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18th Issue - May 2008
Eliminating Challenges in NPD – A PPM Approach

By Shivaji Mukthavaram / RajaRam Ramani
Semantic Space Technologies

Introduction

Today, the business dynamics of New Product Development (NPD) is harsh. Even the most successful product development companies are faced with complexities like keeping up with evolving standards, technology requirements, client / user demands, innovations and time-to-market. Other trend is product development cycles are getting shorter and shorter, and the successful ones are finding ways to deliver the most innovative, cost-effective solutions in the shortest span of time. Some of the key challenges in NPD are discussed below.

Challenges in New Product Development

The emerging best practice for NPD is to decouple product design and build (development) elements in the product life cycle. Separating the development process enables organizations to understand the value proposition of each stage and return on investment (ROI). The key challenges faced by NPD Company’s are as follows

Lack of real-time visibility into NPD project status in terms of time, resources & budget.
Lack of planning & poor definition of project scope and unrealistic timescales - Often project dependencies are discovered after project design phase is completed.
High turnover due to "burn out" of key project contributors because they are working on too many projects and spending too many overtime hours.

Frequent change of status of projects (i.e., moving from "active" to "on hold" to "top priority" and back) leads to increased resources & decreased productivity.
Lack of formal process to fully evaluate & prioritize NPD projects based on the greatest business benefit.
Product Life Cycle
Linking Business Strategy to New Product Development

To address the above challenges, NPD companies started to link their business strategy with product development by using Project & Portfolio management (PPM) solutions.

Project & Portfolio Management (PPM) is a term used by project managers and project management (PM) organizations to describe methods for analyzing and collectively managing a group of current or proposed projects based on numerous key characteristics. The fundamental objective of the PPM process is to determine the optimal mix and sequencing of proposed projects to best achieve the organization's overall goals.

For instance, at any point of time a project manager can identify the gap in demand and supply of resources in relation to the requirements of the project. For the higher management, PPM enables to identify mid and long tem viability of the projects and also helps in calculating ROI regarding investments.

Characteristic of PPM in New Product Development
Create "high resolution" project plans that accurately spell out, in vivid detail, the resources required to complete each task and activity.
Capture the actual hours spent by all project players in completing project tasks and activities.
Create summary tables showing planned and actual time spent by each person in the organization on every project to which he or she is assigned in order to demonstrate who's overloaded.
Document all incidents of resources that are "stolen" across projects, excessive overtime, large-effort-but-ultimately-useless projects, and so on.
By conducting project "post mortem" evaluations, gather information about how systematic PPM might have prevented problems and encouraged successes.
Benefits of PPM in NPD

PPM solution helps a product development company align its project workload to meet its strategic goals, while making the best use of limited resources. Furthermore, existing projects can be accelerated, terminated, or de-prioritized by the allocation or re-allocation of the resources that deliver project tasks. The following are some of the key benefits of PPM in the NPD arena

Faster response to changing conditions: Portfolios can be constantly reviewed and altered if necessary to produce the highest returns based on changing situations.
Improve overall NPD effectiveness through improved IT project visibility & historical insights.
Improve resource utilization through accurate exposure of project work loads.
Blending business and IT projects and treating both as contributors to the same goal.
Focus on what will achieve the product development rather than on the project itself.
Balances risk across all projects.
Justifies killing projects that do not align.
Increase the predictability of NPD project delivery: on time, on budget.
Maximizes the return on product development investments.
Increase competitive advantage.

The major benefit however is that PPM allows flexibility to meet changing circumstances and focus on quick deliverables & solutions that are totally targeted to achieve a particular outcome.

About SemanticSpace

Founded in 1997, SemanticSpace is a leading software services company that caters to diverse verticals. Since its inception, SemanticSpace has carved a niche for itself in the space of Project and Portfolio solutions, based on its extensive product development expertise and committed focus. SemanticSpace started working on product development in the late 90’s, since then it has refined and matured its processes and systems in line with the specific requirements of Project and Portfolio Management Solutions market. SemanticSpace’s “PPM Studio” is a collaborative, end-to-end, scalable, enterprise solution that helps organizations in managing projects from inception to delivery.

