Friday, February 19, 2010

CMMI V1.3: What Could Change!

The next release of the CMMI Product Suite—an approach that provides organizations with the essential elements of effective processes that ultimately improve their performance—is expected in November 2010. This Version 1.3 (V1.3) release includes improvements to CMMI for Development (CMMI-DEV), CMMI for Acquisition (CMMI-ACQ), and CMMI for Services (CMMI-SVC) models all during the same development cycle. This cycle also includes improvements to the appraisal method (SCAMPI) and CMMI-related training. The improvements planned for CMMI models do not require major changes or retraining for those currently using CMMI.

The “CMMI Version 1.3 – Plans for the Next Version” [1] was published by the SEI in August 2009. It stated that it will focus on (but not be limited to):
  1.  High maturity.
  2. More effective GPs.
  3. Appraisal efficiency.  
  4. Commonality across the constellations.
It also required that any changes to the CMMI Product Suite (i.e., model(s), training materials, and appraisal method) must meet the following primary criteria, which will likely do the following (also from [1]):
  1. Correct identified model, training material, or appraisal method defects or provide enhancements.
  2. Incorporate amplifications and clarifications as needed. 
  3. Accommodate potential additions to model coverage (e.g., safety, security, and life cycle) only by specific direction of the CMMI Steering Group.
  4. Decrease overall model size in V1.3 if possible; increases, if any, must not be greater than absolutely necessary.
  5. Model and method changes should avoid adversely impacting the legacy investment of adopting companies and organizations.
  6. Changes to model architecture will only be incorporated with specific CMMI Steering Group authorization.
  7. Changes can only be initiated by Change Requests or by the CMMI Steering Group.
  8. Editorial changes to training may be released in advance of V1.3.
  9. Changes must not require retraining the nearly 100,000 (as of Dec. 2008) personnel already trained in CMMI. Upgrade training may be needed, especially for instructors, lead appraisers, and appraisal team members.
 Reference

Phillips, Mike. “CMMI Version 1.3—Plans for the Next Version.” News at SEI. 7 Aug. 2009 .

Saturday, February 13, 2010

CMMI & Agile: Value in Both Paradigms

CMMI and Agile are compatible. At the project level, CMMI focuses at a high level of abstraction on what projects do, not on what development methodology is used, while Agile methods focus on how projects develop products. Therefore, CMMI and Agile methods can co-exist. There can be much value gained from Agile and CMMI synergies. Today, many CMMI-adopting organizations have Agile development teams. Conversely, CMMI can be effectively introduced in an Agile setting where an iterative, time-boxed approach is used, which is perfectly compatible with CMMI.
CMMI and Agile can complement each other by creating synergies that benefit the organization using them. Agile methods provide software development how-to’s that are missing from CMMI best practices that work well—especially with small, co-located project teams. CMMI provides the systems engineering practices that help enable an Agile approach on large projects. CMMI also provides the process management and support practices that help deploy, sustain, and continuously improve the deployment of an Agile approach in any organization.



Wednesday, February 10, 2010

Think TRIZ for Creative Problem Solving !


What's your secret for staying in business? Is it continuous quality improvement? Define-measure-
analyze-improve-control (DMAIC) and design for Six Sigma (DFSS)? Plan-do-check-act (PDCA)? Plan-do-study-act (PDSA)? Quality circles? Process improvement? Total quality management? Kaizen? Or just plain old troubleshooting?

