EM the Capgemini Way

Module 2
The Value of Effective Delivery
Engagement Management Curriculum
Capgemini University 2010

Good Delivery is a Fundamental Capability

115,000 people - India 35,000 - Rightshore in
everything we do !

Creation of Group delivery (Franois Hucher , Bruno

Dedieu, Aimery Fustier, Mark Standeaven)
Delivery on Group Management Committee and BU
Leadership Teams
We dont make money until we deliver. How much
contribution we make depends on how well we
deliver
Group target of <2% unplanned overruns
But Delivery continues to be uneven:
Economy/Customer challenges
Region/country/BU
Service Line hot services
Staff turnover/New recruits

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What is wrong?
Team Exercise #1:
Spend 15 minutes identifying the 5 most common project issues that lead to failure.
Include issues that arise on Rightshore engagements.
Issues

Failure

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What Causes our Engagements to Get into Trouble ?

Poor Estimation
Assumptions

Incomplete
Workplan,
Schedules, and
Deliverable
Definition

Lack of Roles and

Responsibilities
Definition

Lack of Adherence
to Methods, Tools, &
Standards

Inadequate Scope
Definition & Change
Management

Poor Execution of
QA Processes

Staffing

Lack of Measurement
and Tracking

Unrealistic Monthend Estimate to

Complete

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EMs are currently facing many challenges !

Deteriorating Overrun situation in 2009
YTD Dec 08

YTD Dec 09

Variance

TS Overruns

- 2,1 %

- 3,1 %

- 1,0 %

TS Underruns

+ 2,0 %

+ 1,9 %

- 0,1%

TS (- Overruns + Underruns)

- 0,1 %

- 1,2 %

- 1,1 %

TS DVI variance ( Red Eng.)

- 18,2 M

- 26,4 M

- 8,2 M

TS Flying Squads

72

64

-8

OS GOP Variance to Budget

+13,2 M

+7,0 M

- 6,2M

OS Flying Squads

53

46

-7

2009 was a difficult year in terms of economy and customers

Numerous examples of poor delivery on complex projects
Still many small/medium size deals not under full control

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But EM Certification brings Value An example from NA TS

Increasing Engagement Management (EM) Competence
Baseline Case:
Projects Run by Red Ems
(no EM training or certification)

Projects Run by
Ems Trained
(nut not yet certified)

Projects Run by
Certified Ems

Average DVI:
($31,334)

Average DVI:
($2,838)

Average DVI:
$36,681

(234 projects)

(70 projects)

(115 projects)

Analysis based on November 2009 NA DVI Report

DVI > = 0

-$1000 < DVI < 0

DVI < -$1000

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The EMs Delivery Challenge

Increase margin

Reduce overruns

Customer
and Market
Pressures

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EM roles and responsibilities

Engagement Management consists of different roles:
Engagement and Program managers (mostly TS and CS)
Transition Managers (OS)
Service (Delivery) Managers (OS)
Engagement Management responsibilities:
Management of the Engagement costs and budget according to the BCS
Delivery of the Engagement to contract commitments and to Client satisfaction
Compliance with Engagement Delivery Mandatory Requirements
Forecasting Estimated Costs To Complete and the Estimated Completion Date
Maintaining and extending the powerbase within the client, together with Business Development
Deployment of appropriate productivity tools/methods etc.
Providing accurate engagement information to the delivery organization (e.g : KPIs report)
Managing the engagement risks and issues and corresponding action plans.
Approving the assignment of key engagement roles and associated objectives (supported with
KPIs where appropriate).
Organizing and steering the engagement team

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What can EMs Expect by way of Support?

