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Slide 1
Objectives<=
/font>
Doing Things Right =
and
Doing The Right Things!<=
/b>
Understanding the
Competition
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing Questio=
ns (Strategic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
What Management Wan=
ts
Vendor Competition<=
/a>
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing
Rantings and Ravings (Strategic Need vs. Tactical Dept)
Outsourcing
Rantings and Ravings (Strategic Need vs. Tactical Dept)
Outsourcing=
Results from Real
Balanced Scorecards
Results from Real
Balanced Scorecards
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
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Slide 1
Objectives<=
/font>
|
|
|
10 Dimensional Mode=
l |
|
Understanding the C=
ompetition |
|
Understanding what =
Management
wants |
|
Examples |
|
Lessons Learned |
|
CSMS certification<=
/font> |
Doing Things Right =
and
Doing The Right Things!<=
/b>
Understanding the
Competition
|
|
|
|
|
Describe yourself 2=
-4 words |
|
Cowboys vs. Indians=
vs. Process
(vs. Warriors) |
|
CMM being used agai=
nst US |
|
Security vs. identi=
fy theft vs.
Offshoring (Risk) |
|
|
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
Company 1
|
|
Company 2
|
|
Company 3
|
|
Company 4
|
|
Company 5
|
|
Company 6
|
|
Company 7
|
|
Where is your IT pe=
rceived by
Mgmt? |
Outsourcing Questio=
ns (Strategic
Need vs. Tactical Dept)
|
|
|
Would you be intere=
sted in
saving $10M? |
|
Outsourcing Questio=
ns Back |
|
What Prod & Qlt=
y will they
guarantee? |
|
What Improvement wi=
ll they
guarantee? |
|
How will they do it=
? |
|
How will they prove=
it? |
|
Where can we visit?=
Just like packages. |
|
What if they (we) f=
ail? (3-5 yr marriage – prenuptial)=
|
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
“It doesn’t matter =
because they
are only |
|
¼ of the cost.” -<=
span
style=3D'mso-spacerun:yes'> Still Political Decision. |
|
Business Case of O=
utsourcing. |
|
|
|
And they are CMM3, =
4, 5 –
Certification! |
|
Classes in Nebrask=
an English! |
|
CEO Bragging Right =
– |
|
5X Productivity, 1=
0X Quality! |
What Management Wan=
ts
|
|
|
|
|
On Time, Within Bud=
get,
Satisfied Customer |
|
No Surprises=
|
|
Managed Expectation=
s (Risks) |
|
Use Function Points=
for
Estimating |
|
Ask for Management =
Input |
|
Pre-Project Customer
Satisfaction Survey |
|
Trust, Comfort, Loy=
alty,
Reliability, TLC (sometimes) |
|
Cost (It’s not the =
only
factor.) |
Vendor Competition<=
/a>
|
|
|
Vendor A Vendor B<=
/font> |
|
Cost per Hour 75 50=
|
|
Hours to Develop 40=
,000 60,000 |
|
Total Cost 3,000,00=
0 3,000,000 |
|
Function Points 4,0=
00 2,000 |
|
Hrs per FP (Prod) 1=
0 30 |
|
Norm Cost per FP 75=
0 1,500 |
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
|
|
|
|
Lessons Learned |
|
Estimating<=
/td>
|
|
|
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
Understand Environm=
ent: |
|
Partial, All, Chargeback |
|
What is your Productivity Rate, Quali=
ty |
|
Rate, Unit Cost… (See Vendor Comp)=
? |
|
What is differentia=
l? Surtax?(Reqmt Volatility) |
|
What is strategy? |
|
If save $10M – 1 y=
r vs. 3 yr? |
|
Savings vs. new ce=
iling? No Ostrich! |
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
Potential Applicati=
ons: |
|
Non-Core,
|
|
Limping/stalled (r=
esources, $,
skills), |
|
Large backlog of d=
efects or
enhance, |
|
Migration to new t=
ech, |
|
Turnkey (Pkg + Sup=
p), |
|
Static Requirement=
s. |
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
Higher Risk:=
|
|
Requires business =
knowledge, |
|
High mgmt profile =
and/or
interaction. |
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
Questions and Challenges to Managemen=
t |
|
What if goals are=
n’t met? |
|
Commodity vs. Kno=
wledge? |
|
Experience Index?=
|
|
|
|
|
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
|
|
|
|
!!!!!!!!!!NEVER OUT=
SOURCE CHAOS!!!!!!!!! |
|
|
|
Cutting Cost vs. C=
utting
Chaos? |
|
Management: Proble=
m or
Solution? |
|
Can they answer th=
e BIG
question? |
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
|
|
|
|
|
|
|
!!!!!!!!!!NEVER OUT=
SOURCE CHAOS!!!!!!!!! |
|
|
|
Cutting Cost vs. C=
utting
Chaos? |
|
Management: Proble=
m or
Solution? |
|
Can they answer th=
e BIG
question? |
Outsourcing
Rantings and Ravings (Strategic Need vs. Tactical Dept)
|
|
|
Hall of Shame: Comm=
odity vs.
