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BRIDGING THE EAGLE'S EYE AND WORM'S VIEW - Collabera

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<strong>BRIDGING</strong> <strong>THE</strong> EAGLE’S <strong>EYE</strong><br />

<strong>AND</strong> WORM’S <strong>VIEW</strong><br />

Mosesraj R<br />

Practice Head-Quality<br />

<strong>Collabera</strong> Solutions, Bangalore<br />

<strong>AND</strong><br />

Smitha Thumbikkat<br />

Senior Lead, Quality<br />

<strong>Collabera</strong> Solutions, Bangalore


Abstract<br />

Acquiring clients is the biggest challenge for most mid-tier organizations. Retaining<br />

“clients for life” through consistent delivery is imperative in this competitive<br />

environment. However business goals pursued by management are not directly<br />

linked to delivery goals focussed on continually improving engineering performance.<br />

CMMi V1.3 helps align operational delivery goals with business goals of the<br />

organization. The OPI Council (comprising of Senior Management, Marketing and<br />

Quality heads) at <strong>Collabera</strong> took this challenge of aligning the business strategy<br />

empirically to performance goals like engineering, quality and on time delivery.<br />

Analysis of revenue growth, repeat business and proposal wins showed a significant<br />

correlation between Customer Satisfaction Ratings (CSAT) and these factors. Deeper<br />

analysis showed an interesting correlation between CSAT and engineering maturity:<br />

e.g. less than 2% defect slippage to customer and on time delivery, significantly<br />

improved the CSAT ratings; Greater than 5% defect slippage and greater than 3%<br />

schedule variance led to a poor CSAT rating.<br />

These relationships, along with industry benchmarks, were leveraged to set goals for<br />

the organization. These goals were communicated to the projects and improvement<br />

initiatives were launched on this basis. With over 80% of projects showing<br />

significant improvements vis-à-vis goals, recent CSAT has shown a positive shift.<br />

Introduction<br />

“Where there is no vision people perish” goes the famous saying. Vision and goals<br />

guide an organisation on the path to excellence. These provide the goal post for<br />

individuals and teams in the organization to get a sense of accomplishment.<br />

Organizations drive improvement programs and projects to inculcate a new<br />

behaviour for achieving these goals.<br />

According to an article published in the Wall Street Journal “Where Process-<br />

Improvement Initiatives Go Wrong” (Jan 25, 2010), nearly 60% of all improvement<br />

projects failed to yield desired results. Though there could be multiple reasons, one<br />

clear reason is the way change is imbibed across an organization. A complete<br />

understanding of the end objective through a well-structured goal that cascades<br />

down will help imbibe the new culture and guarantee success.<br />

Bridging the eagle’s eye and worms view


Mature organizations follow a balanced approach in<br />

setting their goals and are not confined to the<br />

profit/revenue syndrome. They set goals that<br />

impact financials, customers, people and operations<br />

to endure and compete in the long run. Though one<br />

would expect the goals to be imbibed naturally by<br />

everyone to the benefit of the organization, a<br />

survey by Franklin Covey shows just the opposite to<br />

be true (refer to figure 1). There is a need for goals<br />

to be communicated so that the workforce is aware,<br />

clearly articulated so that they can be understood<br />

and cascaded as meaningful targets to all levels so<br />

that there is a sense of purpose and achievement<br />

for every individual who contributes to the growth of<br />

the organization.<br />

This paper explores the practice adopted in<br />

<strong>Collabera</strong> and attempts to answer the questions below<br />

• How goals are connected from the<br />

practitioner level right up to the senior<br />

management in a seamless and<br />

meaningful way<br />

• How organisational initiatives are aligned<br />

to achieve specific goals<br />

• How the benefits translate thereof<br />

A Reality Check – Management View Vs<br />

Operational View<br />

A hypothetical, yet commonly confronted<br />

scenario in real life<br />

A highly enthusiastic project manager along with her team wanted to optimise the<br />