Authors: Shivaji Mukthavaram / RajaRam Ramani

 
Overcoming Blinkered Vision

Maximize efficiencies in delivery through aggregating sub-process efficiencies in large development groups
By Srinivas Konedina ADP India Pvt. Ltd.

Background

Products are of varied nature. Some of the factors that bring about the variation are size (build size, functional breadth, workflow complexity), market they address (shrink wrap, web offering, enterprise solution) and their revenue models (one-time sale, pay-as-you-go, act as media). Each of these factors comes out in different magnitudes and a combination of these determines the nature of a product. In addition to these, aspects like geographical distribution of teams that contribute to building play a significant role. One of the most critical components of making a successful product is achieving efficiency in software product development with the often talked about goal of “delivering within time, quality and budget”. Software development has matured over the years and in doing so has produced several development methodologies. This has enabled the development owner to choose an appropriate methodology considering the various factors and the context of development.

These methodologies look at the big picture, split the entire process into sub-areas and provide detailed processes that optimize those.

Challenge – Blinkered Vision

One of the key decisions that the development owners make is about choosing the right development process and structure the groups accordingly. This involves striking a good balance between keeping focus on the big picture and obtaining efficiencies in the sub-processes. While it is easier to manage when the group size is smaller, it manifests into a bigger challenge as the development groups (includes marketing, service etc) grow larger.

In large development teams, there is a strong need for clear team structure. On a practical note, one would see team leads, managers managing three/four teams and we may even have senior managers getting to manage multiple of these large teams. While one may argue over the need for several layers of management and that it should be a flat structure, in reality we tend to see this more often. For teams that need to continue for fairly extended period of time, unless there is enough leadership bandwidth, it is difficult to sustain the passion and motivation of the teams to consistently deliver. In many cases, especially in large organizations, large groups with their structures already exist and although desired, it may not be possible to dismantle existing structures and form ones that are ideal.

To ensure that all the teams perform to their optimal levels, team goals are arrived at and tracked on a continual basis. These teams are lead by the leaders who themselves are strong contributors and have evolved to this role due to their excellent abilities in managing their deliveries. They also are specialists in their areas of work (development, business analysis, testing etc.) and constantly look at improving efficiencies in their teams for optimal deliveries. As desired, these teams work towards these goals and put in their best to make sure that their goals are met/exceeded. In an ideal scenario, each of these team goals should roll-up into the overall product goal. However, it becomes very difficult to achieve the ideal scenario.

As the teams get focused on their meeting their targets and excelling in their own areas, they exhibit strong sense of ownership of their targets and work towards outperforming those goals. This and probably the very nature of “team” create a kind of “competition” among the teams. Unintentionally and unfortunately, this “competition” slowly translates to “blinkered vision” among the teams and their leaders thus missing focus on the end delivery. Due to strong plan focus, each leader works towards ensuring that any changes to the delivery parameters due to their team issues are accommodated within the team. Meeting the plan is considered to be always “good thing”. While it is good, plans are plans and just the way that certain tasks take more resources than expected, some take much lesser resources than expected. Unless these gains are constantly realized and used in other areas that may need them, they are lost.

Our Endeavour

We embarked on developing a declarative development framework that was further used to develop and deliver a highly scalable financial services solution to a multinational bank. This involved building a declarative programming tool and a run-time engine that interprets and executes the solution defined with the declarative tool. The framework was an implementation of distributed server architecture on J2EE platform and depends on the platform to deliver persistence, database independence and scalability. Business logic is componentized and enabled as Enterprise Java Beans that can be deployed on any EJB container. Extensive support for building a complex User Interfaces is provided. Capabilities include built-in templates for capture, edit, enquiry and reporting of the underlying business entities. Actual screens are dynamic in nature and driven by configuration. The term configuration encompasses various configurable capabilities of the interface like different UI technologies, look & feel, validation on captured data (both business as well as standard), dynamic rendering of UI components, various screen layouts etc.

