CMMI High Maturity best Practices HMBP 2010: High Maturity: The Corporate Perspective For Organization Wide Improvement by Koel Bhattacharya and Avinash Bharj

Together. Free your energies

High Maturity: The Corporate Perspective
For Organization Wide Improvement

-Koel Bhattacharya
Avinash Bharj
(Capgemini Pvt. India Ltd.)


High Maturity: The Corporate Perspective for
Organisation Wide Improvement
for 1st. International Colloquium on High Maturity Best Practices 2010

Koel Bhattacharya
Avinash Bharj
Capgemini India Pvt. Ltd.

2

Global IT Industry Outlook

 Strong IT market recovery with growth projected at 8%

Forecasts for Global IT Purchases in 2009 and 2010

June 2009 Forecast September 2009 Forecast December 2009 Forecast

2009 2010
8.1%
4.9%
4.0%

-8.9%
-10.6% -11.4%

Source: September 29, 2009, “US And Global IT Market Outlook: Q3 2009” Forrester report and the June 29, 2009,
“US And Global IT Market Outlook: Q2 2009” Forrester Report

Together. Free your energies | The Corporate Perspective for Organisation Wide Improvement
1st. International Colloquium on HMBP, 21 May 2010
3
Version 1.0 © 2010 Capgemini. All rights reserved.

Impact on Employment

 Strong growth in employment with the economic revival
 Emerging economies will account for large percentage of growth

4

Positioning the Indian IT Sector

Indian IT Industry Growth Rate
 Opportunities for growth
Value in USD Billion
60 • High Outsourcing from North
47
American & European countries
• Rise in domestic demand for
e-governance initiatives
18

8  Challenges
2
• Government policies
1998 2002 2005 2009 2010
Source: NASSCOM Resource Center & Economic Times • Double-dip recession
• Competition
Revenue $60 Billion
Projected Growth Rate 15% -18% Pressure on billing rate
Potential Workforce 2.3 million High marketing/R&D expense
• Exchange rate fluctuation
5

Securing a Place for the Organisation

 Creating business models which cater to increased demands

• Transformation of business processes to
Cost
Sensitive become more productive and competitive

Talent
• Industrialisation of operating models and use
Competitive
Management
of standardised rules, processes and tools

Business • Reducing layers of costs that do not bring
Model
added value to the client
Time
to • Developing new ways of doing business
Innovative
Market
through innovation, domain expertise and
Global
Collaboration improvement initiatives

6

CMMI Model - Casting a Process Framework

• Business objectives explicitly

s
em ou
t
linked with operational processes

en
ov u
pr tin
Im Con
• 22 core process areas categorised
Business Benefit

into
lle ery

•project management
e
nc
ce liv
Ex De

•engineering
•support
t
em ct
en
ag je

•process management
an ro
M P

• Defined goals & practices for each
process areas
•Generic Goals & Generic Practices
Process Maturity
•Specific Goals & Specific Practices
Using processes to deliver • Building infrastructure for creating a
business outcomes
process framework

7

Process Industrialisation

 Corporate Governance

 Process Infrastructure Design

 Collaborative Steering Group

 Integrated Processes

 Result Orientation

 Control and Management Reporting

 Continual Improvement

Aligning the process framework with the company’s corporate governance structure &
laying the foundation for organisation wide improvement

8

Process Industrialisation
Level 2

Configurations
Organizational

Responsibility

Identification

Management
Stakeholder
Resources

Status with
Training

Manage

Adherence
Evaluate
Process
Monitor
Provide

Control
Process
Policy

Review
Assign
Plan
the

&
&

Generic Practices Process Industrialization Framework

 Corporate Governance
Objectives for

Improvement
Performance
Quantitative

Sub-Process

Correct root
the Process
Improvement

Continuous
Information
Establish

causes of
problems
Establish
Process
Defined

Stabilise

Process
 Process Infrastructure Design
Collect

 Collaborative steering group

 Integrated Processes

 Result Orientation
Level 3 Level 4 Level 5
 Control and Mgmt Reporting

 Continual Improvement

Aligning the process framework with the company’s corporate governance structure &
laying the foundation for organisation wide improvement

