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© 2009 IBM Corporation
PPM06
Measure Your Results by Applying Measured Capability Improvement Framework
and Rational Insight
Per KrollChief Solutions Architect
MCIF, IBMpkroll@us.ibm.com
PPM06
© 2009 IBM Corporation
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Discussion Topics
Stop guessing, start measuring
Introducing IBM Rational Insight
Demo
Parting thoughts
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Challenges to the effective delivery of softwareA history of cost overruns, schedule slips and quality issues
“Business leaders and CIOs are under pressure to enable their teams to become catalysts for change. However, change is outpacing their ability to deliver.
They are reorienting their teams to focus on ROI and quantified business outcomes and to mitigate risk and reduce costs.”
– IBM CIO Survey, 2008
Growing focuson business outcomes
“Only 22% of executives felt that their IT and business strategy were tightly integrated”
“49% of budgets suffer overruns and 62% fail to meet their scheduled”
“34% of software projects are deemed successful costing $300B annually”
30% of project costs are due to rework and poor execution of requirements”
“50% of outsourced projects are expected to under perform”
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Software delivery is a business process that can be continuously improved
Source: Gartner, “Making the Difference: The 2008 CIO Agenda,” Jan. 2008
Requirements
Design
Implementation
Verification
Deployment
CIO’s top priority over last three years: “Improving Business Processes”
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Measurement is key to transforming a business process
Toyota: No work without process No process without metrics No metrics without measurement No measurement without analysis No analysis without improvement
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Software Measurement Status - Today
Fortune 500 companies with productivity measures: 30%
Fortune 500 companies with quality measures: 45%
Fortune 500 companies with complete measures: 15%
Fortune 500 companies with missing measures: 85%
Number of software measurement personnel 5,500
Number of software projects measured: 160,000
Number of software projects not measured 50,000,000
- Capers Jones (2009)
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Does It Help to Measure?Companies that measure: Companies that don’t:
On-time projects: 75% On-time projects: 45%
Late projects: 20% Late projects: 40%
Cancelled projects: 5% Cancelled projects: 15%
Defect removal: > 95% Defect removal: Unknown
Cost estimates: Accurate Cost estimates: Optimistic
User satisfaction: High User satisfaction: Low
Software status: High Software status: Low
Staff morale: High Staff morale: Low
- Capers Jones (2009)
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Yet the wrong metrics can incent negative behavior
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Lessons from the factory world: Knobs and meters
One sets the knobs hoping to achieve optimal meter readings The meter readings are called outcome measures
Sometimes you need additional measures to ensure the system has responded to the knobs, these are called control measures
Setting
Better Results
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Meters for software and systems delivery improvement Business value
Return on Investment (ROI) Return on Assets (ROA) Profit …
Operational objectives Productivity Time to market Quality Predictability …
Practice-based control measures Test Management: Defect density, test coverage Iterative Development: Velocity, iteration burn down Continuous integration: Build stability, Build frequency …
Operational Efficiency0% 100%
Practice Adoption0% 100%
Business Value$0M $15M
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Leverage a Control Framework to Manage to Expected Business Results
Operational Level
Practice Level
Business Level
Process Enactment / Governance Enforcement / Process AwarenessJazz Platform
Business Objectives
Process Definition / PracticesRational Method Composer
Operational Objectives
feedback
feedback
feedback
Fe
ed
ba
ck
Performance Measurement(IBM Rational Insight)
Value Metricse.g., ROI, ROA for SSD
Operational Effectiveness Metricse.g., Time to market, productivity
Practice Adoption/Maturity
SubjectiveIBM Rational
Self-Check
Practice ArtifactsObjective
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
A Systematic Approach to Software Excellence
A phased approach that helps teams
Adopt an incremental, measured approach to transformation
Focus on the core practices that matter most
Accelerate adoption through out-of-the-box assets
Articulate capability improvements in terms of business value
Support any method Optimized for Agile practices
Empower teams to measure, manage and incrementally improve their software delivery capability.