design and code of a long running maintenance project through refactoring<br />

mechanisms. Their objective was to help the team improve maintainability and<br />

support the client with faster resolution times for the project. In the initial stages, a<br />

management review wanted the team to focus only on delivery. They believed this<br />

would get them sustained revenue and also get some additional business. The<br />

team’s justification on the need and benefits thereof couldn’t help the cause as the<br />

management couldn’t connect their initiatives to overall goals. As a result, the<br />

initiative stalled and a new initiative to improve client relationship was brought in<br />

place.<br />

The above scenario led to the following results:<br />

• The right initiative being killed as it lacked alignment<br />

• Conflicting goals led to a fall in team motivation<br />

Bridging the eagle’s eye and worms view


The sad truth is that improvements and decisions are based on perception rather than facts.<br />

Figure 2 represents priorities across various levels in an organisation. In this era of<br />

spiralling competition, differing views and lack of alignment only contributes to the<br />

downfall of an organization. The issue of goal alignment is further exemplified in<br />

mid-tier IT organisations. These organizations have smaller immature client bases<br />

that lead to varying expectations and seemingly different priorities. Also these<br />

companies lack sufficient data to correlate the business goals to lower level<br />

processes. In many of these organizations, processes are often seen as constraints<br />

making process improvement more challenging. Thus the expectations like building<br />

trust in the client’s minds and delivery of best of breed high quality solutions remains<br />

a dilemma. However, the strategy of building “Clients for Life” and sustaining a long<br />

term value based relationship is only possible with high engineering maturity.<br />

The subsequent sections explore the approach adopted at <strong>Collabera</strong> to progressively<br />

translate the “Clients for life” vision to the entire organization.<br />

OPI Council<br />

<strong>Collabera</strong> formed a council comprising of senior<br />

business leaders in the organization to<br />

translate the business goals to operational<br />

targets and drive initiatives to achieve them.<br />

The team’s charter is given in figure 3. This<br />

team comprises of the head of delivery and key<br />

representatives from delivery groups, heads of<br />

technology, quality and marketing. This<br />

combination helps bring together views on<br />

industry perspectives, client expectations,<br />

emerging best practices and delivery<br />

challenges. This team considers the business<br />

strategies of the organization, derives and<br />

manages the delivery goals that would in turn<br />

help achieve the business goals of the<br />

organization. Also this team drives initiatives,<br />

meets monthly to review progress of initiatives<br />

and quarterly to review the overall performance<br />

and strategize new initiatives. A central<br />

SharePoint repository is maintained to manage<br />

the assets of the council.<br />

Charter of OPI Council<br />

Set performance goals of the organization<br />

Periodically review the organization level<br />

performance<br />

Compare organization performance with<br />

competition and industry benchmarks<br />

Identify the organization wide change<br />

initiatives to improve performance<br />

Sponsor and monitor the progress of the<br />

improvement initiatives<br />

The approach adopted by the OPI council is<br />

summarized in figure 4. The rest of the case<br />

study explains how these steps align with CMMI<br />

expectations and elaborates each step with<br />

examples.<br />

Bridging the eagle’s eye and worms view


CMMI and Goal alignment<br />

SEI’s model of CMMi ® helps improve engineering maturity and predictability in<br />

delivery. Though this model has been in existence for more than a decade, the<br />

latest version (CMMI® v1.3) strengthens the link between business strategy and<br />

operational performance.<br />

The changes in the latest<br />

version are given in<br />

figure 5. The latest<br />

version introduces a<br />

specific goal that<br />

addresses the following:<br />

• Identifies the correlation<br />

between business<br />

performance indicators<br />

and process performance<br />

• Understands<br />

an<br />

organization’s ability to<br />

achieve business goals<br />

• Identifies improvements to<br />

achieve these business<br />

goals<br />

<strong>Collabera</strong> adopted the CMMi<br />

model and aligned its practices with the new specific goal introduced as part of the latest<br />

version. Subsequent sections will elaborate how the intent of the practice was achieved.<br />

