| Steps 14 and 15 constitute the last phase of the PICS model. They consist of freezing the improvements and gains and integrating and expanding the initiative, respectively. These two sets of activities are meant to secure the initiative as the organization's way of life. This is what Jack Welch calls embedding in the company's DNA. Step 14: Freezing the Improvements and Gains Chapter 5 discussed Kurt Lewin's Force Field Model and his Three-Step Model of Permanent Social Change (see Figures 5.2 and 5.3). We believe these are powerful tools to analyze and drive change in large social systems. They remain our preferred means of doing so. As we stated in Chapter 5, such changes are difficult to introduce and sustain without positive driving forces such as the organization's reward system and leadership support. At GE, 40% of bonuses and promotions are dependent on Six Sigma project results. Furthermore, MBBs and BBs are accorded high standing. Such changes can be accomplished much more easily if the CEO and the top management team embrace those changes and make the initiative a big deal. They should start by linking their own reward system and promotion prospects to successful implementation of the initiative and by embracing the changes it entails: change yourself first. That works unlike anything else we know of. Step 15: Integrating and Expanding the Initiative This is a crucial last step. Successful integration determines the initiative's ultimate success. Chapter 5 introduced the broad issues related to DFTS integration, and they merit elaboration. The need for integration is best understood if you consider the following: Different quality systems have a different format, structure, and objectives. It is not clear which system serves a given purpose best (such as in selecting outsourcing partners). Maintaining different systems may result in duplication, cause confusion, and cost resources.
Integration may become quite complicated if it was not part of the initial deployment planning and if the organization has competing quality systems in place. It is perfectly fine for an organization to have a number of quality systems, so long as they serve particular needs that are not unduly conflicting. Table 21.4 describes different quality systems common in software companies. These may serve distinctly different needs. They can coexist and create synergy if integrated properly so that they serve customers and other needs even better. Integration also provides opportunities to eliminate duplication and redundant practices. It is advisable to have an internal quality management framework that all new deployments can be integrated into (see Case Study 21.2). Yang proposes an integration model consisting of management principles, implementation practices, and cultural changes.[13] Table 21.4. DFTS Vis-à-Vis Other Quality Initiatives in the Software IndustryQuality Initiative | Description | Focus of the System |
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DFTS | An integrated software development methodology that includes the Iterative Robust Software Development Model, Robust Software Design Optimization Engineering, and Object-Oriented Design Technology. Uses a six-phase RDCVIM model. Meant specifically for trustworthy software development. Led by the CEO and top management, with emphasis on optimizing total life-cycle cost, quality, and cycle time. | Upstream phases, iteration with users and between phases, early risk analysis, design optimization, and use of appropriate software technology. | DFSS | A generic methodology for product, service, and process design. Uses the five-phase MADV/IDDOV model. Meant for design/redesign of high-impact projects. Led by the CEO and top management. | Upstream phases, interaction with users, early risk analysis, and design optimization. | Six Sigma | Generic customer-focused process improvement. Uses the DMAIC model. Meant for any product or process improvement. Led by the CEO and top management. | Key bottom-line-driven short projects. Involves rapid change. Works best when short-term goals are aligned with long-term goals and strategy. | TQM | Customer-focused quality management system. Origins in the Japanese CWQC. Decentralizedled by managers across the organization. Quite popular in 1980s and 1990s. In decline now. | Organization-wide continuous improvement in all products, processes, and systems affecting customer satisfaction. Focus on the long term. | SEI Capability Maturity Models | Model | Description | Focus of the Model | CMMI® | Helps integrate separate functions, set improvement goals and priorities, provide guidance for quality processes, and serve as a reference for appraising capability. Consists of four integrated models: System Engineering (SE), Software Engineering (SW), Integrated Product or Process Development (IPPD), and Supplier Sourcing (SS). Incorporates SCAMPI Appraisal Method and Six Capability Levels. SCAMPI Lead Appraisers™ and appraisal for maturity levels are available. | Improvements to attain higher capability maturity across the four models: SE, SW, IPPD, and SS | PCMM® | Helps address critical people issues in a software context. Introduced in 1995. Replaced by version 2 in 2001. PCMM Lead Assessors and appraisal for maturity levels available. | Best practices in HR, knowledge management, and organization development. Five maturity levels. | ISO Standards | Standard | Description | Focus of the Standard | ISO 9001:2000 | An international quality management system. The most popular generic quality standard worldwide. Replaces the 1994 version. Independent third-party audits and certification are available. | A set of five quality standards based on eight principles: customer focus, leadership, involvement of people, process approach, systems approach to management, continual improvement, factual approach to decision making, and mutually beneficial relationships with suppliers. | ISO 17799:2005 | Information security techniques. Replaces the 2000 version. Contains code for best practices for information security management. Not designed to be a certification standard. | Establishes guidelines and general principles for initiating, implementing, maintaining, and improving information security management in an organization. | ISO 14001 | A generic international environmental management system consisting of standards and tools. A few software developers have implemented the system with a view to understanding their clients' environmental management activities and requirements. Independent third-party audits and certification are available | What the organization does to minimize harmful effects on the environment caused by its activities and to continually improve its environmental performance. | Other Standards | Standard | Description | Focus of the Standard | BS 15000-1: 2002 | Provides recommendations for IT service management. Is relevant for those responsible for initiating, implementing, or maintaining IT service management in their organization. It specifies a number of closely related service management processes. | Promotes the adoption of an integrated process approach to effectively deliver managed services to meet business and customer requirements. It specifies a number of closely related service management processes. | BS 15000-2: 2003 | Describes the best practices for service management processes within the scope of BS 15000-1. BS 15000-2 represents an industry consensus on quality standards for IT service management processes. | Delivers the best possible service to meet an organization's business needs within agreed upon resource levelsservice that is professional, cost-effective, and with risks that are understood and managed. | Quality Awards | Award | Description | Focus of the Award | Malcolm Baldrige | An award for U.S.-based organizations or units for outstanding achievements in seven areas. The winner gets a review, feedback, and a competition-based award. | Based on a review by business and quality experts of the following reward criteria: leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resources focus; process management; and business results. | EFQM | An award for European or Europe-based firms for excellence based on the EFQM Excellence Model that can be used for self-assessment, benchmark, improvement, vocabulary, and management structure. | Based on a review of the TQM framework of five "enablers" (leadership, people, policy and strategy, partnerships and resources, processes) and four "results" (customers, people, society, and key performance). | RGNQA | An award for organizations based in India. The criteria are similar to those for Malcolm Baldrige, the Deming Prize, and the European Quality Award. | Based on nine criteria: leadership; policies, objectives and strategies; human resources management; resources; processes; customer-focused results; employee satisfaction; impact on environment and society; and business results. |
Integration of Management Principles The integration of management principles involves asking the following questions: What are the differences and similarities between DFTS tools, techniques, and methodologies and those of existing systems? What new best practices have emerged from the DFTS deployment that have a substantial impact on quality, life-cycle cost, delivery schedules, internal efficiency, and motivation of people? What changes can substantially improve the value of other quality initiatives? What changes can substantially enhance DFTS effectiveness and value by using best practices from other systems? What tasks can be eliminated or merged as a result of this analysis? What synergies can be identified between DFTS and other systems, and what are their values?
