业务动态

Making the Strategic Case for Process Improvement

时间:2021-10-18 13:19:55  作者:Fancier凡奉信息

In my previous column (“GettingManagement Support for Process Improvement”), I wrote aboutmanagement support for process improvement and how your approach should changedepending on the manager you are dealing with. The questions left open were howto make the strategic case for improvement, how to make the tactical case forimprovement, and how to move from a tactically based to a strategically basedimprovement program.

In this issue, I describe how tomake the strategic case for process improvement. I start on the assumption thatyou can get the ear of a senior manager. You may work directly for thismanager, or you may have obtained an appointment to make a presentation on thesubject. In any event, you now have an appointment to see a senior manager. Howdo you prepare and what do you say?


The General Improvement Case

The approach to follow for almostany type of improvement effort would be much the same:

• Clearly define what you propose.

• Understand today’s businessenvironment.

• Identify the executive’s currenthot buttons.

• Make an initial sanity check.

• Start the plan with two or threeprototypes.

• Estimate the one-time introductioncosts.

• Determine the likely continuingcosts.

• Document the available experiencedata.

• Estimate the expected savings.

• Decide how to measure the actualbenefits.

• Determine the improvement’s likelyimpact on the executive’s current key concerns.

• Identify any other ways that theproposed improvement could benefit the business.

• Produce a presentation to givethis story clearly and concisely.


Defining the Proposal

Before you do anything, defineexactly what you want the executive to do. The best guide that I have found isto actually prepare an implementation letter for the executive’s signature.Then in the meeting, if he or she says, “Great, let’s do it,” pull out theletter and hand it over as a proposed implementation instruction. While thisreaction is not likely, the exercise will help you to produce a clear statementof what you intend to propose. Also, if you are several management levels removedfrom this executive, you should describe the letter as a proposed draftinstruction that you have not yet reviewed with your immediate management.Better yet, show the draft letter to your manager first and get his or hersuggestions on improving it.

 

Understand Today’s Business Environment

In preparing for the presentation,remember that there is no magic formula for convincing senior managers. Everycase is different. The approach must vary depending on the situation and theexecutive’s current priorities. If, for example, this executive has just cutresources to meet a profit goal or the organization has just lost a majorcontract, this might not be a good time to propose an additional expense. So,plan your improvement strategy with a clear appreciation of what is happeningright now in the business.


Identify the Hot Buttons

Next, find out what this executiveis most concerned about. Since most executives give lots of talks and issuemany statements and announcements, this is generally fairly easy to do. Withfew exceptions, executives use every available occasion to plug the topics theyfeel are highest priority. So get copies of some of this executive’s recentannouncements and presentations, and look at the common themes. You will usuallysee a fairly consistent message. The manager may frequently mention profitability,or market growth, or development cycle time. Because executives are concernedwith many things, he or she will almost certainly make many points. But ifthere is an overriding concern, much like a television commercial, this topicwill pop up every time there is an opportunity. Once you know the executive’scurrent hot button, figure out how the process improvement you propose wouldaddress that concern, then make sure the improvement justification addresses thistopic.


Make an Improvement Sanity Check

In preparing an executive proposal,the first step is to gather the known facts about the costs and benefits of theproposed improvement program. As soon as you have the data, make an initial sanitycheck: Does the proposed process improvement directly address the executive’skey concerns? If not, are the cost savings significant enough to justify theexecutive’s listening to the proposal? If the improvement directly addresses somethingthe executive has been pushing for, then cost will not be a key concern. Ifcost savings are important, however, are the proposed savings large enough tobe convincing?

Most executives know thatimprovements are rarely as effective as first proposed and that there arealways hidden costs. A good rule of thumb is that improvements with savings of2 or more times are usually impressive while numbers below 25% are likely to beignored or subjected to very close scrutiny. If cost is important and you arenot proposing a significant cost saving, consider putting off the presentationuntil you can make a stronger case.


Prototype Introduction

If the proposed improvement passesthis sanity check, the next step is to analyze the costs of introduction. It isalmost always a good idea to start an improvement program with one or more prototypetests. This not only reduces the initial introduction costs, it also maximizesyour chances of success. Just about any change will affect both engineer andmanagement behavior, and these changes are rarely natural or easy. Thus, manypeople will likely have initial problems following the new methods. To besuccessful, you must identify and resolve these problems at the very beginning.The longer it takes people to properly use the new methods, the more theintroduction will cost and the longer it will take to show benefits. Theprincipal advantages of starting with a prototype program are that the initialcosts are lower and it is easier to watch a few limited pilot programs to makesure they are getting the needed support and assistance.

One major risk in any improvementprogram is that the prototype project could be cancelled or redirected. Toprotect your project from this risk, try to get two or three trial projectsunderway. That way, if one is killed or redirected, you will still have theothers to fall back on.


Introduction Costs

While you will almost certainlyfollow a gradual introduction strategy, it is a good idea to show both theprototype and the total introduction costs. The reason is that the introductionstrategy will probably change several times before you are done and you don’twant to keep changing the costbenefit story. Emphasize that you are presentingthe total introduction costs for the entire organization, but that the initialcosts for the prototype program will be much lower.

In any significant improvement,there will be initial introduction costs as well as continuing costs forsustaining the improvement. Since any process-improvement introduction willrequire some executive and management time, you need to make an appropriateallowance. Generally, however, the major costs will be the time to train andsupport the engineers. Even the introduction of a new tool takes training andsupport, so don’t gloss over the introduction costs; they can amount to verybig bucks.

For example, with a new programminglanguage, a minimum of two weeks of intensive training is usually required,often followed by a period of close consultation during initial use. Similarly,a new tool will require an initial training session of several days plus guidedpractice sessions and continuing professional support for at least a few weeks.