No matter what you call it, the vast majority of successful organizations have some way of tracking down their problems and doing something about them. The quality profession has been at the center of both the tracking and the doing since its birth.
Quality improvement has grown from simple inspection to inspection with statistical process control to the array of analysis tools and teamwork methodologies now used to create and deliver services and products that do what our customers require. These tools work: In product and service development and delivery, we're able to identify problems and determine whether they're the result of special or common causes. We protect our customers by immediate corrective action, and we protect our business and customers by preventing future problems.
So why do we need new methods, tools and techniques for creativity? Because identifying a problem and its root causes doesn't always give us the ideas we need to find a solution. For at least the last 10 years, quality improvement leaders have been saying that the next step for quality is the merger of quality with creativity. 1,2
"Standard" quality improvement systems such as DMAIC and PDCA have always incorporated brainstorming as a key method for finding creative solutions to problems. Brainstorming is designed to liberate a team's thinking from past patterns and uncover ideas that people might have unconsciously suppressed. When it works, it's fast, and the team reaches a high level of consensus fairly quickly because the idea is usually improved by the entire team and is seen as a collective product rather than one person's idea.
But brainstorming doesn't always work. If the solution lies outside the experience of the team, this tool won't reveal it. Some teams try to compensate by inviting outsiders to join them for brainstorming sessions. This works if the new members happen to have the information the team needs, but there's been no good method for determining that in advance. It's a classic "Catch-22": If you know what the solution is, then you know whom to invite, but then you don't need to invite them because you know the solution.
TRIZ defined
TRIZ--a Russian acronym for "Theory of Inventive Problem Solving"--is a different kind of creativity system. It's based on the analysis of creative solutions to past problems. TRIZ applies to both continuous improvement and development of new products and services because continuous improvement requires solving current problems, and development requires finding a way to solve customers' problems.

Research on the TRIZ method was done in the former Soviet Union from 1946 to 1985 and has continued globally since then. Quality Digest featured an extensive introduction to the method in its February 2004 issue ("Enhance Six Sigma Creativity With TRIZ").
Two basic principles in TRIZ maintain that:
 Somebody, someplace, has already solved your problem or one similar to it. Creativity means finding that solution and adapting it to the current problem.
 Don't accept compromises. Eliminate them.

The quality improvement profession embraces these principles because quality thinking integrates benchmarking, which is strongly related to the first principle, and eliminating root causes rather than just improving symptoms, which is related to the second.
To illustrate the concept of "Somebody, someplace, has already solved your problem," consider the situation of dairy farmers in California. Producing milk requires handling large quantities of manure. In the past, the manure was dried in large ovens for deodorizing, ship--ping and recycling as fertilizer. But with the increasing cost of energy, drying ovens became uneconomical. The TRIZ method for looking at other technologies for potential solutions starts with restating the problem in general terms, emphasizing the functions being performed, rather than the technology itself. Thus, dairy farmers didn't search for better ways to dry manure; they looked for ways to separate a liquid from solids. A simple search with TRIZ techniques turned up a method, using a hydrophilic gas, in which the gas carries the water molecules away. This method has been used for more than 40 years for concentrating orange juice. 3
Other examples of this principle include:
 The pharmaceutical industry found ways to manage foam in the production process by studying the beer industry.
 Medical information technology requires stringent privacy protection under Health Insurance Portability and Accountability Act (1996) regulations. Many solutions are being found in systems developed for the banking and securities industries.
 Paint companies have problems with the accumulation of sludge in processing equipment. The nuclear waste disposal industry has found many ways to prevent the buildup of sludge because removing it is extremely difficult and requires shutting down the facility for a long time.

The idea of eliminating problems rather than accepting compromises goes against the grain of standard business and engineering teaching, which emphasizes tradeoffs, cost-benefit analyses and other methods of compromise. TRIZ recognizes two kinds of compromises (frequently called "contradictions"):
 Technical contradictions . These are the classic engineering and business trade-offs in which the desired state can't be reached because something else in the system prevents it. In other words, when something gets better, something else gets worse. Examples include:
 Product gets stronger (i.e., good), but the weight increases (i.e., bad).
 Bandwidth increases (good) but requires more power (bad).
 Service is customized to each customer (good), but the service delivery system becomes complicated (bad).
 Automobile airbags deploy quickly to protect the passenger (good), but the faster they deploy, the more likely they are to injure or kill small or out-of-position people (bad).