Current Group Delivery Initiatives:
GREAT - GRoup EstimAtion Tool (Module)
Rapid Start + (Module)
Shared PMO (More)
LEAN Program (More)

Tools deployment (Module)

Methods - Deliver 2.0 - and KM 2.0 (Module)
Deliver 2.0 & Deliver UPM V6.1 (Modules)
Tracking and Reporting/GFS/N2K/DVI (Module)
M (Monthly) Review (More)
Flying Squads (Module)
Delivery Diamond Awards (More)

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Group Delivery Initiatives

Delivery

Production

Collaboration

Sales

Live Communications: LVIS & GIMS+

Collaborative Development: CoCoNet

GREAT
SAP, Oracle,
BI, CSD/AI

Rapid
Start

CAMS
CIMS

Shared PMO
Application Intelligence
CAST

Rapid Design & Visualization

iRise

Governance

One Team Maturity

Clarity + NOE
GFS/N2K

DVI

Consolidated Financial View

Incentive

Global Staffing

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Global Staffing

Searching globally who knows what,

where, availability and contact person

Global Search

Currently 46 000 CVs - Will be open to all

Knowing who does what

actual, future and proposed assignments
Global Retain

Posting requests to other units and

search internally before going to
subcontractors

Request Mngt.

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LEAN from a Delivery perspective

Proven approach in manufacturing, assembly, and supply chain
(JIT, Kanban, etc..):
Reduced inventory/assets
Reduced cycle time
Reduced costs
Increased margin
Now being applied to engagements/services in TS and OS
Lean Boot Camps performed for 50 Change Agents
External support from McKinsey and Capgemini Consulting
Pilot projects undertaken in Application Outsourcing, Application Life Cycle
Services, and SAP Package Deployment
Pilots suggest possible elimination of waste between 15 - 25%
Potential 5 year horizon for full implementation

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Why are we doing this ?

Actual findings
Inefficient resource on-boarding leads to 10% productivity loss due to 23+ days
delay in on-boarding
Rightshoring is under-utilized with only 19% FTEs offshore

Re-use of standard tools: 30% of project team members spent 3 days creating
templates for project use
High contractor ratio: 10% mandays, 25% resource cost

Incident Management: 14% of calls that go offshore require chasing the customer
for additional information
Root Cause Analysis: 0% proactive analysis on P3 & P4 incidents
Time recording: duplicate entry of data into multiple time recording systems

Supporting our LEAN programme we have a number of delivery

initiatives underway
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LEAN - Proof of concept pilots!

15-25% capacity released in 3-9 months
Ple Emploi Benefits summary
STREAMS

Streams

AREA

2
8

LSC Benefits summary

POTENTIAL BENEFITS

Low

High

Create a more flexible organisation

Break the silos (horizontal training)
Strengthen employee skills (vertical training)

Opportunity Area

10%

Create a more effective organisation

Monitor and control production tightly
Improve project governance

Operations

21%

1.5FTE

3 FTE

Management

Improve client relations to reduce rework

including improvement of the billing process

4
5
6

Implement best practices and rationalise

production tools
Standardise and propagate best practices among
the teams
Rationalise the production tools
Revise the resource estimation models

1%

6%

Improve employee working conditions

Operations
Already decided &
planned to remove
10FTE in the next 5
weeks

Morale

(according to the training sessions)

Ops

TOTAL (% Benefits)

Mgt

Ops

27% +

11% + 1.5 FTE

Lean ADM tradeshow Group Kick Off December 15th 2010

Matalan Benefits summary

% Potential benefit for AO Support

Mgt

33.0

Knowledge Mgt (Incident)

6.8

Shift left (Incident)

3.4

DTX/Clarity - NOE Lite

2.3

DTX/Clarity - Plan Mgt

2.4

Batching of data fixes

1.5

Application release
window

0.7

Testing environment

4.1

Test team KT

0.4

Change Mgt

Total Capacity
Release

3 FTE

Business As Unusual Lean Supply Chain

Problem Mgt

17

Current FTEs

Operationally, most improvements can be gained

regarding consultant competency, standardisation
and Rightshore usage.

47.5
7.6

16.0%

Cost/benefit 36% ROI in Year 1

Root Cause Analysis &

FMA (Offshore)
Knowledge Management
(Offshore)

0.4

Knowledge Transfer
(On & Offshore)
Root Cause Analysis &
FMA (Onshore Service
Desk)
Right first time
(Offshore)

TBD

Reinvestmen
t of
capacity
into
account

0.15

Other solution activities

(Onshore service desk)

0.7*

Total

* Confidence of benefit delivery: Number of risks /mitigating actions identified to benefit realisation
otherwise risk
Business As Unusual Lean Supply Chain
30% loss

% Capacity
Release:

13.5%*

2.6

57.2

3.65 FTE

out of 27FTE
in scope

* Confidence of benefit delivery: Number of risks /mitigating actions identified to benefit realisation
otherwise risk 10 Business As Unusual Lean Supply Chain
25% loss

These can reduce implementation costs by at least

25% at Warner Bros.