Business Performance Analysis<br />

<strong>Collabera</strong>’s vision is "Building client value for life". <strong>Collabera</strong> believes in being a client<br />

centric organization with long terms relationships and a competitive work force. This<br />

is summarized in our<br />

mission statement:<br />

"We deliver highly<br />

responsive and asset based<br />

business solutions that<br />

bridge our client's<br />

execution gaps through a<br />

culture of collaboration<br />

and shared commitments.<br />

Doing so, we create a<br />

dynamic environment of<br />

growth, advancement and<br />

learning for our employees<br />

and significant return for our stakeholders while accelerating the value delivered to our clients." This<br />

is translated into a three year rolling business plan with yearly targets on dimensions<br />

like financials, customers, people and operations. Every year <strong>Collabera</strong><br />

management conducts a sales meet and delivery offsite to crystalize the strategies<br />

Bridging the eagle’s eye and worms view


and targets for the subsequent year. The<br />

OPI council took these inputs and analysed Highlights of Opportunity Conversion<br />

Analysis<br />

the business performance. With the theme Proposal conversion is about 22% in<br />

“Clients for life” the team wanted to number terms.<br />

Conversion is higher in existing clients<br />

understand the following:<br />

Win% is accounts with high CSAT is twice<br />

1. Does CSAT influence business better than new accounts<br />

parameters like revenue growth and<br />

opportunity conversion<br />

2. What delivery indicators influence CSAT<br />

A positive response to the first question would prove that the organization is on the<br />

right path towards achieving its vision. This would make CSAT an effective indicator<br />

for better business performance which in-turn could be influenced by best in class<br />

engineering solutions and consistent delivery. A positive response to the second<br />

question would lead us to indicators<br />

that could be controlled for better<br />

CSAT. To test these hypotheses<br />

past data was consolidated and<br />

analysed.<br />

CSAT influence on revenue<br />

growth: The first parameter<br />

analysed was the sequential Q-o-Q<br />

growth of revenue along with the<br />

reasons for growth. Revenue<br />

growth in current accounts was<br />

correlated with CSAT performance.<br />

Following are the key findings<br />

• Steady revenue growth was<br />

driven by greater than 85% repeat business across all quarters. Spurt in Q3<br />

was due to the acquisition of a new client<br />

• <strong>Collabera</strong> retained the client base fairly over the period of analysis<br />

• All accounts that contributed to high business growth invariably have good<br />

performance on CSAT<br />

CSAT influence on opportunity conversion: Opportunity conversion is a critical<br />

measure for growth. Analysis showed that existing accounts have better conversion<br />

and accounts with higher CSAT<br />

have quite a high conversion<br />

percentage. Both these key<br />

business goals showed a high<br />

sensitivity to CSAT.<br />

CSAT Influencers: With CSAT<br />

showing a high influence on<br />

business indicators like revenue<br />

and opportunity conversion, the<br />

focus shifted to the identification<br />

of lead indicators that could<br />

Bridging the eagle’s eye and worms view


influence CSAT empirically. This would help set quantitative goals on influencing lead<br />

indicators. The framework for CSAT at <strong>Collabera</strong> for various attributes measured is<br />

shown in the inset figure 9. It is a survey based measure with scores on multiple<br />

dimensions. The survey is done at periodic intervals to understand customer<br />

perception. OPI council decided to identify the factors that influence overall<br />

satisfaction that would help proceed in further analysis.<br />

CSAT Analysis: The two cycles prior to mid-2010 were analysed. As shown in<br />

figure 9, CSAT questionnaire had aspects like requirements, solution, quality, on<br />

time, issue resolution and so on. Analysis was primarily to understand which of these<br />

factors impacts overall satisfaction the most. A simple bar chart with multiple<br />

variable inputs was used as the technique for analysis using minitab. Of the 20+<br />

