part i: it scorecard: how systems fail? · 11/21/2011 · 11/22/2011 5 change is natural – must...

11/22/2011

1

The Critical Roles of the Systems/Software ProfessionalsThe Critical Roles of the Systems/Software ProfessionalsThe Critical Roles of the Systems/Software ProfessionalsThe Critical Roles of the Systems/Software Professionalsaaaand Attorneys in creating “Successful IT Contracts”nd Attorneys in creating “Successful IT Contracts”nd Attorneys in creating “Successful IT Contracts”nd Attorneys in creating “Successful IT Contracts”

© 2006-2011 by Warren S. Reid All Rights Reserved 1

Warren S. Reid, Managing Director

WSR Consulting Group, LLCManagement, Technology & Litigation Consulting

E-mail: [email protected] Website: www.wsrcg.comOffice: 818/986-8842

Part I. IT Scorecard: How Part I. IT Scorecard: How Part I. IT Scorecard: How Part I. IT Scorecard: How Systems FailSystems FailSystems FailSystems Fail????

Part II. Why is it so difficult to develop “Successful” software?Part II. Why is it so difficult to develop “Successful” software?Part II. Why is it so difficult to develop “Successful” software?Part II. Why is it so difficult to develop “Successful” software?

Part III. The PurPart III. The PurPart III. The PurPart III. The Purppppose of IT Contractsose of IT Contractsose of IT Contractsose of IT Contracts

Part IV. The SDLC & IT Part IV. The SDLC & IT Part IV. The SDLC & IT Part IV. The SDLC & IT Contract Contract Contract Contract ConnectionConnectionConnectionConnection

Part Part Part Part V. IT V. IT V. IT V. IT Related Contract Related Contract Related Contract Related Contract ClausesClausesClausesClauses

USC Software Engineering, 11/14/2011

PART I: IT Scorecard: How Systems Fail?PART I: IT Scorecard: How Systems Fail?PART I: IT Scorecard: How Systems Fail?PART I: IT Scorecard: How Systems Fail?Standish Group: Chaos Study Results 2004+Standish Group: Chaos Study Results 2004+Standish Group: Chaos Study Results 2004+Standish Group: Chaos Study Results 2004+

2 w

CHAOS Summary 2009:

+ success = 34% (delivered on time, budget, on target)

+ challenged = 44% (late, over budget, < required F&F)

+ + + + failed = 24%failed = 24%failed = 24%failed = 24% (cancelled before complete; delivered & never used)

“… numbers represent downtick in success rates from previous study, and significant increase in number of failures … low point in last five study periods & highest failure rates on over a decade.

3 m© 2006-2011 by Warren S. Reid All Rights Reserved

Challenged (on average):Time Overruns: 84%

$$ Overruns: 56%

Rqmts delivery: ~67%

11/22/2011

2

TOP PANACEAS (REALLY?)1) Spaghetti-ed, Structured, Objectivized2) CASE-d, Tooled & Retooled3) TQMed, Quality Assured4) Rapidly Developed (RAD’d) and RAIDed5) Mainframed, Mini-ed, Micro-ed, Client-served6) Reviewed, walk-throughed & inspected 7) BPRed, ERPed, CXOed, PMO-ed8) Scripted, Relationalized, Downloaded, Integrated9) ISO-ed. IMC-ed, PMI-ed, CMMi-ed, SEI-ed10) Converged, Plugged & Played, Verified, Webified11) Outsourced, InSourced, BackSourced, Off-shored12) Benchmarked, Metered, SLA’ed, Hosted, Oracled, SAPed

13) Xtremed, Scrummed, Agiled, Leaned-on14) Y2K’d, Windowed-7, 6 Sigma’d, Java-ed, Googled,15) SOXed, Secured, Disrupted (service), Hacked, 16) Smart-phoned, i-Padded, i-Podded, & i-Tuned17) Clouded, Klouted, Virtualized, Socialized,

Twittered, Facebooked & LinkedIn18) I’ve been iOS 3, 3S, 4, 4S, & Android-ed 3

© Copyright 2005-2011 by Warren S. Reid All rights reserved.

NATURAL “PUSH/PULL” POINTS © 2006-2011 Warren S. Reid All Rights Reserved

4

Stakeholders Scope

11/22/2011

3

1.1.1.1. Customer changed mindCustomer changed mindCustomer changed mindCustomer changed mind

2.2.2.2. Client people not trainedClient people not trainedClient people not trainedClient people not trained

3.3.3.3. Client did not do BPRClient did not do BPRClient did not do BPRClient did not do BPR

4.4.4.4. Only “two more months”Only “two more months”Only “two more months”Only “two more months”

5.5.5.5. They wouldn’t listenThey wouldn’t listenThey wouldn’t listenThey wouldn’t listen

6.6.6.6. Bad data/conversionBad data/conversionBad data/conversionBad data/conversion

7.7.7.7. Customer kept change scopeCustomer kept change scopeCustomer kept change scopeCustomer kept change scope

8.8.8.8. Customer failed @ SIPMCustomer failed @ SIPMCustomer failed @ SIPMCustomer failed @ SIPM

9.9.9.9. Poor Poor Poor Poor custcustcustcust decisiondecisiondecisiondecision----makingmakingmakingmaking

10.10.10.10. Wrong client peopleWrong client peopleWrong client peopleWrong client people

11.11.11.11. Poor client supportPoor client supportPoor client supportPoor client support

12.12.12.12. We/they in Over HeadsWe/they in Over HeadsWe/they in Over HeadsWe/they in Over Heads

1.1.1.1. System doesn’t workSystem doesn’t workSystem doesn’t workSystem doesn’t work

2.2.2.2. We can’t use itWe can’t use itWe can’t use itWe can’t use it

3.3.3.3. System failed in fieldSystem failed in fieldSystem failed in fieldSystem failed in field

4.4.4.4. Fundamental flawsFundamental flawsFundamental flawsFundamental flaws

5.5.5.5. They s/have told usThey s/have told usThey s/have told usThey s/have told us

6.6.6.6. System is full of bugsSystem is full of bugsSystem is full of bugsSystem is full of bugs

7.7.7.7. Limited functionalityLimited functionalityLimited functionalityLimited functionality

8.8.8.8. Developer failed @ SIPMDeveloper failed @ SIPMDeveloper failed @ SIPMDeveloper failed @ SIPM

9.9.9.9. Poor advicePoor advicePoor advicePoor advice

10.10.10.10. Unqualified personnelUnqualified personnelUnqualified personnelUnqualified personnel

11.11.11.11. Wrong Wrong Wrong Wrong develdeveldeveldevel processprocessprocessprocess

12.12.12.12. We/they in Over HeadsWe/they in Over HeadsWe/they in Over HeadsWe/they in Over Heads

© 2001-2010 by Warren S. Reid All Rights Reserved

It’s the Same in Virtually Every Litigation … All Over the World!

“He Said … She Said”

Oftentimes, BOTH sides are right & contribute to failure – but at different %s

SMART: Specific, Measurable, Attainable, Relevant, Trackable

5 w16m

PART II: Why is it so Difficult to Develop and PART II: Why is it so Difficult to Develop and PART II: Why is it so Difficult to Develop and PART II: Why is it so Difficult to Develop and

Implement “Successful” Software Solutions?Implement “Successful” Software Solutions?Implement “Successful” Software Solutions?Implement “Successful” Software Solutions?

© 2006-2011 Warren S. Reid All Rights Reserved 6666

11/22/2011

4

PEOPLE!! PEOPLE WITH VERY DIFFERENT…

� Loyalties, Agendas, Goals, Priorities, Targets/Quotas, Fears

� Strategies: current v future; biz case; biz rqts/biz procs

� Cultural Bias; communication skills

� Sys Rqmts: capability/exper/education, 3 sources

� F&F: B&D; Specified or implied

� Non-Performance: $$; schedule; SDLC; QA; “usability”

� Performance: “-abilities”; operating parameters

� HCD: Design & UI:

+ DD – Digital Dinosaurs: ~75+ yo

+ DI – Digital Immigrants: ~35-70 yo

+ DN – Digital Natives: ~15-30 yo

+ DNA – Digital Natives Always: ~2-10 yo

� Accept Criteria: RTM? Gaps? Doc? Train? Rollout? Tests?© 2006-2011 Warren S. Reid All Rights Reserved

SOME HUMAN CENTERED DESIGN (HCD) BASIC CONSIDERATIONS

“If it doesn’t work for people, it doesn’t work!”

� Shortcuts & workarounds - clinical wisdom� Visibility of system status� Match systems words to real world� User controls and freedom� Consistency & standards� Error prevention� Recognition rather than recall� Accelerators (hot keys)� Minimalist design� Help to organize and recover from errors� Helper documentation

From Dr. Hadar Ziv and Dr. Judith Olson Lecture, University of California Irvine (UCI); Joint INCOSE-LA/SPIN Speaker Meeting,/Lecture; Nov. 8, 2011

11/22/2011

5

� Change is natural – must be embraced (M&A, newbiz, consol, systems, vendors, opportunities, realities)

� Things done diff within/across the organization

� Buyer gets smarter; learning process; wants/needs/motivs)

� Technology changes (web, mobile, SaaS, DB, social, Cloud)

� The world changes and so do best practices, regs, laws,SOX

� Unwillingness to defer (YAGNI) or chg processes

� BUT Changes impact: $, Sched, Scope, QA, Risks, SH

-BUT NOT linearly

� So you embrace it, But who pays/gives/takes?

� How do you K/manage scope change? CM?

� Initial est. is an ESTIMATE! Controlled not contingency

More about Requirements

9999© 2006-2011 Warren S. Reid All Rights Reserved

9 s

Standish Group –1995:“18% of all sw projects fail due to unclear objectives & incomplete reqmts & specs”

Would you think it’s more, or less, today?


Customer Requirements … Still Critical!

3 m

11/22/2011

6

DEFINE SUCCESS?DEFINE SUCCESS?DEFINE SUCCESS?DEFINE SUCCESS?� What is it?

� $, Schedule, Requirements, QA?� Some MTBF? # of “Critical“ defects?� First to Market?� Lowest Total Cost of Ownership?� Get next round of financing?� Meet Business Case, ROI, growth w less staffing?� Better customer service? Shorter deliv cycle? > productivity?

�Meeting SMART SLAs?

� Is it being done? Correctly?�Vague, not measurable, afraid to commit (limit)�Not used as benchmark for requirements “chill”

�Acceptance Criteria�Post Go-Live maint, upgrade, enhance, SMART�Did you Really check References?

© 2006-2011 by Warren S. Reid All Rights Reserved 11 w5 m

*SMART: Specific, Measurable, Attainable, Relevant, Trackable

ESTIMATINGFACTOR IMPACT?(FROM DR. BARRY BOEHM’S COCOMO MODEL)(FROM DR. BARRY BOEHM’S COCOMO MODEL)(FROM DR. BARRY BOEHM’S COCOMO MODEL)(FROM DR. BARRY BOEHM’S COCOMO MODEL)

Scale FactorsPrecedentedness

Development Flexibility

Architecture/Risk resolution

Team Cohesion

Process Maturity

Cost DriversPersonnel

Analyst Capability (ACAP)

Analyst Experience (AEXP)

Programmer Capability

Platform Experience (PEXP)

Language and Tool Experience (LTEX)

Personnel Continuity (PCON)

Project

Use of Software Tools (TOOL)

Multisite Development (SITE)

Development Schedule (SCED)

Platform

Time Constraints (TIME)

Main Storage Constraints (STOR)

Platform Volitility (PVOL)

Product

Required reliability (RELY)

Database Size (DATA)

Product Complexity (CPLX)

Required Reusibility (RUSE)

Documentation match to lifecycle needs (DOCU)


As much as 2-3-4-5 times!!

