Management & control of capability development

A Note to The Reader

This text describes the work of controlling and managing capability development. Capability development forms the basis for developing an organisation in the short and long term. The basis for the need for capability development is defined in various strategic plans such as business plans, product plans, technology plans etc.

The perspectives on capability development are completely different depending on the type of company, sector etc.

Within the aircraft industry, it is necessary to work with both an operational perspective and a long-term strategic and sustainable perspective. This is because the aircraft industry has very long product life cycles with comprehensive and complex system development projects.

Capability development aims to make sure that competitiveness is increased and secured. The organisation is to be developed in a way that makes it practical, effective and profitable in the long term.

Background

Capability planning and change management are based on an organisational development plan to realise the goals established by the business unit’s management with regard to organisational capabilities in the short and long term.

Those who lead change management must have strong convictions and a good feel for what is important in the long term for the entire organisation. In this context, we are talking about perseverance in the order of at least ten years, preferably longer. Managing and evaluating what can be changed requires a strategy for how changes are to be managed over time. Fundamental to this approach is continuity and perseverance. Naturally, there must be a basic strategy and plan in place to be followed, based on the scenario the business can accommodate.

Recommended reading

The author recommends the following texts that relate to this story: In chapter Adaptability for new requirements under the heading Creative engineering capability – MBD in chapter Ensuring long-term operations capabilities under the heading Continuing To Grow and under the heading Planning and implementing capability development.

This text concerns the highlighted areas of A Journey of Change in the Aircraft Industry

Summary

Those who have overall responsibility for capability development influence its practical application. This entails managing all requirements and needs, which in many cases change over time, while maintaining a consistent line in change management.

It is always important to assess whether there is sufficient maturity within an organisation to implement changes. If this is not the case, measures must be taken to achieve the necessary maturity. Otherwise, there is no point in investing extensive economic and human resources in capability development.

In order to achieve continuity in change management, it is important to avoid difficult handovers. Successful capability development projects have taken care to avoid the disappearance of important skills before implementation and administration have been established.

An agreement must be found between the responsible stakeholders and defined economic value creation in order to implement organisational development of a more comprehensive nature.

Capability development requires good insight into what is effective and beneficial. An excellent way to identify what is worth investing resources in is to carry out value stream analyses and root cause analyses, which can be used to analyse the need for changes and form a basis for solutions.

The business area’s management group for capability development has overall responsibility for ensuring that monitoring is carried out. Performance is monitored and measured continuously in order to administer the existing infrastructure, processes, methods and IT systems and for the purposes of capability development.

Experience has shown that well rooted capability development, in which all involved parties take joint responsibility for achieving goals, implementing changes and ensuring introduction and administration, forms the basis for a continuous and natural pattern of change in the organisation.

Description of the contents

  • Leading change management takes strong convictions and a good feel for what is important in the long term for the entire organisation.
  • Capability development is being planned for the coming budget year, in roadmaps for the next five years and strategically for the next ten years.
  • Selecting the capability investments to be made is a task that requires careful consideration.
  • Capability development is monitored on several levels, and this monitoring is used as a basis for adopting suitable measures both in the short term and for future capability development.

Preconditions for Capability Development

Capability planning and change management are based on an organisational development plan to realise the goals established by the business unit’s management.

Those who lead change management must have strong convictions and a good feel for what is important in the long term for the entire organisation. In this context, we are talking about perseverance in the order of at least ten years, preferably longer. Managing and evaluating what can be changed requires a strategy for how changes are to be managed over time. Fundamental to this approach is continuity and perseverance. Naturally, there must be a basic strategy and plan in place to be followed, based on the scenario the business can accommodate and allow.

The entire strategy and plan for capability development must be reviewed and possibly adjusted at regular intervals, currently every six months. This interval may seem short, but if capability development is to be pursued actively, it is better to make small, frequent adjustments than to make more dramatic changes. This has proved to be a practical and pragmatic way of working. Such reviews consider which direction change management should move towards for the coming period and which methods and working procedures are appropriate. Management needs to have a feel for what it is possible and appropriate to do during each period; the aim, of course, is to move towards the long-term goals for capability development.

