1. Process Improvement and Standardisation in IT - A Telecoms Organisation Example David Evans

2. 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’

3. Objective The initiative was underwritten by four objectives: 1. Improve the quality of the deliverables 2. Have a clear, repeatable process that is to be followed by all suppliers 3. To gain control of the project spend creating predictability and certainty 4. Assign accountability for project overruns

4. 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

5. The Measure  CMMI was formally implemented to measure the current capability and the results shared across the organisation Sample for Test Execution Sample for a Development Team

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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.