11/22/2011

7

“What We We We We THOUGHTTHOUGHTTHOUGHTTHOUGHT vsvsvsvs What Contract Contract Contract Contract SAYSSAYSSAYSSAYS””””©2006©2006©2006©2006----2011 by Warren S. Reid All Rights Reserved2011 by Warren S. Reid All Rights Reserved2011 by Warren S. Reid All Rights Reserved2011 by Warren S. Reid All Rights Reserved

# Category What was Understood: What World-Class Contract Says:

1. Suitable System description Bounds scope; Uber-theme

2. What works? Functional requirements per ALLdemos, designs, tests, doc specs

3. How well? Performance reqmts Scal- Port- Avail- Maint- Use- SMART

4. Who Does what? Roles & responsibilities SI? RM? Dispute escal/res? HR rqts/aug?

5. How We Do It? Conduct of project WBS, estim, staff, delivs, PM, SDLC, bugs

6. Just for ME Custom program services Config, SDLC, PM, est, test, I’face, maint

7. U prove 1st Sys Integ/I’face/Test/Convert Results NOT Resources; Def Success

8. Min Reqmts Accept Testing Process Who? How? When? Where? “Hurdle” Criteria? Rights? Deferred rqmts?

9. More Min Rqts(Threshold)

Key Deliverables: QA; Train; Doc; It Works!

Exist? Imply v spec? Depth? UI (DD, DI,

DN, DNA) Maintainable? Signoff Process

10. & Tomorrow? Maint, upgrades, fixes T/Over stds? MTBF-TTFix? SLA? Map?

11. $$ = Mouth? Proposals, wkprod, promises “Parole evidence” rule; 4 corners only

12. Go-Live ALL Systems Go! What’s acceptable? Checklist? Vote?

13. Other Cost/Pymt; ADR; TERMinate; Renew;

Title; X-hire; Site prep; Install hw, sw,nw, BPR; confid; $ protect; Liab limit

There’s more to THE Sys than A sys (SOS):

$$ limits; penalties; ownership; holdbacks;

remedies; liability limits; privacy; hot sites13 s

12 m

© 2006-2011 Warren S. Reid All Rights Reserved This model will change and be updated over time 14 s

Risks Known BEFORE Project Starts!

� People/Resource Risks� Turnover, culture, x-comm.� Top Mgt Commit; Proj Champ

� Partner; Ref. Checks/Ref’s Refs

� Requirements Risks� Poor Project Charter� Defined, Baselined, Implied� Stability, Complexity� Incomplete, Misunderstood, Gallop� I’faces, Data Conversion

� Technology� Hw/sw/nw, D/B, Internet, mobile� Security; Privacy

� C – Correctness� I – Integrity� A – Available

� Tool avail? mature? train? use?

� Project & Tech Mgmt Risks� Client, Depts, Users, IT, Vend, O/S

consults, attys, custs, analyst, mkt“expectations”

� Unclear Leadership – SIPM

� Process Risks� Project under- or mis-estimated

� SEI-CMMi level; ETC &EVM Stds� Sched, $$, estimates, change control� Not enough time for testing

� Shortcuts to SDLC on the fly

� Product & Other Risks� Perform, testedness & readiness� -abilities (scale, use, test, port, maint)

� Competent T/O proc, supt, maint?� compet; economy; org; regulatory

If you know beforehand… Plan, Contract for, Mitigate, Monitor, Manage Them!

10 m

11/22/2011

8


SUMMARY: So What Can Be Misunderstood?!SUMMARY: So What Can Be Misunderstood?!SUMMARY: So What Can Be Misunderstood?!SUMMARY: So What Can Be Misunderstood?!… Everything!Everything!Everything!Everything!

� People are differentPeople are differentPeople are differentPeople are different

� People have different:People have different:People have different:People have different:� Objectives, perspective Objectives, perspective Objectives, perspective Objectives, perspective

� Cultural bias, exp/Cultural bias, exp/Cultural bias, exp/Cultural bias, exp/educeduceduceduc/expertise/expertise/expertise/expertise

� Styles of understanding/communicatingStyles of understanding/communicatingStyles of understanding/communicatingStyles of understanding/communicating

� Abilities, talents, logic, creativityAbilities, talents, logic, creativityAbilities, talents, logic, creativityAbilities, talents, logic, creativity

� Understanding of prioritiesUnderstanding of prioritiesUnderstanding of prioritiesUnderstanding of priorities

� Fears: spoken and unspokenFears: spoken and unspokenFears: spoken and unspokenFears: spoken and unspoken

� Understanding of what is subjective v objectiveUnderstanding of what is subjective v objectiveUnderstanding of what is subjective v objectiveUnderstanding of what is subjective v objective

� Implied, understood, unspoken (needs, (needs, (needs, (needs, rqmtsrqmtsrqmtsrqmts, sizzle), sizzle), sizzle), sizzle)

So, what won’t be misunderstood?

4 m

Part III: The Purpose of the IT Contract


TO ALLOCATE RISKS

16 s3 m

11/22/2011

9

CONTRACTS ALLOCATE RISKS

© Copyright 2005 – 2011 by Warren S. Reid All rights reserved. http://www.wsrcg.com/SoftwareFailXpert.php17 w

4 m

Adapted From Dr.

Barry Boehm’s

MBASE model


Why Are Contracts (K) So Important?Why Are Contracts (K) So Important?Why Are Contracts (K) So Important?Why Are Contracts (K) So Important?

� Caveat: “Std K form” favors V/large Ks; used as sub for good mgt/K activity

� Caveat: K language often incomplete & ambig; drafters gone; shelf death

� Clear/explicit delineation of Party rights (Do/NOT Do!), obligs & expects

� Requires ID, negotiation, apprec others’ views/beliefs/objectvs BEFORE deal

� Generally produces much better:� working relationship during sane & emergency/surprise moments� prospect of proj success ($, Sch, F&F, QA, SH, Risk; <costs, staff, inv; >C serv, mkt

share)

� Must be a living document – able/willing to adapt to changes

� Best K team knows: risks alloc, fin resp,, strong sense of VALUE, legal skill� So, Best Team has: CXO CFO biz domain & tech eng/consult lawyer

� Matters of: Fact, Law, Evidence, Risk, Technology

& Why/What Must YOU Know About Them?

4 m

11/22/2011

10

PART IV. PART IV. PART IV. PART IV. THE SDLC & IT CONTRACT THE SDLC & IT CONTRACT THE SDLC & IT CONTRACT THE SDLC & IT CONTRACT CONNECTIONCONNECTIONCONNECTIONCONNECTIONAllocate Risks; Keep On Target; Helps Lead to Project SuccessAllocate Risks; Keep On Target; Helps Lead to Project SuccessAllocate Risks; Keep On Target; Helps Lead to Project SuccessAllocate Risks; Keep On Target; Helps Lead to Project Success

� The IT Contracts Model ties together seminal work of:

� Richard (Dick) Bernacchi, Esq. � Partner Emeritus from Irell & Manella, LLP

� A founder of the Computer Law field, and

� Warren S. Reid, MS, MBA, CMC, CFE, CSQE, CSTE

� IT expert w 40 years experience in IT contracts, litigation & expert witness areas

� Book, monograph, peer reviewed articles author; “IT Success Models” Builder

� Model ties key tasks, decisions, deliverables & quality aspects of SystemsDevelopment Life Cycle with related, key IT contract clauses.

� The IT Contracts Model was created to enable vendors, integrators, PMs, executives& SMEs to better understand where/how they fit into the IT contracting process & toallow them to make informed & measurable contributions to IT Contract Team.

© Copyright 1998 – 2008 By Warren S. Reid and Richard L. Bernacchi, Esq. All rights reserved 19 w

*SDLC: Systems Development Life Cycle

3 m

SDLC

“All good

methodologies are

essentially the same!”

Warren S. Reid

20 w

4 m

11/22/2011

11

The Systems Development Life Cycle: SDLC

� Customize & Convert� Custom Programming Requirements� Conversion & Support Services

� Personnel� Maintenance� Warranties� Ownership & Protection

� Title� License Rights� Proprietary Rights Indemnity� Confidentiality & Security

� Risks & Rights� Risk Of Loss/Damage� Insurance� Price Protection� Renewal Options� Purchase Options� Trade-In Rights

� Termination & ADR� Term & Termination� Limits & Exclusions Of Liability� Taxes� Miscellaneous Protections� Dispute Resolution Mechanisms

� Special Outsourcing Consids

� Basics

� Set Stage� Recitals

� Systems Description

� General Provisions� Parties To The Contract

� General Reps & Warranties

� Definition Of Terms

� Assignment Of Delegation

� Interpretation Of Agreement

� Functional Rqmts/Perform Measures

� Project Management� Project Timetable

� Project Management & Reporting

� Project Costs & Schedule Payment

� Pre-Go Live Items� Site Preparation

� System Configuration & Installation

� Training

� Documentation

� Low Level, System & Integration

� Acceptance Testing

21 w


The Systems Development Life Cycle (SDLC) & Its Relationship to the “Successful” IT Contract

� Basics

� Set Stage� Recitals

� General Provisions� Parties To The Contract� General Reps & Warranties� Definition Of Terms� Assignment Of Delegation� Interpretation Of Agreement

� Ownership & Protection� Title� License Rights� Proprietary Rights Indemnity� Confidentiality & Security

� Risks & Rights� Risk Of Loss/Damage� Insurance� Price Protection� Renewal Options� Purchase Options� Trade-In Rights

� Termination & ADR� Term & Termination� Limits/Exclusions Of Liability; Taxes� Miscellaneous Protections� Dispute Resolution Mechanisms

� Systems Description

� Functional Rqts & Perform Measure

� Project Management� Project Timetable� Project Management & Reporting� Project Costs & Schedule Payment

� Pre-Go Live Items� Site Preparation� System Configuration & Installation� Training� Documentation� Low Level, System & Integration� Acceptance Testing

� Customize & Convert� Custom Programming Requirements� Conversion & Support Services

� Personnel

� Maintenance

� Warranties

� Special Outsourcing Considerations

22 w


11/22/2011

12

IT Contracts Model for Successful Contracts (Top Level)


© 2006-2011 by Warren S. Reid All Rights Reserved 24 w

o

o

o

o

o

o

o

o

o

o

o

o

o

.

.

.

IT Contracts Model for Successful Contracts (Lawyer side)

1 m

11/22/2011

13

IT Contracts Model for Successful Contracts (IT side)

© 2006-2011 by Warren S. Reid All Rights Reserved 25 w

O

O

O

O

O

O

O

O

O

O

O

.

.

.

.

.

1 m

11/22/2011

26

3. FUNCT RQMTS & PERFORMANCE MEASURES (B)3.1 Desc of biz funct to be performed (or x-ref to RFP)3.2 Rqmts Elicitation (RE)/Scope Change (s ) Process - ID specif Users/Classes; assure/sched availability - Prep timeline; ID RE technq/tools/docs used/produced - Escalation/dispute resolution process - Scope s process: proposed, est all impacts, decis crit, doc, update ests, CPM, staff, monitor - Embrace change : Iterative, Incremental, interactive3.3 Incorp of Functional Requirements Docs - Rqts incl: success crit; '-abilities'; F&F current/future; UI; rpts; biz procs & rules; ops parms; doc map; RTM; GAPs/s s; rollout plan; test results; sys.stability; Go- Live checklist; rqts s process/tools; defer/tradeoff ; training plan; converted data; legacy I'face; security passw ords; enabled Ops/ Maint. Groups, etc3.4 Incorp of V’s proposal(s), w ebsite, marketing matl, etc.3.5 Performance Parameters: a. Relationship to functional processing rqmts. b. Types & volumes of data to be stored c. Number of users; Locations d. Special features or capabilities e. Hosting, SaaS, other service act w trial period g. Use by af f iliates h. Transfers to other CPUs or locations i. Right to make copies, incl bkup or archiv copies j. Grow th cap meas'ed in increas tranx process rate k. Capacity for f ield modification or enhancement l. Other V representations3.6 Performance "-ABILITIES" SW QA: ['-abilities'] hw , sw , nw , architecture USERS (Extl): Avail- Depend- Flex- Integ- Oper- Reli- Modif- Use- Scala Safety Secur- Surviv- R&R- Config- Utility; $ Effect [vs benchm'ks] DEVELS (Internal): Adapt- Audit- Deploy- Reuse- Test-Interop- Maint- Perform- Port- Extense- Struct- Manufact- Trace- Reuse- TEST- Struct-3.7 Relationship to acceptance criter ia & testing3.8 Relationship to ongoing maintenance reqmts

33. SPECIAL OUTSOURCING CONCERNS 33.1 Biz Considerations, & RISKS:

33.1a “59% of all O/S Ks fail” (Compass '05; Forrester '07)

33.1b SOX/Regs adherance; No subbing to China

33.1c Think w /cost 70-80% less but only prof it 20-30%.

