Transcript SW - kolumbus.fi

Maturity or agility or …?
Juhani Anttila
Venture Knowledgist Quality Integration, Helsinki, Finland
[email protected] www.QualityIntegration.biz
April, 2009
These pages are licensed under
the Creative Commons 3.0 License
http://creativecommons.org/licenses/by/3.0/deed.en
Crosby, Philip (1979). Quality is Free
(*)
QuickTimeª ja
pakkauksen purkuohjelma
tarvitaan elokuvan katselemiseen.
xxxx/19.1.2009/jan
(*) a few pages
Capability Maturity Model Integrated (CMMI)
Efficiency fulfilling
specified requirements
The CMMI a model of the maturity
of the capability of business
processes. A maturity model can
be described as a structured
collection of elements that
describe certain aspects of
maturity in an organization, and
aids in the definition and
understanding of an
organization's processes. CMMI
approach appreciates the use of
”Best practices”.
3580x/19.11.2008/jan
(*)
QuickTimeª ja
pakkauksen purkuohjelma
tarvitaan elokuvan katselemiseen.
(*) 573 pages
Waterfall model
There are various modified waterfall
models with slight or major variations
upon this process.
QuickTimeª ja
pakkauksen purkuohjelma
tarvitaan elokuvan katselemiseen.
3579/19.11.2008/jan
(Ref.: Winston W. Royce 1970)
Miten ymmärtää kypsyysajattelua?
Maturity:
• the state of being mature
• ripeness
• full development
• perfected condition
Onko maturiteetti oikein tavoitteena?
Tapahtuuko kehittyminen portaittaisesti?
Eikö Best practice = Past practice?
Mikä on suljettujen ennalta määriteltyjen
yleiskriteerien dynamiikka?
Kypsyminen:
• Jatkuva portaittainen kehittymismalli (*)
Maturity model
• Laatukäsitteistö rajattu
• Based on best practices = past practices
• Sertifiointi
Arviointi
• Suljetut ON/EI kriteerit
xxxx/8.4.2009/jan
(*) Systematic, structured way to approach model-based process
improvement one maturity/capability level at a time. Achieving each level
ensures that an adequate process infrastructure has been laid as a
foundation for the next stage. Achieving each maturity level ensures that
an adequate improvement foundation has been laid for the next maturity
level and allows for lasting, incremental improvement.
A capability level 5 process is characterized as an optimizing process.
The process is improved based on an understanding of the common
causes of variation inherent in the process. The focus of an optimizing
process is on continually improving the range of process performance
through both incremental and innovative improvements.
Terminological nonconformity in the CMMI and ISO 9000
CMMI
quality The ability of a set of inherent
characteristics of a product, product component,
or process to fulfill requirements of customers.
requirement (1) A condition or capability
needed by a user to solve a problem or achieve
an objective. (2) A condition or capability that
must be met or possessed by a product or
product component to satisfy a contract,
standard, specification, or other formally
imposed documents. (3) A documented
representation of a condition or capability as in
(1) or (2).
quality management
---quality assurance A planned and systematic
means for assuring management that the
defined standards, practices, procedures, and
methods of the process are applied.
xxxx/8.4.2009/jan
ISO9000
quality
degree to which a set of inherent characteristics
fulfils requirements
requirement
need or expectation that is stated, generally implied
or obligatory
quality management
coordinated activities to direct and control an
organization with regard to quality
quality assurance
part of quality management focused on providing
confidence that quality requirements will be fulfilled
Business leaders’ key interest: How could sustainable
success be possible in business in practice?
Business leaders are interested in growth:
Industry
average
Value growers
Underperformers
Profit seekers
Industry
average
Revenue growth (%)
Simple growers
Market value growth (%)
1729/8.9.2007/jan
(*) A T Kearney
General conclusion from a recognized world-wide
study (*):
Revenue growth is the primary driver behind the
creation of shareholder value over the long-term.
Value-building growth follows a specific pattern
with common company-internal factors.
Organizational development and growth
Revenue
growth
Average
Average
Market value growth
1915/11.9.2007/jan
Companies cannot
maintain continuous
growth simultaneously
both in revenue and
market value. However,
the revenue growth is
essential.