Establish business and operational objectives
Prioritize practices and define roadmap
Accelerate adoption with tools and services
Report, analyze and act on results
Phase1
Phase2
Phase3
Phase4
Start next incremental improvement
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Leverage MCIF Assets to Incrementally Definethe Control Framework
Operational Level
Practice Level
Business Level
Process Enactment / Governance Enforcement / Process AwarenessJazz Platform
Business Objectives
Process Definition / PracticesRational Method Composer
Operational Objectives
feedback
feedback
feedback
fee
db
ack
Performance Measurement(IBM Rational Insight)
Value Metricse.g., ROI, ROA for SSD
Operational Effectiveness Metricse.g., Time to market, productivity
Practice Adoption/Maturity
SubjectiveIBM Rational
Self-Check
Practice ArtifactsObjective
Phase 4: Rational Insight
Phase 3-4:Self-Check
Phase 3: Rational Method Composer
Phase 2:Health Assessment
Phase 1: Exec Business
Value Workshop
Phase 3:Rapid Deployment Package
NEW
ENHANCED
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Unifying Platform - Jazz Operationalize capability improvement
Define Business andOperational Objectives
Define Practices
Operationalize processes, accountability, and policies
acrossthe organization
Measure, monitor and report on practice adoption, and business
and operational results
Phase
4
Phase
3
Phase
1/2
Client Integrations Server Integrations
FutureIBM
Capabilities
3rd-PartyJazz
Capabilities
DeliverEnduringQuality
AccelerateChange &Delivery
Ensure Security &
ComplianceManage
ArchitectureManageEvolving
Requirements
ImproveProject
Success
QueryStorage
Collaboration
DiscoveryData Warehousing
Administration: Users, projects, process
Best Practices
JAZZ SERVICES
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Discussion Topics
Stop guessing, start measuring
Introducing IBM Rational Insight
Demo
Parting thoughts
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
The Danger of Information Blind Spots
Lack of Relevant Timely Information
Information Overload
Inability to combine various data points for a single view of analysis E.g. combining cross-functional
requirements, balance risk, and learning from failures
Inability to know “what” to monitor and “how” to achieve expected results
“77% of managers are aware of bad decisions that they have made because they did not have access to accurate information”
Source: Business Intelligence Forum, Strategic decisions still taken based on gut feel, 2004
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Measure and manage software delivery performance
Measure process and project outcomes Real-time intelligence based on IT industry
best-practice metrics, dashboards and models
Inform decisions and drill into issues Alerts and automated analysis focuses owner
to take action on root causes, before mitigation costs balloon 1000%
Take real-time action on relevant data Proven BI-backbone automates collection and
analysis to improve lifecycle productivity 10-15%
Deliver performance and predictability with integrated lifecycle intelligence
Rational Insight
Integrated lifecycle
intelligence
“Organizations exercising world-classperformance management practices enjoy
a 2.4 times market returns oftypical companies”
BusinessWeek Study:The Payoff of Pervasive Performance Management
Control Settings
ResultsBetter
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Measure performance against business objectives IBM Rational Insight
Monitor and analyze project and process performance Collaborate across disparate development
artifacts in the context of operational and business objectives
Automate reporting and measurement by leveraging Jazz compliant open REST interfaces and a Cognos based reporting platform
Report on relevant data with a built-in library of industry best practice metrics and dashboards
Continual process improvement to effect organizational outcomes Process improvement and best practice
guidance through the Measured Capability Improvement Framework (MCIF)
Built on best-in-class business intelligence platform from IBM Cognos
“Until now we were gathering metrics by manual methods. Rational Insight simplifies the presentation... Overall great tool to have for optimizing project efforts and giving management a birds eye view of the project performance at all stages.”
Real-time information in a
single view across projects, products and geographies
Automated project and process measurement can improve team productively by 15%
“Through the automation and dashboard capabilities in Insight, our team is saving over 40 hours a month on our reporting activities. We also can offer new capabilities such as “on-demand” dashboards which would have been very labor
intensive to do without Insight”
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Rational Insight – SSD Performance Management
Open Lifecycle Service Integrations
Best Practice Guidance
ClearCase
MS Project
Quality Manager
Partners
Cognos based report serverprovides a consolidate view
ClearQuest
RequisitePro
Team Concert
Insight
Powered by
Measured Capability Improvement Framework
(MCIF)
Powered By Cognos
3rd Party Integrations
Rational Insight Data Warehouse
ODBC/JDBCXML
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Rational Insight
Project Management
Project Management
Build Management
Build Management
Architecture Management
Architecture Management
Requirements Management
Requirements Management
Change Management
Change Management
Configuration Management
Configuration Management
Portfolio Management
Portfolio Management
Quality Management
Quality Management
CxO
Project Manager
Collaborate across disparate development artifactsIn the context of business objectives
Process Lead
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
High Level Business Objectives mapped to Operational Objectives Reduce Costs Increase Market Share Improve Customer Satisfaction
Line of Business goals driving operational performance initiatives Manage and Optimize Resources Develop Transparently Implement Test Driven Development
Project Team goals mapped to business objectives Build Management and Health Automated Testing Sprint/Iteration Velocity or Burndown Requirements Traceability
Collaborate across disparate development artifactsIn the context of business objectives
CxO
Process Lead
Project Manager
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Multiple Roles Come With Multiple Usage Patterns…
View dashboards and reports online…
View reports on mobile devices…
Embed charts and reports in spreadsheets / presentations…
Search for reports using standard paradigms…
Easily create and customize graphical dashboards…
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Extending the Insight platform with Cognos Go!Increase business intelligence user adoption rates within your organization by letting users view and consume reports, scorecards, and other BI content using familiar applications or devices, such as a BlackBerry®, search engine, MS Office application, or Web browser.