In fact, most report 1st year savings of 0%

33.1d 'Please You; Don’t Ask?'; 90% of time w /say "OK"

33.1e Time Zone diff ; Infrastructure poor; 22 of f icial langs;

too many polit parties; Turnover by “Group/Floor”

33.1f Security/privacy law s; cyber crime; terrorism

33.1g Must have both orgs' staf f on both sites; Build trust

33.1h Def ine Success (iterative, incremental, interactive)

33.1i. OS in international market w /o int. ops experience

33.1j Not using variety of perspectives in selection process

33.1k Using poorly devel/documented serv/prod spec

33.1l Not doing biz/financial due diligence on OS candid

33.1m Insuff know ledge of OS capacity limits

33.1n Not resolv'g ops issues b4 move to K legal aspects

33.1o.No full com plan in ef fect, incl escal, reg sch meets,

33.2 O/S CONTRACT CONSIDERATIONS:© 2007 Michele Kane & Wendy Gross All rights reserved

33.3 Train both Cust & OS mgmt & ops on O/S K

33.4 Process to initiate/request new service, changes, projs

33.5 Right to use 3rd party OS to in-source, to re-source

33.6 Control of arch, tech, and org change stds

33.7 O/S obligs to keep pace w tech advances & refresh tech

33.8 SLAs (how they w k, credits, contin improv oblig, chges)

33.9 Commitments regarding supplier personnel

33.10 Financial terms

33.11 Ow nership of custom devel & other w ork product

33.12 Term, terminat'n assist services, rights to te rminate

33.13 Min retent'n per for transit'ned (T) & long term crit Ees

33.14 Dif f for single silo outsourc'g than for “big bang” tranx

33.15 Keep staff know l apps, biz, in-scope tec, procs 2 mge OS

33.16 K provisions to secure appropriate supplier talent:

33.17 K provisions to limit use of subs (e.g., to China)

33.3 Change process: biz, staf f , tech, ind stds, law s, regs &

33.18 Limit unnecess charges: data recovery; serv re-perform

33.19 Baseline OS resources for ongoing supt & projects to

33.20 K s/req OS to track (at min): asset type/location, ID,

33.21 Coop Oblig: betw OS/C/3rd parties; staff ; facilities,

33.22 K cost reduct'n commits, process improv; Stds implem

33.23 Service level improv (esp if SLAs met but serv unsatis

33.24 Terminat'n ass ist: doc plan; staf f ; all equip, sw , matl, 33.25 Counsel’s role does not end w hen deal signed!

17. MAINTENANCE (G)17.1 Start date/maint period17.2 V’s termination rights17.3 Required notice for termination17.4 B’s renew rights for guaran period17.5 Relat’shp to performance measures17.6 Types & Desc of maintenance support17.7 Notice of defects or problems17.8 Classif ic of types & criticality of maint probs17.9 Required dispatch or respond time(s)17.10 Escal of maint suppt if delays to correct probs17.11 Maximum repair time17.12 Uptime guarantees17.13 Replacement of “lemons”17.14 Avail of spare parts or components17.15 Limits on Vs refurbishment rights17.16 B’s rights to perform maintenance17.17 B’s rights to maintenance manuals17.18 B’s rights to maintenance training17.19 Limits on B’s rights to perform maintenance17.20 Remedies for delays in providing adeq maint17.21 V’s obligation to coordinate third party maint17.22 B’s right to get maint o/s principal maint period17.23 Limits on increases in maintenance fees17.24 B/U equip avail during extended maint periods17.25 B’s rights to future enhancements

17.26 B’s rights to assign maintenance rights

8. CUSTOM PROGRAMMING SERVICES (E)8.1 Incorp of functional processing rqmts docs8.2 V’s obligation to develop custom apps8.3 Relat’shp to stipulated performance measures8.4 Relationship to proj timetable8.5 Development by V of detailed design specs8.6 Review /approval by B of detailed design specs8.7 ID B's resp to create, dev, link, test new BPR8.8 Prog stds spec; x-ref to sys, prog, user docs std 8.9 Specif ication of change order procedures8.10 X-ref to system & acceptance test provisions8.11 V’s responsib for acceptable unit/sys test procs8.12 V’s obligat'n to deliv source code & related docs8.13 Relat’shp to proj timetable8.14 Remedies for delays in completion8.15 Relat’shp to termination rights

9. CONVERSION & OTHER SUPPT SERVICES (E)9.1 Convert Data: plan; clean; map; load; audit; S/O

9.2 Data & Apps sched, resources, conversion9.3 Development of test data9.4 Assist to B w ith site acquisition &/or prep9.5 Assist to B in acquiring other products/services9.6 Assist to B in locating & screening employees9.7 Coordination of telecom procurement9.8 Responsibility for trouble-shooting9.9 Assist to B w ith development of backup plans9.10 Assist to B w ith backup arrangements9.11 Assist to B in developing security plan9.12 Assist to B in develop'g disaster recovery plan

9.13 Pre-installation machine time

16. WARRANTIES (G)16.1 V’s f inancial condition16.2 hw w arranties16.3 sw w arranties16.4 Service w arranties16.5 Pass through of third party w arranties16.6 Relat’shp to performance measures16.7 Start date(s)/length of w arranty period(s)16.8 Relat’shp to maintenance provisions16.9 Scope of w arranty obligations16.10 Remedies for failure to meet w arr obligs16.11 Assignability of w arranties16.12 Relat’shp to disclaimers/Limits of V’s liabs

22. RISK OF LOSS/DAMAGE (J)22.1 During shipment22.2 After shipment22.3 Cross-reference to insurance provisions

23. INSURANCE (J)23.1 V’s obligations to provide insurance23.2 B’s obligations to provide insurance23.3 Types & scope of coverage23.4 Acceptable underw riters23.5 responsibility for payment of premiums23.6 responsibility for processing claims23.7 Relat’shp to Limits of liability

24. PRICE PROTECTION (J)24.1 Limits on future price or fee increases24.2 Disc'ts on future procurem'ts & period of Avail24.3 Most favored cust treatment & period of Avail24.4 Guaranteed prices & period of Avail24.5 Relat’shp to trade-in provisions

25. RENEWAL OPTIONS (J)25.1 Renew al of hw maintenance support 25.2 Renew al of sw maint &/or enhancem't support25.3 Lease renew al(s)25.4 Calc of charges or fees w /i renew al period(s)

26. PURCHASE OPTIONS (J)26.1 Guaranteed prices & period of Avail26.2 Credits for rent or lease payments26.3 Method of exercising option26.4 Assignability of options26.5 Relat’shp to accept (AT), w arranty, maint provis

27. TRADE-IN RIGHTS (J)27.1 Right to upgrade to new avail hw /sw ; avail per'd27.2 Right to upgrade to curr avail hw /sw & avail per27.3 Calculation of trade-in credits27.4 Relat’shp to compatibility representations27.5 Relat’shp to guaranteed or future discounts27.6 Relat’shp to perform meas, AT, w arr, maint provis

10. TRAINING (D)10.1 V’s obligation to provide training10.2 Qualif ications of trainers10.3 Location of training10.4 Stds for acceptable performance10.5 Relat’shp to timetable10.6 Relat’shp to proj costs10.7 Availability of student matls10.8 Avail of instructor’s matls & training10.9 Number of trainees10.10 B’s rights to reproduce & use training matls10.11 Continuing Avail of std V classes10.12 Continuing Avail of on-site training by V10.13 Remedies for delays in provid suitable train

11. DOCUMENTATION (D)11.1 Desc of types of docs11.2 Doc stds for user, system & program docs11.3 Relationship to proj timetable11.4 Relationship to performance measures11.5 B’s rights to reproduce docs11.6 B’s rights to future docs or enhancements11.7 B’s rights to source code & related docs11.8 Remedies for delays or inadequate docs

12. PROJECT COSTS & PAYMENT SCHED. (C)12.1 Hw prices, if purchased (incl “bundled” sw )12.2 Sw prices, if purchased (& if 2b stated sep12.3 Rental or lease pymts & method of calc12.4 License fees for softw are and applications12.5 Training fees; Ref resher train'g devel & fees12.6 Maintenance fees for equipment and/or sw12.7 Fees/$ for addl services (hosting; SaaS; BU)12.8 Partial paym ents tied to m aj m ilestones12.9 Start date for rental or lease payments12.10 Commencement date for license fees12.11 Commencement date for maintenance fees

12.12 Credits or of fsets for delays or failures12.13 Refunds if Contract is terminated12.14 Most favored nation clause12.15 No mods/addtl charges w /o w ritten approval12.16 Invoicing procedures12.17 Supporting docs12.18 Required notice for price increases12.19 Personnel/services rates to price chg orders12.20 Limits on price increases12.21 Right to benefit of price reductions12.22 Relationship to Contract remedies12.23 Payments under protest

12.24 Of fset rights12.25 Relat’shp to dispute resolution mechanisms

28. TERM & TERMINATION (K)28.1 Initial term of K(K) 28.2 Renew at Term(s)28.3 Def of breach by V 28.4 Def of breach by B28.4 Definition of breach by B28.5 Notice of breaches & cure provisions28.6 Termination by V for breach by B28.7 Termination by B for breach by V28.8 Termination by V or B for insolvency/BK28.9 Obligs of V & B to assure smooth transition28.10 Survival of certain provisions

29. LIMITS & EXCLUSIONS OF LIABILITY (K)29.1 Express/ implied w arr disclaim not inc in K29.2 Exclusion of consequential damages29.3 Limits on V’s liabilities 29.4 Limits on B’s liabs29.5 Xcept'ns to disclaimers, exclusions/Limits

30. TAXES (K)30.1 Responsib for sales/use & prop taxes, etc.30.2 Right to contest & indemnity30.3 responsibility for f iling returns30.4 responsibility for interest & penalties30.5 Investment tax credit representations30.6 Remedies for breach invest tax credit reps

31. MISCELLANEOUS PROVISIONS (K)31.1 Avail of spare parts31.2 Specs for & Avail of supplies31.3 Covenant not to solicit employees31.4 Performance bonds31.5 Applicability of UCC31.6 Rules re publicity 31.7 Quiet enjoyment

32. DISPUTE RESOLUTION MECHANISMS (K)32.1 Mediation by designated party reps32.2 Arbitration a. Types of disputes & method of initiating b. Location; c. # of arbitrators ("arbs") d. Qualif icat'ns of arb(s) e. Arb selection f . Compensation of arbitrators g. Arbitration rules & procedures h. Provisional remedies i. Discovery rules j. Rules of Evidence k. Funding of arbitration costs 1. Reimbursement of costs & fees m. Governing law n. Briefs o. Findings & conclusions q. Rendering & enforcement of aw ard32.3 Use of sys pending resolution of disputes

The “HE SAID… SHE SAID…” Chart – for Failed Software Projects

K Area X-Ref

SDLC Step Category: “-abilities”

What Users, Acquirers, In-ho use IT Dept Teams Say:

Wh at Vendors, Software Developers, Sys Integra tors Say:

2, 3 Biz Case/Reqts

Feasibility Feasib ility

System doesn’t work; Not

wh at we wanted

You chang ed your minds; You don’t

know what you want/need; Not viable

3, 8 Reqts E licit/ Scope Mgmt

Capability You delivered limited

functionality/performance You continually changed project scope

3, 14,

15

BPR/

Accept Test Compatibility

The system failed in the field

& in production

You didn’t perform required ‘business

process reengineer’ to make it work

1, 2, 3 Recitals/

Feasibility Credibility

Your software, services &

expertise were oversold

You con ducted ref checks & Due

Diligence; What did n’t you do/know?

10, 11 Training/

Implement Usability

No one can use system! Poor

trainin g

“Required staff” never came to

primary/refresher trainin g

1, 14,15 Selection Stability System fundamentally flawed We only need 2 months to fix it all

4, 5, 12,

13

Project/Risk

Mgmt Culpabili ty

You never told us that! You

g ave poor advice!

