August 21, 2000

http://www.informationweek.com/800/method.htm

Methodologies
Continuous Process Improvement

Using a proven methodology can help bring order to the chaos that often plagues busy IT departments. Managing IT processes in a formal and consistent manner can help managers establish best practices and infuse their organization with an ethic of quality.

By Charles Trepper

anaging IT is often perceived as riding a wave of chaos that threatens to overpower everyone involved--IT staffers and users alike. One way to bring order to this chaos is to apply as much organizational control over the endeavor as is humanly and technically possible.

Before a company can begin refining its development or operational processes--or, for that matter, sharing best practices among its IT staff--it must begin by selecting or creating a standard approach, or methodology, that it will use for pretty much everything it does. Once an overarching approach is selected, a company can begin to apply standard process-management techniques.

Managing IT processes in a standard, formal manner provides the mechanism to share the best practices created or discovered by the company's staff. The capstone in the process is the application of the knowledge possessed by the company to improve processes continuously.

The beginning of the IT process for gaining control over a company's processes, procedures, and knowledge base is a broadly implemented methodology. A methodology is a collection of principles, tools, and techniques for designing and implementing information systems. It's also a mechanism for capturing the collective experience of a company's IT professionals.

Using a standardized methodology can significantly improve the quality of IT products and services. As a nontrivial bonus, the structure and discipline impressed on the systems-development process can greatly reduce the defects upon delivery rate. Methodologies also help IT departments present a consistent look to users, customers, and suppliers--which, in turn, improves confidence and promotes an overall aura of professionalism and trust.

Setting standards and using a common approach improves a company's ability to measure performance and status in a meaningful way. A methodology engages both business management and IT management. Both must agree on a joint approach--including the process, tools, deliverables, and results. All these benefits result in better-quality systems developed in a standard manner, which ultimately results in lower maintenance costs.

Implementing a methodology provides many benefits. Companies can reduce the cycle time for the delivery of systems. Standard processes, tools, and techniques accelerate the process because the learning curve is reduced for both experienced personnel and entry-level new hires. Methodologies can also slash costs. Consistent methods help IT departments spread scarce resources that can be shared across projects. This can even result in the reduction of the number of people that need to be hired. Methodologies reduce failures, rework, and confusion over what to do next. They also facilitate the reuse of common code and data, which reduces costs throughout the life of the system.

The use of a methodology can transform not only the IT area, but the business as well. A methodology sets IT on the path to becoming a disciplined function within the business. Too often, IT people aren't viewed as a part of the business simply because their communication and behavior don't demonstrate a consistent discipline. For example, accounting has defined universally meaningful processes, methods, and reporting vehicles.

Bringing IT to a similar level of discipline lets it demonstrate a level of professionalism that's in sync with that of other core business functions. A methodology is the means of providing systems with a consistent look and feel, systems that are integrated across departments, and databases that yield more meaningful results.

In many cases, technology is the business. It's the critical vehicle that carries products onto the Internet, communicates with suppliers, and manages back-office paperwork. Use of a methodology ensures that all the pieces fit together. Going forward, the business plan and the IT plan begin to merge.

Strategic use of technology is discussed, rather than focusing the discussion on IT budget and costs. Partnerships with vendors--selling IT products--open new business opportunities. A methodology allows an easier transition to new businesses and provides the ability to assess the impact of change and incorporate innovation.

Implementing a methodology can dramatically transform an IT department. A methodology adds structure and standardizes the development process, says Sandra Dower, a process-management consultant in Minneapolis. A standard approach creates certainty surrounding the development process, which reduces the chance of missing critical steps. Most methodologies also add quality checkpoints to avoid errors later.

Manufacturing operations have used quality checkpoints for many years to monitor and improve quality. Considering the average quality of software developed today, the IT industry is desperately in need of this type of monitoring and continuous-improvement process. Methodologies also help developers nail down requirements earlier to avoid changes and scope creep. By forcing users and developers to work more closely together, developers have a better chance of meeting user requirements the first time--a tremendous plus for IT departments.

