Using the Cloud to Improve Business Performance
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1 Using the Cloud to Improve Business Performance Jim Hill, Ed.D. CEO, Proofpoint Systems Los Altos, CA July
2 Objectives Review the imperative Introduce Cloud Consulting Prepare you as a cloud consulting advocate Prepare you to make the shift 2
3 Imperatives Service support and advisory consultants are costly and time consuming (US Secretary of Defense, 11 Aug 2010) Support staffs are too large More and more layers of bureaucracy make it difficult to see and coordinate; Oversight is a challenge Studies and analyses are cumbersome and take too long Too many resources going to overhead; Means fewer going to key operations Data are too valuable to lose year after year 3
4 For Clarity A Definition A self-help approach to rapid, data-driven analysis and performance improvement What it isn t Spreadsheets Sharepoint What it is Services-Based Scalable and Elastic Shared Uses Internet Technologies Ready to use" or "off the shelf tailored to specific customer needs rather than to how the technology works. Service needs are more important than the technologies. Scales capacity up or down as the need demands. Services share a pool of resources to build economies of scale. Resources used with maximum efficiency. The service is delivered using secure methods available via the web. Adapted from Gartner Group attributes of cloud computing, June
5 Organizational Leaders Are Asking 1. What issues have priority? 2. Where are we spending our money? 3. Who are we contracted with? 4. How well are our efforts integrated? 5. How do we assess new starts and ongoing efforts? 6. How do we bring projects to closure? (Questions from US General James Mattis to his staff) Can t get sufficient answers on paper need the power of the internet 5
6 Global Leaders Recognize the Challenge We must be strategic and make evidence-based decisions in targeting the most dangerous (health) threats, to ensure our investments deliver results. US Secretary of State, August
7 Reinforcing Goal Achievement 1. Do we all understand the objective and can we clearly state it? 2. Is there a plan for achieving that objective and do we all understand it? 3. Do you know your role/mission in the plan? 4. Do you buy in? Are you committed to the objective, plan, role, and team? (Questions from Dr. Renny DiPentima, former CEO, SRA International) 7
8 Why Move Consulting to the Cloud? Executives and decision makers can t see Leaders can t get quick answers to key questions Staffs are consumed by the briefing cycle Organizations operate with imperfect knowledge Performance information is stored inefficiently Information is extremely vulnerable Consulting work tends to take too long Decision cycles are getting faster and FASTER! 8
9 Why Move Consulting to the Cloud? Because information is too valuable In the private sector, the value of intellectual property = 50% to 75% of an organization s valuation (Hatley, 2009) But Highly intangible assets tend to lose value over time. We need to make our intangibles tangible 9
10 Why Move Consulting to the Cloud? Because information is too valuable In the private sector, the value of intellectual property = 50% to 75% of an organization s valuation (Hatley, 2009) But Highly intangible assets tend to lose value over time. We need to make our intangibles tangible Put them in an accessible system 10
11 It s Safe and Secure Every day we use the web for personal activities - Shopping - Taxes - Banking - Chat/Info Sharing - Gambling - Watch Movies, Shows - Get News Every day we use the web for business activities - Buying/Selling - Data Exchange - Financials -Payroll - File Sharing 11
12 It s Safe and Secure Every day we provide others with personal and business information via the web -Name - SSN - Address - Credit Card Info - Banking Info - Income - Family Information - Other Personal Characteristics Every day based on our actions we express confidence that our personal info is secure The cloud provides the means to use our confidence to achieve significant operational advantages 12
13 The Elements of Work Performance Support Conditions Account History Domain Knowledge Personal Contacts Competitive FUD Market Conditions Financial Health Personal Bandwidth & Priorities Inputs Tasks 1. Create target architecture diagram 2. Create risk benefit chart 3. Monitor progress in account 4. Collect account information 5. Create business flow diagram Outputs Client engagement strategy Business flow diagram List of client business drivers and needs Target architecture diagram Client-prioritized list of IT projects Phase I architecture solution Defined list of projects for company All on-line architecture repository Industry trends, standards, best practices Competitive direction Product Specialist skills/knowledge Company s future focus/vision Company s existing success in industry Account org structure, terminology Feedback Account team Response to meetings Company management Response to diagrams Client execs and contacts Deal status/disposition Media Customer satisfaction Competitors Customer loyalty Competitive displacement Consequences Established trusted advisor relationship Close business with proposed solutions Influence future business Help establish enterprise architecture planning Build domain knowledge and personal contacts Lock out competition Information Methods + + Technology 13