Definitions

In this context, organisational capabilities refer to how well working procedures, processes, methodologies and IT tools/environments are utilised in order to be effective, optimised and profitable when seen from an overall perspective for the company.

Organisational capabilities also mean the ability to administer and maintain a very high level of functionality, performance and quality for the existing quantity of working procedures, processes, methodologies and IT tools/environments.

For the business to be competitive, these capabilities must evolve over time.

In this context, process means describing within a specific area how information will be supplied, how it will flow and how it will be refined in a value stream and result in a delivery with a certain specific result.

In the business area’s organisational management systems where processes are described, there are also documents that describe working procedures in a more detailed form: e.g. descriptions such as manuals, requirement specifications, handbooks, policy business documents, instructions, plans etc.

Methodologies can be divided into two main groups. One group consists of methodology that describes working procedures in a more detailed form. The other group constitutes a near-tool methodology, which describes how to work practically in different information systems, IT tools, IT infrastructures etc.

“Tool” in this context means various types of IT-based systems and IT infrastructures used within all organisations.

Managing organisational capabilities

Over the years, Saab’s organisational capabilities have been managed and governed in a few different ways.

Overall responsibility for capability development has fallen to different management groups in this time, with participants including department managers and line organisation representatives. These groups have made all decisions concerning budgets, focus directives and project portfolios. Moreover, project results have been reviewed quarterly and overall organisational capabilities annually. These management groups have included persons responsible for cooperation, coordination and the production of an organisational development plan.

This requires long-term planning and involvement from those who have a decisive influence over which new organisational capability needs it is most important to satisfy. It must also be possible to deliver this new capability in the time windows that provide the greatest benefit, so as to achieve the necessary efficiency and thereby create profitability.

This means that, if those affected are to assimilate the changes and work more effectively, it must be ensured that the relevant persons and organisations are involved and motivated to make changes. Another prerequisite is the ability to deliver new changes and a new capability in sync with the needs of organisations and product projects.

Organisational development projects of a larger scope often require a steering group and a reference group in order to establish and support the change process. In many cases, change projects can be extensive in nature. In the case of smaller changes, one most often creates activities that are managed directly by a PM&T area, an administration group or one of the line organisations.

Saab employs process management with regular monitoring of metrics and experience from projects and organisations, with the aim of improving processes. Process management is responsible for the overall process map, as well as overall management and the coordination of processes and process development. Ultimately, process management is about helping secure the company’s competitiveness and profitability.

The overall process map is divided into four areas:

  • Management and support processes
  • Business processes
  • Project processes
  • Technical processes

A senior process owner is appointed to each such process area. The senior process owners each have overall responsibility for their appointed process areas and will actively support subordinate process owners, line organisation and product development projects with methodological support and guidelines for the production and utilisation of project and product applications. It is especially important to focus on value streams and to ensure that the interfaces between processes function effectively. It is also necessary to manage needs for new methodologies and IT support in each process area.

Within each process area there are several process owners, who are responsible for defining and describing a process. Each process owner is also responsible for managing and further developing the working procedures, methods and tools used in the process.

Mature enough for change?

Fundamental to change management is an understanding of what can be influenced, what is relevant and what actually creates long-term values and benefits. It is also important to consider when change can be successfully implemented and what conditions are necessary for successful change management.

First, however, one must consider the basic conditions that apply within an organisation to see whether change can take place successfully.

In doing so, it is appropriate to use the term “maturity” as a measure of change, i.e. the ability to change and to achieve a lasting change.

The most important aspects of maturity as assessed in capability development over the years are the seven maturity criteria presented below.

In change management, the maturity of different aspects can be described as follows:

  1. Personal maturity in the form of propensity to change over time, through insight into the necessity of learning new things and embracing and implementing them in practice.
  2. Maturity in thought through habitual reflection and innovative thinking, different thinking, and seeing and realising opportunities.
  3. Maturity in expertise and understanding of behaviours through studies of organisations or practical experience, in order to influence and change behaviours.
  4. Maturity in the form of willingness to pass on experiences and knowledge and to offer one’s own time and commitment.
  5. Maturity in leadership in the form of leading, providing advice, support and the right conditions, and establishing a mentoring framework that works well.
  6. Maturity through understanding and adaptation to opportunities to realise change within reasonable financial limits.
  7. Maturity to create an institutionalised organisation where working procedures are introduced, accepted and used, as well as continually developed as a natural part of day-to-day work.