Increase business intelligence user adoption rates within your organization by letting users view and consume reports, scorecards, and other BI content using familiar applications or devices, such as a BlackBerry®, search engine, MS Office application, or Web browser.
IBM Cognos 8 Go! Dashboard lets users build and edit dynamic and interactive dashboards using a drag-and-drop Flash interface.
IBM Cognos 8 Go! Dashboard lets users build and edit dynamic and interactive dashboards using a drag-and-drop Flash interface.
IBM Cognos 8 Go! Mobile lets users securely receive and interact with reports and analysis through their BlackBerry® handheld devices.
IBM Cognos 8 Go! Mobile lets users securely receive and interact with reports and analysis through their BlackBerry® handheld devices.
IBM Cognos 8 Go! Search lets users find existing reports in IBM Cognos 8 Business Intelligence more quickly. It also lets you integrate BI content into enterprise search applications such as those provided by Autonomy, Fast, Google, and IBM.
IBM Cognos 8 Go! Search lets users find existing reports in IBM Cognos 8 Business Intelligence more quickly. It also lets you integrate BI content into enterprise search applications such as those provided by Autonomy, Fast, Google, and IBM.
IBM Cognos 8 Go! Office lets your users view, interact with, and refresh BI content within MS Office applications such as Microsoft® Excel®, PowerPoint®, and Word®.
IBM Cognos 8 Go! Office lets your users view, interact with, and refresh BI content within MS Office applications such as Microsoft® Excel®, PowerPoint®, and Word®.
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Discussion Topics
Stop guessing, start measuring
Introducing IBM Rational Insight
Demo
Parting thoughts
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This top-level dashboard showcases schedule
variance, project health, size, and % complete for each project. Drill down on project for more info.
This next set of slides showcases the executive performance measurement dashboard we are using to govern Rational’s development teams leveraging Rational Insight using MCIF-style dashboards. Note that some data has been
added, changed or removed to avoid revealing confidential data.
Project health by region. Drill down for regional information, including headcount
and cost-related information.
Dashboards are organized around business objectives to ensure focus on potential problem areas preventing
us to reach stated business objectives.
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Project Health and Practice Control MetricsIterative
Development2-Level
PlanningContinuousIntegration
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Discussion Topics
Stop guessing, start measuring
Introducing IBM Rational Insight
Demo
Parting thoughts
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Progress checkpoints
Confidently deliver incremental improvement
Reach goals and maximize value with improvement roadmap Identify customer business challenge and align to
operational objectives Apply proven best practice to achieve objectives
Drive continuous and measurable improvement End-to-end lifecycle framework drives 15-25%
productivity improvement of selected priorities
Check results and iterate as needed Progress checkpoints and data analysis
determines results and improvements still needed
Drive necessary change at lower cost with a proven, repeatable approach
Measured Capability Improvement Framework
Data analysis
Continuousand measurable
improvement
Learning opportunities
“IBM’s advice was not ‘product centric’ but rather focused on the business outcomes for Qantas and how we could go about achieving those.”
Brad Tate, Manager Enterprise SolutionsQantas
Rational Insight
IBM Rational Software Conference 2009
PPM06: Measure Your Results by Applying MCIF and Rational Insight
Additional MCIF and Rational Insight Resources MCIF on IBM.COM
http://www.ibm.com/software/rational/mcif
Insight on IBM.COMhttp://www-01.ibm.com/software/rational/products/insight
Executive Dashboard on Jazz.nethttps://jazz.net/projects/executive-dashboard/
Self-Check article on developerWorkshttp://www.ibm.com/developerworks/rational/library/edge/08/may08/kroll_krebs/index.html
RMC 7.5 Practices on developerWorkshttp://www.ibm.com/developerworks/rational/practices/
IBM Rational Insight
IBM Rational Software Conference 2009
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IBM Rational Software Conference 2009
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© Copyright IBM Corporation 2009. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, Telelogic, the Telelogic logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.
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