Knowledge |
|
Former #2 in Indust=
ry |
|
Cutting Costs, Cut=
ting Staff –
Bidding War |
|
Former #1 in Indust=
ry |
|
Yellow Pad<=
/td>
|
|
Kodak – Drop off Do=
w |
|
|
|
You Can’t Manage Wh=
at You Can’t
Measure! |
Outsourcing
Rantings and Ravings (Strategic Need vs. Tactical Dept)
|
|
|
Lead Charge of Meas=
uring |
|
Quality without Metrics is just
Cheerleading! |
|
Measures must be Lo=
w Overhead!(Big
book of graphs/ wallpaper) |
|
Benchmarking may b=
e overrated?(Interesting
vs. Insight) |
|
Certifications a b=
ane?(Allow
mgmt to pigeonhole us) |
|
Measures must be Fl=
exible and
Fast!(1,2 vs.10,12) |
|
Measures are often =
one time!(Strategic
vs Tactical) (M&I:40 peo, abuse) |
|
“What I really nee=
d to know is
…”(moving target) |
Outsourcing=
|
|
|
Experience Index |
|
10 X 10 =3D 100<=
span
style=3D'mso-spacerun:yes'> ($1M) |
|
( 9 X 11) + (1 X 1)=
=3D 100 |
|
( 5 X 11) + (5 X 1)=
=3D 60 =
<40%>=3DRisk! |
|
|
|
(5X100) + (5 X 50) =3D $750 <25%>=3DSave! |
Results from Real
Balanced Scorecards
|
|
|
Total Functionality=
(Food) =3D+76% |
|
Productivity (Bank, 5yr/annm) =3D+31% |
|
Quality (Telecom) =3D+43% |
|
Staff (Utility) =3D+22% |
|
Cost (Utility) =3D+10% |
|
Staff Support Rate
(AFP/FTE) =3D+60% |
|
Unit Cost ($53/AFP-=
$30/AFP) =3D
-43% |
|
TOP Index (Telecom) 103% |
Results from Real
Balanced Scorecards
|
|
|
Maintenance Hours (Fin) =3D+ 9% |
|
Maintenance Hr/Lev =
AFP (Fin) =3D
-19% |
|
Churn (Telecom) =3D+80% |
|
ROI (Mnfg) =3D+20% |
|
Usage (Service) =3D+20% |
|
Customer Satisfacti=
on (Tele) =3D+23% |
|
Value Index (Gov) =
=3D+12X |
|
Business Impact (Mn=
fg) =3D+42X |
Outsourcing (Strate=
gic
Need vs. Tactical Dept)
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10 Dimensional Model
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Understanding the Competition
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Understanding what Management wants=
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Examples
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Lessons Learned
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CSMS certification
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Doing
Things Right and
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Doing
The Right Things!
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![](3D"v3_slide0012_image008.gif")
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Understanding
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Describe yourself 2-4 words
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Cowboys vs. Indians vs. Process (vs. Warriors)
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CMM being used against US
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Security vs. identify theft vs. Offshoring=
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(Risk)
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![](3D"v3_slide0009_image009.gif") |
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Company 1
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Company 2
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Company 3
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Company 4
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Company 5
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Company 6
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Company 7
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Where
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On Time, Within Budget, Satisfied Customer=
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No Surprises
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Managed Expectations (Risks)
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Use Function Points for Estimating
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Ask for Management Input
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Trust, Comfort, Loyalty, Reliability, TLC (sometimes)
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![](3D"v3_slide0018_image019.gif") |
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|
|
| =
|
=
|
| <=
/td>
|
| =
|
Potential
Applications:
|
|
|
Non-Core,
|
|
|
Limping/stalled (resources, $, skil=
ls),
|
|
|
Large backlog of defects or enhance=
,
|
|
| Migration to new tech,
|
|
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Turnkey (Pkg + Supp),
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Static Requirements.
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![](3D"v3_slide0019_image020.gif") |
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|
|
| =
|
=
|
=
Higher Risk:
|
|
|
Requires business knowledge,
|
|
|
High mgmt profile and/or interactio=
n.
