Characteristics of Successful Development Organizations

Characteristics of Successful Development Organizations SDM Presentation October 19, 2007 J.C. Duh Russ Wertenberg -1- Outline • • • • • • Study ...
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Characteristics of Successful Development Organizations SDM Presentation October 19, 2007

J.C. Duh Russ Wertenberg

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Outline • • • • • •

Study Overview Operational and Developmental Approaches Re-orientation towards Development Best Practices Global Observations Summary

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Study Overview

Objectives: • Identify the characteristics and best practices of successful systems development organizations • Recommend actionable measures to help NASA transition to perform large-scale systems development

Three-pronged Approach: • Literature Survey • Interviews • Company Survey – Eleven companies and two NASA development projects

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Developmental and Operational Approaches DEVELOPMENTAL Non-real time, Discrete Dynamic, Unknown Strategic Engineering • Prevent/avoid problems Doing things right to minimize operational troubles •Many alternatives •Design •Starting basis (1st principles) •Function drives form •Familiar with state of the art

OPERATIONAL Temporal Thinking

Real-time, Continuous

Environment

Stable, Known

Risk Management Approach

Tactical

Problem Solving

Procedure •Work around problems

Process: Focus of control and leverage points

Doing the right things to ensure safe operations

Trade Space

Engineering Knowledge

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•Constrained options •Performance •Starting basis (bounded) •Form drives function •Familiar with existing design

Re-orientation towards Development CURRENT

Leadership: • Appreciate the differences • Communicate the differences • Reward development rigor and discipline

Project Management: • Process Rigor • Appropriate Trade/Option Space • Timely Decisions • Short Development/Feedback Cycles • Risk Tolerance

Knowledge Management: • Utilize mentoring and on-the-job training • Convert tacit knowledge into corporate knowledge -5-

DEVELOPMENT

Best Practices: Alignment, Rigor and Discipline Actively Manage Systems Architecture

Alignment

Program/Project Management Rigor & Flexibility Integrated Workforce Strategy

Use Standard Processes Consistently Implement System Engineering as a Unique Discipline

LEADERSHIP

Consistent Organizational Structures

Manage Workforce by Common Competencies

Common yet Flexible Toolsets Manage Infrastructure Corporately

Adequate IR&D Investment -6-

Align All Aspects of Business to Corporate Strategies and Goals

• An Integrated Business Strategy at the corporate level to articulate the long-term vision and goals, and how to achieve them • Ensure vertical and horizontal alignment whereby organizations and personnel at all levels can identify their place in the corporate (strategic and implementation) plan, and are aligned with main missions and vision – Learning Map • Outsource non-core business and minimize physical plant • Emphasize “corporate think” through Executives’ incentives -7-

Actively Manage Systems Architecture

• Architecture groups exist at multiple levels to provide single focal point for the lifecycle control and maintenance of the overall systems architectures to ensure consistency, and continuity • Use the systems architectures to provide roadmaps for engineering, production, and IR&D

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Base Program/Project Management Rigor and Flexibility on Complexity

• Smaller programs/projects use less “arduous” reviews, processes, and tools • Ex., Earned Value Management (EVM) and/or other “scorecard” metrics utilized but not on ALL Projects

• Schedule management is a key driver, cost and performance follow – Maintain “genuine” integrated schedule (e.g., tied to EVM)

• Monitor and manage ALL program risks (including strategic risk) • Program/Project Office size varies between 2% -10% of the total FTE depending on complexity

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Manage Workforce by Common Competencies Across Corporation

• Manage and deploy workforce as a corporate resource versus a site resource to reduce stovepipes and to optimize workforce utilization • Common competency classification applied corporately with UNIFIED leadership for each competency • 4 to 7 top-level competencies at corporate level, with 2 to 4 levels of breakdown underneath • Each person has one primary competency based on current job function

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Develop and Execute an Integrated Human Resources Strategy

• Integrated human resources strategy to maintain balance and meet current and future demands – Hiring/retention -- Training/development – Re-train/re-align -- Rigorous outplacement program

• HR focuses on strategic and trending analysis, a critical element at the corporate executive strategic team, farming out data entry and admin functions – Enabled by IT and personnel capable of trend analysis and workforce forecasting

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Structure Organization Consistently across Different Locations

• Consistent (not identical) organizational structure across the corporation • Multiple ways of organizing work : line organizations, project-centered organizations, Integrated Product Teams (IPTs), and matrixed form – Chose one and be consistent across corporation – Keys to Success: • Leadership * Product Focus

• Disciplined implementation of processes • Balance and integration between horizontal and vertical organizational elements • Strategic alignment of all functions at all levels

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Implement a Systems Approach at All Levels and System Engineering as a Comprehensive Discipline

• SE was a primary and critical function within the Programs • SEs well grounded in a discipline with ability to work at the system level • SE acted as the conduit between PMs and engineering • SE engaged at all levels of the program and throughout the project lifecycle • Established training programs to develop SE and to promote systems thinking

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Use Standardized Processes Consistently

• Well-defined and documented processes implemented on a consistent basis • Review and “challenge” approach to ensure processes remain relevant and viable • Framework allows tailoring to fit program/project – Customization identified, controlled, and documented against baseline (one size does not fit all) • Share quality control responsibilities with suppliers to streamline integration

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Standardize Tools with Necessary Flexibility

• Consistent effort to standardize a common toolset – Priority is on access and interface between tools – Tools are incentivized versus prescribed on contractors – Flexibility is key • Utilization of tool archive to ensure access to data and tools throughout project/program lifecycle • Standard MIS links key strategic elements to all levels of activity

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Fund and Manage Advanced Technology Development (ATD) for Future Viability

• All companies maintain an internal research and development (IR&D) budget (1% to 6% of sales) to stay ahead of the competition and/or to mitigate technology risk associated with future projects/strategic direction • IR&D aligned with company strategies and goals

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Manage Facilities and Infrastructure as a Corporate Resource

• Capital investment decisions made at Corporate level • Facilities and infrastructure managed as a business unit – Common corporate-wide (full cost based) cost allocation • Keep it simple: cost allocated per head or square foot – Consistent and clear lines of responsibility, authority and accountability – Some companies outsource facility and infrastructure management as non-core business - 17 -

Global Observations • Strong leadership is a common denominator in high performing organizations and in successful organizational transitions/transformations – – – –

Visionary Decisive Persistent Consistent

• Open, constant, and consistent communications are ubiquitous in all high performing organizations

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Summary: Alignment, Rigor, Discipline

ALIGNMENT Executive Legislative Headquarters Stakeholders

Mission Directorates Centers Other Gov’t Agencies Academia

Define & Articulate Vision, Mission, and Goals

Sy st em

sE

Architecture Workforce Org Structure IR&D Infrastructure

Core Business

ng in ee

rin g

Programs, Projects

Industry International Partners

Pr oc es

se s To ol s

Stakeholders Customers Public - 19 -

Products, Services, Information

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