You didn’t follow our recs; You

changed/delayed making d ecision s

8, 9. 14,

15 Testing Reliability Th e system is full of bugs!

Bad data conversion/interface cause

probs. Always have bugs!

4, 5, 12 Project

Mgmt Responsibility

You failed as Systems

Integration Proj. Mgr. - SIPM

No! YOU failed as the SIPM. That role

was not my job!

13 Staffing Availability Bait & Switch! Staff unqual, hi

T/O, poor PMs, Steer Com

YOU ba it & switch! Staff unqualif’d, hi

T/O, poor PMs, Steer Com

11 Plannin g/

SDLC Suitability

You stopped good PM & Sys Dev Life Cycle (SDLC) method

You were unwilling to comply w ag reed to/promised/necess methods

11. GENERAL PROVISIONS (L)

I. Parties to 'Contract' (L)i.1 Correct legal names i.2 Principal places of bizi.3 Legal Relat’shp to other entities involved in tranxi.4 State or jurisdiction of incorporat'n/formation.i.5 Authority of signatories

II. General Reps & Warranties (L)ii.1 Legal status of entity ii.2 Auth to enter into Kii.3 No conflicting agreementsii.4 No legal impediments ii.5 No brokers/agents

III. Definition of Terms (L)

IV. Assignment or Delegation (L)iv.1 Restrictions on assignment &/or delegationiv.2 Exception for af filiated entitiesiv.3 Exception for business reorganizationsiv.4 Except'n for sale or transfer of substant all biziv.5 Consents not unreasonably w ithheld

V. Interpretation of Agreement (L)v.1 Entire agreement v.2 Governing lawv.3 Venue of litigation or arbitrationv.4 Consent to in personam jurisdiction of courtsv.5 Situat'n making liquidated damages reasonablev.6 Joint participation in draf ting of Kv.7 Partial invalidity; severabilityv.8 Remedies not exclusivev.9 Number & gender v.10 Waivers

18. TITLE (I)18.1 V’s reps as to owner/rights to transf hw/sw18.2 Transfer of title to hw18.3 Retention of security interest18.4 Execution of security docss18.5 Release of security interest upon payment18.6 Title xfer to sw (or x-ref to licensing provis)18.7 Ow ner/license/mkt rights to V made sw mods18.8 Ow ner/license/mkt rights to B made sw mods18.9 X-ref to license & authorized use provisions18.10 Rights to use ideas/invent'ns devel dur'g proj

19. LICENSE RIGHTS (I)19.1 Exclusive or non-exclusive rights19.2 Term of license19.3 Products covered19.4 Types of use permitted: a. Types of equipment b. Number of CPUs c. Number of users d. Types of apps e. Timesharing or service bureau activities f. Locations g. Use by aff iliates h. Transfers to other CPUs or locations i. Right to make copies, incl bkup/archiv copies19.5 Rights to source code &/or hw mainten docs19.6 Relat’shp to assignment rights19.7 Relat’shp to V’s termination rights

20. PROPRIETARY RIGHTS INDEMNITIES (I)20.1 V’s indem vs infring: patent/ (c)/ trade sec/IP20.2 Notice of claims20.3 V’s obligation to defend20.4 B’s obligation to cooperate20.5 B’s right to participate in defense20.6 V’s oblig to replace/modify infringing products20.7 V’s rights to remove infringing products20.8 Calc of B’s refund for products removed by V

21. CONFIDENTIALITY & SECURITY (I)21.1 Definition of V’s confidential information21.2 Definition of B’s confidential information21.3 Scope of V’s obligs for confidentiality/security21.4 Scope of B’s obligs for confidentiality/security21.5 Remedies for breach21.6 Relat’shp to termination provisions

13. PERSONNEL (F)13.1 V’s staf f quals/B’s approv rights; evals; courses; exper13.2 Application certif ied/certif icates; Updated CMMi rating13.3 Periods of Avail13.4 Prohibitions against interruptions in Availability13.5 Temporary replacements for sickness, etc.13.6 Right to request replacements13.7 Prohibition against removal or reassignment

4. PROJECT TIMETABLE (C)4.1 Def inition of proj tasks4.2 Def inition of deliverables for each task4.3 Estimat'g meth used; assumps; update procs 4.4 B’s responsibilities; V’s responsibilities4.5 Target completion dates by task4.6 Final completion dates by task4.7 B’s right to delay or cancel proj tasks4.8 Major perform milestones & relat’shp to pymt sch4.9 Delay remedies & bonuses for early perform4.10 Relationship to termination rights4.11 Prompt notice of anticipated delays

6. SITE PREPARATION (D)6.1 Preparation & delivery of site prep specs6.2 B’s (or V’s) obligation to prepare site6.3 V’s oblig to clarify specs, inspect & certify6.4 B’s obligation to approve6.5 Remedies for improper site preparation6.6 Remedies for inspection errors6.7 Effect on proj timetable

7. COMPUTER CONFIG DELIV & INSTALL (D) 7.1 Delivery of complete equipm't conf iguration7.2 Delivery of operating sys & other system sw7.3 Access to site7.4 Installation obligations of V7.5 Installation obligations of B7.6 Diagnost tests & relat'n to Accept Test provis7.7 Def of completion of equipment installation7.8 Remedies for delays in delivery or installat'n7.9 Relat’shp to termination rights

0. BASICS (M)0.1 No such thing as a PERFECT contract (K)0.2 The PROCESS is key, NOT just the contract0.3 K is a LIVING doc; w illing to adapt to change0.4 K lang often ambig/incomplete; Drafters gone0.5 Clear/explicit delineat'n V/B rights, obligs, expects 0.6 Req. ID, negot, apprec others' view s, objs B4 deal0.7 Generally produces much better: a. w ork'g relat during emergency/surprise periods b. prospect of project success: i. $, Sch, F&F, QA, SH, Risk ii. < costs, staff, inv; > C serv, mkt share

0.8 Best K Team knows: alloc risk; $ resp; law ; value0.9 Best Team:CXO; CFO; Lawyer; SME/eng xperts

14. LOW LEVEL, SYSTEM & INTEGRAT'N TESTS (D)14.1 Diagnostic tests of hw , infra, netw are14.2 All Kinds of Sys tems: End-User; MIS; Outsourced; Commercial; Military; Operating Systems (latent error stats avail)14.3 All manner of tests for funct & '-abilities' incl: Dynamic tests - ~85% incl: - w hite/black box; sub-routine; unit; integ, system - Interface, data audit, test of /w converted data - new funct; regression; performance; capability; - Indep V&V; Viral, Security; Acceptance; Beta - '-ability' (use-, scal-, port-, maint-, reuse-, recover-, failover, stress, bullet & many more

Static Tests - ~15% incl: - Reviews; Walk-thrus; Inspections14.4 For each test level consider no. of tests and: - Goal, objectives, success criteria - Def of accept results to move to next test level - Test tools: decide, acquire, train; # test environs - Exper test staf f : leads, SMEs, analyst, testers, QA

- Test: sched, train'g, environ, equip; access - Test results review : w ho, w hen, turnaround time - No. of shifts, def of scenarios; end-to-end tests - Std test docs; signoff ; rigor & format of error logs - Rigor of error root cause id, est to f ix, f ix process - Test metrics to rept progress, issues and probs14.5 Desc of error severity levels and time to repair each14.6 Escalation Process; SWAT - SW Adjudication Team14.7 Maintenance service during testing14.8 Relat’shp to performance measures14.9 Remedies for failure to meet test criteria

14.10 Relat’shp to termination rights

15. ACCEPTANCE TESTING (D)

15.1 Live or simulated environ; w new BPR15.2 Desc of test data & responsibility for prep15.3 Desc of test procedures & criteria15.4 Relat’shp to funct rqmts & perform stds15.5 Period of testing15.6 Review of test results15.7 Correction of errors & problems15.8 Definition of acceptance15.9 Remedies for failure to meet accept criteria15.10 Relationship to w arranty & maint provisions

15.11 Relationship to termination rights

ABBREVIATIONS: K = Contract Pty = Party (to a contract) V = Vendor; B = Buyer BU = Backup SDLC = System Development Life Cycle sw = softw are; hw = hardw are; nw = netw are

proc = process; proj = project LT = Long Term PM = Project Manager recs = recommendations relat'shp = relationship proc = process(es)

s = delta = change Desc = description RFP = Request For Proposal ID= identify rqmt = requirement; RE = Rqmts Elicitation (proc)

5. PROJECT MANAGEMENT (PM) & REPORTING (C)5.1 Steering Comm role, structure, makeup, processes5.2 SWAT Team role, structure, makeup, processes5.3 Named Sys Integrator's role, resp, auth, accountability 5.4 Desc of V’s project team; Desc of B’s proj team5.5 Designation of V’s PM role/resp; Designation of B’s PM5.6 Select "best" proj SDLC (Discilpined <--> Agile) Agree on doc, embedded persons, tests, deviation5.7 PM Tools/Measures: EVM; CPM; ETC; $/sch variances5.8 V’s resp for PM; proj rpt'g: format; f req; distrib; detail5.9 V’s/B's resp: BPR/new proc dev, link, train, test, approv 5.10 V’s resp to ID, manage, mitigate RISKS, probs, delays5.11 B’s responsibity to address V's probs/recs in proj rpts5.12 B’s resp to assist V & for project problems and delay5.14 Relationship to project timetable5.15 Remedies for loss/reassignment of V’s Proj Mgr (PM)

1. RECITALS (A)1.1 V’s areas of expertise, experience, etc.1.2 B’s business & data processing rqmts1.3 V’s ability or experience to handle B’s rqmts1.4 Spec/execut'n of a quality RFP process; req V services1.5 B’s issuance of Request For Proposals (RFP)1.6 V’s Response to B’s RFP; feas ibil, honest, suitable1.7 Addtl docs or communications betw een B & V1.8 Proposal eval factors & assumpts affecting B’s decis'ns1.9 Biz Case Discussion (?)

2. DESCRIPTION OF SYSTEM (A)

2.1 Desc/specs for equip, compo'nts, media, cable, etc.2.2 Conf iguration w arranty2.3 Desc & specs for sys sw ; current; complete; usable2.4 Desc & specs for packaged apps sw2.5 Desc & specs for custom mods to packaged apps2.6 Desc & specs for custom sw apps to be devel by V2.7 List & Desc of all manuals, system & user docs, etc.2.8 Incorp of RFP, proposals, brochures, mktg matls, etc.2.9 Sys Def (5 Rs: Right person; truck; tools; address; time)2.10 Def initions of other terms & Relationship to system2.11 Testing: proc; types; rqmt; tools; staf f ; doc; S/O; crit 2.12 X-refs to other K provisions & exhibits (inc Biz Case)


11/22/2011

14

This Model contains 32

contract clause areas.