Transition phases in a transformation (*)
Perceivable
performance
7. INTEGRATION
Confidence - New attitudes
and behavior became
part of behavioral
2. DENIAL
repertoire
6. SEARCH FOR MEANING
Defensiveness - Retreat
Curiosity - Trying to
into false competence.
understand how and why
3. INCOMPETENCE
Denial of need
new behaviors are better.
Anger, frustration and
to change
confusion - Awareness
5. TESTING
that change is
Trying new approaches
necessary
and coping with risk of
but unsure
failure (trepidation)
what to do.
4. ACCEPTANCE OF REALITY
Sadness - Letting go to past
1. IMMOBILISATION
attitudes and behavior.
Shock - Mismatch between
Excitement - At prospect of
expectations and reality
improved performance
3171/2.12.2008/jan
(*) Ref.: Adams & al
Time
Conflicts, decay, succumbing
Necessary emphases in modern quality management?
1.
2.
3.
0
3456x/2.3.2008/jan
Integration:
–
Implementing effective / efficient and businessrelevant quality principles and methodology
embedded within organization’s normal activities
of strategic and operational management
Responsiveness:
–
Being able to adjust quickly to suddenly altered
external conditions, and to resume stable
operation without undue delay
Innovation:
–
Striving continuously for new organizationdedicated innovative and unique solutions and
encouraging various choices for quality
management in different organizations.
Quality management 
Quality of management
Dynamic and flexible
business management
Standard approach 
An organization’s unique
approach
Planning for the future: Hoshin (breakthrough) planning
Business environment
Past
(Given)
”Is”
Future
”Should”
Mid-term sight
Reflection, analysis
Last period’s
management
results
Management
process,
business
processes
Focus on
Vital few
Long-term sight
Vision
Facts
Change plan (*)
(What should be done in the next period)
1
1418/7.1.2007/jan (Ref.: Shiba)
(*) Hoshin (breakthrough) plan
2
Business crises in turbulent business environments:
“Authority without responsibility”
Typically business crises relate today to:
 Conditions of instability or danger, as in social, economic, or political affairs
 Unique situations that have reached difficult or dangerous culminating points
 Times of great disagreement, uncertainty, suspense or suffering
Today all these aspects are very typical and significant features of business environments to be
considered by business managers.
Prof. Richard Sennett: Ever-mutable form of capitalism,
“Mp3 Economy”:
 Drastic changes in corporate culture wrought by
downsizing, “re-orging”, and outsourcing
 Appreciation of reality where one should continuously
jump from task to another or at least have capability to
continuous change
 Erosion of certainty and the need to adapt to changing
circumstances
 Changes in work ethic, in our attitudes toward merit
and talent, in public and private institutions (“specter of
uselessness”).
 Craftsmanship and getting the job right seen as
negatively wasteful and obsessive.
3565/2.12.2008/jan
Prevailing and traditional quality
management means have not a lot
to help organizations in modern
business environments.
Business
environments
Speed
and society
Changes
Agility
Complexity
Problem
Diversity
Immaterialness
Quality
Variety
profession
Crisis in quality management
Time
Modes of operation
All business processes and activities consist of actions
with three concurrent dimensions comprising different
degrees of freedom and variety:
Variety
Diversity
Degrees of
freedom
1. Mechanistic
serial
automatic
accuracy
due order
2. Organic
complex, organized
interacting actors
networks
concurrent
communion
Operational and structural complexity
3
1754/27.1.2005/jan
(Ref.: Legat)
3. Dynamic
Complex, chaotic
spontaneus
responsive
innovative
virtual
variative
variable rules
personified
quantum leap
Balance between process and structure
Process
(acting):
Emergent,
realtime,
active,
skilled,
learned,
open,
alive
QuickTimeª ja
pakkauksen purkuohjelma
tarvitaan elokuvan katselemiseen.
Activity
AGILITY
MATURITY
Stiffness of
structure
Structure (being): Planned, built, controlled,
passive, trained, forcrd, closed, dead
4
3628x/3.1.2009/jan
Activities in complex responsive
processes of relating
Innovation
Low
All kinds of
activities
may exist
in business
processes.
