Establishing an Enterprise-level Continual Improvement Office

Session 208:

“Establishing an Enterprise-level Continual Improvement Office”

• Timothy Rogers, ITSM Consultant with Jacobs Technology

• Former CTO with 15+ years experience spanning high-tech start-ups, financial services, and Federal government sectors

• Holds Master's degree from the University of California - San Diego, and certifications in ITIL, Lean Six Sigma, and the Governance of Enterprise IT

• *Interesting fact: Lived and worked in Asia and speaks some Mandarin Chinese.

Part I: Background/Setting the Stage (25 min.) CSI – What is It? Today’s Agency IT Challenges CSI – What’s in it for Me? Strategy – the Art of Deciding What Not to Do The Enterprise CSI Office

Part II: Workshop (Doing It!) (25 min.) Create the Plan – The “3 S’s” Define Roles & Responsibilities (RACI) Develop Integrated CSI Model Define Projects, Metrics, Auditing, and Tools Execute! – Implement the Plan

Question & Answer (10 min.)

Agenda

BACKGROUND/SETTING THE STAGE

Part I:

What is Continual Improvement?

The very heartbeat of service management;

Critical pulse monitor of the Agency customer;

Tool to resuscitate service or process performance.

Source: OGC ITIL® CSI Approach Source: US EPA (EMS) PDCA Cycle

Continual Improvement is Quality Management of IT Services

=

- Mar 12, 2002 - - 2005 - - 2008 -

“Elevated”

“Imminent”

- Apr 26, 2011 -

“. . .improvements are needed. The system's ability to communicate useful information in a credible manner to the public is poor.”

Source: HSAC Task Force Report and Recommendations Sept. 2009

One Agency, Two Approaches to CSI. . .Example (Bad): DHS Threat Warning System

“Our security procedures are multifaceted, and we adjust them according to the threat all the time.”

Source: Wall Street Journal July 07, 2011

One Agency, Two Approaches to CSI. . .Example (Good): TSA Screening Procedures

“TSA Announces

Enhancements to Airport ID

Requirements to Enhance

Safety”

- Jul 10, 2003- - Dec 2, 2005 - - Jun 21, 2008 - - Nov 15, 2010 -

“TSA Works on Alternative

Airport Screening

Process for Pilots”

“TSA, Homeland

Security Move to Make Shoe-

Screening Policy

Consistent for Travelers."

“TSA Unveils Enhanced Security

Screening Procedures

and Changes to the Prohibited

Item List”

Today’s Agency IT Challenges• Fiscal Austerity and “Hard” Budget Constraints

– Your Agency Mission hasn’t changed (likely expanded!)– Need to do more with less + demonstrate measurable value

• Compartmentalized Decision-Making– Overlapping Capabilities across Departments/Divisions– Movement towards enterprise processes + shared services

• Multi-Sourcing and Cloud-based Services– Must address unique needs, complexity of Federal Agencies– Increased focus on core Mission + Incremental

Improvement*Do More with Less via Enterprise Continual Improvement

CSI – What’s In It For Me?

Budgets & Resources Aligned to Enterprise Mission Priorities;

Increased Operational Efficiency & Effectiveness;

Measurable, Transparent Results (Agency Execs, GAO, Congress);

Data-Driven Decisions (removes the politics from decision-making).

A standardized, data-driven, cross-organizational approach to the continual improvement of service and process performance across the enterprise.

*Key Benefits include:

Sample Goals and Objectives• “Continuously improve Quality of Service (QoS) to our customers through

systematic valuation and improvement of service and process performance across the enterprise.”

• “Institutionalize a culture of improvement across organizational domains and boundaries. “

• “Develop, communicate, and enforce continual improvement standards to

govern how customer requirements, changing requirements, contractual obligations and evolving mission objectives will drive integrated service and process improvement projects.”

*Real Example from an Agency Policy Document:The purpose of the Continual Service Improvement (CSI) process is to align and/or realign IT Services to the changing business needs, by improving the services offered, as well as the internal processes of the IT organization. These improvement activities support the lifecycle approach through Service Strategy, Design, Transition and Operation. Three (3) sub-processes incorporated into CSI include the: 1) 7-Step Process, 2) Service Reporting and 3) Service Measurement. The <Agency Name> ITSM Framework considers CSI as one (1) all-encompassing process that includes the three (3) sub-processes listed above.