In estimating these costs, rememberone key guideline: Your story will be judged by its weakest point. If someonefinds an error or a serious underestimate anywhere in the story, the assumptionwill be that similar errors infect the entire story. So be careful about makinglow estimates or assuming that some costs are insignificant. If you don’t knowthe facts, find someone who does. Above all, don’t make unsupportedassumptions; your entire presentation could be discredited.

In addition to executive, manager,and engineering time, trainers and expert assistance will almost invariably beneeded. This can add a significant cost, particularly if you plan to useoutside assistance. On the other hand, the costs of building internal expertsand trainers can be very large, and few executives will want to make such asignificant commitment, at least until the proposed improvement has been provenwith early tests.


The Continuing Costs

After the improvement has beenintroduced, there will be ongoing support costs. You may need continuingtraining to cover engineering turnover or staff growth. Expert assistance andsupport may also be needed. These costs can be substantial, so it is importantto identify them. Describe them clearly up front and then justify them. If youdon’t give a complete cost story, management will sense that there are hidden costsand likely assume that these costs are much greater than they actually are.


The Process-Improvement Benefits

Next, we turn to the benefits. Here,you must address two points: first, how long will it take for the improvementprogram to recover the introduction costs, and second, how will the improve[1]mentaddress the executive’s principal concerns? If you can show that theimprovement will pay for itself, then the other benefits would be pure gravy.So start by making the cost case.

The way to make the cost case is tofirst gather the available facts on improvement benefits. Here, you are at adisadvantage. Costs are always easier to prove than savings. Executives knowthis, however, probably better than you do. After all, they spend much of theirtime justifying changes. So don’t worry about proving an ironclad case;executives will rarely demand it. But they will want a logical story that hangstogether and looks complete and realistic.


Improvement Experience

So, first, what are the availablefacts? Unfortunately, there are few statistically sound improvement studies,even for accepted process-improvement methods. While there may be some availableanalyses, you will probably have to rely on anecdotal evidence. This may not beas precise as a comprehensive statistical study, but such evidence can be evenmore convincing. The best case would be one in which someone in your industryhas implemented the same improvement and described its benefits in a talk or apaper. If you can find a suitable example, summarize the general findings inthe executive presentation, but then emphasize the results reported by your competition.


Calculating the Savings

There are many ways to save money. Inthe final analysis, however, most software cost savings result from personnelreductions. For example

• By introducing a design inspectionprogram, you can eliminate defects early in the process and save considerablerework.

• A measured quality program canreduce the numbers of defects found in test and shorten testing time.

• A configuration-management systemcan save development time by ensuring that correct program versions are alwaysavailable.

• A change-control system can reducethe number of uncontrolled changes and save development time.

While these savings are all real, theyall have the disadvantage of being very hard to prove, either in advance orafter the fact. As a result, the most convincing argument is generally that theXYZ Corporation cut their test time by x%, or that the ABC Company reducedcustomer-reported de[1]fectsby y%. Starting from these numbers, you can then generally show the amount ofmoney you would save if your organization had similar results.


Measuring the Benefits

In concluding the presentation,discuss how the prototypes will be designed to measure the improvementbenefits. For example, if the proposed improvement is intended to reducedevelopment cycle time, discuss how to demonstrate that it does. A common problem,however, is that few organizations have data on their current operations. Thus,even if you conduct a highly successful prototype experiment, you may have noway to show that it was successful. That is, you will have lots of “after” databut no “before” data with which to compare it. As part of the proposal, raisethis issue and suggest ways to handle it.

Even when organizations have littleor no data on their current operations, there are usually a few things that youcan measure. For example, data are often available on the length of time bywhich projects have missed their planned delivery dates. There are also oftenrecords of the numbers of defects found in system test or reported bycustomers. Similarly, data can generally be found to calculate the percentageof the development schedule that is spent in integration and system test. Anothergood measure is the total development hours divided by the total lines ofdelivered source code. While no single measure can characterize the quality ofan organization’s processes, there are many possible measures that can beobtained from most accounting and project-reporting systems.

Because you need to apply thesemeasures to the existing projects, it is important to start looking around foravailable data even before you make the proposal. Then you can use these datain justifying the proposed improvement. Also, you can be reasonably sure thatthere will be a way to measure the benefits when you are done.


Other Benefits

While cost savings are important,not all improvements can or should be cost justified. For example, if you canshow that the change will improve schedule accuracy and predictability, reducecycle time, or make your organization more competitive, management will oftenapprove the proposal, even if it does not clearly save money. The key is toconvince management that the improvement is good for the business and then, ifpossible, show that it will also pay for itself. If you cannot prove thesavings story, however, don’t give up. If the other benefits are compelling,management may be willing to proceed anyway.


Stay Tuned

In the next issue, I will use anexample to show how to structure and give an executive presenta[1]tionon process improvement. Following that, subsequent columns will deal with howto make the tactical case for improvements and then how to move from atactically to a strategically based improvement program.


发表时间:1999年12月

作者:Watts Humphrey

编者按:Watts New - 如何提出改进建议

编译:冯信

更多PM管理干货,请关注凡奉信息微信公众号 fancier-info

CMMI、PCMM服务提供商-Fancier凡奉信息微信公众账号二维码

专注于为软件、互联网企业提供CMMI发过程管理PCMM人力资源管理结合的咨询、培训与评估服务

公司网站:www.fancier-info.com

业务热线:4009-9393-06

服务邮箱:service@fancier-info.com

QQ咨询:3200634404

  • 返回顶部
  • 4009-9393-06
  • 在线咨询
  • 凡奉微信公众号
    关注凡奉信息