Chaos
Agreement
Creativity
High
Anarchy
Debate
Political
control “Zone of
compromise Complexity”
Trial & Error
Standards
Guidance
Monitoring
Experimenting
Certainty
High
Low
Appropriate management actions should be selected based on the
degree of certainty and level of agreement on the issue in question.
5
3134/5.4.2006/jan
(Ref.: Stacey, Ortner)
6
How to manage complex responsive
processes of relating?
Process # n
Elements for managing complex
responsive processes of relating:
1.
Identity of the actor(s):
•
The set of characteristics
by which an item is
definitively recognizable
(e.g. a process plan)
• The item: Process / Activity
/ Automatic actor / Person
1.
Communication
Relationship of actors:
•
•
•
2.
Relationship
Level of agreement
Degree of certainty
Level of win / win
Communication between
actors:
•
•
•
•
3135/21.4.2006/jan
Open
Restricted
Closed
Fuzzy
(Ref.: Ralph Stacey, Marian Naidoo)
Process # m
If the relating processes are not clearly
identified (process plans), the situation
falls into pieces of interacting processinternal actors, and even may develop
towards chaos or anarchy.
(Some of the relating processes may be
hostile)
Agility to respond volatile business realities
Agility:
a comprehensive response to the business challenges of profiting from rapidly
changing, continually fragmenting, global markets for high-performance customerconfigured goods and services
Agility attributes:
– dynamic
– context-specific
– aggressively change-embracing
– growth-oriented
Agility versus maturity is a hot question of the modern business management.
7
1671/14.4.2007/jan
(Ref.: Goldman, Nagel & Preiss)
Agility or Maturity?
Agility school versus Maturity school:
Individuals and interactions  [Formal] processes and tools
Working solutions  Comprehensive documentation
Customer collaboration  Contract negotiation
Responding to change  Following a plan
Which one does create the best value?
8
3212/2.2.2009/jan
(Ref.: The Agility Manifesto)
9
Scrum methodology
Scrum is an iterative incremental process of product development commonly used with
agile development.
Daily 15 min. standup project
status meeting, ”scrum”
24 hours
Roles in Scrum:
- Pigs (committed): Product
owner, ScrumMaster
(facilitator), Team
- Chickens (involved): Users,
Stakeholders (customers,
Vendors), Managers
3581/15.10.2008/jan (Ref.: Takeuchi and Nonaka, 1986)
Product
Backlog
(Features
assigned
to sprint)
QuickTimeª ja
Sprintpakkauksen purkuohjelma
1...4 weeks
tarvitaan elokuvan katselemiseen.
Backlog
Prioritized product
features defined by
the customer
Sprint
New developed
product functionality
Breakthrough transformations as proposed by Dr. Shiba
QuickTimeª ja
pakkauksen purkuohjelma
tarvitaan elokuvan katselemiseen.
QuickTimeª ja
pakkauksen purkuohjelma
tarvitaan elokuvan katselemiseen.
QuickTimeª ja
pakkauksen purkuohjelma
tarvitaan elokuvan katselemiseen.
Managerial actions:
- Control (past)
- Continual improvement (present)
- Breakthrough (future)
0
3591/10.12.2008/jan
Transformation, a success factor
for a sustained business success
In strategic development there is a need for a largescale breakthrough change in performance of the
organization and its products.
Transformation is a radical discontinuous change.
Transformation means change of form, shape or
appearance.
The Greek word metanoia may be more suitable
than transformation. It means penitence,
repentance, reorientation of one’s way of operate.
Basically it needs a spiritual conversion.
Transformations are initiated and managed from the
strategic (top management) level of organization.
Transformations do not happen spontaneously but
by decisive actions.
1
3560/10.12.2008/jan
(Ref.: Deming, Shiba)
Performance
Transformation
Now
Time
Innovativeness in product realization
What is innovativeness about?
What is covered?:
- Product characteristics
- Product related processes
New
Why?
- For improving quality
(degree to fulfill needs and
expectations of the
interested parties)
How
Old
Old
New
What
2
3589/20.12.2008/jan
Technology and innovation
Technology:
- processes by which an organization transforms labor, capital, and information
into products (goods and services) to provide value for interested parties
(stakeholders)
(This concept of technology extends beyond engineering and manufacturing to
encompass a range of marketing, investment, and managerial processes. It
also includes quality management))
Innovation:
- a change in one of the technologies
3
1983/20.1.2003/jan
(Ref.: Christensen)
Sustaining versus disruptive technology
Sustaining technologies:
- technologies fostering improved product performance
(Development of sustaining technology may be discontinuous or radical in character or
of an incremental nature.)
