1. ENGINEERING SUCCESSFUL TRANSITIONS

2. Page 2 2006 Introduction to CausePoint Outline Introduction to CausePoint Problems in Software and IT Service Delivery Value of the Higher Levels of Maturity How CausePoint can help

3. Page 3 2006 Introduction to CausePoint Introduction to CausePoint Provide an External Assessment CausePoint offers consulting services to Engineering and Information Technology organizations to improve their ability to deliver systems and products faster and with better product quality. Readiness for change can be assessed. Specific change points can be identified. Change can be managed. An effective product development process provides a competitive advantage that tremendously increases the potential of your corporate business goals and strategies. We use a number of techniques to increase the capability of services and software development groups, including the CMMI SM, ITIL and Six Sigma.

4. Page 4 2006 Introduction to CausePoint What is CausePoint? CausePoint is a consulting company focusing on process and organizational improvements at both the software and system levels We partner with clients to dramatically improve the ability to deliver systems and services We are, first and foremost, engineers and managers who know how to integrate measurable improvement with ongoing business value and results

5. Page 5 2006 Introduction to CausePoint Approach Collaborative - We collaborate with our clients to develop a strong internal capability to sustain change Situational - We adapt our methods and approaches as needed by our clients to achieve specific improvement goals Were real – our services integrate our real world experience in technology development and delivery, as well as contract and business management

6. Page 6 2006 Introduction to CausePoint Clients Citibank GEC - Marconi ITT Liberty Mutual Ameritech John Hancock National Air Traffic Services (UK) Videojet Executive Office of the President of the United States Bureau of Printing and Engraving Northeast Utilities Northrop Grumman Baxter Healthcare ISO ISS

7. Page 7 2006 Introduction to CausePoint Assisting Management Team Vision and Direction Change Leadership Project Services Management Consulting SERVICES

8. Page 8 2006 Introduction to CausePoint Change Leadership Project Services Management Consulting Establishing, Leading, Assessing the Improvement Program SERVICES

9. Page 9 2006 Introduction to CausePoint Change Leadership Project Services Management Consulting Taking Policies & Procedures into Practice SERVICES

10. Page 10 2006 Introduction to CausePoint Problems in Software and Product Delivery The issues of projects and service delivery still lie in the inability to deliver with predictability. Schedule predictability, cost predictability and quality predictability. Management decisions are made knowing there is inadequate visibility into the true progress of projects. Project risk is not handled proactively and results in limited management choices. Issues on the projects lead to firefighting, with reductions in functionality delivered and cost overruns, traded for an improved schedule completion.

11. Page 11 2006 Introduction to CausePoint Problems in IT Software and Product Delivery Products and projects are routinely: Late Over budget Do not deliver the desired functionality Have high levels of defects This unpredictable behavior is exacerbated by: Lack of management insight into progress and risk Implicit decision-making Inability to manage the differences between software development and other engineering disciplines

12. Page 12 2006 Introduction to CausePoint Problems Facing IT Today Making Quality Assurance effective Project Management Software Cost of IT Infrastructure Outsourcing Security System Downtime Change Management

13. Page 13 2006 Introduction to CausePoint Problems in Software and Product Delivery (contd) These problems are typical for any product development methodology moving from art to craft to engineering discipline Extreme dependence on individuals Highly variable cost, productivity, and quality Resistance to the notion of consistency and predictability Extreme stress in the workplace

14. Page 14 2006 Introduction to CausePoint Anatomy of CMMI SM Maturity Level 1 Most organizations are fighting fires trading functionality for time or quality for time constantly reactingno time to improve firefighters get burned – effects managers and staff short term decisions come back later your only control: fire prevention

15. Page 15 2006 Introduction to CausePoint An Immature Process Ad hoc; process improvised by practitioners and their management Not rigorously followed or enforced Highly dependent on current practitioners Product functionality and quality may be compromised to meet schedule Use of new technology risky Excessive maintenance costs Quality difficult to predict

