Guest college given in 2003, to give an overview of models for Software Development & Management, and guidelines how to apply them to reach business results.

1. Improving the Performance of R&D Organisations,
using Models.
Hogeschool Zuyd, April 25, Heerlen
Ben Linders
Ericsson EuroLab Netherlands, Rijen (N.B.)
Ben.Linders@eln.ericsson.se, +31 161 24 9885
Ben Linders, Ericsson EuroLab Netherlands April 2003 1

2. Overview
What will I present:
– R&D Organisation Goals
– Models, purpose & application
– EFQM, CMMI and P-CMM model
– Conclusions
What can you learn from this:
– The business perspective in software development
– How models can be applied to reach goals
– How they have been successfully applied at Ericsson
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3. Ericsson EuroLab Netherlands (ELN)
• Worldwide Ericsson R&D company
• Wide product range:
– Base stations, UMTS
– Internet Applications
– Intelligent Networks and Services, Announcements
– Bluetooth, Business Cordless
• 850 employees, in the south (Rijen) and the east
(Enschede, Emmen)
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4. R&D Organisation Structure Ericsson
Market Units vs Product Units: Matrix Organisation
Design Centre (ELN)
– Design Units working for a Product Unit
– Development & Maintenance of Products (projects)
– Customer Support
Development Unit (7 within ELN)
– Product Management
– Architects
– Design Teams
– Test Teams
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5. Goals Ericsson EuroLab Netherlands
• Optimal Cost efficiency
• Excellent Customer Satisfaction
• Excellent Employee Satisfaction
• Excellent Operational Performance
• Strategic Flexibility/Positioning
Balanced Score Card, focus on Operational Performance
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6. Performance of R&D Organisations
R&D organisation must contribute to total business result by:
– develop products and services
– with acceptable quality
– on time, and with acceptable cost
R&D is controlled by:
Product roadmaps
Budget & delivery dates
Customer satisfaction & Product Quality
Measuring/controlling performance of R&D is needed!
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7. Controlling Performance R&D organisations
Steps:
Define goals & strategies
Set-up/adapt organisation
Perform R&D work
Measure and assess work against goals
Define actions where goals are not met
Looks simple ...
… it isn’t always so in practice!
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8. Models, what are they?
Merriam Webster:
– a usually miniature representation of something; also : a pattern of
something to be made
– an example for imitation or emulation
– a description or analogy used to help visualize something (as an
atom) that cannot be directly observed
A model can help an organisation to:
adopt best practices
provide a framework to assess performance
prevent re-inventing the wheel; save time and money
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9. Background of models
Models are made based upon:
Experiences/best practices from organisations
Study/research
Models
represent a standard
are owned & supported by a certain body
can be used as a “communication language”
A model must be applied before an organisation benefits!
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10. Kinds of models
• Business focused
– Malcolm Baldridge, Nederlands Kwaliteits Model (NKM)
– ISO 9000
– European Foundation of Quality Management Excellence Model
• Process focused
– Six Sigma
– SPICE
– Capability Maturity Models (CMM/CMMI)
• People focused
– People CMM (P-CMM)
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11. Business: EFQM
• Developed/maintained by the EFQM
• EFQM was formed 1988, first quality award in 1991
• Consists of areas describing enablers and results
• Focus upon improving business results
• European standard for quality, used widely within Ericsson
More info: http://www.efqm.org/
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12. EFQM: Overview
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13. EFQM: Strengths & Weaknesses
Strengths
Focuses upon business results
Broad and overviewing model
Linking Balanced Scorecard aspects
Weaknesses
High level, does not always provide hands on solutions
Main purpose: Continuously improve business results
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14. EFQM: Ericsson Experiences
EFQM has been used to define the Ericsson quality
system (together with ISO 9001).
Has helped Ericsson focus upon business results, and the
drivers important to reach these results
Helped introducing the Balanced Score Card, which is now
an important tool for goal setting
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15. Process: CMMI
• Developed/maintained by the Software Engineering
Institute, at Carnegie Mellon University, Pittsburg USA
• First version (CMM V1.1) in 1993, currently CMMI V1.1 (Q2 2002)
• 5 maturity levels, with process areas that describe practices
• Several assessment methods
• Supported by many (consultancy) organisations
• Defacto worldwide standard for software/system development
More info: www.sei.cmu.edu/cmmi/
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16. CMMI: Overview
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17. CMMI: Strengths & Weaknesses
Strengths
Build from experiences of many software organisations
Many detailed descriptions of practices
Used by many organisations
Weaknesses
No direct focus on business results
Main purpose: Improving R&D processes
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18. CMMI: Ericsson Experiences
CMM/SW has been used from 1994 onwards.
Ericsson Rijen was first Ericsson (and European?)
company to be assessed on level 3 in 1995.
Level 4 assessment in 1998, assessment helped unit to
focus more on business benefit
CMMI pilot assessments in 2000 (early adopter)
Has helped Ericsson to define software processes, and to
assess and improve them.
Results have been accomplished both in projects and in
the process support organisation
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19. People: P-CMM
• Developed/maintained by the Software Engineering Institute, at
Carnegie Mellon University, Pittsburg USA
• Version V1.0 in 1995, current version V2.0 (Q4 2001)
• 5 maturity levels, with process areas that describe practices
• One assessment method, limited number of assessments done
• Supported by some (consultancy) organisations
More info: http://www.sei.cmu.edu/cmm-p/
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20. P-CMM: Overview
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21. P-CMM: Strengths & Weaknesses
Strengths
Integrated experiences/practices in people management
Focuses upon the “soft” issues
Weaknesses
Used only by a limited number of organisations, limited experience
Main purpose: People focus for R&D organisations
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22. P-CMM: Ericsson Experiences
P-CMM has been used from 1997 onwards.
Assessments in 1999 and 2001, used to improve Human
Resource Management within R&D
Results have been accomplished in teamwork and
communication.
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23. Applying Models
Instead of re-inventing the wheel, build a car using wheels!
Benefits:
Quicker results, with less cost
Focus upon application and results,
not on theory
Faster
Problems: Cheaper
Not invented here Better
Model interpretation
“We do things differently around here”
Resistance to change
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24. Dealing with Problems Applying Models
Signal: Resistance is always there, spot it.
Listen: Please tell me what the real problem is.
Ask/act: How can I help, what do you need?
Approach, discuss, solve
• You think we are different? Why?
• Shouldn’t we reuse what is available?
• We have to change, but we can discuss how!
• Look what we have reached. Let’s celebrate!
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25. Change Agents Toolbox
Main Skills
• Listening
• Motivating
• Stimulating Co-operation
• Evaluating
• Feedback Use with care
• • Advising
• Authority
• Persuasion
Patience
• Politics
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26. Conclusions
Business Focus
An R&D organisation has to assure that it delivers the right
products, with acceptable cost, on time, and with sufficient
quality. Otherwise the company will go out of business...
Model Knowledge
Models can help improving performance, but no model
covers everything. Combine, use what is useful.
Application
Focus must be upon applying models, and reaching results!
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27. Finally
• Have you learned:
– The business perspective?
– How models can be applied?
– Experiences from Ericsson?
• Any further questions?
Ben Linders
Ericsson EuroLab Netherlands, Rijen (N.B.)
Ben.Linders@eln.ericsson.se, +31 161 24 9885
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