Disruptive technologies (discontinuous innovation):
- technologies that result in worse product (technical) performance (at least in the near
term)
(Generally, disruptive technologies bring to market very different value proposition than
had been available previously. Generally, disruptive technologies underperform
established products in mainstream markets. But they have other features that a few
customers value. Products based on disruptive technologies are typically cheaper,
simpler, smaller, and more convenient to use.)
4
1984/20.12.2000/jan
(Ref.: Christensen)
The impact of sustaining and disruptive
technological innovations
Performance
Progress due to
sustaining
technologies
Performance demanded
at the high end
of the market
Performance demanded
at the low end
of the market
Disruptive
technological
innovation
Time
5
1986/20.2.2006/jan
(Ref.: Christensen)
How to solve the “Agility - Maturity Dilemma”?
Agility versus maturity is a hot question of the management and the quality
management of dynamic organizations:
– Agility means dynamic, context-specific, aggressively change-embracing,
and growth-oriented issues.
– Maturity means consistently continuously developed established and welldefined systems for management and operations.
The both approaches are needed simultaneously, but the big question is how.
Flexible and agile systematic approach is seen possible even from the quality
point of view when understanding the underlying features of business
dynamics and using new modern principles for business process management
and advanced information technology.
6
2950/11.11.2004/jan
Lao Tsu (*): Tao-Te Ching, Poem #26: “Lightly strong”
Solution to the maturity / agility dilemma:
“Gravity is the root of lightness;
stillness is the ruler of movement.
Therefore a wise prince, marching the whole day, does not go far
from his baggage wagons.
Although he may have brilliant prospects to look at, he quietly
remains in his proper place, indifferent to them.
How should the lord of innumerable chariots carry himself lightly
before the kingdom?
If he do act lightly, he has lost his root; if he proceed to active
movement, he will lose his throne.”
7
3366x/5.9.2007/jan
(*) c. 600 B.C.E.
The Law of Requisite Variety (*)
For any organization to be successful, a necessary and sufficient set of disciplines
(knowing people) must be in play. Each of these contributes a language that will frame
decisions and actions. The organization must also structure relationships between the
disciplines. Valid organizational design means putting requisite variety into play. It means
establishing relationships among the necessary and sufficient set of disciplines to
appropriately frame the conversations, decisions, and actions of the organization.
For appropriate regulation, the variety in the regulator must be greater than the variety in
the system being regulated. In other words, a system can desplay something only to the
extent that it has sufficient internal variety to represent it.
As a system moves toward equilibrium, it tends to become
increasingly efficient and insular, rejecting external input.
To increase efficiencies, it seeks to reduce variety. Therefore,
attempts to increase variety are likely to be misconstrued as
inefficient or even as a failure to execute.
8
3622/2.2.2009/jan
(Ref.: Sun, The little grey book) (*) W.Ross Ashby, 1954
Role of leadership and language
in organizations
An organization is a living organism. It is a set of conversations
among people.
Language is the defining environment in which an organization
lives. It is how those in the system reach agreement. Language
is a medium for organizational growth and change.
Narrowing language increases efficiency. A common shared
language helps the organization arrive at decisions more
efficiently.
Narrowing language increases ignorance. Constrained by a
limited vocabulary, the organization becomes unable to adapt to
fundamental changes in its environment. Unable to change, the
organization eventually declines. Ignorant of our own ignorance,
we cannot ask questions outside our own
language experience.
It is possible for an organization to learn and grow only if it
creates conditions that help generate new language. Using new
language, an organization may create new paths to productivity,
and regenerate itself.
9
3621/2.2.2009/jan
(Ref.: Sun, The little grey book)
The conversations necessary
for generating new opportunities
come from outside the system,
From the language that has a
different history.
This is often technically and
intellectually demanding and,
consequently, often dismissed.
Scoring guidelines for AD items
0
2271/2.1.2002/jan