This analysis can be further enhanced by including external best practices. Integrating Implementation Practices Here we are concerned with how we can integrate and share the elements of DFTS and other quality systems. The elements that should be considered are employee participation, teamwork, training, human resources management, reward system, communication system, quality principles, objective, strategies, project management, statistical tools, and CEO support. It is also important to identify elements that are not common. Integrating Cultural Changes This has to do with identifying the organization's underlying vision, mission, values, and beliefs and how they are congruent with the DFTS process and other initiatives and practices within the organization. More specifically, it involves determining what behavioral and cultural issues are critical to performance. These are not always formally addressed, but their understanding is crucial to the initiative's viability and often the enterprise's long-term vitality as well. Case Study 21.2 illustrates how these changes relate to an organization's strategic differentiators and various quality initiatives over several decades. Chapter 27 is a case study in which well-known quality and other management tools such as Consumer Encounters, New Lanchester Strategy, Kansei Engineering, Theory of Constraints, TRIZ, Voice of the Customer Analysis, FMEA, SPC, and other methods can be integrated into the new-product development process. Another important aspect of integration has to do with the initiative's total assimilation into the organization's way of life. GE accomplishes that through its Operating System, discussed in Case Study 21.1. The CEO and the top management team must give the initiative their total and undivided attention for a number of years to facilitate its integration methodically into the organization. Case Study 21.2: Quality Initiatives and Their Integration at TCS[14], [15] In August 2004, Tata Consultancy Services (TCS) achieved an integrated enterprise-wide Maturity Level 5 assessment on both the Capability Maturity Model Integration (CMMI®) and the People Capability Maturity Model (PCMM®). A subsidiary of the Tata Group, the largest Indian conglomerate, TCS thus became the first company globally to achieve that double feat. TCS is the largest IT services company in India. It has been a pioneer in the offshore IT delivery model since 1974. Over the years it has grown into a global IT services organization employing over 45,000 associates in 47 counties across five continents. It has a market capitalization of over $14 billion and serves organizations worldwide, including seven of the top ten Fortune 500 companies. Its diverse services include consulting, IT services, asset-based solutions, IT infrastructure, engineering and industrial services, and business process outsourcing (BPO). TCS has long been admired as an outstanding organization and was ranked number 1 across industries in the Hewitt-CNBC India Survey for 2004. Its IPO was named "Best India Deal" by Finance Asia, Hong Kong. TCS enjoys a strong corporate culture emphasizing "helping the customer achieve their business objectives by providing best-in-class services." More than 75% of TCS's customers reward the company's reliability, passion, creativity, and unique ability to handle the broadest range of their IT needs by continually extending and deepening their partnerships with TCS.[16] Vision Global Top 10 by 2010 Mission To help customers achieve their business objectives by providing innovative, best-in-class consulting, IT solutions, and services. Make it a joy for all stakeholders to work with us. Values Integrity Leading change Excellence Respect for the individual Learning and sharing
Key Differentiators Truly global Superior execution Ability to deliver large-scale integration projects globally Ability to scale Strong people management Superior client relationships Continuous investment in R&D
The company's quality initiatives can be traced to the early 1980s, when internal quality standards began to be formalized. In 1993, the company received ISO 9001 certifications for a few units, which subsequently were extended enterprise-wide. It has held to ISO 9001 corporate-wide certification through yearly audits. In 1994, the company decided to build CMM capabilities. In 1998 one of its units was assessed at Level 5. Subsequently, it also got assessed successfully for PCMM at Level 5. During the intervening years, the company adopted its internal Tata Business Excellence Model (TBEM) and won the Tata Group's internal JRD QV Award and Rajiv Gandhi National Quality Award (RGNQA) for 2003 for three of its development centers in India. TCS has also implemented and maintained ISO 14001 and BS 7799 over the years. All along, TCS has integrated its various quality initiatives through iQMS, its internal quality management system, which is based on IEEE, CMMI®, SW-CMM®, ISO 9001:2000, and PCMM. This integration and a relentless quest for excellence have enabled TCS to set global benchmarks in quality standards by becoming the first company in the world to achieve an integrated enterprise-wide Maturity Level 5 on both CMMI® and PCMM®. That also made the Level 5 assessment for its centers in China and Uruguay the first Level 5 assessments in China and South America, respectively. Over the years, TCS has launched various initiatives and their upgrades: ISO 9001 ISO 9001:2000 ISO 14001 BS 7799 SW CMM® Level 5 PCMM® Level 5 TBEM JRD QV RGNQA iQMS CMMI® Level 5 PCMM® Version 2 Level 5
How has TCS benefited from the multitude of quality initiatives? How does it create synergy? How does it remain customer-centric? Is its quality strategy deliberate, or has it emerged over the years? We still have work to do on all this. But the key to successful multiplatform quality deployments may well be effective integration of various platforms as you go. TCS has accomplished that just fine. |
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