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|
|
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![](3D"v3_slide0021_image023.gif") |
|
|
|
| =
|
<=
/td>
|
|
!!!!!!!!!!NEVER
OUTSOURCE CHAOS!!!!!!!!!
|
|
Cutting Cost vs. Cutting Chaos?
|
|
|
=
Management: Problem or Solution?
|
|
|
=
Can they answer the BIG question?
|
|
|
|
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![](3D"v3_slide0022_image024.gif") |
|
|
|
| =
|
<=
/td>
|
|
!!!!!!!!!!NEVER
OUTSOURCE CHAOS!!!!!!!!!
|
|
Cutting Cost vs. Cutting Chaos?
|
|
|
=
Management: Problem or Solution?
|
|
|
=
Can they answer the BIG question?
|
|
|
|
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<=
/td>
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/td>
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/td>
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Experience
Index
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10
X 10 =3D 100 ($1M)
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( 9
X 11) + (1 X 1) =3D 100
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( 5
X 11) + (5 X 1) =3D 60 <=
/b><40%>=3DRisk!
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(5X100) + (5 X 50) =3D $750 <25%>=3DSave!
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| =
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Results
from Real
|
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|
Balanced Scorecar=
ds
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| =
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=
Total
Functionality (Food) =3D+76%
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=
Productivity (Bank, 5yr/annm) =3D+31%
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=
Quality (Telecom) =3D+43%
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=
Staff (Utility) =3D+22%
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=
Cost =
(Utility) =3D+10%
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Staff
Support Rate (AFP/FTE) =3D+6=
0%
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Unit
Cost ($53/AFP-$30/AFP) =3D
-43%
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TOP
Index (Telecom) 103%
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Results
from Real
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Balanced Scorecar=
ds
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| =
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=
Maintenance
Hours (Fin) <=
/b>=3D+ 9%
|
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Maintenance
Hr/Lev AFP (Fin) =3D
-19%
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Churn (Telecom) =3D+80%
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ROI (Mnfg) =3D+20%
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Usage (Service) =3D+20%
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Customer
Satisfaction (Tele) =3D+23%
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Value Index (Gov)=
=3D+12X
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Business Impact (Mnfg) =3D+42X
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![](3D"master04_image030.jpg")
![](3D"master04_image031.gif")
•
“Outsourcing”
Fighting Back
DEVELOPMENT SUPPORT CENTER, INC.
People Leveraging Technology
14250 oak dale suite 150
elm grove, wisconsin 53122
(262) 789-9190
www.functionpoints.com
e-mail B.Hufschmidt@functionpoints.com
Bill Hufschmidt, CFPS, CQA, CQE
Professional Metrics Consultant
President
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Doing Things Right and
Doing The Right Things!
•
![](3D"slide0012_image033.jpg")
Tactical
Efficiency & Effectiveness<=
/span>
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3 Min
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In
today’s world there are only three measures that transcend every pa=
rt
of every business. Do you k=
now
what they are?
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Time,
Money and Software Functionality (also referred to as size).
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Many of
you (audience) only work the red dimension. If you want respect, you must co=
nnect
to the other nine. Metrics =
is
connection.
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More.
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Unders=
tanding
the Competition
<=
span
style=3D'color:#D69B80;mso-color-index:5;visibility:hidden'>
<=
span
style=3D'color:blue'>Describe yourself 2-4 words
<=
span
style=3D'color:blue'>Cowboys vs. Indians vs. Process (vs. Warriors)
<=
span
style=3D'color:blue'>CMM being used against US
Security vs. identify theft vs. Offshoring (Risk)
<=
span
style=3D'color:blue;visibility:hidden'>
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Outsou=
rcing (Strategic Need vs. Tactical Dept=
)
•Company 1
•Company 2
•Company 3
•Company 4
=
•Company 5
•Company 6
•Company 7
•Where is your IT perceived by Mg=
mt?
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3 Min
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7
Billion Transactions/month
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60,000
edits, number of tests =3D FP (from 1.2 power to squared)
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700
Procs
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Note:
Number of Test Scripts- Make stmt that they must report and review these =
with
mgmt. Reference Magdy Hanna=
.
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Make
them think!!!
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Outsour=
cing
Questions (Strat=
egic
Need vs. Tactical Dept)
•Would you be interested in saving
$10M?
•Outsourcing Questions Back
•What Prod & Qlty will they
guarantee?
•What Improvement will they
guarantee?
•How will they do it?
•How will they prove it?
=
•Where can we visit? Just like packages.
•What if they (we) fail? (3-5 yr marriage – prenuptial)
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3 Min
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7
Billion Transactions/month
|
|
60,000
edits, number of tests =3D FP (from 1.2 power to squared)
|
|
700
Procs
|
|
|
|
Note:
Number of Test Scripts- Make stmt that they must report and review these =
with
mgmt. Reference Magdy Hanna=
.
|
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Make
them think!!!
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