 Physical contradictions. Also called "inherent" contradictions, these include situations in which one object or system has contradictory or opposing requirements. Everyday examples abound:
 Surveillance aircraft should fly fast to their destinations but also slowly to collect data over the target.
 Software should be easy to use but include many complex features and options.
 Coffee should be hot for enjoyable drinking but cool enough to prevent burning consumers.
 Training should be thorough but not take too much time.

TRIZ doesn't depend on team members' knowledge or their personal creative capability to solve these problems. The first group, the "technical" or "tradeoff" contradictions, are solved using the 40 principles of problem solving. Many people have expanded on the original TRIZ research to demonstrate that the 40 principles apply to a wide variety of disciplines. (See The TRIZ Journal [www.triz-journal.com] for examples of the 40 principles in chemical engineering, sales, microelectronics, education and quality management, among others.)
The second group, the "physical" or "inherent" contradictions, are eliminated using four basic principles to separate the requirements that appear to be contradictory in time, space, between the parts and the whole, and between the supersystem, system and subsystems.
For example, the airbag problem can be solved at the subsystem level by changing the bag material so that it won't grab the skin of 
the face and twist the head of a small, out-of-position person. The problem can also be solved at the supersystem level, in several ways:

 If the car can't crash because it's part of a super system that knows the positions of all objects and controls their speeds (a technology that's fewer than eight years away, according to some predictions)
 If the structure of the car absorbs the force of the crash, and the airbag isn't needed
 If the social and/or legal system is such that small people never sit in the front passenger seat

TRIZ has been incorporated into the general corporate culture for global companies in a wide variety of industries--Siemens, Samsung, LG, Unilever, Agilent, Hitachi, Dow Chemical, Johnson & Johnson and Delphi are among those that have talked about their TRIZ experiences at recent conferences. Small and medium-sized organizations with less- familiar names are adopting TRIZ to support quality improvement in services, products and systems in fields as diverse as restoring the vitality of a downtown to creating software to improve sales of eyeglasses.
How do you recognize when quality requires creativity? When the solutions that your team creates don't get rid of the root cause. That's a strong indication that unrecognized contradictions are blocking you from finding a good solution, and that TRIZ will be the next tool you need.

Process Change Management Can be Emotional !


Implementing changes in an organization can generate a range of emotions within your stakeholders (employees, customers, suppliers, etc.) that can create barriers to realizing your original change objectives.  Understanding why people are responding the way they are to your proposed changes will help you to roll-out your improvements more smoothly and allow you to obtain the buy-in from your stakeholders that will actually deliver the performance improvement your changes were designed to realize.

When you start to communicate change and improvement throughout your organization you will take your stakeholders through five phases or states of mind.  Each phase is a normal emotional state that most people go through.  Developing a communication plan to help guide your stakeholders through each phase, with prepared responses for each one, can ensure a successful roll-out for your changes and improvements.


What are these phases of change and how should you respond?
  1. Anticipation - introduce your strategy.
  2. Confrontation - respond to objections.
  3. Realization - provide training and support.
  4. Depression - communicate monthly.
  5. Acceptance - Review and obtain feedback.
Understanding why people are responding the way they are to your proposed change will help you to roll-out your improvements more successfully and obtain stakeholder-buy-in that will actually deliver the performance improvement your changes were designed to realize.

Simplify Change: Grow Faster & Cheaper


Simplifying Change is a great way to save money and at the same time prepare for growth. By simplifying your procedures, you can cut waste with confidence that you are not cutting essential value-added services customers want to buy. Simplifying procedures prepares your company for growth because it streamlines your operations, documents them, and thus makes it much easier to replicate your operations at another location.

A new operation based on proven procedures is easier to manage because you can evaluate its performance against known metrics. And should the metrics indicate a need for adjustments-typical when rolling out a new location-staff will have procedures in place to affect needed changes. This significantly reduces the risk of opening a new location.