NOTE: Less than half of these can

be drafted by an IT contracts

attorney alone. The others require

thoughtful input from CXO(s), CFO,

biz domain & MIS leads/

consultants

Part V: Specific IT Contract Clauses:Part V: Specific IT Contract Clauses:Part V: Specific IT Contract Clauses:Part V: Specific IT Contract Clauses:

Functional Functional Functional Functional RqmtsRqmtsRqmtsRqmts & Project Mgmt & Project Mgmt & Project Mgmt & Project Mgmt (areas: 3, 4, 5, 12)(areas: 3, 4, 5, 12)(areas: 3, 4, 5, 12)(areas: 3, 4, 5, 12)

Click for full

size view of all

contract areas:http://www.wsrcg.co

m/PDFs/model_itco

ntracting.pdf

© 2006-2011 by Warren S. Reid All Rights Reserved27 w

1 m

This Model contains 32 contract clause

areas

NOTE: Less than half can be drafted by an IT contracts attorney alone. The others require thoughtful input from CXO(s), CFO, biz domain & MIS leads/ consultants

PRE GO-LIVE ITEMS (areas: 6,7,10,11,14,15)

Click for full size view of all contract areas:http://www.wsrcg.com/PDFs/model_itcontracting.pdf


1 m

11/22/2011

15

(A) (A) (A) (A) Set the StageSet the StageSet the StageSet the Stage

2. DESC OF SYSTEM (A)

2.1 Component desc/specs hw, sw, nw, media, wire, etc.

2.2 Configuration warranty

2.3 Desc & specs for sys sw; current; complete; usable

2.4 Description & specs for packaged apps sw

2.5 Desc & specs for custom mods to packaged apps

2.6 Desc & specs for custom sw apps to be devel by V

2.7 List & Desc of all manuals, system & user docs, etc.

2.8 Incorp RFP, proposals, brochures, mktg matls, etc.

2.9 Sys Def (5 Rs: Right person; truck; tools; addr; time

2.10 Definitions of other terms & Relat’shp to system

2.11 Testing: proc; types; rqmt; tools; staff; doc; S/O; crit

2.12 X-ref to other K provisions & exhibits (inc Biz Case)

1. RECITALS (A)

1.1 V’s areas of expertise, experience, etc.

1.2 B’s business & data processing requirements

1.3 V’s ability or experience to handle B’s rqmts

1.4 Specification/execution of a quality RFP process; required V services

1.5 B’s issuance of Request For Proposals (RFP)

1.6 V’s proposal response to B’s RFP; feasibility, honest, suitability

1.7 Additional docs or communications between B & V

1.8 Proposal evaluation factors & assumptions affecting B’s decisions


29 s

6 m

(B) (B) (B) (B) What IS the Bargain?What IS the Bargain?What IS the Bargain?What IS the Bargain?c. Number of users; Locations

d. Special features or capabilities

e. Hosting, SaaS, other service act w trial period

g. Use by affiliates

h. Transfers to other CPUs or locations

i. Right to make copies, incl bkup/archive copies

j. Growth cap meas'ed in incr tranx process rate

k. Capacity for field modification or enhancement

l. Other V representations

3.6 Performance "-ABILITIES"

SW QA: ['-abilities'] hw, sw, nw, architecture

USERS (Extl): Avail- Depend- Flex- Integ-

Oper- Reli- Modif- Use- Scala Safety Secur-

Surviv- R&R- Config- Util; $ Effect [vs benchmk]

DEVS (Internal): Adapt- Audit- Deploy- Reuse- Test-

Interop- Maint- Perform- Port- Extense- Struct-

Manufact- Trace- Reuse- TEST- Struct-

3.7 Relationship to acceptance criteria & testing

3.8 Relationship to ongoing maintenance reqmts

3. FUNCT RQMTS & PERFORMANCE MEASURES

3.1 Desc of biz funct to be performed (or x-ref to RFP)

3.2 Rqmts Elicitation (RE)/Scope Change Process

- ID specif Users/Classes; assure/sched availability

- Prep timeline; ID RE technq/tools/docs used/produced

- Escalation/dispute resolution process

- Scope change process: proposed, est all impacts,

decis crit, doc, update ests, CPM, staff, monitor

- Embrace change: Iterative, Incremental, interactive

3.3 Incorporation of Functional Requirements Docs

- Rqts incl: success crit; '-abilities'; F&F current/future;

UI; rpts; biz procs & rules; ops parms; doc map; RTM;

GAPs/changes; rollout plan; test results; sys.stabil;Go-

Live checklist; rqts change process/tools; defer/tradeoff;

training plan; converted data; legacy I'face; security

passwords; enabled Ops/ Maint. Groups, etc

3.4 Incorp of V’s proposal(s), website, market’g matl, etc.

3.5 Performance Parameters:

a. Relationship to functional processing rqmts.

b. Types & volumes of data to be stored


30 w

6 m

11/22/2011

16

(C) (C) (C) (C) Project ManagementProject ManagementProject ManagementProject Management4. PROJECT TIMETABLE (C)

4.1 Definition of project tasks

4.2 Definition of deliverables for each task

4.3 Estimating meth used; assumps; update procs

4.4 B’s responsibilities; V’s responsibilities

4.5 Target completion dates by task

4.6 Final completion dates by task

4.7 B’s right to delay or cancel proj tasks

4.8 Major perform milestones & relat to pymt sched

4.9 Delay remedies & bonuses for early perform


4.11 Prompt notice of anticipated delays

5. PROJECT MGMT (PM) & REPORTING (C)

5.1 Steering Committee role, structure, makeup, process

5.2 SWAT Team role, structure, makeup, processes

5.3 Named Sys Integrator's role, resp, auth, accountability

5.4 Desc of V’s project team; Descrip of B’s project team

5.5 Designation of V’s PM; Designation of B’s PM

5.6 Determ SDLC METHOD to be used; rules to deviate

5.7 PM Tools/Measures: EVM; CPM; ETC; $/sch variances

5.8 V’s resp for PM; project rpt'g: format; freq; distrib; detail

5.9 V’s/B's resp: BPR/new proc dev, link, train, test, approv

5.10 V’s resp to ID, manage, mitigate RISKS, probs, delays

5.11 B’s responsibility to address V's probs/recs in proj rpts

5.12 B’s responsibility to assist V

5.13 B’s responsibility for project problems or delays

5.14 Relationship to project timetable

5.15 Remedies for loss/reassignment of V’s Proj Mgr (PM)


31 w

6 m

(C) (C) (C) (C) Project ManagementProject ManagementProject ManagementProject Management12.19 Personnel/services rates to price chg orders

12.20 Limits on price increases

12.21 Right to benefit of price reductions

12.22 Relat’shp to K remedies

12.23 Payments under protest

12.24 Offset rights

12.25 Relat’shp to dispute resolution mechanisms

12. PROJECT COSTS & PAYMENT SCHED (C)

12.1 Hw prices, if purchased (incl “bundled” sw)

12.2 Sw prices, if purchased (& if 2b stated sep

12.3 Rental or lease pymts & method of calc

12.4 License fees for sw

12.5 Training fees

12.6 Maintenance fees for equipment &/or sw

12.7 Fees or charges for other services

12.8 Partial payments tied to major milestones

12.9 Start date for rental or lease payments

12.10 Commencement date for license fees

12.11 Commencement date for maintenance fees

12.12 Credits or offsets for delays or failures

12.13 Refunds if K is terminated

12.14 Most favored nation clause

12.15 No mods/addtl charges w/o written approval

12.16 Invoicing procedures

12.17 Supporting docs

12.18 Required notice for price increases


32 w

6 m

11/22/2011

17

(D) (D) (D) (D) PrePrePrePre---- GoGoGoGo----Live TasksLive TasksLive TasksLive Tasks10. TRAINING (D)

10.1 V’s obligation to provide training

10.2 Qualifications of trainers

10.3 Location of training

10.4 Stds for acceptable performance

10.5 Relationship to timetable

10.6 Relationship to proj costs

10.7 Avail of student matls

10.8 Avail of instructor’s matls & training

10.9 Number of trainees

10.10 B’s rights to reproduce & use training matls

10.11 Continuing Avail of std V classes

10.12 Continuing Avail of on-site training by V

10.13 Remedies for delays in provid suitable train

11. DOCUMENTATION (D)

11.1 Desc of doc types; Docs stds: user, test, system docs

11.3 Relationship to proj timetable & performance measures

11.5 B’s rights to reproduce & to future docs/enhancements

11.7 B’s rights to source code & related docs

11.8 Remedies for delays or inadequate docs

6. SITE PREPARATION (D)

6.0 ID general contractor; roles/resp; liens; overall schd

6.1 Preparation & delivery of site prep specs

6.2 B’s (or V’s) obligation to prepare site

6.3 V’s obligation to clarify specs

6.4 V’s obligation to inspect & certify

6.5 Remedies for improper site preparation

6.6 Remedies for inspection errors

6.7 Effect on project timetable

7. COMPUTER CONFIG DELIV & INSTALL (D)

7.1 Delivery of complete equipment configuration

7.2 Delivery of operating sys & other system sw

7.3 Access to site

7.4 Installation obligations of V

7.5 Installation obligations of B

7.6 Diagnostic tests/relation to Accept Test provision

7.7 Def of completion of equipment installation

7.8 Remedies for delays in delivery or installation

7.9 Relationship to termination rights © 2006-2011 by Warren S. Reid All Rights Reserved

33 s6 m

(D) (D) (D) (D) PrePrePrePre---- GoGoGoGo----Live TasksLive TasksLive TasksLive Tasks14.4 For each test level consider no. of tests and:

- Goal, objectives, success criteria

- Def of accept results to move to next test level

- Test tools: decide, acquire, train; # test environs

- Experi test staff: leads,SMEs, analyst, testers, QA

- Test: sched, training, environ, equip; access

- Test results review: who, when, turnaround time

- No. of shifts, def of scenarios; end-to-end tests

- Std test docs; signoff; rigor & format of error logs

- Rigor of error root cause id, est to fix, fix process

- Test metrics to rept progress, issues and probs

14.5 Desc of error severity levels/time to repair each

14.6 Escalat Process; SWAT - SW Adjudication Team

14.7 Maintenance service during testing

14.8 Relationship to performance measures

14.9 Remedies for failure to meet test criteria


14. LOW LEVEL, SYS & INTEGRAT TESTS (D)

14.1 Diagnostic tests of hw, infra, netware

14.2 All Kinds of Systems:

End-User; MIS; Outsourced; Commercial;

Military; Operat’g Systems (latent error stats avail)

14.3 All manner of tests for funct & '-abilities' incl:

Dynamic tests: ~85% including:

- white/black box; sub-routine; unit; integ, system

- Interface, data audit, test of/w converted data

- new funct; regression; performance; capability;

- Independ V&V; security; acceptance; beta

- '-ability' (use', scal-, port-, maint-, reuse-,

recover-, bullet, and many more

Static Tests: ~15% including:

- reviews; walk-throughs; inspections


34 w

6 m

11/22/2011

18

(D) (D) (D) (D) PrePrePrePre---- GoGoGoGo----Live TasksLive TasksLive TasksLive Tasks

15. ACCEPTANCE TESTING (D)15.1 Live or simulated environ; w new BPR

15.2 Desc of test data & prep responsibility

15.3 Desc of test procedures & criteria

15.4 Relat’ship to funct rqts & perform stds

15.5 Period of testing

15.6 Review of test results

15.7 Correction of errors & problems

15.8 Definition of acceptance

15.9 Remedies for failure to meet accept criteria

15.10 Relat’ship to warranty/maint provisions



35 w

6 m

(E) (E) (E) (E) Customize and ConvertCustomize and ConvertCustomize and ConvertCustomize and Convert

9. CONVERSION & OTHER SUPPT SERVICES (E)

9.1 Data conversion

9.2 Application program conversion

9.3 Development of test data

9.4 Assist B with site acquisition &/or prep

9.5 Assist B in acquiring other products/services

9.6 Assist to B in locating & screening employees

9.7 Coordination of telecom procurement

9.8 responsibility for trouble-shooting

9.9 Assist to B with development of backup plans

9.10 Assist to B with backup arrangements

9.11 Assist to B in developing security plan

9.12 Assist B in develop'g disaster recovery plan

9.13 Pre-installation machine time

8. CUSTOM PROGRAMMING SERVICES (E)

8.1 Incorp of funct processing rqmts docs

8.2 V’s obligation to develop custom apps

8.3 Relat’shp to stipulated perform measures

8.4 Relat’shp to proj timetable

8.5 Development by V of detailed design specs

8.6 Review/approv by B of detail design specs

8.7 Specification of programming stds

8.8 X-ref to system, program, & user docs stds

8.9 Specification of change order procedures

8.10 X-ref to system/acceptance test provisions

8.11 V’s resp for acceptable unit/sys test procs

8.12 V’s oblig to deliver source code/related docs

8.13 Relationship to project timetable

8.14 Remedies for delays in completion



36 w

6 m

11/22/2011

19

(F) (F) (F) (F) PersonnelPersonnelPersonnelPersonnel

13.1 V’s staff qualifications/B’s approval/denialrights; Staffs’ evals; courses taken;experience & expertise

13.2 Application certified/certificates; Updated CMMi rating

13.3 Periods of Availability

13.4 Prohibitions against interruptions in Availability

13.5 Temporary replacements for sickness, etc.

13.6 Right to request replacements

13.7 Prohibition against removal or reassignment

13.8 Ability to pass on V's staff salary raises to B


37 s

6 m

(G) (G) (G) (G) Post GoPost GoPost GoPost Go----Live ServicesLive ServicesLive ServicesLive Services