There are most certainly other approaches and criteria that are equally valid as ways of assessing maturity, but some form of assessment criteria is needed in order to make wise decisions.

In purely practical terms, it has been shown that how well these criteria are fulfilled determines whether the change process will succeed. This experience is based on the implementation of thousands of change activities and projects, both large and small, involving a great many people.

For organisational projects where several of these maturity criteria have not been met, the results have not matched the established goals in terms of timeframe, delivery precision, delivery content, costs or benefit.

When deciding on purely concrete capability development projects, different types of checklists have been created and used as an aid to prepare for and implement capability development.

Assessments of values regarding efficiency, benefits and economic results

An agreement must be found between the responsible stakeholders and defined economic value creation in order to implement organisational development of a more comprehensive nature.

Value creation refers to optimisation in monetary terms, or an increase in value in the short or long term that provides concrete results that directly affect budgets, project costs, balance sheets or a customer contract. Value creation can also arise as an impact goal that cannot be measured directly in monetary terms, but which can instead result in increased quality, better functionality or enhanced user-friendliness, for example. These effects are often difficult to measure in economic terms; instead, the benefits must be assessed in the short and long term.

How, then, should a value be calculated for a capability initiative and how should it be reported so that it is correct in relation to generally accepted accounting practices? It must be done simply, but without departing from the underlying principles of economic control.

This is why the term “value creation” was defined, and it can arise in several different ways:

  • Gaining a positive economic outcome as a result of enhancing a capability or developing a new capability (something that was not previously possible can now be done).
  • Gaining a positive economic outcome as a result of streamlining and rationalisation.
  • As a result of activating values in the balance sheet.
  • Activating values in the balance sheet, which results in a streamlining of values.
  • As a result of changes that affect contracts and contract conditions in a positive manner.
  • It also arises when optimising and changing working procedures in a product development project, so as to eliminate uncertainties and minimise risks. This type of value creation arises as a positive outcome in the results of a development project.

Based on this reasoning, four types of value creation have been defined for capability development. The effects of capability enhancements can be calculated in budgets, balance sheets, contracts and product projects.

It has been established that all larger-scale capability development projects should always have a sufficiently strong business case as a basis for approval to commence. The business case is a cornerstone when calculating value creation and is defined in the project definition or in a project specification for a larger change project.

A few principles have been defined for how to work with and monitor value creation. One fundamental principle is that capability development projects must divide their delivery into several partial deliveries. This helps value and benefits to develop throughout the duration of the project. Project delivery follow-ups and value assessments of these deliveries are conducted at the milestones defined in the change project. Moreover, and this is most common, economic values and effects arise for a long time (a number of years) after the change project has been completed. In many cases, this also means that economic value stemming from the enhanced capability can remain in place for many years.

It is therefore important to determine from the very beginning of a change project how the economic value is to be measured and who is responsible for reporting it.

Principle for calculating economic values

All calculations of economic values are done in three steps. These steps are classified with three different colours: red for a rough estimate of potential, yellow for a verified handshake agreement, and green for a validated and implemented activity that has led to a realised economic value and has been implemented and secured with the recipient.

In summary, value creation can be described as consisting of optimising, rationalising and releasing resources and capital.

Those who are ultimately responsible for ensuring economic value creation in change projects and capability development are the responsible project manager as well as the holders of the following roles:

  1. For budgeting, the relevant line manager is responsible, together with a department manager or the finance department if the entire organisation is affected.
  2. For values released on the balance sheet, agreements will be reached with the finance department.
  3. For values released in contracts, agreements will be reached with the relevant contract manager.
  4. Within product projects, agreements will be reached with the relevant person responsible for the project, the sub-project manager or the project manager, depending on the scale of the change.

The figure shows, in principle, what value creation might look like in terms of levels over time.