9

High Maturity Process Areas

• Organisational Process Performance – discusses the
The continuous representation need for establishing organisational performance
of the model has the high goals and usage of predictive models
maturity aspects as part of the
• Quantitative Project Management – focuses on
generic practices at level 4 & 5
managing projects quantitatively by measuring
which needs to be fulfilled for actual performance against identified targets and
achieving higher capability in a helps in planning for midcourse corrections
process area.
• Organisational Innovation and Deployment –
In contrast the staged
emphasizes the need for implementing
representation includes the
organisation wide improvement initiatives
high maturity practices as part
of the four process areas at • Causal Analysis and Resolution – helps in
level 4 & 5. identifying and addressing root causes of product
and process related defects and issues

10

The Premise of High Maturity

 Creating synergy between Vision-BO-QPPO
Vision

Business Objectives Quality & Process Performance
Objectives

Market Leadership
Improve Workforce Effectiveness

Improve Quality/Reduce Rework
Business Process Improvement

Use of Information/Analytics

Competitive Insight
Attract & Retain customers
Reduce Enterprise Cost

Resource Optimization
Resource Optimization
Customer Satisfaction

Increase Productivity
Predictive Modeling
Predictive Modeling
Innovation

Customer Centric

Financial Performance

Capital Optimisation

Quality Focus

Process Performance Models Process Performance Baselines

11

High Maturity – Paradigm Shift

 Senior management
• view leading indicators which influence the performance
of the business objectives
• plan for organisation wide process improvements

High maturity practices help to:
Data Inputs

Objectives
Description of goal
to be achieved
 Historical & current operational
data or analytically derived
information
• Statistically define the organisation’s
performance (in terms of mean and

Decisions Constraints 
 standard deviation)
Actions that can High Requirements, Recommended Actions
realistically be Maturity limitations, The optimal course to meet the
carried out in rules constraining objectives • Predict the performance
pursuit of decisions
objectives
of the organisational objectives
Implementation
Execution of recommended
actions
• Probe into reasons that lead to variation

• Plan for corrective or preventive





Achieving Results measures
Measure performance against objectives

12

Predictive Analytics for Monitoring QPPOs

 Let us look at a simple example:
Output
Vision Revenue Growth
Business Objective Competitive Pricing • Model suggests the prediction
QPPO Improve Productivity interval for the QPPOs (Y value)
within which the estimated
Consider a statistical model
productivity should range
• Y = F(x1,x2, x3….) where,
• What-if analysis is based on past
• Y = Productivity
performance data
• x(s) = Skill Index, Requirement Volatility,
• Recommends the need to take mid
Complexity of Work, Schedule Compression
course corrections

Improve Skill Index to
Improve Productivity

13

Innovation and Improvement

 High maturity practices at CMMI Level 5 supports:
• Early detection of defects to reduce rework costs
• Innovative solutions to enhance operational effectiveness

 Organisations are increasingly investing in innovations by setting up:
• Accelerated Solutions Environment to resolve
complex business challenges
• Centers of excellence for domain specific
Environment Opportunity
Scanning Assessment
solutions
• High level inventory of anticipated
Innovation
information technology developments
• Evaluation of the innovation’s potential to
Optimal Ideation impact future business drivers
• Develop capabilities to support clients' future
needs
14

Tangible Benefits to an Organisation

 Performance results revealed by several organisations to SEI

50% reduction in release time due to -
Schedule
61% improvement in productivity

Quality 48% improvement in quality due to reduction in defect injection

Enhanced productivity and improved quality allows organisations to
Revenue
price competitively, win more contracts and thereby increase top line

33% decrease in the average cost of fixing defects due to early detection
Cost
and reduction in rework

1.7:1 to 27.7:1 improvement in ROI due to reduction in defects,
ROI
improved productivity and shorter cycle times

15

Summary: The Long Haul

Invest irrespective of the economic condition
 Process, people and technology
 Economy is not uni-directional but cyclical
 Recession will follow boom and vice-versa

… To gain traction
 Organisational processes help in controlling costs and showing
resilience

 Performance culture aids in building a talented company

Viewing high maturity practices as strategic business collaborators

16

Thank You
Contact us

Koel Bhattacharya
+91 22 67557830
koel.bhattacharya@capgemini.com

Avinash Bharj
+91 22 67557506
avinash.bharj@capgemini.com


www.capgemini.com
The information contained in this presentation is proprietary. ©2010 Capgemini. All rights reserved

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CMMI High Maturity best Practices HMBP 2010: High Maturity: The Corporate Perspective For Organization Wide Improvement by Koel Bhattacharya and Avinash Bharj