However, there are potentially significant problems that methodologists face during implementation. The culture shock to developers can be extreme. Developers who have worked for years without any specific structure will probably develop resistance to the rigor a methodology places upon the development process. Getting their buy-in before the actual implementation--and getting them to participate in the pilot project--will help smooth ruffled feathers before things get out of hand.

Managers and users will also resist methodology implementations if they perceive that the project time lines will be extended, or that the project will cost more. Both groups must be educated about how methodologies reduce project costs and lengths during the implementation-planning phase. Perhaps most important, the company must be mentally and financially prepared for a new development process and structure.

Another major problem with methodologies is the perception of rigidity. Companies and their staffs seem to believe that a methodology must be followed to the letter. This creates resistance because developers and project managers believe they will be penalized for adapting to specific requirements. The reality is that every methodology is like a cookbook--and the approach must be seasoned to taste. Both managers and developers must be reassured that the purpose of a methodology is to add structure and consistency, not to constrain developer creativity and create more paperwork.

So, with all the cultural and process-management changes needed for a successful implementation, is a methodology worth the effort? If a company is to prove the benefits of a methodology, a return on investment analysis is helpful. For companies to calculate the benefits of a methodology, Dower says, they must add the costs of failed projects, excessive overruns, and redevelopment efforts due to use of inappropriate techniques and technology. Then add in the cost savings from elimination of frequent retraining (both user and IT), and excess tools, materials, and instructors. Finally, add in the cost savings from productivity improvements in building applications, and the productivity improvements that result from the use of the new applications. Companies can also add intangibles such as the estimated revenue generated by improvements in delivery time and the competitive value of early delivery of new products and services.

Of course, there are costs for purchasing and implementing a methodology. The methodology itself can be expensive, with some ranging from $200,000 to $500,000 for just the manuals and training software. In addition, companies must include training instructors' time and participants' time, as well as the cost of the materials and tools.

Companies must also realize that a methodology is not an end in itself, but a means to ongoing process improvement and best-practices development. Thus, companies must also include the costs of maintenance and ongoing, continuous improvement.

The methodology that a company chooses depends on the technology that's used, the degree of structure required or desired, the cost of the methodology and implementation project, the training required, and the degree to which the company is able to adapt to cultural changes.

Companies should choose methodologies that smooth the development process, are automated, and help developers do routine tasks more quickly, so they can concentrate on the creative, problem-solving tasks. A cost-benefit study should also be done on a methodology product before purchase.

Companies should also evaluate the methodology vendor for stability, product support, and available implementation assistance.

Methodologies are a part of the IT infrastructure, but they are often perceived as a cost without benefit. In reality, methodologies provide a consistent structure and approach to systems development, which results in lower project costs, shorter project cycle times, less confusion, and better-quality systems. Companies that apply methodologies must prepare for significant cultural changes and resistance from developers and managers.

One way to avoid this resistance is to implement a methodology with new technology. As companies purchase E-commerce or object-oriented technology, they can implement methodologies that are adapted to these new technologies as part of pilot projects. Methodologies will continue to change as vendors watch trends and adapt their products to new technologies. Companies must evaluate methodologies just as they would software, and purchase products that specifically fit their needs. Companies must also be aware of the tremendous cultural changes involved with a methodology implementation, and plan for those changes to prevent a revolt by IT staff and users.

Methodologies provide a foundation for project and process management, as well as integrated IT knowledge management, which uses methodologies to put organizations on the road to continuous improvement.

IT process improvement comprises three distinct phases or steps.

The first is to impress some kind of structure on the IT organization.

Process management is the next step, and involves examining the IT systems-development process and setting up a continuous improvement program. Process management may also involve automating the methodology for ease of use.

Finally, the information gleaned from process-management metrics and project reviews is fed into an IT knowledge-management and best-practices capture system for use by the entire enterprise.

This article discusses methodologies. Process management, IT knowledge-management, and best-practices capture will be discussed in future articles.

Charles Trepper is CEO of the Trepper Group, a Minneapolis consulting firm. He can be reached at chtrepper@trepper.com

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