Notes to the figure

  • The left-hand bar in the figure is a summary of the estimated total value creation that a number of projects are expected to be able to achieve (see the arrow by the text “Estimate of total possible value creation”).
  • In the example, however, agreed business cases have only been obtained for a number of projects constituting a lower level (see the arrow by the text “Agreed value creation from various business cases”).
  • The costs of implementing the total value creation are also defined in the figure as a negative entry (“Total costs”).
  • For years 1 to 3, value creation has been implemented as shown by the green bars, at a cost shown by the blue bars.
  • For year 4, a certain level of value creation has been achieved (green bar) and agreed projects have been started, with a value shown by the yellow bar. In addition, there is an assessment that capability development can be commenced, producing additional values as shown by the red bar. However, no projects have been started in this phase. The costs of all the projects is shown by the blue bar.

Method for calculating economic values

The principles for calculating economic values for capability development can be summarised as follows:

BUDGET

In the budget, streamlining measures regarding personnel costs and overheads of various kinds can be calculated. Agreements need to be reached here with the stakeholders concerned with regard to the results and deliveries that create values and have a positive effect on the budget and how they should be measured over time.

Estimate – red, an assessment only

The first step consists of making an initial assessment and calculation of an economic value for the streamlining measures that affect the budget. This involves defining the value and when it will occur, and specifying the milestones at which the value is generated.

In the second step, a handshake agreement is reached with the relevant stakeholders who will be implementing the change and, above all, receiving the results.

It is important here to find an appropriate way to compare the financial situation before and after the change. There are several alternatives. For example, the value of a change may be defined as the previous year’s budget compared to the current budget – the difference is an economic value. A value might also be defined as the difference between the budget for the current year and an agreed economic value for an activity, if changes are to be made during a budget year resulting in a cost level that is lower than budgeted.

Verified – yellow (based on a business case)

The third step of the work is implementing the capability development and activities (the third step is an iterative step to be carried out until the entire change project is complete).

The fourth step entails an agreed follow-up, where the results of the capability development are shown. For example, this may be done by measuring the outcome of the change against the budget for the previous year for the relevant task with annual or quarterly comparisons, or alternatively by measuring the outcome against the budget for the current year. In both cases, a change in overheads or personnel costs must have taken place. Personnel costs are measured when personnel finish the following year and is checked against personnel records.

Completed – green

The fifth step involves validating the value according to criteria specified in a methodology for measuring and analysing value creation in change projects. Furthermore, acknowledgement of the value must be obtained through approval from the relevant line authorities and/or a product development project.

BALANCE SHEET

In the balance sheet, streamlining measures can be set against a particular item. For example, articles may be removed from storage, used and sold etc. In capability development, this is agreed upon with the relevant bodies within the organisation and with the finance department.

Estimate – red, an assessment only

The first step consists of making an initial assessment and calculation of a value for the streamlining measures relating to the balance sheet, and planning activities to achieve value creation. Here too, the value is defined, as is when this will be done, and the milestones at which the value will be generated are specified.

In the second step, the affected parties within the line organisation and finance department specify the value of an expected streamlining measure for a particular item in the balance sheet, and use a comparison between the value in the current year and that in the previous year. The second step is a handshake agreement between the change project and the relevant stakeholders.

Verified – yellow, based on a business case

The third step of the work is implementing the capability development and activities (the third step is an iterative step to be carried out until the entire change project is complete).

The fourth step involves comparing the value of the relevant item in the balance sheet, observing the difference between the value at the end of the previous year and the value for the current year in the balance sheet. Change implementation activities are carried out on both a quarterly and a yearly basis.

Completed – green, verified through continuous monitoring of the real world

The fifth step involves validating the value according to criteria specified in a methodology for measuring and analysing value creation in change projects. Furthermore, acknowledgement of the value must be obtained through approval from the relevant line authorities and, where appropriate, a product development project.

CONTRACTS

In contracts, streamlining can take place against a particular part of the contract; such streamlining may entail a renegotiation of the contract with the customer. There must always be a formal agreement between the contract manager and the person responsible for the change project in question with regard to the actions to be taken and the status of those actions.

Estimate – red, an assessment only

The first step consists of making an initial assessment and calculation of a value for the actions planned. The start time of an action and the time of monitoring must be documented.