14 Cloud Consulting Supports Performance 1 Input Data & Respond to Standard Questions (in the field or by upload) 2 Develop Management Reviews & Aggregate Data Input Review 4 Track & Report on Metrics & Improvement Initiatives 3 Generate Reports & Analyze Data Improve Analyze 14
15 Account History Domain Knowledge Personal Contacts Competitive FUD Market Conditions Financial Health Personal Bandwidth & Priorities Industry trends, standards, best practices Competitive direction Product Specialist skills/knowledge Company s future focus/vision Company s existing success in industry Account org structure, terminology Account team Company management Client execs and contacts Media Competitors 1. Create target architecture di agram 2. Create risk benefit chart 3. Monitor progress in account 4. Collect account information 5. Create business flow diagram Response to meetings Response to diagrams Deal status/disposition Customer satisfaction Customer loyalty Competitive displacement Client engagement strategy Business flow diagram List of client business drivers and needs Target architecture diagram Client-pri oritized list of IT projects Phase I architecture solution Defined list of projects for company All on-line architecture repository Established trusted advisor relationship Close business with proposed solutions Influence future business Help establish enterprise architecture planning Build domain knowledge and personal contacts Lock out competition What Can We Do Now in the Cloud? Manage strategy Establish clear goals and manage performance Develop clear / actionable project purpose Scope projects Assess and monitor sponsorship support Assess and monitor stakeholder support Assess and monitor organizational readiness for change Calculate the cost of performance deficiency Identify project constraints Identify project risks Identify task-step deficiencies Prioritize deficiencies Identify performance barriers Identify and implement solutions Assess and measure solution impact + + Conditions Inputs Feedback Tasks Outputs Consequences 15
16 Example: Global Security Cooperation Assessment Some Background (from the US federal government) 1-4 years to conduct complex issue analyses/assessments to determine root causes and appropriate solutions Many high-risk stakeholder organizations need to coordinate Cost = multiple millions of dollars This Example 7 months to provide a prioritized set of recommendations related to a global issue Non-negotiable deadline High priority client Presidential interest 140 separate embassy locations as active participants Complex approval process 6 major stakeholders 16
17 Example: Global Security Cooperation Assessment Results? Mission Accomplished! Actual Analysis = 30 days General Benefits Reduced friction and increased collaboration in the analysis and review process An always on/always available information resource A validated cadre of global subject matter experts Total project time including approval process under 7 months Low cost Performance Benefits Initial concurrence with the recommendations Prioritized actions Increased security cooperation resources 17
18 Lessons From the Example Cloud-based analysis supported Easy access to a consistent process Common terminology across agencies Reduced need for face-to-face meetings Equal participation regardless of global location Near instantaneous ability to evaluate data and make reliable decisions Open dialogue and rapid feedback Rapid results Low cost Retention of valuable data 18