parameters analysed, overall satisfaction showed high<br />

responsiveness to four parameters – requirements, technical<br />

solution, on time delivery and quality. Refer to the bar<br />

charts above for details – figure 10. The three key factors<br />

that impact CSAT are summarized in the inset figure 11.<br />

With the key factors identified, the team proceeded to<br />

ascertain if the project<br />

performance indicators<br />

like quality and on time<br />

delivery correlates with<br />

CSAT rating. Projects in<br />

different strata of<br />

performance levels<br />

showed demarcation in<br />

CSAT rating. Best in class<br />

and worst performance<br />

had no overlaps while the<br />

mid layer had overlaps.<br />

See the correlation of<br />

CSAT vs. on time delivery<br />

and quality in figure 12.<br />

Hence, the immediate<br />

Key CSAT Impacting lead<br />

parameters<br />

Quality of delivery<br />

On time delivery<br />

Engineering Maturity<br />

Bridging the eagle’s eye and worms view


target of the organization was<br />

to move all projects to perform<br />

at “good” level, while the vision<br />

is to achieve ‘best in class’<br />

performance levels for both on<br />

time and quality. Considering<br />

the engineering maturity<br />

dimension, the focus was on<br />

identifying one metric that<br />

could serve an indicator.<br />

Publication from SEI on defect<br />

detection distribution across<br />

maturity levels gave a view of<br />

such an indicator (see figure<br />

13). At level 5 maturity, pre-system test defect detection would be 85%. The OPI<br />

Council took this as a single indicator for engineering maturity.<br />

This would mean that the SIT and production defects would be quite low. We<br />

noticed from our analysis that high SIT defects led to high post-delivery defects (see<br />

figure 14). This validated the goal chosen for increasing engineering maturity. Thus<br />

the goals of the organization were<br />

• BUSINESS GOAL - Improve CSAT to high<br />

satisfaction levels of 4&5 on a scale of 5<br />

• ENGINEERING MATURITY - Pre-SIT defect<br />

detection levels greater than 85%<br />

• QUALITY - Achieve escaped defects to be less<br />

than 2% of the overall lifecycle defects<br />

• ON TIME DELIVERY - 100% on time<br />

Management members in the OPI<br />

Council conducted multiple road shows<br />

to communicate these goals to each of<br />

the teams. Measurement plans in<br />

projects were upgraded to cascade these goals to next level engineering targets.<br />

These steps ensured that the organization was seamlessly focussed on achieving the<br />

goals.<br />

Translating the organisation goals into engineering targets<br />

CRUX (an in-house process improvement methodology developed in <strong>Collabera</strong>) was<br />

the key vehicle in transforming<br />

organisation level goals to the<br />

next level. The crux of CRUX is<br />

its client centric performance<br />

driven approach, selection of a<br />

homogenous entity for driving<br />

improvements, clarity in<br />

ownership at the delivery group<br />

levels and a set of tools<br />

Bridging the eagle’s eye and worms view


prescribed for each phase.<br />

As these initiatives are driven at a client account level, the cycle time is typically<br />

short. As seen in the representation in<br />

Figure 15, the first and second stages of<br />

the CRUX-‘Critical area to improve’ and<br />

‘Recognise Lead indicators’ were the<br />

catalysts in setting up project goals and<br />

driving them down to the engineering<br />

targets. The first step aligns organisation<br />

goals like high engineering maturity,<br />

quality and on-time delivery to client<br />

account and identifies the critical areas<br />

for improvement. The second step<br />

identifies sub processes that could<br />

become lead indicators for predicting the<br />

goals of step 1. The detailed steps on how<br />

this drill down happens are shown in<br />

figure 16.<br />

The first cut analysis showed that more<br />

than 85% defect detection by unit test<br />

phase leads to less than 2% defects post<br />

delivery. Thus, the team focused on<br />

reducing SIT defects and went on with<br />

the identification of lead indicators and<br />

associated performance models. The process starts with identification of contributing<br />

processes that impact project goals. Then the process performance model (PPM) that<br />