In the second step, a contract-tagged risk is defined in the contract with the value that the streamlining measure will produce. This risk and the economic value of the risk must be approved by the contract manager. The agreement between the change project and the contract manager must be documented.

Verified – yellow

The third step of the work is the implementation of the capability development and activities. A rough estimate of realised value will be made at least once every quarter. (The third step is an iterative step to be carried out until the entire change project is complete.)

If there is concern that the action will not lead to the agreed value creation, new actions must be initiated. If the contract has been renegotiated with the customer, this is necessary so that the commitment is kept.

In the fourth step, the project manager or another responsible person within the product project approves the streamlining for each action. The total value creation is always approved by the project manager.

When the value creation is realised, an assessment is made of how well an action has been adopted and whether it has eliminated the risk. If some of the risk has been reduced, an adjustment is made against the agreed amount. New actions are initiated to achieve the agreed value.

Completed – green

The fifth step involves writing off the risk if it has been eliminated entirely and full value creation has been realised. In formal terms, this means that the contract manager must ensure that the risk is closed in the risk database.

PROJECT

In projects, streamlining measures may refer to new or amended working procedures, new IT tools or IT systems that allow the product project to achieve its result more effectively and thereby reduce the risk of delays, reworking or quality disruptions.

Estimate – red, an assessment only

The first step consists of making an initial assessment and calculation of a value for the actions required for the product project to rationalise the work, minimise a risk or increase capabilities. A forecast is made in which the level of the action’s value is set.

The second stage involves creating a project-tagged risk in which a forecast reduction of the project budget is carried out corresponding to the value that the capability project aims to create. The forecast reduction and risk are activated when they have been approved by the appropriate person responsible for the project.

This often means that there are several milestones, and the value of the results is checked off as they are delivered. Each delivery then means a lower project risk and thus releases funds. The second step is a handshake agreement between the change project and the relevant stakeholders.

Verified – yellow

The third step of the work is implementing the capability development and activities (the third step is an iterative step to be carried out until the entire change project is complete).

The fourth step involves monitoring the results and value of all the results delivered in the change project, and carrying out a value assessment of how much of a risk has been eliminated by means of the result. By successively eliminating risks in the product development project, an economic value is produced. This value must be approved by the person responsible for the project.

Value creation and risk elimination mean that the risk is closed or partially approved.

Change implementation activities are carried out on both a quarterly and a yearly basis.

Completed – green

The fifth step involves validating the value according to criteria specified in a methodology for measuring and analysing value creation in change projects. Furthermore, acknowledgement of the value must be obtained through approval from the relevant line authorities and, where appropriate, a product development project.

Summary of streamlining measures

The table below shows in principle how value creation for revenue can be monitored and reported in table form.

There is, of course, a cost portion, which is calculated for the relevant organisation and comprises an hourly cost for the implementing organisation, specifying the cost type that is used etc.

In the reports for value creation, there is also another presentation that specifies which revenue items are of a one-off nature and which are ongoing over a certain number of years.

Planning Capability Development

Each year, Saab defines the ten most important capability development areas to be realised over the coming years, which is an important planning condition for the budget process for the coming year.

This document also describes the process and work for producing documentation for decisions on which initiatives to implement and who is responsible for implementing them.

Saab has PM&T areas, which are like nodes for ensuring that capability development is pursued. These PM&T areas gather necessary resources from the line organisation and the product development projects in order to conduct the actual change management in project form for larger changes. The administration of processes, methods, IT tools and IT environments takes place in a number of different administration areas.

There are several PM&T areas, which in 2013 were: Business, Projects, Technical, and Management and Infrastructure. Each PM&T area encompasses a number of PM&Ts, each of which conducts the practical work of capability development within different operational or technology areas. The largest resources for capability development are invested in technology operations.

A focus directive is established for each PM&T area, describing how the practical work is to be conducted in the coming budget year.

Based on the focus directive, the various PM&Ts prepare a plan and select a number of areas on which to focus. This plan is prepared on the basis of a specified budget framework, which may be adjusted upwards or downwards for each individual PM&T. This is done once there is a joint overall assessment for each PM&T area.

