[347] in magellan
Using IT Work Units, 14 September 1999
daemon@ATHENA.MIT.EDU (Greg Anderson)
Wed Dec 15 10:50:01 1999
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Date: Wed, 15 Dec 1999 10:46:02 -0500
To: magellan@mit.edu
From: Greg Anderson <ganderso@MIT.EDU>
Good morning,
For some additional background to our meeting tomorrow, you may be
interested in the briefing document below. The focus in on IT work units
and advocates a balanced perspective.
Thanks,
Greg
---------------------
Welcome to The Cutter Edge, the weekly e-mail service for IT
professionals, provided free by Cutter Information Corp. and Cutter
Consortium.
USING IT WORK UNITS
Service delivery teams have recognized that customers are looking
for more than a simple reporting of hours worked -- or, by extension,
full-time equivalent personnel (FTEs) assigned -- as a measurement
of work performed or value derived from the applications support
process. Service delivery organizations have historically been
faced with a number of challenges in representing to their customers
the amount of "work" performed and an objective measurement of
productivity improvement over time. Many historical approaches
represented hours expended, which is not necessarily equivalent to
work accomplished.
In service delivery situations, it is critical that the service
provider ensures a focus on:
* Business objectives
* End-user satisfaction
* Attaining and sustaining service levels
* Project management
* Tracking and measurement of work performed
* Productivity improvement
While remaining focused on the previously identified items, the
project team must also be able to measure and report on their
accomplishments. The service delivery team must be able to meet
the challenges of being able to:
* Objectively measure work performed
* Perform measurement of productivity improvement
* Facilitate a process of continuous improvement
* Factor in industry metrics for productivity (e.g., using the
Worldwide Benchmark Report to determine industry productivity)
* Implement a process that is valid in multiple and diverse
technical/application environments
To meet the demands of their customers, the MCI Systemhouse service
delivery team looked for alternative approaches to the measurement
of work in support situations. [Editor's Note: MCI Systemhouse was
acquired by Electronic Data Systems (EDS) in April 1999.] In various
articles, including the September and October 1995 issues of Cutter
Information Corp.'s *IT Metrics Strategies*, in which he introduced
the topic, Howard Rubin presented an approach on work measurement
based on a concept of IT Work Units (ITWU). The service delivery
team consulted with Rubin in developing an ITWU approach as a work
measurement vehicle within its Application Systems Management service
delivery unit.
According to Steve Unterberger, former US operating executive for
MCI Systemhouse, "Our clients want a metric that allows them to
measure value in terms of business output, not in terms of hours
spent on a task. The Work Unit concept accomplishes that objective
and, hence, is a more satisfying method of tracking IT applications
results."
Experience has shown that in order for the ITWU approach to be
successful, the following (at a minimum) is required:
* Good metrics of past and anticipated future performance
* Sound project management
* Detailed and disciplined time tracking
* An agreed-upon approach for priority management
* Good internal communication to the service delivery team and
external communication to the customer/end user
* Excellent cooperation between service provider and customer both
in establishing the process/approach and in ongoing management
of the process/approach
The ITWU approach has proved to be a viable alternative to the
traditional FTE approach to time measurement. It has proved to be
very adaptable to both traditional application support situations
and to enterprise resource planning support situations. With care
in defining the specific work types to be included, the approach is
easily understood by the customer and effectively represents the
work performed (or the work to be performed) in terms that are
relevant to the business. For the service delivery team, the ITWU
approach provides a focus on end products (i.e., deliverables that
provide value to end users) rather than simply tracking time spent.
It also ensures management visibility, in that reports show results
in terms of accomplishments and milestones met. Above all, it
provides a highly effective measurement capability that is objective
and reflects delivery capacity, delivery capability, and productivity
tracking.
Cathy Hyatt, former director of strategy, plans, and controls for the
IT department of the California State Automobile Association (CAAA),
found that CAAA's work with MCI Systemhouse benefited from the ITWU
approach. She states, "After a year and a half of use, the ITWU
mechanism proved to be an excellent tool for measuring and monitoring
the productivity of the application maintenance workforce. It proved
to be flexible and adaptable to changing business conditions, yet
stable enough to allow year-to-year productivity comparisons."
--Jim Koenig
Jim Koenig is a member of the Organizational Performance Management
group within EDS's new E.solutions Consulting unit. Prior to the
acquisition of MCI Systemhouse by EDS in April 1999, he was
responsible for application system management business development
for MCI Systemhouse's US operations.
+++++++++++++++++++++++++++++++++++
*Software Quality Week Europe*
Find out what real concerns, and solutions, are in the current
software quality technology community at the third international
*Software Quality Week Europe*, to be held at the Sheraton Brussels
Hotel, from 1-5 November 1999. Take part in over 50 presentations
by industry experts and university researchers from China to India,
from Argentina to Canada, and numerous European experts to discuss
all aspects of critical issues that QA professionals are facing
worldwide and look into the specific challenges presented to Europe.
To register, or for more information, call +1 415 550 3020, or visit
the Web page http://www.soft.com/QualWeek/QWE99/qwe99.program.html
+++++++++++++++++++++++++++++++++++
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