would enable predicting the lag indicators is identified. This PPM could be available at<br />

the organisational level or at the project level depending on the lag indicator<br />

selected. Once this is identified, the associated lead indicators with the appropriate<br />

targets are finalised.<br />

Now, what does this mean to the project<br />

An engineer in the project, now understands and realises that structuring his code in<br />

such a way, by keeping the cyclomatic complexity to certain limits, reduces the<br />

amount of defects in the SIT phase, ultimately leading to the desired escape defect<br />

density which is an organisational goal.<br />

These predictions have been well integrated into the organisational processes. Head<br />

of units perform SPECTRUM reviews on a periodic/milestone basis. Based on current<br />

performance, models are used to predict outcomes and the probability of achieving<br />

the project goals are reviewed. This ensures that there is adequate management<br />

oversight based on facts.<br />

Driving organizational performance improvement initiatives<br />

Now that the goals have been identified, at an organisational level, the OPI council<br />

focussed at improving key processes across the projects in the organization. Inputs<br />

from senior management, CSAT and performance analysis are considered as inputs<br />

and analysed. This analysis helps identify potential areas of improvement for which<br />

Bridging the eagle’s eye and worms view


improvement initiative programs are<br />

identified. Framework elements (refer<br />

figure 17) that lead to identification of<br />

improvement initiatives are outlined below:<br />

o Capability Analysis: This is a direct<br />

comparison of goal vs. actual. Goals<br />

o<br />

o<br />

Framework for identifying initiatives<br />

Capability Analysis<br />

Regression & causal analysis<br />

Enable futuristic plans<br />

Adopting successful industry practices<br />

of the organization are compared with the performance baseline. A gap<br />

between the two would trigger appropriate improvement initiatives. Example:<br />

it was found that a lower percentage of defects were identified in phases<br />

prior to unit test than the goals of the organization. Initiative groups were<br />

identified to improve code reviews and unit tests across the organization. This<br />

initiative led to significant improvements in defects being found prior to the<br />

system test phase helping the organization achieve 2011 targets for pre-SIT<br />

defects<br />

Causal and Regression analysis: Code quality parameters such as<br />

cyclomatic complexity and branch statements made a strong correlation with<br />

SIT defects density. This was identified in the development cluster.<br />

Recognizing the fact that this is a lead indicator to the technical debt in the<br />

application, improving structural code quality is being driven across the<br />

organization. Based on this, objective standards for cyclomatic complexity<br />

and % branch<br />

statements are set<br />

and monitored across<br />

projects. Causal<br />

analysis across<br />

organization pointed<br />

to UI/cross browser<br />

defects formed a<br />

significant<br />

contribution to defect<br />

rates in SIT. This is<br />

being run as an ongoing<br />

initiative<br />

Futuristic: To build a<br />

resilient organization,<br />

initiatives are being<br />

identified to build organizational capabilities for future work. As per the goal<br />

of increasing the geographical footprint, Mobility and SharePoint 2010 were<br />

taken as key focus areas. Initiatives were taken around these technologies to<br />

build processes and methods to handle these projects. SharePoint 2010<br />

methodology has been piloted in the recent projects that helped achieve<br />

>90% defect pre-SIT and on time delivery. Dotnet4.0 has been launched by<br />

Microsoft. A team is working on a framework that would enable reuse and<br />

improve productivity across the organization.<br />

Bridging the eagle’s eye and worms view


o Adopting industry practices: Scanning of industry trends by the quality<br />

team helps study new trends in engineering practices in the industry. As a<br />

result of this, the Orthogonal Defect Classification (ODC) technique was used<br />

to select the right set of test cases. Most of the work in improving code<br />

quality was also inspired by industry research on technical debt.<br />

For each of these initiatives, ROI, resources, deliverables, risks and timelines are<br />

identified. All these are managed and tracked to initiative charters. A sample<br />

snapshot of the overall picture of goals set to their links to key initiatives is given<br />

in figure 18.<br />

Verifying Results<br />

These initiatives have led to a cultural shift in the way delivery is being managed and<br />

overseen across the organization. Results have been very compelling so far.<br />