This work takes into account any ongoing change projects that will need to continue into the coming budget year. It is also common for a change project to lead to continued development in the form of new change projects. Accordingly, it is important to have a well described map and structure for how capability development is to be conducted within each PM&T. This work is conducted in cooperation with the line organisation and the product development projects.

The basis for this planning comprises a consolidated project portfolio of all conducted, ongoing and planned change projects. The project portfolio is continually updated. The project portfolio contains a number of details about the change projects. Particularly important factual information in this context includes information about request initiators, the type of change project, economic facts, plans for deliveries over time, and the status of the various change projects.

In addition to suggesting which initiatives ought to be conducted over the next 1–2 years, an assessment should also be done to determine which initiatives ought to be conducted over the coming 3–5 years and what the goals are over the next
5–10 years in order to increase organisational capabilities.

In international capability development projects, checks should be carried out against the applicable laws and regulations in the relevant countries.

Capability development over a five-year cycle

An overall focus directive is also defined here at the business unit level, relating to development for the coming five years. This focus directive consists of an organisational development plan.

The organisational development plan is a prerequisite for the planning of all capability development, and directs the planning of each PM&T area’s more long-term organisational capabilities. Each PM&T area and its PM&Ts are responsible for producing a five-year capability development plan, called a roadmap.

Roadmap

Within the Technology PM&T area, each PM&T defined the capabilities forming the basis for the support to be provided to the line organisation and product development projects over the coming five-year period. For each such capability, a description should be made of the delivery or deliveries that should take place. Also for each capability, a level of ambition should be set for annual capability development; in addition, all documentation forming the basis for the choice of capabilities should be present and specified.

Each PM&T within the Technology PM&T area had five focus areas to direct their initiatives towards. These were:

  1. Value streams
  2. Processes
  3. Methodology and working procedures (how people generally work)
  4. IT tools, systems and near-tool methodologies (how people work within a particular system)
  5. Expertise

Sample roadmaps

Sample roadmaps for a PM&T area can be obtained from the Technology PM&T area. The sample is illustrated by the Systems Characteristics PM&T.

The basis for the definition of a roadmap within the Technology PM&T area consisted of the various phases of the development process and the value stream created. It is within the development process that each PM&T will carry out different types of capability development.

 

The figure illustrates how roadmap focus has been defined within the Systems Characteristics PM&T.

From the roadmap relating to the Systems Characteristics PM&T, the capability initiatives to be carried out for each focus area were defined.

Focus area 1 – Value stream

For year 1, the coming budget year, initiatives were defined within two areas: value flow analysis relating to attribute handling and LCC as a control mechanism in development flow. For years 2–5, initiatives focused on securing methodology for the management of objectives in the value stream.

In order to reach the goal defined within the business unit’s strategy for future organisational capabilities, the following should have been adopted: attribute handling between requirement specification and validation controlled via the budget.

Focus area 2 – Processes

For year 1, the coming budget year, initiatives were defined within two areas: value flow analysis relating to attribute handling and LCC as a control mechanism in development flow.

For years 2–5, initiatives were focused on supporting work on methodology for the management of objectives in relevant processes.

The objective for achieving the business unit’s strategy for future organisational capabilities was defined as follows: working on the production, handling, verification and validation of product attributes is clear in process descriptions.

Focus area 3 – Methodology and working procedures

For year 1, the coming budget year, initiatives were defined within five areas as follows:

  1. Initiating methodology and tools within new administration areas.
  2. Introducing integration-driven development.
  3. Introducing validation-based management of objectives.
  4. Further developing methodology for analysing and managing development within Gripen.
  5. Further developing methodology within the Advanced Design administration area.

For years 2–5, initiatives were focused on securing the use of new and further developed methodology in ongoing projects and implementing rationalisations within various working procedures.

The objective for achieving the business unit’s strategy for future organisational capabilities was defined as follows: having established an effective methodology to support internal and distributed development.

Focus area 4 – IT tools, systems and near-tool methodologies

For year 1, the coming budget year, initiatives were defined within three areas as follows:

  1. Providing support in education within Systems Engineering.
  2. Identifying new training and development needs within Systems Characteristics.
  3. Further development of training material for the methodology and importance area.