Creating an Agency CSI Strategy• SWOT Analysis

– Agency Mission– Existing Capabilities– Budget + Access to Skilled Resources

• Stakeholders– Internal (Dept’s/Divisions, IT, Ops, Contracts, Legal, etc.)– External (Other Agencies, Partners, Suppliers)

• Level of Executive Sponsorship– True Champion (not Figure Head!)– Know Their Risk Appetite

The Art of Deciding What

Not to Do

The Enterprise CSI Office*CSI Register

Common Arguments Against a Dedicated CSI Team/Organization

• SPM makes investment decisions. Yes, but. . .– CSI is a key input into the prioritization of organizational capabilities– Not all improvement projects result in new or changed services

• SLM determines customer priorities. Yes, but. . .many customers!– An Enterprise must have a rational, transparent and fair method for

formalizing, approving, and funding cross-organizational projects.

• CSI is “baked in the cake”. Yes, but. . . it’s not enough!– Systematic planning + “Bird’s Eye View” req’d to maximize enterprise value.

Utilitarian Principle: “The greatest amount of happiness altogether”Source: J. Stuart Mill Utilitarianism

WORKSHOP (DOING IT!)

Part II:

Create the Plan – The 3 “S’s”• Scope

– Specific Goals & Objectives– Related Practices, Processes

• Stakeholders– Internal– External– Partners/Suppliers

• Standards– Policy & Guidance– Regulatory & Compliance– Industry Best Practices

Exceptions?

Define Roles & Responsibilities (RACI)• Approach as a Strategic Negotiation, NOT a Tactical Exercise:

– Establish strongest possible executive sponsorship up front– Conduct formal “off-site” workshops (rule: no attendance = no vote!)

• A complete Enterprise RACI should include (but not limited to):– Sr. Execs, Governance Bodies, Dept. Heads, Service/Process Owners, Etc.

• Critical Success Factor: Requires cross-organizational team with authority and funding to plan, prioritize and orchestrate enterprise-wide improvement.

Develop Integrated CSI ModelAgency Goals & Objectives

Policy & Guidance

Culture & Organization

Skills & Competency

Define Projects, Metrics, Audit, Tools• Projects

– Prioritization– Approval– Portfolio Optimization

• Metrics– Process/Service/Technology

• Auditing– Periodic & Ad-Hoc– Formal & Informal

• Tools– Measurement & Reporting– GOTS & COTS

Example: Project Prioritization MatrixProcess and Dependnecies andOutputs

Cost Savings

Time Savings

VOC Alignment

Achievable (time)

Achievable (human

resources)

Achievable (cost)

Secondary Benefits

Level of Importance 5 8 8 6 8 3 6

Projects TotalSeat Order to Delivery (time reduction)

8 9 10 5 4 5 6 305

Software Deployment 3 5 7 5 4 5 2 200

Increase Asset Visibility 7 5 9 6 6 4 9 297

Economization of Scale 9 3 6 5 5 5 5 232

Legacy Application 3 1 4 5 5 5 1 146

1 10

Cost Savings Low High Do NowTime Savings Low High Do SoonVOC Alignment Low High Not NowAchievable (time) Low Liklihood High Liklihood Not Worth EffortAchievable (HR) Low Liklihood High Liklihood

Achievable (cost) Low Liklihood High Liklihood

Secondary Benefits None Many

Example: Project Analysis Tool

What’s Missing?

Execute! – Implement the Plan• Organizational Change

– People/Process/Technology

• Performance Measurement– Balanced Scorecard or

alternative methodology– Align to Enterprise Governance

• Phased Execution Plan– Resource Constraints– Budget Constraints– Key Dependencies– Critical Path

4Establish a Sense

of UrgencyForm a Powerful Guiding Coalition

Create a Compelling Vision

Communicate the Vision

Empower Others toAct on the Vision

Plan for and CreateShort-Term Wins

Financial

Learning and Growth

Customer Internal Business Processes

CSI Balanced Scorecard

1 2 3 4 5Objectives

MeasureTargets

Initiatives

1 2 3 4 5Objectives

MeasureTargets

Initiatives

1 2 3 4 5Objectives

MeasureTargets

Initiatives

1 2 3 4 5Objectives

MeasureTargets

Initiatives

Financial goals to be met include ROI and the reduction of waste while adding value to the process and the end customers.

Customer satisfaction and success shall be met by recording the Voice of Customer feeding it back into process goals and objectives.

The process owner shall ensure that growth and education occurs and is measureable within the process.

The metrics in the PMP and Quality Review shall be reviewed by leadership and improvements continually made.

J.Kotter’s Model for Organizational Change

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Contact Details:Timothy RogersTimothy.Rogers@jacobs.com(858) 356.7373