The Trusted Supplier Organisation
Understanding Customer Value
Outsourcing software services involves transferring knowledge which is vital to the customer organisation’s operations to a supplier specialising in the software engineering that supports delivery of value from those operations.
Best outcomes are delivered when customer and supplier work in partnership.
SMS brings objectivity and experience to customer-supplier relationships. We are able to act as an independent Scope Manager, providing both parties with fact-based advice on pricing, effectiveness, benchmarking, productivity and performance, progress against plans, changes in scope, risk and performance improvement. Such an informed and objective view facilitates a constructive collaborative dialogue and moves both parties away from the traditional, unproductive adversarial relationship.
Assurance of Value for Money
It is the supplier’s responsibility to provide the client with assurance that their delivery process provides value for money. Such assurance requires open and honest accounting of performance, typically including:
- Verified, independent, quantified audit of recent engagements
- Volume-based pricing
- Evidence of on-going, continuous improvement in productivity and quality
Delivering Value: Productivity
Collaborative partnership requires a good degree of trust between customer and supplier. While it is incumbent on both parties to agree contract terms which incentivise the supplier to maximise efficiency, the customer needs to have objective assurance from the start of the relationship that the supplier is committed to delivering value for money and competitive levels of productivity and performance.
Traditionally, suppliers have been unwilling to demonstrate such commitment. Data from the International Software Benchmarking Standards Group and other industry surveys show generally poor levels of software performance. All the Rightshifting data suggests huge scope for improving the efficiency, as well as the effectiveness, of software-intensive systems.
Delivering results –a sound approach to improving the outcomes of outsourced software supply.
Delivery stage: |
Activity: |
SMS Tools and Techniques |
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| Design | Cooperate to develop detailed product architecture | Value Stream Mapping Value Stream Management Agile, scrum, kanban CMMI Process Discipline |
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| Prioritise | Prioritise items in the Product Backlog Determine size of high-priority items |
Understanding and Applying Measurement Evidence-based Problem-Solving |
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| Deliver | Develop iteratively; deliver value incrementally | Software process improvement Using Agile methods Workflow planning Effective Project Management Goal-Question-Metric |
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| Review | Conduct a retrospective of results | Symptomatic Diagnostic Mini appraisal (CMMI-based) Productivity Review Function Point audits & healthchecks Risk Analysis Gap Analysis Dispute resolution |
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| Improve | Deliver improvements in performance | Performance evaluation (Effectiveness) Capability Assessment Customer Satisfaction evaluation Benchmarking productivity |
Measurement
It is SMS’ observation that one of the key reasons for the failure to grasp the nettle of software productivity and performance is a lack of reliable and objective data. Many studies have shown that few organizations effectively embed a measurement-based approach to improving performance and predictability. Despite the proven benefits of such an evidence-based approach, the metrics that are gathered are those that are easiest to collect, not those which are needed to support improved performance.
SMS Knowledge Transfer programmes are designed to ensure that our clients do succeed with their adoption, implementation and continued use of software measurement. This is best achieved by the active use of measurement by creative, client-facing staff, using in-line indicators and rapid feedback on process performance to make status and progress visible to all those involved in the value stream.
Agile
Senior SMS Consultants have been using Agile methods since before this approach was known by the name “agile” – because Agile is a more effective way of working. However, knowledgeable advice is essential to the successful adoption of Agile methods. The value of Agile development methods cannot be realised without an understanding of the management and delivery framework in which they need to operate.
If your organization is considering adopting Agile, get the objective view from our Agile specialists, Grant Rule, SMS Managing Consultant, Measuring Value or Bob Marshall, SMS Managing Consultant and Flowchain senseii.
