compete & win in today’s complex & rapidly changing test ... · complex & rapidly...

Prepared for the 2017 ITEA Symposium

October 3, 2017

Compete & Win in Today’s Complex & Rapidly Changing Test Environment

Gaining Inspiration from “Team of Teams”

Presented by:Paul McNamaraPresident and CEOThe Sente Group, [email protected]

Prepared for the 2017 ITEA Symposium 2

“Team of Teams”

• 2015 New York Times Best Seller• Author: General Stanley McChrystal

Commander, JSOC*, 2003 -2008• Recognition

• Inc. Top 10 Business Books• Fortune Top 5 Business Books• CIO Must Read

New Rules of Engagement for a Complex World

* Joint Special Operations Command

Many Parallels to Sente’s Approach Since 1997


Claims from “Team of Teams”

• AQI was winning the war in 2003• Their success was enabled by technology• They didn’t operate top down so were difficult

to anticipate• JSOC: highly effective teams constrained in a

rigid bureaucracy and by mutual distrust


The solution

• Enabled by technology • Established in a culture of purpose & trust• Operated with resilient networks-of-test-

capabilities• Delivering outcomes with focus on

effectiveness (not efficiency)

Increased missions from 18 to 300 / month


The history of industrial revolutions…

• They can’t be ignored without consequence

• They bring with them new threats, obligations and opportunities

• Success in one revolution does not mean success in the next


Consequences of failure to change

You can refuse to change, but you can’t refuse the consequences


A different competitive landscape

• Fortune 500 companies: 60% off list since 2000• Record setting levels of bankruptcy in retail

• Amazon grew by 25.2% and accounted for 53% of online sales growth

• Marketplace roles and expectations are changing:• AT&T: 40% of roles irrelevant in 10 years, 8 hrs / week

self directed education• Study: 65% of IT roles not trainable new technologies

• CEOs ousted for not moving their companies fast enough


Marketplace Situation

Successfully competing in IR4

Icons of the digital world…speed, resilience


Jeff Bezos “Day 1”

• True Customer Obsession• Resist Proxies• Embrace External Trends• High Velocity Decision Making

Guiding Principles for a Leader in IR4


Symptoms of need for change

• Reactive teams optimize locally• Employees burn out and leave• Customers not satisfied


Traditional Organization11

Stro

ng V

ertic

al C

ontr

ols

$

Weak Horizontal Controls & Incentives…

Vertical Incentives & Controls Constrain Horizontal Performance

...on critical enterprise processes:


The challenge

• Many corporate structures were built for a different time

• Our ways of thinking must change• Our habits, traditions and practices

lose effectiveness / won’t work


The challenge……”See” the organization systemically

It’s a rope

It’s a wall It’s a

treeIt’s a spear

It’s a hose

It’s a fan

…understand the “whole” and dependencies

BarCode

Recall

Test Readiness

Contingency Planning

Cost / BOE Accuracy

Constraint Analysis


Enterprise Transformation

14

Resilient Network-of-Test-Capabilities Leads to Speed


Keys for Resilience

• Equipment needs to meet specs and be in working order

• People need to have knowledge

• Dependencies driven by program schedules must be understood

• People / organizations must build & cultivate trust

• Network Scale increases resilience


Support Staff Lab Users

Lab Managers

Program Mgt

Typical Test Organzation

3rd Party Services Vendor

Internal Support Groups

50% Location Agreement

Voicemail Network

E-mail Network

62% Accurate 67% Accurate

Calibration System

Property MgtSystem

Planning or Scheduling “Systems”

Lack of Resilience Leads to Added Costs

Obsolescence & Utilization Costs Schedule Risk Labor

Inefficiencies

Other SW toolsERP

Work RequestsMaintenance

Service ExpeditingLab Supplies

Financial SystemsSharepoint

Manpower Forecasting

No Linkage / Integration


Systems used by test organizations

Capital Process

Supplier Visibility

Help Desk

Scheduling

Budget Mgt.

FacilitiesManpower Planning

Reporting

Test Systems

Calibration

Obsolescence Mgt.

Work Request

Procedures / Checklists

Quality Systems

Cont. Improvement

Escalations

KM Process

Perf Mgt

Technology Plan

Project Mgt

Asset Mgt.


Technology Enablement

Resource Situation Center

Optim

ization

Analysis / Prediction

Acco

unta

bilit

y

External LinksAPIs / IoT

NotificationsTexts, email etc.

Program Mgt.Test Planning /

Scheduling

EquipmentAsset Management &

Configuration Characterization

ServicesCalibration, Maintenance,

Support Escalations

KnowledgeTacit (People) & Explicit


Building trust

Building trust across the network requires:

• Effective / complete narratives• Team missions consistent with promised

outcomes• Engagement in production of outcomes


Case Study: Freed up capital for growth

• Lack of trust drove hoarding and excess equipment expense

• New organization with mission to “Increase Speed and Decrease Cost” constituted.

• Metrics measuring behaviors required for trust production were established and used to govern

• Results:• Reduced capital spend by 50% - 75%• Eliminated significant amounts of unproductive time • Invested / doubled business with 50% of initial assets


Case Study: Cross Site Lab Collaboration

• Lack of ability to quickly assess capacity and availability made collaboration between sites untrustworthy

• Labs were incented only on their own performance• New management structure with new “Coordinator”

role. “COE” designation with clear mission established along with tools for visibility lead to:

• 95% improvement to responsiveness• 10% footprint reduction• 50% reduction in equipment obsolescence• 27% reduction in maintenance costs

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