Development and delivery of framework and solution spanned over 7 years with about 300 person year effort that went through all stages (inception to production) of a product development life cycle. This also involved close to 100 associates spread across two locations working in different teams of Client support/implementation, business analysis, project management, development (declarative tool, runtime engine, and application) and testing.

We adopted an incremental software development approach and as the groups became larger, we started experiencing issues of “Blinkered Vision”. Discussions like “we have been sticking to our plan but other team is always exceeding their plan due to which we have to squeeze our efforts/schedule” were not unheard of.

Approaches that worked for us

To overcome the challenge and to achieve our end goal, we had several brainstorming sessions within the leadership team that resulted in adopting the following two approaches.

Improve collaboration among the leaders and their teams
Go-live focus

Effective collaboration is a key to success in any large organization. This is covered in great length in all leadership trainings. Building strong relationships among the leaders and associates across is critical to have effective collaboration. Constant meetings, involving all leaders in issues that may come up in any team were some actions that helped build strong relationships. At a team level we took some measures to make it more effective. This involves simple (but sometimes hard to do as it effects team morale) steps like co-locating associates working on the same functionality. This helped breaking the typical grouping (testers sit at one place, Business Analyst sits at a different place, developers sit at one place) and brought a coherent view of issues and requirements. Number of testing rejects and developers closing the issues as “non-reproducible” has come down drastically thereby reducing the cost of poor quality.

A daily email update on the status was sent to all associates apart from an executive summary (6 parameters and qualitative view of where we are with respect to go-live) to the senior management. This enabled clear and transparent communication to all stakeholders, a critical element of collaboration.

Go-live Focus concept was brought in to ensure that all participating teams are working towards getting the product into the customer’s use. Following are some of the significant items that helped us deliver our product earlier than scheduled.

All enhancements and issues should be taken up for development only if not fixing them will stop go-live. Each of these issues/enhancements to be validated by users only (not Business Analyst/ Tester etc). Criticality and priority levels are generally defined (rather inherited) and are used to determine which items are to be taken up for development. These are typically assigned by Business Analyst / Test lead since they understand it from a functional view point. However, generally these perspectives are focused on the product (especially from long term perspective). Getting a validation from the user about the need for this is essential and we have seen that our views were corrected several times. This also brings in confidence, to both user and product team, about the value what we are delivering.
Every effort should be made to bring the go-live date forward. This helped us to continuously look for gains in the execution and in one of the deliveries we went live couple of weeks earlier. Due to the constant focus on beating the plan, chances of slipping the date are very low and when we do deliver before time, it demonstrated to them that we were working towards their success there by significantly increasing their confidence.
Daily go-live status meeting where all leads (not only managers) meet for 30 mins for status review. This includes client side implementation specialists and the client-side delivery manager. This greatly enhanced confidence in each other about their commitment to the go-live.
Any item that misses the planned date will have all associates working on it present in the meeting. This brought enough seriousness into the group about resolving the issue by working amongst themselves.
Incentivize for any gains made by each group

Like all good things in life, these two approaches look simple but a sustained implementation over a long period of time across large groups required quite a bit of effort, focus and dedication across several levels of leadership. These also have undergone several changes during the implementation based on the feedback and effectiveness of some of the activities.

With a strong commitment and a great dedication of the participating teams, this solution was delivered in several phases. While the first delivery took longer than expected (6 to 8 months delayed), subsequent deliveries were done at a regular interval of three months with the changed model. Success of the above deliveries reinforces our belief that Collaboration and Go-live focus can break the “Blinkered Vision” in large development groups and provide efficiencies towards the end delivery.

 

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