Change should not be be associated with that always something NEW is taking place. It should be interpreted as creating instances which could be more Adaptable, Simpler and also Measurable.

Tuesday, February 9, 2010

Worldwide IT Spending Forecast

Audio Report: Gartner Predicts on 2010 IT Spending.


Worldwide IT Spending Forecast
Richard Gordon, Vice President, Gartner Research
The global economic downturn has continued to weigh on the ability and desire of businesses and consumers to make IT purchases. However, we assume the economy will recover, beginning towards the end of 2009 and tentatively at first. While initial growth in IT spending in 2010 and 2011 may come as the result, directly or indirectly, of the various government stimulus packages announced around the world in recent months, there will be a return to more sustained growth in IT spending in 2012 and 2013 as the economic recovery unfolds.

IT budget cuts may have slowed market growth in the short term but, even in the toughest of business environments, enterprises must preserve short-term spending on critical business operations and long-term technology investments. IT vendors should be sensitive to the challenges faced by their customers and plan pricing strategies accordingly. The global economic downturn may be easing, but IT budgets are still being cut and consumers will need more persuading before they feel confident enough to spend more. Worldwide IT spending is forecast to total $3.2 trillion in 2009, a 5.2 percent decrease from 2008 spending of $3.4 trillion .
Worldwide IT spending is expected to return to growth in 2010 as revenue is projected to reach $3.3 billion, a 3.3 percent increase from 2009.

Creating a Culture for Innovation

Creating a Culture for Innovation

Severe pressure induced by the current economic downturn pushes executives toward efforts related to cost reduction and internal restructuring. Nevertheless, innovation remains one of the high priorities on their agenda, which is mainly focused either on product/service innovation or on business process and business model innovation. Particularly in business model innovation, innovation consulting specialists see growing demand. Several of these providers, with service portfolio and go-to-market approaches focused primarily around innovation, have been evolving for some time now within the diverse corporate strategy services market. Facing more client demand, they are looking for new directions to expand their business. Chief executive officers (CEOs) and managing partners at innovation firms should embrace the notion of building their partner ecosystem, which will be the prerequisite for lasting success.


Crowdsourcing has become a media darling — which, rather paradoxically, represents a major threat to the very innovation vendors that market it. Why? Because trendiness breeds misinformation, confusion, and poorly reasoned use cases — making enterprises increasingly skeptical of crowdsourcing's value. The lesson for vendors: Honest-to-goodness customer education and business value supersede super-cool features and snazzy marketing tactics as winning market strategies. Rather than hyping it, vendors must help enterprises focus on four critical aspects of crowdsourcing — people, objectives, strategy, and technology, in that order. The heavy lifting of customer education is the only way to generate innovation value in each engagement and with it the word-of-mouth buzz that builds a strong brand and creates snowballing market share.

The Ideal Software Job: An Interesting Excerpt by Watts S. Humphrey

http://www.youtube.com/watch?v=eMnZ-9mvH34

The Business Process Consulting Radar

Leaders at firms of all sizes continue to face ever-increasing demands from customers, employees, partners, regulators, and other stakeholders. Increasingly, they must align resources and new technology across functions and along critical business processes to compete. This high-churn environment has also created great demand for business process consultants, who vary widely in the type and scope of their advice. Business process leaders must conduct research and analysis of their firm's needs against consultants' capabilities in order to choose the right partner for their process improvement efforts.

What to look in for while choosing a consultant?
  1. Is he/she a practitioner? Has he lived the life of an implementor, so that he understand the practical nuances of the engagement.
  2. Is he/she carrying credentials endorsed by the authority?
  3. What does his clientele say about him?
  4. What is his/her methodology and where is your space in the methodology?
  5. And Finally how are you Measuring your Change?

CIOs have been searching for ways to measure, improve, and communicate the business value of IT for years without a lot of success. Many have implemented PMOs, hired certified project managers, and begun CMMI or Six Sigma initiatives, all designed to improve their project management and project execution capabilities.

