the application(s) or they focus on learning and implementing the Keane process model. Team members also begin high-priority improvement activities. At the end of this phase, the application management team has full responsibility for the project, and the processes of the project are fully implemented and operational.
Phase III: Project Operations
This phase covers most of the outsourcing engagement. The application management team is totally responsible for the support of all aspects of the outsourced applications following the standards agreed upon in the level of service agreement. In addition to supporting the daily support activities for the application(s), the project team also focuses its attention on increasing its efficiency at supporting the project. The team will implement any necessary procedural and technical improvements in the early stages of this phase to reap the benefits over the life of the project.
Phase IV: Transition Out
This is the final phase of the outsourcing project where the outsourcing team returns control of the application(s) to the IS organization. As part of the transition, the IS
staffers are trained in the new processes and tools that were established during the project. At the end of the transition out, the IS organization is supporting the application(s) in the new, higher-level operational environment.
CONCLUSION
Businesses are finding that strong processes are critical to their efforts to improve organizational flexibility. This chapter was developed to provide insight into how process improvements can help IS organizations face the challenges of a growing application portfolio, new technology shifts, and an increasingly fast-paced business environment.
The CMM is an excellent vehicle for assessing the quality of existing processes and determining the steps needed to improve those processes. Organizations can use the model to identify deficiencies, adopt practices, and meet specific goals through evolutionary steps. The CMM does not require any specific software technology, organizational structure, life-cycle model, or set of documents. In addition, unlike other mechanisms for establishing processes, the CMM can be used to create an organization where processes are not only defined, but practiced, shared, and continuously improved.
Moving up the CMM is not without its challenges, especially for lower-level organizations. Once processes are redesigned, it is much more critical, and difficult, to get the practices adopted throughout the organization. Under continued pressures and project deadlines, IS professionals do not have the time to familiarize themselves with newly defined procedures. As a result, the adoption of new practices is slow and, in some cases, impossible. Because it can take years to overcome such barriers and progress from one level of the maturity model to the next, organizations are forming outsourcing agreements with vendors that are willing to transfer their processes.
Outsourcing is a valuable tool for IS organizations seeking to accelerate their move up the CMM. The following section details some of the services a major software services firm provides to assist clients with their process improvement objectives.
IS Productivity Assessments (ISPA)
Before attempting to improve their process maturity, IS organizations need to understand their current situation. Through a detailed assessment of the IS
organization, IS managers can ascertain where improvements are needed, determine which improvements would provide the greatest value, and establish a baseline from which to measure future improvements.
Keane offers a comprehensive evaluation of an IS organization through its ISPA service. This service is based on the principle that productivity is ultimately a synthesis of people, processes, and technology. An ISPA goes beyond typical process maturity evaluations by including people and technology factors in its evaluation.
Evaluations of issues such as application software quality and staff training enable Keane to develop an improvement strategy that will maximize the benefits of the recommended process improvements. This strategy is documented, along with the current status of the IS organization, in a complete report that also includes a project plan for implementing the recommended improvements.
Outsource Full Responsibility to Keane
This is the traditional outsourcing model. The IS organization increases its process maturity by outsourcing areas of low maturity. This arrangement allows the IS
organization to concentrate its resources on its strengths. Keane takes responsibility for all aspects of the project, including staffing and process improvements. Keane operates the project following CMM principles, as contained in its AMM, and the corporation receives the benefits that ensue from more mature processes.
Outsource and Transition
This method is similar to the outsourcing service described above, except that the application(s) is transitioned back to the IS organization after the new project environment has been put into place. This method is useful for overcoming cultural barriers to change. Keane takes responsibility for the project using its own staff. The project team members implement the Keane process model and operate the project until all processes are fully tuned. At that stage, the IS organization can continue to outsource or it can reassume responsibility for the project. During the transition-out period, project team members fully train the IS staff members in all aspects of the project and the new processes. Cultural resistance is reduced by effectively moving IS staff members into a new assignment rather than attempting to change familiar processes on their current assignment. The IS organization can use its newly trained and experienced staff members to seed other projects in its portfolio.
Outsource a Pilot to Keane
A pilot project is used as a proof of concept. Keane assumes responsibility for the project and fully implements its outsourcing model. The IS organization observes the process and can compare its operations against those used by Keane. It enables the
IS organization to see precisely how the new processes will operate in its environment. When the organization is ready, it may decide to outsource additional projects, or it may seek assistance from Keane to implement the model for internal IS projects. This method provides the IS organization with the methodology, staff, and training necessary to improve its processes successfully. The pilot project provides a demonstration of the benefits that can be gained when the new processes are fully implemented across the organization.
Section V: Managing Special Projects
Chapter List
Chapter 31: The Role of Project Management in Knowledge Management Chapter 32: Managing Development in the Era of Large Complex Systems Chapter 33: Developing IT Projects on a Pay for Performance Basis Chapter 34: The Pitfalls of Client/Server Development Projects Chapter 35: Using Project Management to Build an IT Help Desk Chapter 36: Leveraging Developed Software: Organizational Implications Chapter 37: Managing Legacy Assests
Chapter 31: The Role of Project Management in Knowledge Management
Ralph L. Kliem
OVERVIEW
Knowledge management (KM) involves collecting, organizing, and distributing knowledge that is accumulated over a period of time for the purposes of improving and increasing a company’
s competitive edge. This knowledge is more than mere
facts and data. It is information and experience collected and applied to achieve the overall goals of a company.
Surveys by IT research firms reveal the popularity of KM. For example, a survey of 500 professionals by the Delphi Group revealed that more than 50 percent of the respondents have begun implementing KM, and more than 80 percent saw it as a major contribution to their companies.[1] According to Dataquest Inc., KM grew from a $2.7 billion market in 1997 to a $5 billion one in the year 2000.[2] Several advantages have been attributed to KM, and include:
§ Dealing with “gray” situations with greater confidence
§ Encouraging greater collaboration among employees
§ Identifying best practices
§ Improving the capacity for product and process innovation
§ Increasing the competencies of existing employees
§ Minimizing the negative impacts of employee turnover
§ Responding cost-effectively to rapidly changing environments A KM project is implementing knowledge management disciplines, tools, and techniques to build a system that will achieve specific goals and objectives. The challenge, of course, is to collect, organize, and distribute knowledge to achieve goals and objectives that are often as vague as the definition of KM. This can lead to scope creep and overlooking customer wants and, ultimately, wreak havoc on cost, quality, or schedule performance.
The vagueness surrounding KM, in general, manifests itself via a survey of 100 IT
managers by Informationweek. Forty-five percent of the respondents said that their IT management did not have a clear understanding of KM or did not know; 56
percent of the respondents said of the company’
s senior management did not
know.[3] All this leads to one simple conclusion: the opportunity for knowledge management projects ending in failure is great.
The challenge, then, is to ensure that KM projects are completed in a timely, efficient, and effective manner. Project management is the way for doing just that.
[1 ] KM World, May 25, 1998.
[2 ] Interactive Week, December 8, 1997.
[3 ] Informationweek, March 16, 1998.
PROJECT MANAGEMENT
Project management is applying concepts, tools, and techniques for completing projects on time and within budget while simultaneously meeting the customer’
s
needs. It requires implementing four basic processes of project management: 1. Planning is deciding in advance what a project will accomplish, determining the exact steps to accomplish it, and identifying when to begin and end each step.