16. WARRANTIES (G)

16.1 V’s financial condition

16.2 Hardware warranties

16.3 Software warranties

16.4 Service warranties

16.5 Pass through of third party warranties


16.7 Start date(s)/length of warranty period(s)

16.8 Relat’shp to maintenance provisions

16.9 Scope of warranty obligations

16.10 Remedies for failure to meet warranty obligs

16.11 Assignability of warranties

16.12 Relat’shp to disclaimers & Limits of V’s liabs


38 s

6 m

11/22/2011

20

(G) (G) (G) (G) Post GoPost GoPost GoPost Go----Live ServicesLive ServicesLive ServicesLive Services

17.14 Avail of spare parts or components

17.15 Limits on Vs refurbishment rights

17.16 B’s rights to perform maintenance

17.17 B’s rights to maintenance manuals

17.18 B’s rights to maintenance training

17.19 Limits on B’s rights to perform maintenance

17.20 Remedies for delays in providing adeq maint

17.21 V’s obligation to coordinate third party maint

17.22 B’s right to get maint o/s principal maint per’d

17.23 Limits on increases in maintenance fees

17.24 B/U equip avail during extended maint periods

17.25 B’s rights to future enhancements

17.26 B’s rights to assign maintenance rights

17. MAINTENANCE (G)

17.1 Start date(s) & length of maint period(s)

17.2 V’s termination rights

17.3 Required notice for termination

17.4 B’s renewal rights for guaranteed period


17.6 Types & Desc of maintenance support

17.7 Notice of defects or problems

17.8 Classific of types & criticality of maint probs

17.9 Required dispatch or respond time(s)

17.10 Escal of maint suppt if delays to correct probs

17.11 Maximum repair time

17.12 Uptime guarantees

17.13 Replacement of “lemons”


39 w

6 m

(H)(H)(H)(H) SPECIAL OUTSOURCING CONSIDERATIONSSPECIAL OUTSOURCING CONSIDERATIONSSPECIAL OUTSOURCING CONSIDERATIONSSPECIAL OUTSOURCING CONSIDERATIONS

33.1 BIZ CONSIDERATIONS & RISKS 33.1 BIZ CONSIDERATIONS & RISKS 33.1 BIZ CONSIDERATIONS & RISKS 33.1 BIZ CONSIDERATIONS & RISKS (H):(H):(H):(H):

33. 1a “59% of all O/S Ks fail” (Compass '05; Forrester '07)33. 1a “59% of all O/S Ks fail” (Compass '05; Forrester '07)33. 1a “59% of all O/S Ks fail” (Compass '05; Forrester '07)33. 1a “59% of all O/S Ks fail” (Compass '05; Forrester '07)

33. 1b SOX/33. 1b SOX/33. 1b SOX/33. 1b SOX/RegsRegsRegsRegs adherence; No subbing to Chinaadherence; No subbing to Chinaadherence; No subbing to Chinaadherence; No subbing to China

33. 1c Think w/cost 7033. 1c Think w/cost 7033. 1c Think w/cost 7033. 1c Think w/cost 70----80% less but only profit 2080% less but only profit 2080% less but only profit 2080% less but only profit 20----30%.30%.30%.30%.

In fact, most report 1st year savings of 0%In fact, most report 1st year savings of 0%In fact, most report 1st year savings of 0%In fact, most report 1st year savings of 0%

33. 1d 'Please You; Don’t Ask?'; 90% of time w/say "OK"33. 1d 'Please You; Don’t Ask?'; 90% of time w/say "OK"33. 1d 'Please You; Don’t Ask?'; 90% of time w/say "OK"33. 1d 'Please You; Don’t Ask?'; 90% of time w/say "OK"

33. 1e Time Zone diff; Infrastructure poor; 22 official 33. 1e Time Zone diff; Infrastructure poor; 22 official 33. 1e Time Zone diff; Infrastructure poor; 22 official 33. 1e Time Zone diff; Infrastructure poor; 22 official langslangslangslangs;;;;

too many too many too many too many politpolitpolitpolit parties; Turnover by “Group/Floor”parties; Turnover by “Group/Floor”parties; Turnover by “Group/Floor”parties; Turnover by “Group/Floor”

33. 1f Security/privacy laws; cyber crime; terrorism33. 1f Security/privacy laws; cyber crime; terrorism33. 1f Security/privacy laws; cyber crime; terrorism33. 1f Security/privacy laws; cyber crime; terrorism

33 .1g Must have both orgs' staff on both sites; Build trust33 .1g Must have both orgs' staff on both sites; Build trust33 .1g Must have both orgs' staff on both sites; Build trust33 .1g Must have both orgs' staff on both sites; Build trust

33. 1h Define Success (iterative, incremental, interactive)33. 1h Define Success (iterative, incremental, interactive)33. 1h Define Success (iterative, incremental, interactive)33. 1h Define Success (iterative, incremental, interactive)

33. 1i OS in international market w/o int. ops experience 33. 1i OS in international market w/o int. ops experience 33. 1i OS in international market w/o int. ops experience 33. 1i OS in international market w/o int. ops experience

33. 1j Not using variety of perspectives in selection process33. 1j Not using variety of perspectives in selection process33. 1j Not using variety of perspectives in selection process33. 1j Not using variety of perspectives in selection process

33. 1k Using poorly devel/documented 33. 1k Using poorly devel/documented 33. 1k Using poorly devel/documented 33. 1k Using poorly devel/documented servservservserv/prod spec/prod spec/prod spec/prod spec

33. 1l Not doing biz/financial due diligence on OS candid33. 1l Not doing biz/financial due diligence on OS candid33. 1l Not doing biz/financial due diligence on OS candid33. 1l Not doing biz/financial due diligence on OS candid

33. 1m Insufficient knowledge of OS capacity limits33. 1m Insufficient knowledge of OS capacity limits33. 1m Insufficient knowledge of OS capacity limits33. 1m Insufficient knowledge of OS capacity limits

33. 1n Not resolving ops issues b4 move to K legal aspects33. 1n Not resolving ops issues b4 move to K legal aspects33. 1n Not resolving ops issues b4 move to K legal aspects33. 1n Not resolving ops issues b4 move to K legal aspects

33. 1o No full com plan in effect, 33. 1o No full com plan in effect, 33. 1o No full com plan in effect, 33. 1o No full com plan in effect, inclinclinclincl escalescalescalescal, , , , regregregreg schschschsch meets,meets,meets,meets,


40 w

6 m

11/22/2011

21

(H)(H)(H)(H) OUTSOURCING CONTRACT CONSIDERATIONSOUTSOURCING CONTRACT CONSIDERATIONSOUTSOURCING CONTRACT CONSIDERATIONSOUTSOURCING CONTRACT CONSIDERATIONS

33.16 K provision to secure appropriate supplier talent:

33.17 K provision to limit sub’s use (e.g., to China)

33.18 Limit unnecessary charges: data recovery; 33.18 Limit unnecessary charges: data recovery; 33.18 Limit unnecessary charges: data recovery; 33.18 Limit unnecessary charges: data recovery;

rererere---- perform services perform services perform services perform services

33.19 Baseline OS resources for ongoing 33.19 Baseline OS resources for ongoing 33.19 Baseline OS resources for ongoing 33.19 Baseline OS resources for ongoing

support/projects to allow B to reprioritizesupport/projects to allow B to reprioritizesupport/projects to allow B to reprioritizesupport/projects to allow B to reprioritize

services and reassign OS resources services and reassign OS resources services and reassign OS resources services and reassign OS resources

33.20 K s/require OS to track (at min): asset 33.20 K s/require OS to track (at min): asset 33.20 K s/require OS to track (at min): asset 33.20 K s/require OS to track (at min): asset

type/location, ID, ser/model #s, in type/location, ID, ser/model #s, in type/location, ID, ser/model #s, in type/location, ID, ser/model #s, in servservservserv date; date; date; date;

sw/hw sw/hw sw/hw sw/hw versversversvers/upgrades; if own, lease, license &/upgrades; if own, lease, license &/upgrades; if own, lease, license &/upgrades; if own, lease, license &

fin fin fin fin respresprespresp party; Apps tied to server; Changes party; Apps tied to server; Changes party; Apps tied to server; Changes party; Apps tied to server; Changes

33.21 Coop Obligations: 33.21 Coop Obligations: 33.21 Coop Obligations: 33.21 Coop Obligations: betwbetwbetwbetw OS/C/3rd parties; staff; OS/C/3rd parties; staff; OS/C/3rd parties; staff; OS/C/3rd parties; staff;

facilities, equip, sw, doc, biz proc access; facilities, equip, sw, doc, biz proc access; facilities, equip, sw, doc, biz proc access; facilities, equip, sw, doc, biz proc access;

additional OSs;additional OSs;additional OSs;additional OSs;

33.22 K $$ 33.22 K $$ 33.22 K $$ 33.22 K $$ reductreductreductreduct’, commits, proc ’, commits, proc ’, commits, proc ’, commits, proc improvimprovimprovimprov; ; ; ; stdsstdsstdsstds impleimpleimpleimple

33.23 SLA 33.23 SLA 33.23 SLA 33.23 SLA improvm’tsimprovm’tsimprovm’tsimprovm’ts ((((espespespesp if SLAs met but service if SLAs met but service if SLAs met but service if SLAs met but service unsatisunsatisunsatisunsatis

33.24 Termination: Termination assist: doc plan;33.24 Termination: Termination assist: doc plan;33.24 Termination: Termination assist: doc plan;33.24 Termination: Termination assist: doc plan;

staff; all equip, sw, staff; all equip, sw, staff; all equip, sw, staff; all equip, sw, matlmatlmatlmatl, data, 3rd , data, 3rd , data, 3rd , data, 3rd ptyptyptypty Ks/ toolsKs/ toolsKs/ toolsKs/ tools

to provider services; train; C/ 3rd party in equip, sw,to provider services; train; C/ 3rd party in equip, sw,to provider services; train; C/ 3rd party in equip, sw,to provider services; train; C/ 3rd party in equip, sw,

data, same; Right to employ OS staff;data, same; Right to employ OS staff;data, same; Right to employ OS staff;data, same; Right to employ OS staff;

Right to purchase equip/assign leases Right to purchase equip/assign leases Right to purchase equip/assign leases Right to purchase equip/assign leases

33.25 33.25 33.25 33.25 Attorney’s role does not end when deal signed!

33.2 CONTRACT ("K") CONSIDERATIONS (H):© 2007 Michele Kane/Wendy Gross All rights reserved

33.2 Change process: biz, staff, tech, ind stds,laws, regs, efficiency gains. Limit OSability to charge for such changes

33.3 Train both Cust & OS mgt & opns on O/S K

33.4 Proc to request new service, change, projs

33.5 Right to use 3rd pty OS 2 in-/re-source

33.6 Control of arch, tech, and org change stds

33.7 O/S obligs to pace/refresh w tec advances

33.8 SLAs: how they wk, credits, impr oblig/chg

33.9 Commitments regarding supplier staff

33.10 Financial terms

33.11 Ownership of custom devel & work prod

33.12 Term, termination assist services/rights

33.13 Min retent’n 4 transitioned/LTerm key Ees

33.14 Diff for single silo OS than big bang tranx

33.15 Keep staff knowl: apps, biz, tec, OS procs


6 m

Some Important Legal Clauses/Thoughts In Virtually ALL Contracts (IT and Otherwise)

� Assumptions and Goals

� Do You Really Want to Litigate?

� Attorneys’ Fees

� Don’t Do A Contract Until You Know What Is Being Delivered

� Venue

� Choice of Law

� Under the Subject Matter

� Indemnification

� Alternative Dispute Resolution

� Arbitration

© 2006-2011 by Warren S. Reid All Rights Reserved42 s

2 m

11/22/2011

22

SUMMARY1.1.1.1. Scratched underside of the IcebergScratched underside of the IcebergScratched underside of the IcebergScratched underside of the Iceberg

2.2.2.2. Both sides Lose in Litigation: See it from both sidesBoth sides Lose in Litigation: See it from both sidesBoth sides Lose in Litigation: See it from both sidesBoth sides Lose in Litigation: See it from both sides

3.3.3.3. Contracts allocate risk: Get it in writing Contracts allocate risk: Get it in writing Contracts allocate risk: Get it in writing Contracts allocate risk: Get it in writing �� Up frontUp frontUp frontUp front

4.4.4.4. Negotiate for “Intention”: NOT “Principle!”Negotiate for “Intention”: NOT “Principle!”Negotiate for “Intention”: NOT “Principle!”Negotiate for “Intention”: NOT “Principle!”

5.5.5.5. Here are our needs! YOU devel clauses! We select best!Here are our needs! YOU devel clauses! We select best!Here are our needs! YOU devel clauses! We select best!Here are our needs! YOU devel clauses! We select best!

6.6.6.6. Be Flexible: Be Flexible: Be Flexible: Be Flexible: �� everything not = in importance or lineareverything not = in importance or lineareverything not = in importance or lineareverything not = in importance or linear

7.7.7.7. If you want to end w Success, start w SuccessIf you want to end w Success, start w SuccessIf you want to end w Success, start w SuccessIf you want to end w Success, start w Success

8.8.8.8. You NOW know the risks! Manage them!You NOW know the risks! Manage them!You NOW know the risks! Manage them!You NOW know the risks! Manage them!

9.9.9.9. Perform OUTSTANDING Reference Checks Perform OUTSTANDING Reference Checks Perform OUTSTANDING Reference Checks Perform OUTSTANDING Reference Checks

10.10.10.10. Follow good methodologiesFollow good methodologiesFollow good methodologiesFollow good methodologies

11.11.11.11. Measure: Quantity & quality, Progress & StatusMeasure: Quantity & quality, Progress & StatusMeasure: Quantity & quality, Progress & StatusMeasure: Quantity & quality, Progress & Status

12.12.12.12. No Panaceas: Consider SWAT, Mediation, ADRNo Panaceas: Consider SWAT, Mediation, ADRNo Panaceas: Consider SWAT, Mediation, ADRNo Panaceas: Consider SWAT, Mediation, ADR

43© 2006-2011 Warren S. Reid All Rights Reserved

43 w10 m

AFTER YEARS OF EXPERIENCE:

THE GOLDEN ANSWER!

d(y)h: f(y)p + (l)+

(c) = P2R

© 2006-2011 Warren S. Reid All Rights Reserved

44 w2 m

11/22/2011

23

AFTER YEARS OF EXPERIENCE:

THE GOLDEN ANSWER!

d(y)h: f(y)p + (l)+

(c) = P2R


45 w2 m

QUESTIONS/COMMENTS

Warren S. Reid, Managing DirectorPH: 818/986PH: 818/986PH: 818/986PH: 818/986----8832 8832 8832 8832

EEEE----mail: mail: mail: mail: [email protected]; ; ; ; Website: : : : www.wsrcg.com

46

WSRWSRWSRWSR CONSULTING GROUPCONSULTING GROUPCONSULTING GROUPCONSULTING GROUP, LLC, LLC, LLC, LLCManagement, Technology, Management, Technology, Management, Technology, Management, Technology, eeee----Business & Litigation ConsultingBusiness & Litigation ConsultingBusiness & Litigation ConsultingBusiness & Litigation Consulting

11/22/2011

For More Written Materials, Articles & Full Size Versions of the Success Models, please visit:

The WSRcg Learning Center for IT Excellence http://wsrcg.com/learn_introducingmodels.php

For large size views of the “IT Success Models” go to: http://www.wsrcg.com/PDFs/model_riskipedia.pdf

http://www.wsrcg.com/PDFs/model_requirements.pdf

http://www.wsrcg.com/PDFs/model_RFP.pdf

http://www.wsrcg.com/PDFs/model_itcontracting.pdf©©©© 2006200620062006----2011 2011 2011 2011 by Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reserved

46464646

11/22/2011

24

Warren S. Reid: Background� Testifying expert witness in matters re:

� The root causes of system failure

� ERP project/sw: development; implementation; estimating; scheduling; resourcing; project mgt

� Systems Development Life Cycle (SDLC) issues

� Definition of “World-Class” IT

� Systems/software testing & acceptance

� IT contract intention, meaning & interpretation

� SW QA evaluation & fitness/usability purpose

� Software requirements elicitation & control

� Valuing IT assets, systems and companies

� Testimony: Mediations, Arbitrations; US State/Fed Courts; Court of Fed Claims; International Forum

� International Expert Witness in IT matters:� U.S. Dept of Justice & Pres. William Clinton

� An Asian Stock Exchange; Pepsico; HarrahsEntertainment; B-to-C Internet companies

� Her Royal Majesty, the Queen of England;

� Compuserve; Fortune 500 retailers; Robotics manufacturing; Distribution companies; POS cases;Big -8 Consulting Firms

� ERP software developers and systems integrators

� International ticketing companies

� Hospitals; US Dept of Defense; US Dept. of Justice & more.

� 16 years IT consultant �� Partner IT Firm

� Designed/implemented/contracted myriad systems

� 1988, founded:WSR Consulting Group, LLCConsultants/Experts in Computers & Software

� Projects have included:

� Helping launch FEO for Pres. Carter in 75 days

� Oversaw acceptance of CA’s Lotto in 100 days

� Helped resolve MESDAQ: day 1 failure.

� Extensive industry experience including:

� Retail industry, grocery, fast food

� POS systems of all kinds; E-business/e-comm

� Health care, hospital and HIPAA systems

� Robotics and smart buildings, and more

� MS & MBA: Wharton Grad School Finance

� Developed seminal “IT Success Models”

� Guest Lecturer at USC’s grad school programs

� Lecturer in law school programs in IT Contracting

� Many peer-reviewed articles/MCLE video for Attorneys (3.5 hrs. MCLE credit)"IT Litigation & Bad Contracts that Foster Failure"

47 w© © © © 2006200620062006----2011 2011 2011 2011 by Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reserved2 m

APPENDIX I ON:WHAT IS

“WORLD-CLASS SOFTWARE”

11/22/2011

25

INTRO: A FEW WORDS ABOUT “WORLD-CLASS SOFTWARE”*

� More and more IT contracts state that “products and services to be

delivered will be world-class”

� Right off, there is no universal IT or legal standard to compare/determine

if product/service is “world class”

� Not properly identifying/specifying/designing requirements is a sign of

laziness or an admission that the buyer doesn’t know what it needs/

wants or is afraid it may leave something on the table.

� This oftentimes results in lawsuits between the parties

� It is possible to define “best practices & world-class” for some IT

constructs – such as: IT organizational and SDLC processes; the Right

Results; Operational Excellence; and Robust Life Span.

� However, World-Class functionality is: situational; unique to buyers’ &

providers’ business strategies, org structure, and human/other resources;

definition of “success”; regulatory requirements, industry customs, etc.

� And World-Class functionality will change over time, as corporate mgmt &

strategy changes, new IT breakthroughs evolve, competition invades, etc.

* This slide will be explained in detail in the following slides. © © © © 2006200620062006----2011 2011 2011 2011 by Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reservedby Warren S. Reid All Rights Reserved

SO WHAT IS “WORLDSO WHAT IS “WORLDSO WHAT IS “WORLDSO WHAT IS “WORLD----CLASS” SOFTWARE?CLASS” SOFTWARE?CLASS” SOFTWARE?CLASS” SOFTWARE?

It helps to be a It helps to be a It helps to be a It helps to be a wwwworldorldorldorld----class IT organization class IT organization class IT organization class IT organization

w many “best industry” processes and practices…in order to w many “best industry” processes and practices…in order to w many “best industry” processes and practices…in order to w many “best industry” processes and practices…in order to

build build build build wwwworldorldorldorld----class systems/productsclass systems/productsclass systems/productsclass systems/products. . . .

But, But, But, But, What is worldWhat is worldWhat is worldWhat is world----class software and class software and class software and class software and

HHHHow do you deliver it? i.e., ow do you deliver it? i.e., ow do you deliver it? i.e., ow do you deliver it? i.e.,

Deliver:Deliver:Deliver:Deliver:---- sustainablesustainablesustainablesustainable,

---- appropriate appropriate appropriate appropriate qualityqualityqualityquality products

---- onononon----time,time,time,time,

---- onononon----budgetbudgetbudgetbudget, , , , with

---- worldworldworldworld----classclassclassclass functionality, functionality, functionality, functionality, while

---- managing managing managing managing stakeholder stakeholder stakeholder stakeholder expectations & expectations & expectations & expectations &

---- Mitigating product/project risks,Mitigating product/project risks,Mitigating product/project risks,Mitigating product/project risks,

---- for a profit profit profit profit

© 2006-2011 Copyright by Warren S. Reid All Rights Reserved50

WorldWorldWorldWorld----Class Class Class Class

FunctionalityFunctionalityFunctionalityFunctionality

II.

II.

II.

II.

Op

era

tio

na

l O

pe

rati

on

al

Op

era

tio

na

l O

pe

rati

on

al

Exc

elle

nce

Exc

elle

nce

Exc

elle

nce

Exc

elle

nce

III.

II

I.

III.

II

I.

Ro

bu

st

Ro

bu

st

Ro

bu

st

Ro

bu

st

Lif

e

Lif

e

Lif

e

Lif

e

Sp

an

S

pa

n

Sp

an

S

pa

n

II II . . . .

““ ““ RIG

HT

RIG

HT

RIG

HT

RIG

HT”” ””

Re

su

lts

Re

su

lts

Re

su

lts

Re

su

lts

IT Org & IT Org & IT Org & IT Org & DevelDevelDevelDevel Process Process Process Process

“World“World“World“World----Class” Structural ComponentsClass” Structural ComponentsClass” Structural ComponentsClass” Structural Components

11/22/2011

26

FOUNDATION: IT ORGANIZATIONAL & FOUNDATION: IT ORGANIZATIONAL & FOUNDATION: IT ORGANIZATIONAL & FOUNDATION: IT ORGANIZATIONAL & DEVELOPMENT DEVELOPMENT DEVELOPMENT DEVELOPMENT PROCESS PROCESS PROCESS PROCESS “BEST PRACTICES”“BEST PRACTICES”“BEST PRACTICES”“BEST PRACTICES”

• Qualified; 100% ; ReadyQualified; 100% ; ReadyQualified; 100% ; ReadyQualified; 100% ; Ready

• TeamWorkTeamWorkTeamWorkTeamWork:::: QA; Anal; QA; Anal; QA; Anal; QA; Anal; CustCustCustCust; ; ; ; DevDevDevDev; ; ; ; RqtsRqtsRqtsRqts MgtMgtMgtMgt; Testers; Testers; Testers; Testers

• Exec/Exec/Exec/Exec/ProjProjProjProj CommitmentCommitmentCommitmentCommitment

• The Balancing ActThe Balancing ActThe Balancing ActThe Balancing Act

• Manage: risks; resources Manage: risks; resources Manage: risks; resources Manage: risks; resources status/status/status/status/probsprobsprobsprobs; expects; expects; expects; expects

•Interim DeliverablesInterim DeliverablesInterim DeliverablesInterim Deliverables

•QA is a PriorityQA is a PriorityQA is a PriorityQA is a Priority

•Embrace Change; ICMEmbrace Change; ICMEmbrace Change; ICMEmbrace Change; ICM

•Standards; DeviationsStandards; DeviationsStandards; DeviationsStandards; Deviations

•Do what’s right 4 Do what’s right 4 Do what’s right 4 Do what’s right 4 projprojprojproj....• ProbProbProbProb; #; #; #; #RqmtsRqmtsRqmtsRqmts; #; #; #; #ProcsProcsProcsProcs; ; ; ;

####SolutSolutSolutSolut; #Designs, #; #Designs, #; #Designs, #; #Designs, #LangsLangsLangsLangs

• Not PerfectNot PerfectNot PerfectNot Perfect

• Embrace Change; FlexEmbrace Change; FlexEmbrace Change; FlexEmbrace Change; Flex

• EnEnEnEn----”abled””abled””abled””abled”

• SustainableSustainableSustainableSustainable ProductProductProductProduct ProcessProcessProcessProcess

PeoplePeoplePeoplePeople

Timely Timely Timely Timely SMART* SMART* SMART* SMART*

MgmtMgmtMgmtMgmtCommuniCommuniCommuniCommuni----cationscationscationscations


51

CAVEAT: To Be WORLDCAVEAT: To Be WORLDCAVEAT: To Be WORLDCAVEAT: To Be WORLD----CLASS you need NOT excel in every area. CLASS you need NOT excel in every area. CLASS you need NOT excel in every area. CLASS you need NOT excel in every area. You need to excel in several You need to excel in several You need to excel in several You need to excel in several

areas critical to your operations /product, and be good enough in othersareas critical to your operations /product, and be good enough in othersareas critical to your operations /product, and be good enough in othersareas critical to your operations /product, and be good enough in others. No world. No world. No world. No world----class org or class org or class org or class org or

product is perfect: Apple iPhone4 antenna product is perfect: Apple iPhone4 antenna product is perfect: Apple iPhone4 antenna product is perfect: Apple iPhone4 antenna probprobprobprob (2010); Intel $1bb chip error (2011); Toyota, etc.(2010); Intel $1bb chip error (2011); Toyota, etc.(2010); Intel $1bb chip error (2011); Toyota, etc.(2010); Intel $1bb chip error (2011); Toyota, etc.