For years 2–5, initiatives were focused on reinforced training within concept work, attribute analysis and attribute handling.

The objective for achieving the business unit’s strategy for future organisational capabilities was defined as follows: having suitable information and training material to ensure expertise in working procedures and methodologies within all administration areas within Systems Characteristics.

Focus area 5 – Expertise

For year 1, the coming budget year, initiatives were defined within three areas as follows:

  1. Providing support in education within Systems Engineering.
  2. Identifying new training and development needs within Systems Characteristics.
  3. Further development of training material for the methodology and importance area.

For years 2–5, initiatives were focused on reinforced training within concept work, attribute analysis and attribute handling.

The objective for achieving the business unit’s strategy for future organisational capabilities was defined as follows: having suitable information and training material to ensure expertise in working procedures and methodologies within all administration areas within Systems Characteristics.

An example of capability planning

The capabilities with associated deliveries and defined levels of ambition that the Systems Characteristics PM&T was responsible for were:

CAPABILITY 1

Providing a quantitative or qualitative assessment, with balanced accuracy, of requirement-setting and design-governing product attributes on an overall level.

During concept work, compiling the value distribution of the attributes in a conceptual product breakdown structure (technical and financial budgeting).

Delivery of capability 1

The delivery should result in methods and system support for the analysis of the product attributes that govern realisation when further developing new technologies and new products.

The methods and system support must be adapted to requirements in the various development phases and provide increased accuracy and confidence for later phases.

This must be based on reliable qualitative or quantitative assessments of design and cost-driving attributes early in the development flow. The value of the attributes should be used as a control mechanism throughout the development flow.

Level of ambition for capability 1

Results for year 2

  • Development of methodologies and system support that is needs-driven by the Gripen development.
  • Development of methodologies and system support for direct needs in ongoing business development projects.
  • Pilot studies for future process and method development.
  • Development of methodologies and system support that is needs-driven by the Gripen development.
  • Development of methodologies and system support for direct needs in ongoing business development projects.
  • Development of methodologies and system support for direct needs in ongoing technological development projects.

Results for year 3

  • Development of methodologies and system support for direct needs in ongoing product and technological development.
  • Further development of attribute methodologies for seamless handovers between the development phases.
  • Initial adaptation of methodology for distributed development.

Results for year 4

  • Continued development of seamless attribute methodologies for technological and product development.
  • Continued adaptation of methodology for distributed development.

Results for year 5

  • Continued development of seamless attribute methodologies for internal and distributed.

CAPABILITY 2

A unified methodology for analysing and handling product and design-governing product attributes in the development process’s value stream.

Delivery of capability 2

The delivery should result in an update of the development process with regard to the management of development objectives based on the attribute budget.

Level of ambition for capability 2

Results for year 2

  • Pilot study with initial descriptions of typical examples of some central attributes.

Results for year 3

  • Investigation, start and implementation of the update work.

Results for year 4

  • Completion of initial update. Planning of any further work.

Results for year 5

  • Any further work.

CAPABILITY 3

Training and development with information and teaching that describe practical working methodologies.

Delivery of capability 3

The delivery should result in information and training material that describes direct applications of working procedures, methodologies and the use of system support. The material consists of theoretical material and typical applications from work carried out.

Level of ambition for capability 3

Results for year 2

  • Investigation with applied development within initial areas.

Results for year 3

  • Start and implementation with connection to ongoing development projects within Gripen and ongoing business and technological development projects.

Results for year 4

  • Continued implementation.

Results for year 5

  • Any further work.

Agreements on roadmaps

Creating a roadmap within the Technology PM&T area required the following: Agreements with the affected line authorities within the development organisation and with the sub-projects within the various system development projects that will be using the capabilities supplied by the relevant PM&T.

This meant that agreements needed to be reached regarding what the various capability development projects would achieve, what results would be delivered and who they would be delivered to, and when. Furthermore, the value and effect needed to be defined so that value creation could be monitored over the coming years. A central issue for the PM&Ts is the agreement required with those who will be making use of the results and those who will be administering them.

