Enterprise Continual Improvement Office Session 208 Timothy Rogers
- 1. Session 208: Establishing an Enterprise-level Continual Improvement Office
- 2. “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.
- 3. Agenda 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.)
- 4. Part I: BACKGROUND/SETTING THE STAGE
- 5. What is Continual Improvement? Continual Improvement is Quality Management of IT Services = Source: OGC ITIL® CSI Approach Source: US EPA (EMS) PDCA Cycle The very heartbeat of service management; Critical pulse monitor of the Agency customer; Tool to resuscitate service or process performance.
- 6. One Agency, Two Approaches to CSI. . . Example (Bad): DHS Threat Warning System “Elevated” “Imminent” - Mar 12, 2002 - - 2005 - - 2008 - - 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
- 7. One Agency, Two Approaches to CSI. . . Example (Good): TSA Screening Procedures “TSA Unveils “TSA, Homelan Enhanced “TSA d Security “TSA Works on Security Announces Move to Make Alternative Screening Enhancements Shoe- Airport Procedures to Airport ID Screening Screening and Changes Requirements Policy Process for to the to Enhance Consistent for Pilots” Prohibited Safety” Travelers." Item List” - Jul 10, 2003- - Dec 2, 2005 - - Jun 21, 2008 - - Nov 15, 2010 - “Our security procedures are multifaceted, and we adjust them according to the threat all the time.” Source: Wall Street Journal July 07, 2011
- 8. 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
- 9. CSI – What’s In It For Me? A standardized, data-driven, cross-organizational approach to the continual improvement of service and process performance across the enterprise. *Key Benefits include: 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).
- 10. 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.
- 11. Creating an Agency CSI Strategy The Art of • SWOT Analysis Deciding What Not to Do – 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
- 12. The Enterprise CSI Office *CSI Register
- 13. 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
- 14. Part II: WORKSHOP (DOING IT!)
- 15. Create the Plan – The 3 “S’s” • Scope Exceptions? – Specific Goals & Objectives – Related Practices, Processes • Stakeholders – Internal – External – Partners/Suppliers • Standards – Policy & Guidance – Regulatory & Compliance – Industry Best Practices
- 16. 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.
- 17. Develop Integrated CSI Model Agency Goals Culture & & Objectives Organization Policy & Skills & Guidance Competency
- 18. 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
- 19. Example: Project Prioritization Matrix Process and Achievable Dependnecies Cost Time VOC Achievable Achievable Secondary (human and Savings Savings Alignment (time) (cost) Benefits resources) Outputs Level of Importance 5 8 8 6 8 3 6 Projects Total Seat Order to Delivery (time 8 9 10 5 4 5 6 305 reduction) 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 Now Tim e Savings Low High Do Soon VOC Alignm ent Low High Not Now Achievable (tim e) Low Liklihood High Liklihood Not Worth Effort Achievable (HR) Low Liklihood High Liklihood Achievable (cost) Low Liklihood High Liklihood Secondary Benefits None Many
- 20. Example: Project Analysis Tool
- 21. Execute! – Implement the Plan • Organizational Change Establish a Sense Form a Powerful Create a Communicate Empower Others to Plan for and Create of Urgency Guiding Coalition Compelling Vision the Vision 4 Act on the Vision Short-Term Wins – People/Process/Technology J.Kotter’s Model for Organizational Change • Performance Measurement Financial Financial goals to be met include ROI and the reduction of waste while adding value to the process and the end customers. 1 2 3 4 5 – Balanced Scorecard or Objectives Measure Targets Initiatives Customer Internal Business Customer satisfaction and success Processes shall be met by recording the Voice CSI The metrics in the PMP and Quality alternative methodology of Customer feeding it back into Review shall be reviewed by process goals and objectives. 1 2 3 4 5 Balanced leadership and improvements continually made. 1 2 3 4 5 Objectives Measure Scorecard Objectives Measure Targets Targets Initiatives Initiatives – Align to Enterprise Governance Learning and Growth The process owner shall ensure that growth and education occurs and is measureable within the process. 1 2 3 4 5 Objectives Measure Targets Initiatives • Phased Execution Plan – Resource Constraints – Budget Constraints – Key Dependencies – Critical Path
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- 23. Thank you for attending this session! Please make sure to fill out an evaluation form. Contact Details: Timothy Rogers Timothy.Rogers@jacobs.com (858) 356.7373 priSM® CPDs can be earned by attending the FUSION 11 Conference & Expo. Please get scanned by your room monitor to get credit.