*SMART*SMART*SMART*SMART: : : : SpecificSpecificSpecificSpecific, , , , MeasurableMeasurableMeasurableMeasurable, , , , AttainableAttainableAttainableAttainable, , , , RelevantRelevantRelevantRelevant, , , , TrackableTrackableTrackableTrackable

PILLAR I: THE PILLAR I: THE PILLAR I: THE PILLAR I: THE ““““RIGHT STUFF” (RESULTS)RIGHT STUFF” (RESULTS)RIGHT STUFF” (RESULTS)RIGHT STUFF” (RESULTS)

The The The The “RIGHT” “RIGHT” “RIGHT” “RIGHT”

StuffStuffStuffStuff

Create Create Create Create Scope Scope Scope Scope

BoundariesBoundariesBoundariesBoundaries

Provide Correct , Provide Correct , Provide Correct , Provide Correct , Auditable & Auditable & Auditable & Auditable &

Accurate Accurate Accurate Accurate ResultsResultsResultsResults

Vary by Vary by Vary by Vary by Industry & Industry & Industry & Industry & StrategyStrategyStrategyStrategy

Who? What? Who? What? Who? What? Who? What? Where? Where? Where? Where?

When? How? When? How? When? How? When? How? Why?Why?Why?Why?

52

Grocery Store Chain: Grocery Store Chain: Grocery Store Chain: Grocery Store Chain: ---- the right goods, at the right goods, at the right goods, at the right goods, at

---- the right price, at the right price, at the right price, at the right price, at

---- the right store, at the right store, at the right store, at the right store, at

---- the right time, inthe right time, inthe right time, inthe right time, in

---- the right placethe right placethe right placethe right place

Phone Phone Phone Phone Install/ServiceInstall/ServiceInstall/ServiceInstall/Service: : : : ---- the right truck, with the right truck, with the right truck, with the right truck, with

---- the right operator, with the right operator, with the right operator, with the right operator, with

---- the right tools, at the right tools, at the right tools, at the right tools, at

---- the right address, at the right address, at the right address, at the right address, at

---- the right timethe right timethe right timethe right time�© 2006-2011 Warren S. Reid All Rights Reserved

11/22/2011

27

PILLAR II: OPERATIONAL PILLAR II: OPERATIONAL PILLAR II: OPERATIONAL PILLAR II: OPERATIONAL EXCELLENCEEXCELLENCEEXCELLENCEEXCELLENCE

Operational Operational Operational Operational ExcellenceExcellenceExcellenceExcellence

UsabilityUsabilityUsabilityUsability, , , , Response Response Response Response

Time, StabilityTime, StabilityTime, StabilityTime, Stability

ThruputThruputThruputThruput, , , , Reliability, Reliability, Reliability, Reliability,

RedundancyRedundancyRedundancyRedundancy

Recovery, Recovery, Recovery, Recovery, Documentat’nDocumentat’nDocumentat’nDocumentat’n, , , ,

SecuritySecuritySecuritySecurity

Help Desk, Help Desk, Help Desk, Help Desk, Support, Support, Support, Support,

Issue Issue Issue Issue EscalEscalEscalEscal

© 2006-2011 Warren S. Reid All Rights Reserved 53

Operating reliably Operating reliably Operating reliably Operating reliably

while managing while managing while managing while managing

surprises and issues.surprises and issues.surprises and issues.surprises and issues.

Keeping Keeping Keeping Keeping

stakeholders stakeholders stakeholders stakeholders

“happy”“happy”“happy”“happy”

Migrating, maintaining, Migrating, maintaining, Migrating, maintaining, Migrating, maintaining,

integrating, upgrading, integrating, upgrading, integrating, upgrading, integrating, upgrading,

fixing , enhancing, as fixing , enhancing, as fixing , enhancing, as fixing , enhancing, as

neededneededneededneeded

OPERATIONAL OPERATIONAL OPERATIONAL OPERATIONAL EXCELLENCE: EXCELLENCE: EXCELLENCE: EXCELLENCE: SUITABILITYSUITABILITYSUITABILITYSUITABILITY

WCS should/operate reliably for intended purpose! IT criteria include:

A. Ops – approp staff, budget, training, job rotation, org, plan, contracts, etc

B. Testability – implemented rqmts are clear, unambiguous, internally consistent

C. Usability – logical nav; consist screen design/use, data production – Audience??

D. Resp times – processes, actions, ops, tranx @ speed expected, custom, specified

E. Stability – operates w/o frequent, regular or unexplained crashes or freezes

F. Throughput – handles peak transaction volumes w/o significant perform degrade

G. Reliability – operate when components “break” fm in/outside events; Fault Toler

H. Redundancy – effective failover mechs for ops/tranx to continue processing whensw module, hw component, or network linkage fails. No data lost.

I. Recovery – invokes proper back-up, R&R fm unexpected/external ops interruption.

J. Documentat’n – matches sys ops; true release notes, matls, sw work as expected.

K. Security – P&P that protect data, nets, apps, compute power thru encryption,access controls, authorization levels, passwords and more.

L. Help Desk & Support Org – effective; incl use of remote netware/sw monitor, tools

M. Issue Escalation Process – effective to address probs/issues in timely manner

11/22/2011

28

PILLAR III: ROBUST PILLAR III: ROBUST PILLAR III: ROBUST PILLAR III: ROBUST LIFE LIFE LIFE LIFE SPAN:SPAN:SPAN:SPAN:ABILITY ABILITY ABILITY ABILITY TO ADVANCE/GROWTO ADVANCE/GROWTO ADVANCE/GROWTO ADVANCE/GROW

Robust Robust Robust Robust Life Life Life Life

SpanSpanSpanSpan

Functional Functional Functional Functional Stability:Stability:Stability:Stability:

Reliable; Reliable; Reliable; Reliable; Controlled Controlled Controlled Controlled

Design, Doc, Design, Doc, Design, Doc, Design, Doc, Program, Program, Program, Program,

Fix/Upgrade, Fix/Upgrade, Fix/Upgrade, Fix/Upgrade, StandardsStandardsStandardsStandards

Scalable, Scalable, Scalable, Scalable, Interoperable, Interoperable, Interoperable, Interoperable,

Interfaces, Interfaces, Interfaces, Interfaces, OpenOpenOpenOpen

Mature, Mature, Mature, Mature, Maintainable, Maintainable, Maintainable, Maintainable,

Testable, Testable, Testable, Testable, Sustainable Sustainable Sustainable Sustainable

55�© 2006-2011 Warren S. Reid All Rights Reserved

Ability to keep what was Ability to keep what was Ability to keep what was Ability to keep what was

1111stststst built and built and built and built and

implemented implemented implemented implemented

properly properly properly properly

maintainedmaintainedmaintainedmaintained

and sustainedand sustainedand sustainedand sustained::::

---- relevant, relevant, relevant, relevant,

---- competitive, competitive, competitive, competitive,

---- advantageous, advantageous, advantageous, advantageous,

---- usefulusefulusefuluseful

---- usable; “irresistible”usable; “irresistible”usable; “irresistible”usable; “irresistible”

---- efficientefficientefficientefficient

---- effectiveeffectiveeffectiveeffective

---- TCOTCOTCOTCO

---- Affordable (ROI)Affordable (ROI)Affordable (ROI)Affordable (ROI)

ROBUST LIFE SPAN: FOR MANY YEARS – BUT CHANGING

A. Functional Stability – sys meets clear goals/objectives, w well-defined roadmap B. Design stds – w consistent: SOS, tables v hard code, localized biz logic, shared

infra/services, approp/tested APIs, necessary GUI. DB w self-correct integrity C. Code stds – adherence to “best” coding standards that allow mods by IT

personnel; adheres to industry standards for architecture, design, interfaces. D. DB stds – data model/DB built allowing updates/data mgmt as user needs evolve. E. Doc stds – documented accurately to facilitate efficient diag/repair of bugs/issues,

& to efficiently add new funct that does not interfere w current funct F. Comp maturity – built w industry std components to be updated as tech improves. G. HW & NW stds – built to allow deploy on multi-platforms; facils hot-swap comps.H. Scalability – allows ++ capacity as tranx vols >, w/o signif perform degrade/$ incrI. I’faces/APIs – provides/facils sys interconnections/add new sw/comps J. Interoperability & Portability – functions/interoperates w diff vendor hw, o/s, DBsK. Maintainability – stringent design stds permit quick/effic error isol & allows for

modif/new funct to be put into sys in proper place following ind std prog practice L. Modular Arch – proper/consist segreg/encaps of module SOS, biz logic, etc. to min

+ errors into sys, easier test/debug, reduce dev/maint sch, accom personnel chg. M. Sustainability – sys/dev/suppt orgs, w proper visibility, charter, QA, Mgt, SDLC to

improve nec funct/perform w controlled chgs/succ releases, interop, new tech N. Internal Controls Policy – match, balance, audits, crash tests, access, security, etc

�© 2006-2011 Warren S. Reid All Rights Reserved

11/22/2011

29

OK! SO NOW DO YOU HAVE WORLD-CLASS SOFTWARE?

---- NO! Again, there is no universal IT nor legal definition NO! Again, there is no universal IT nor legal definition NO! Again, there is no universal IT nor legal definition NO! Again, there is no universal IT nor legal definition of “Worldof “Worldof “Worldof “World----Class Software!”Class Software!”Class Software!”Class Software!”

- Because the stakeholders & parties still haven’t defined what that is in terms of ‘Features & Functionality’!

- Even achieving all of the “Best in Class” Foundations, Pillars, and constructs, you still need to:

- And that is still a very difficult challenge!!


- Elicit, Define, Manage, Document theSpecific, Situational, Business, Personal, Functional & Feature Requirements –regardless of which architecture, platform, SDLC method you use

WHICH ARE THE WORLD-CLASS HANDBAGS?? IT DEPENDS…


Chanel:$5,000

Coach:<$400

Louis Vuitton: $1,610

R Minkoff:$195.00

IvankaTrump: $95

11/22/2011

30

WORLDWORLDWORLDWORLD----CLASS GUITARSCLASS GUITARSCLASS GUITARSCLASS GUITARS?? FOR WHAT KIND OF ?? FOR WHAT KIND OF ?? FOR WHAT KIND OF ?? FOR WHAT KIND OF

MUSIC? IT DEPENDS…MUSIC? IT DEPENDS…MUSIC? IT DEPENDS…MUSIC? IT DEPENDS…


WHICH IS A WORLDWHICH IS A WORLDWHICH IS A WORLDWHICH IS A WORLD----CLASS CELL PHONE?? CLASS CELL PHONE?? CLASS CELL PHONE?? CLASS CELL PHONE??

IT DEPENDSIT DEPENDSIT DEPENDSIT DEPENDS


part i: it scorecard: how systems fail? · 11/21/2011 · 11/22/2011 5 change is natural – must...

Documents