16. Page 16 2006 Introduction to CausePoint A Mature Process Consistent with the way work actually gets done Defined, documented, and continuously improving understood used living Supported visibly by management and others Well controlledprocess fidelity is audited and enforced Constructive use of product and process measurement Disciplined use of technology

17. Page 17 2006 Introduction to CausePoint Value of Higher Levels of Maturity The value of higher maturity levels can be seen in a lower defect rate and in higher levels of productivity. Project schedules will be more predictable. Project commitments are established and maintained. Risk is identified and mitigated. Some of the value of higher maturity levels can be quantified, but other benefits are more difficult to measure. Living in a controlled and less chaotic environment can not be calculated, but certainly felt.

18. Page 18 2006 Introduction to CausePoint Years Engaged in SPI1 - 93.524 Yearly Cost of SPI per $490 - $2004$13755 Software Engineer Productivity Gain per Year9% - 67%35%4 Early Defect Detection6% - 25%22%3 Gain per Year Yearly Reduction in 15% - 23%19%2 Time to Market Yearly Reduction in Post-10% - 94%39%5 Release Defect Reports Business Value 4.0 - 8.8:15.0:15 (savings/cost of SPI) Benefits of Higher Level Maturity CategoryRange Median # of Data Pts Source: SEI Report

19. Page 19 2006 Introduction to CausePoint How CausePoint Can Help Experience Change Management Subject Matter Expertise Changing the culture of an organization is a long road

20. Page 20 2006 Introduction to CausePoint Applying the Model A Model is a Representation of a structured set of objectives The key is in the Application of the Model Situational Awareness Design within the Context Meet the Intent Speed to Benefits

21. Page 21 2006 Introduction to CausePoint Applying ITIL and CMMI SM Through Experience in Practical Ways A model for product life cycle management and performance improvement Expands focus to include full product life Applies to any product development organization Merges technical and management activities Focuses on improving business performance Provides mechanisms for long-term culture change Builds on lessons learned from past models Allows adding disciplines where appropriate

22. Page 22 2006 Introduction to CausePoint Top Ten Reasons – Initiatives Involving Change Fail 1.Have a process group (second party) develop all your procedures 2.Develop procedures directly from a models specific practices 3.Dont understand you own business model 4.Dont create a closed management loop 5.Dont apply full-time resources, make sure all work is done in their spare time 6.Dont involve or train your unit managers, make sure their only exposure is through rumor 7.Ensure project managers blame any schedule slip on a burdensome process to their customers 8.Make sure the process group is responsible for achieving a change initiatives objectives 9.Focus all your attention on reaching a models capability level, dont identify your actual objectives 10.Assign inexperienced engineers to define your development process

23. Page 23 2006 Introduction to CausePoint What Do You Need To Successfully Change Your Organization? Establish P a r t n e r F o c u s C h a n g e M a n a g e m e n t M e a s u r e m e n t & R i s k E n g i n e e r i n g M e t h o d - Commitment Assess & Plan Define Apply - Customer Objectives - Key Processes - Vision - Baseline - Tactical Plan - Widespread Involvement - Measurements - Measurement Targets - Projects - Change Structure - Resources - Visibility & Risk Mitigation -Measure & Risk Mechanisms - Transfer Responsibility - Team Participation - Pilot Management Establish and Maintain Commitment to the Change Initiative Manage Change and Build Involvement for the Program Provide visibility through measurement Follow a phased improvement methodology with interim milestones

24. Page 24 2006 Introduction to CausePoint In God we trust, all others bring data. - W. Edwards Deming The Bottom Line Process improvement should be done to help the businessnot for its own sake Improvement means different things to different organizations what are your business goals? how do you measure progress? Improvement is a long-term, strategic effort

25. Page 25 2006 Introduction to CausePoint CausePoint Consulting Provides an external view of your organization Applies experience and expertise Driven by the needs of meeting management objectives, not meeting a models expectations An awareness that understanding people, the organization, their needs and their drivers is key in achieving change For More Information Please Contact: