handoff/approval process throughout the supply chain •Why some things made sense from a business standpoint and others do not •Customer management (setting expectations) a concern Lack of Understanding of the Financials 5 5
- 6. Additional Observations Background Discovery Concerns Observations Recommendations Results • Lack of Bid Scoring and a Metric for Likelihood to Close • Over engagement of downstream resources for pre-sale activities • Commitments regarding dates and resources are part of pre-sales process Lack of Sales Information • No current formal or structure resource planning taking place • No visibility to sales forecast or project pipeline Lack of Resource Planning • Unrealistic delivery dates with commitments made prior to Customer Kickoff with Product Operations Lack of Customer Facing Consensus • Existing processes fragmented • Value of processes unclear to owners • Org. doesn’t reward structured, process centric behavior, leads to “treat the pain” & firefight mentality • Lack of Training • Lessons Learned aren’t captured consistently nor archived Lack of Processes 6 6
- 7. Background Discovery Concerns Observations Recommendations Results •Use of artificial deadlines •Rewarded “right now” behavior •Organization seemed “reactive” •No customer expectations management •Not enough project prioritization •Inconsistent Project Planning Lack of Organizational Discipline 8 7
- 8. Background Discovery Concerns Observations Recommendations Results Behavior Modification of PMs •Being on time, improved meeting facilitation •Demonstrate Project/Program Mgmt. via use of techniques such as P/F/A dates, maintaining plan baselines, etc. Adherence to documented processes •Set the tone and increase discipline Use of Microsoft Project Server Document and administrate the delivery process Establish process gates • Establish formal handoff procedures & processes for each stage Immediate Changes 9 8
- 9. Background Discovery Concerns Observations Recommendations Results Introduce project performance metrics to be measured and held accountable for via performance & salary reviews Provide formal project mgmt. Enhancement of existing tools and setting the tone for process discipline Build a true PMO w/ direct- line reporting of PM resources into the PMO • Program Management and Organizational Product Managers should be separated from functional areas Procedural & Organizational Changes 10 9
- 10. Software firm has grown from 300 employees to more than 1600 after acquiring a much larger but less profitable competitor; this could only be done by an organization that had put in place the delivery methodologies required to scale their business accordingly. Background Discovery Concerns Observations Recommendations Results11 10
- 11. Questions? EDWARD BYERS, PMP, SSGB edward.byers@onitmc.com www.onitmc.com 11
Notes de l'éditeur
- Background A small 300 employee software firm in the wireless space sought to take its business to the next level The firm recognized that the ad hoc, entrepreneurial way of doing business it had employed was not sustainable or scalable – that each delivery engagement should no longer require “re-inventing the wheel” Company brings on board a handful of experienced senior managers and executive from more “mature” companies in the industry to lead the way.
- Discovery Newly Engaged Project / Program Management Consultant interviews Senior Managers from each of the Supply Chain / Delivery Functions R & D Product Management Sales Product Operations (Customer Facing Project Management)
- Concerns Meetings with functional leaders within each supply chain group revealed some common issues: Communication between departments lacking, and what communication there was tended to be ad hoc and informal General lack of organizational discipline No formal handoff or approval process as deliverables went down the supply chain Sales Process fractured, with a lack of discipline is regards to engagement of firm resources – work often started without purchase order in hand, customer commitments around product capability and schedule for delivery made in a vacuum without consensus Lack of Documentation in regards to both product issues and delivery issues Lack of understanding / ownership of the financials by pertinent members of the delivery organization; why some things make sense from a business stand point and others do not Customer management (setting expectations) a concern Project management skills set and maturity questioned; lack of “ownership” of projects
- Concerns Meetings with functional leaders within each supply chain group revealed some common issues: Communication between departments lacking, and what communication there was tended to be ad hoc and informal General lack of organizational discipline No formal handoff or approval process as deliverables went down the supply chain Sales Process fractured, with a lack of discipline is regards to engagement of firm resources – work often started without purchase order in hand, customer commitments around product capability and schedule for delivery made in a vacuum without consensus Lack of Documentation in regards to both product issues and delivery issues Lack of understanding / ownership of the financials by pertinent members of the delivery organization; why some things make sense from a business stand point and others do not Customer management (setting expectations) a concern Project management skills set and maturity questioned; lack of “ownership” of projects
- Project Management Consultant also made the following observations: Lack of Sales Forecast Information Bid Scoring not performed / Need tool or metric for likelihood to close Over engagement of downstream resources for pre sales activities Commitments regarding dates / resources appear to be made as part of the pre sales process Lack Of Resource Planning No current formal or structured resource planning taking place. No visibility to sales forecast or project pipeline Lack Of Processes Existing processes fragmented Existing process aligned with functional area s versus customer engagement / delivery path Existing processes not followed Lack of Organizational Discipline Value to processes not made clear to owners Organization does not reward structured, process centric behavior, leads to “treat the pain” / firefight mentality. “Lessons Learned” are not capture consistently for each engagement, nor are they consistently archived preventing formal and structured process improvement and efficiency gains through experience Lack of training Lack Of Customer Facing Consensus (One Story To The Customer) Project Managers feel delivery dates are unrealistic with commitments made prior to Customer Kickoff with Product Operations?
- Project Management Consultant also made the following observations: Lack Of Organizational Discipline Decisions seem to be driven on occasion by artificial deadlines. Organization seems to reward “right now” behavior Organization as a whole seems very “reactive” Customer relationship ownership no clear, with no customer expectations management, Not enough “project prioritization” Project Managers not trained in practice of Project Management Project Plans not consistently created
- Recommendations Need to establish organizational process “gates” with formal handoff procedures / process for each stage Provide formal project management training to all Project Mangers Need to enhance creditability of PMs via behavior modification – demonstrated excellence. Being on time for meetings – set the tone for organizational behavior Improved Meeting facilitation Enhancement of existing tools so that they work as advertised; again, setting the organizational tone for process discipline (Milestone Planning Tool, etc.). Demonstrate Project Management / Program Management knowledge and expertise via use of universally time-tested techniques such as P/F/A dates, maintaining project plan baselines, etc. Introduce project performance metrics for which all teams should be measured and held accountable for via the performance review and salary review processes.
- Need to enhance creditability of PMs via behavior modification – demonstrated excellence. Being on time for meetings – set the tone for organizational behavior Improved Meeting facilitation Enhancement of existing tools so that they work as advertised; again, setting the organizational tone for process discipline (Milestone Planning Tool, etc.). Demonstrate Project Management / Program Management knowledge and expertise via use of universally time-tested techniques such as P/F/A dates, maintaining project plan baselines, etc. Introduce project performance metrics for which all teams should be measured and held accountable for via the performance review and salary review processes.