But bringing IT projects in on time and on budget and delivering all of the specified functionality hasn't necessarily led to business value and improved business outcomes. The reason is that it isn't simply a matter of implementing technology, but using the technology as a means to enable business and/or organizational change. The technology is providing a capability, but if that capability is not used or not used effectively, it will not produce anything of value. Business value is only obtained when IT projects are done within the context of IT-enabled business change programs.

Galvanizing Global Models: CMMI, ITIL, eSCM, Six Sigma & Many More.

Technology is the beating heart behind business, but with economic crises on a global scale, increasing sensitivity to cost, and competitive pressures, IT services must be managed and delivered with high levels of customer service and satisfaction. At the same time, the IT operations team is shifting from a technology-led, siloed structure into a process-centric, service-oriented organization. Making the transition won't be easy, and IT folks are bombarded with a multitude of IT management frameworks — all sounding the same — designed to reorient the operations team around new goals, new skills, and new expectations.

So the New Mantra for Business Transformation is 'Integrate as You Collaborate".

As global models mature from the adoption trends, the services industry is researching in creating its own Best Practice Model. Even popular models and frameworks like CMMI have now released flavours of Services and Acquisition all closely knit around its basic Core Constellation of Project Management, Process Management & Support.

Ideally looking at this trend, we could say clients are ready to transition between business and stay insulated from any process performance disaster.

Shall we say a New Wave of High Maturity is taking Birth.


Corporate Strategy & The Services Industry

Shaded boundaries within the broader consulting services market are leading to heated competition among consulting firms around thought leadership and business model innovation. In this context, strategic management paradigms and models are playing a more important role in positioning providers' capabilities toward executive stakeholders on the client side.

Therefore, the providers' ability to quickly and effectively drive these models' development and integration into their portfolios as well as deliver client value based on these models will be key to market success going forward.

Service provider strategists will get a better understanding of the global determinants that drive consulting services innovation and can leverage this value chain as a model for analyzing and planning their innovation initiatives more effectively.

The IT services market is behaving peculiarly in this tech downturn. While project-based IT consulting and systems integration work is now falling, it:
1) held up remarkably well until Q4 2008;
2) is down less than other categories of IT spending; and
3) has good prospects for a solid recovery in 2010.

Many industry commentators were expecting outsourcing revenue to pick up and help close some of the gap created by the drop in project work, as happened in the 2001 to 2003 tech downturn. But this expectation has not been realized. In fact, in Q4 2008 and Q1 2009 outsourcing revenues for the major providers were down more than their project revenues. While some pick up in IT outsourcing deals and revenues is likely, secular trends point to slow growth in IT outsourcing even when the tech recovery occurs. This means that outsourcers will need to enter new markets and ruthlessly focus on profitability to survive.

CMMI Adoption with Small Companies in Asia

Over 56% companies adopting CMMI Models are of sizes 200 or less. Interpretation of global frameworks enabling SME segments.

Are the SME companies really benefiting? Are there enough data to elaborate on their change in capability or product quality?

The answer may be a not so confident YES. Assuming we are speaking of CMMI Maturity Level 3 or less. The reason being the segment across which the data analysis is available is largely for companies who are in the range of 200 people or more. Companies less than 100 or for the matter less than 50 have very few submissions on process maturity and benefits. Certainly not in terms of process effectiveness and capability.

Some of the parameters which are being used to gauge improvement are:
  1. Increase in Client Repeat Orders.
  2. Increased Visibility through empaneling with Government Preferred Vendor Listing
  3. Increase in Domain and Project Management Trainings
  4. May be a slight reduction in Attrition.

Very rare instances would lead us with data like: (reference made for Companies Size 50 or less)
  1. Better Project Management Efficiency
  2. Reduced Rework and Defects
But, with more awareness in the market and higher adoption of CMMI and related best practices, we are certainly seeing a trend where companies are realizing the benefits.