Architecting Lean Software Enterprises: The TODC Story Jayakanth ‘JK’ Srinivasan Lead Advancement Initiative Engineering Systems Division Massachusetts Institute of Technology http://lean.mit.edu http://leanit.mit.edu The PROGRESS Centre School of Innovation, Design and Engineering Mälardalen University http://www.mrtc.mdh.se/progress/ © 2008 Jayakanth Srinivasan 12/13/08 1 Agenda g • Principles-based p approach pp to enterprise p design g • TODC viewed through Enterprise Principles • Towards a theory of software enterprises http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 2 Principles-Based Enterprise Design 1 1. 2 2. 3 3. Adopt a holistic approach to enterprise p value creation. Identify relevant stakeholders and determine their value propositions. Focus on enterprise effectiveness before efficiency. 4. 5. 6. 7. Address internal and external enterprise interdependencies. Ensure stability and flow within and across the enterprise. Cultivate leadership to support and drive enterprise behaviors. Emphasize organizational learning. Source: J. Srinivasan, Nightingale D., “A principles based approach to enterprise design”, LAI Working Paper Series, MIT 2008 http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 3 Research Evolution EuroTel Field Work (Jan) • 8 semi-structured interviews (SLT) Workshop (March) • 16 participants from both organizations • Participant observation and survey data • • Balancing Agility and Discipline in Software Development Driving Enterprise Agility TODC Field Work (March) • 16 semi-structured interviews • Project data TODC Field Work (August) • 7 Project team interviews • Second round of senior leadership interviews http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 4 Holistic Enterprise p Value Creation • Balanced portfolio p • Product Ownership (2/7) • Product sustainment (4/7) • Knowledge Workers (1/7) • Growth opportunities for employees ‘We are very aware of the socio-economic pressures that our team members face…’ • Freeing up resources for EuroTel ‘In the ‘I th end, d they th [EuroTel] [E T l] have h to t acknowledge k l d that th t we do d the th job j b better than they can, for a lot less money..’ http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 5 Managing g g Stakeholder Expectations p The value that they get is in the training in problem solving and p in the ffundamentals such as data structures and improvement algorithms – not in the learning the hottest new thing’ EXIT Entry Internationalization Career Progression Harmonization 3 yrs 2-3 yrs 1 yr 1 yr Stabilization 3-5 yr • Employees • Employee’s families • Customers • • Corporate Society oca community co u ty • Local • ‘India Advantage’ http://leanit.mit.edu Stabilization © 2008 Jayakanth Srinivasan 12/13/08 6 Focus on Effectiveness ‘We have the best insight into product improvement opportunities y g out the sustainment... Over the last two yyears,, as we are carrying we have consistently improved both the documentation and the quality of the final product... Our internal team identified twenty improvement opportunities, opportunities and executed on some of them using our own funds. As a result, the customer is now cofunding some of the improvements…..Our goal is to have complete product ownership, and we have to demonstrate value in order to do that.’ • Investing g in growth g • Leveraging process improvement gains to support learning http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 7 Addressing g Interdependencies p • Tailored processes to meet EuroTel and IndiaCo standards ‘There is a challenge in that our processes are more mature than those of our client, client and while they expect stringent performance on our side, their own processes are often lacking’ • C Creating ti a process for f successful f l knowledge k l d transfer t f ‘We were not given sufficient anything... People would give us just enoughh information i f i to stay out off trouble…. bl My M team made d sure that h our leadership knew … My project manager at the time recognized that in some cases, the client reallyy didn’t have the data or documentation, and tasked us to essentially recreate it… it was a grind.. We have now institutionalized the process… http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 8 Ensuring g Stability y and Flow ‘Most young hires want to work on sexy technologies such as Java or .NET NET that will immediately improve their market value in six months... We make sure that they understand that it will take them at least a year to understand the product itself, and that they would be using i customer proprietary i programming i languages l andd platforms. l f • Rigorous selection of personnel • Augmented with a 3 year ‘commitment’ to the TODC team • Team interviews for lateral hires • Rotation across the p project j portfolio p http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 9 Cultivate Leadership p at all Levels • Significant percentage of their leadership team is grown from within the organization • “The IndiaCo Way” – plus TODC leadership development program • Leaders as Teachers ‘You have to earn your place within the team. I had one person wanting to join my team, with over ten years of experience. … emphasized h i d that h he h would ld be b starting i as a project j leader, l d andd not a project manager… prove his abilities to the team as a whole, then we would definitely fast track him…six months later he really did not want to transition into the project manager role’ http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 10 Enable Organizational g Learning g ‘The hardest part with the young professionals is keeping them focused. … I am required to review everyone’s learning plans and sign i off ff on their h i applications li i for f taking ki Since the plan is online, and a student may request as many courses as he/she wants (prior to obtaining approval), HR often sees that there are unapproved courses, and starts harassing me to either Organic approve ppSystemic or reject j the request. q • 20 hours of training per • Peer-to-Peer mentoring There year are times when I know someone needs to take the course, • for Formalized knowledge but we are too busy with project work me to spare them during transfer from theclasses client • hours. Structured learning center is great work Our learning in scheduling duringprogram the evenings or weekends. • Leaders as Teachers http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 11 Towards a Theory y of Software Enterprises p Stakeholder Alignment Employee Emplo ee Empowerment Group and Organizational Learning Performance Measurement System Institutionalizing Process Improvement C f i Innovation Crafting I i Systems S Dynamic Enterprise Capabilities Leveraging Global Competence http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 12 Acknowledgements g • MdH • Prof. Kristina Lundqvist • Prof. Christer Norstrom • MIT • Prof. John Carroll • Dr. Ricardo Valerdi • Dr. Kirk Bozdogan • Prof. Prof Debbie Nightingale http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 13 Questions? Jayakanth Srinivasan jksrini@mit.edu 1 617 253 0672 1-617-253-0672 http://leanit.mit.edu http://leanit.mit.edu © 2008 Jayakanth Srinivasan 12/13/08 14