• Across the organization, over 80% of projects have met engineering targets<br />

(sub process level goals) though they were quite stringent.<br />

• Since the launch of these initiatives, 100% of projects have gone on time<br />

• Pre-SIT goal of 2011 has been 100% achieved across projects.<br />

• Four improvement initiatives were closed with significant results, each of<br />

them improving<br />

baselines. Four other<br />

initiatives are in<br />

progress.<br />

• Interim CSAT figures<br />

show early indicators of<br />

CSAT improvement<br />

across key parameters<br />

of timelines, quality and<br />

overall satisfaction (See<br />

figure 19).<br />

Summary and Benefits<br />

Following are some of the key<br />

benefits we achieved as a<br />

result of the whole exercise.<br />

1. Visibility of progress towards organisational goals is objective, well<br />

implemented and seamlessly understood<br />

2. Because of the business goals connect, there is an obvious motivation across<br />

all levels with a sense of purpose<br />

3. The significant change brought about is that the person on the ground knows<br />

how they impact organisation goals. During a recent CMMI Level 5<br />

assessment, that <strong>Collabera</strong> underwent, this point came out as a strong<br />

contributor for high maturity behaviour.<br />

4. This has also helped build a performance culture in the organisation<br />

Bridging the eagle’s eye and worms view


With the success of this approach, this concept is being extended to other<br />

business goals as well. An initiative is being driven to consolidate all business<br />

indicators that would help build performance models across business dimensions.<br />

The benefits of adopting this approach would be immense!<br />

Author Profiles<br />

Mosesraj R<br />

Head of Quality at <strong>Collabera</strong> Solutions Private Limited<br />

Comes with over 14 years of experience<br />

Previously was associated with Infosys Technologies as Principal – Quality programs<br />

and with MRF Tyres as production officer. He has done his B.Tech in Mechanical<br />

Engineering from Government College of Engineering, Salem and M.S in software<br />

systems from BITS, Pilani. He was a key agent in shifting gears to high maturity<br />

journey in <strong>Collabera</strong>. Manages the quality team in <strong>Collabera</strong> and is the key thinker<br />

for change management initiatives<br />

Smitha Thumbikkat<br />

Senior Lead at <strong>Collabera</strong> Solutions Private Limited<br />

- 9 Years of Experience<br />

She was previously associated with Sobha Renaissance Information Technology as<br />

Quality Manager. She currently anchors strategic change management initiatives in<br />

<strong>Collabera</strong>. She is a B.Tech in Electrical and Electronics Engineering from Government<br />

College of Engineering under University of Calicut. She anchors the CSAT initiative<br />

and her key strengths include program management, managing improvement work<br />

groups, software quality and managing organizational change.<br />

Appendix<br />

• CRUX: In house methodology at <strong>Collabera</strong> to drive performance<br />

improvement.<br />

o C- Critical Area To Improve<br />

o R - Recognise Leading Factors<br />

o U - ensUre Stability<br />

o X - eXcellence<br />

• CSAT – Customer Satisfaction<br />

• OPI – Organisation Performance Improvement<br />

• PPM – Process Performance Model<br />

• SIT – System and Integration Testing<br />

• ODC – orthogonal Defect classification<br />

• ROI – Return On Investment<br />

• SPECTRUM : A comprehensive approach of account/project performance<br />

reviews by management<br />

References<br />

Bridging the eagle’s eye and worms view


• CRUX - <strong>Collabera</strong> methodology for High Maturity.pdf – presented as part of<br />

WoPSEM conference 2010<br />

• Management 9 th edition by Robbins<br />

• Why Six Sigma projects often fail - article on WSJ in January 2010 by Satya<br />

Chakravorty.<br />

Bridging the eagle’s eye and worms view


www.collabera.com<br />

Bridging the eagle’s eye and worms view

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