19 Cloud-Based Systems Help Get the Analysis Right 1. Get the issue right 2. Get the scope right 3. Understand the nature of the work 4. Understand the cause Conditions Tasks Account History 1. Create target architecture diagram Domain Knowledge 2. Create risk benefit chart Personal Contacts 3. Monitor progress in account Competitive FUD 4. Collect account information Market Conditions 5. Create business flow diagram Financial Health Personal Bandwidth & Priorities Inputs Industry trends, standards, best practices Competitive direction Product Specialist skills/knowledge Company s future focus/vision Company s existing success in industry Account org structure, terminology Feedback Account team Response to meetings Company management Response to diagrams Client execs and contacts Deal status/disposition Media Customer satisfaction Competitors Customer loyalty Competitive displacement Outputs Client engagement strategy Business flow diagram List of client business drivers and needs Target architecture diagram Client-prioritized list of IT projects Phase I architecture solution Defined list of projects for company All on-line architecture repository Consequences Established trusted advisor relationship Close business with proposed solutions Influence future business Help establish enterprise architecture planning Build domain knowledge and personal contacts Lock out competition 5. When selecting solutions, consider all the moving parts 6. Ensure you have support for fixing the issue 7. Support the communication plan PLUS the cloud provides a platform for solution simulation 19
20 Use the Cloud From Strategy to Measurement Lean goal-based assessment for continuous, transparent, & less biased analysis Cross-organization alignment, integration & exchange of performance intelligence Answers to key leadership questions Support of Decision Superiority faster implementation reduced cost greater capability in whole or in part the cloud helps you implement a framework that supports your organizational performance strategies 20
21 Easy and Fast Implementation 1. Review your operational imperatives from a stewardship perspective cost, quality, people 2. Enlist early supporters within the organization 3. Prepare for full deployment 4. Activate system 5. Reinforce with targeted advisory support, as needed 21
22 Only 3 System Requirements PC Internet Access Access For Notifications 22
23 Benefits Better Analysis & Project Management Better Trained Consultants & Employees Simplified Compliance Improved Understanding of Key Issues Focused Solutions Increased Reporting Precision Improved Alignment Improved Responsiveness Safer & More Efficient Operations Reduced Liability A Performance Organization Driven By Data 23
24 More Info, Comments, or Questions? Check out this link: Call: Send a note: info@proofpoint.net 24
25 Additional Examples 25
26 Example #1: Assessing Sponsorship Support 7 Dissatisfaction with the present performance level 1=Satisfied with the present level of performance and sees little reason to change. 9=Not satisfied with the present level of performance and views change as essential. OK 6 Understanding of the scope of the project and the number of people affected 1=No understanding of the scope of the issue. 9=Excellent understanding of what needs to be accomplished. 6 Understanding of the resources necessary for the project to succeed 1=Does not understand the resource requirements or is unwilling to commit them. 9=Understands the resource requirement and is likely to commit them to ensure success. 7 Willingness and ability to serve as a visible supporter of the project 1=Not able or willing to serve as a visible sponsor. 9=Able and willing to serve as a visible sponsor. 6 Willingness to use his/her political power to ensure the project succeeds 1=Not willing to use political capital. 9=Willing to use political capital. 8 Willingness to sustain the leadership support required to ensure implementation 1=Not willing to demonstrate the leadership required over time to ensure the project succeeds. 9=Willing to demonstrate the leadership required over time. 40 / X
27 Example #2: Identifying Task-Step Deficiencies Define the Tasks Verify with Data Define the Steps (of deficient tasks) Verify with Data First Level Assessment* Second Level Assessment** *First Level Assessment step not being done at all errors are being made within the step step is performed out of order step performed at wrong time step not done safely step not performed fast enough step happens occasionally or randomly **Second Level Assessment Determine if Accomplished to Standard Determine if Accomplished to Standard Continue to Prioritization conditions? times? locations? performers/workers? Identify Performer Groups This info is too important to store in Sharepoint or spreadsheets! 27
28 Example #3: Assessing Likely Solution Impact Most manual approaches don t easily support an efficient weighting method The internet provides a means to capture data and make it available to analysts and decision makers Adapted from T. F. Gilbert, 1996; Data from Hill, 2005 Information & Tools & Resources Incentives Feedback 28-35% 25-38% 10-12% Skills & Capacity Mood Knowledge 12-15% 8-10% 2-5% Combine: Weights of the issues + Organizational factors + Performance factors + Solution factors Use the result as a solution simulation system 28
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