OMV improvements

IRIS IV and V have both been on budget, without

using the risk buffer, resulting in a positive DVI

Potential benefits
12 Month FTE capacity
saving
1.4
Cashable

Capacity
Release (FTEs)
% Capacity
Release *

At OMV, translation to financial benefits

is blocked by the contract structure
Over the last three years, the OMV project has
proven to be a success from a project management
perspective, given its delivery and DVI track record

Opportunity Area

Benefits (AO Support)

by end 2011

Potential
Benefits
(Hours per
day)

Resource
location

Our contract is 5cm thick and

specifies onshore resource if
we didnt have that, with the
implementation of the solutions
identified and a redesign of the
team, we could easily reduce the
cost by 12%

Baseline (Wave 2)
Effort
Cost3
(000 hrs)
($ Millions)
36.7
(54%)

0.5
(12%)

Impact potential, Percent savings by resource location

Opportunity

Productivity
increase %

1. Inflexibility in on-boarding

6-7

2. Project plan optimization

4-5

Unit cost
decrease %

3. Onsite-offshore mix
4. Too many RICEFs

15

5. Gaps identified late

Offshore

Volume
decrease %

4-5

6. Senior resources overused

7. Manual testing
8. CHARM request optimization
31.4
(46%)

3.5
(83%)

Michael Kllen

21
7-8
Not applicable as this does not affect Wave 2 baseline

1. Inflexibility in on-boarding
2. Project plan optimization

4-5

3. Onsite-offshore mix

Within Rightshoring the primary focus is on the

execution, competence and standardisation

Onsite

10+

4. Too many RICEFs

15

5. Gaps identified late

4-5

6. Senior resources overused

7. Manual testing

Before effectively increasing the overall Rightshore

ratio, the quality of work send and effectiveness in
communication need to be improved

8. CHARM request optimization

Total2

68.1

3.9

Total improvement1

9
7-8
Not applicable as this does not affect Wave 2 baseline
~10

~20

~20

1 Average improvement weighted by offshore/onsite hour split for effort and cost split for cost improvement
2 Project effort only Feb-Sept 2009. Includes month of project go-live support but not ASP. May not add due to rounding
3 EMEA Wave 2 only excludes Mexico. Includes labor cost only (Own, group, offshore, contractors) does not include other expenses
4 Total cost savings. Low end: 8% productivity savings and 18% unit cost improvement 1 (1-.08) x (1-.18) = 25%. High end: also includes 50% volume savings: 1 (1-.25)x(1-.17)= 38%

Source: summary of underlying analysis

SOURCE: Team analysis

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22

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Flying Squads
Group Delivery Funded virtual team of Elite EMs
Comprises Levels 2, 3, and 4
Provides review/coaching for complex projects
anytime, anywhere e.g.
How to fix major risks & issues?
How to launch complex projects?
Up to 10 man-days per operation
More to come in Flying Squad module later in
CGWay class

Each Flying Squad operation results in an action plan agreed

between Group Delivery and local engagement/delivery
management

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What are the Rewards for Successful Delivery ?

Primary focus for assessing EM performance is actual engagement
contribution compared to budgeted contribution
The key measure is DVI (Delivery Value Improvement) of >0

EMs compensation will include an incentive based on engagement

contribution compared to budget (DVI >0)
Add on Sales initiative for change requests and extensions
Successful delivery is also recognized annually by the Delivery Diamond
Awards - 50+ high delivery achievers on a global basis:
2008 - San Francisco ;
2009 - Barcelona
2010 Geneva

2011 - Thailand

Recommendations are evaluated against the following criteria:

Completing a difficult and challenging engagement
Outstanding contribution to sales support
An exceptional testimonial from a client
Delivery innovation

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In Conclusion.

.Its not rocket science!

Do the basic day-to-day

blocking and tackling with the methods and
tools available
. Its the key to profitability
. and the key to your success !

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