Each new capability will entail a long-term tying-in of resources in the form of personnel, tools, IT environments, investments of various types etc. and for the total financial commitment that this entails. It is therefore important for all capability development to produce forecasts of upcoming administration costs for all resources to be tied up over the coming years; this applies in particular to all types of investments.

As an example, the figure below shows the capabilities that the Systems Characteristics PM&T administration area “Advanced Design” was to deliver according to the roadmap that existed at the time. Explanation: S means start time, dL means partial delivery, and L means delivery of a particular capability.

The figure is an example of the agreed plan between a PM&T and a specific business area regarding capability development in a five-year perspective.

Yearly capability development within PM&Ts

In order to conduct the capability development, each PM&T area and each PM&T has defined an organisational plan and a number of administration directives. These documents describe in practical terms how the organisation is to be run over the coming budget year. Within the various PM&T areas, there are overall instructions on how the organisation within the PM&T in question should be run.

From the Technology PM&T area, the guidelines to be handled by the associated PM&Ts were defined. These guidelines are interpreted in purely practical terms according to the prerequisites and circumstances of each PM&T.

There were guidelines within three areas, described below as follows:

  • Maintaining organisational capabilities.
  • Developing capabilities.

1) Maintaining organisational capabilities

Each PM&T must provide comprehensive support to product projects and the line organisation in accordance with a business plan, which means that organisational capabilities should be developed and maintained in accordance with the focus directive applicable to the coming budget year. The most extensive work for a PM&T is the administration of existing processes, working procedures and information systems.

Capability development is a small portion of the work, but it is crucial to future capabilities. Here, a strong presence and continuous communication with existing line organisations and product development projects are extremely significant for ensuring the right focus on and selection of new change projects.

A good deal of administration is required in order to manage and monitor the status regularly, not only with regard to the administration of existing processes, working procedures and information systems, but also for ongoing change projects. A carefully balanced administration and management of the capability development in its entirety is necessary for good monitoring and manageability, as well as to achieve the results, change objectives and value creation that have been specified.

Knowledge transfer is a fundamental activity in all methodological support. In order for knowledge transfer to be received, understood and accepted by the target groups at which it is directed, this work requires a good deal of perseverance and adaptation to the situation and organisation. The ways in which knowledge and experience are exchanged and transferred naturally vary depending on the experiences and knowledge of the recipient.

Knowledge and experience can only be accepted and understood on the recipient’s terms. Methodological support therefore requires a high degree of creativity on the part of those who work in this type of organisation.

As an example, let us take the introduction of a new information system. Maturity usually develops in a way that means most users become very good at the basic functionality offered by the new information system – the first value creation. Through continuous and well thought-out methodological support, most users can further increase their efficiency. Methodological support can transfer experiences and provide tips and assistance on the use of more advanced functions that would otherwise have been missed – the second value creation.

2) Developing capabilities

Capability development requires good insight into what is effective and beneficial. An excellent way to identify what is worth investing resources in is to carry out value stream analyses and root cause analyses. These can be used to analyse the need for changes and form a basis for solutions.

It is necessary to assess the life-cycle costs of introducing new or amended processes, methods, tools etc. In order to select the right actions and assess their effects and costs, there must always be a business case produced for all large-scale changes. Continuous work on lessons learned, both from existing systems and working procedures in administration and after introducing new systems, is crucial to a good factual basis for decisions on any change actions.

3) Administration

The administration of existing infrastructures, processes, methods and IT systems forms the basis for a PM&T’s organisation. It is therefore important to take continuous action to streamline all administration of processes, methodology, tools and development environments. An important part of the administration work is having control over all costs; it is especially important to monitor the use of IT systems with the corresponding licences and the costs of methodological support.

Maintaining the status of process descriptions, instructions, manuals and guides is crucial for minimising problems and focusing instead on methodological support and support organisation in order to optimise the use of existing systems.

Choices and Decisions Regarding Capability Investments

There are no simple methods that work without the need to think about them. This work is not difficult; there is simply a good deal of common sense involved. However, the work does require a lot of energy and patience, as there are many obstacles along the way.

Purely emotional arguments are sometimes put forward in order to get a particular capability investment implemented, or something like “if we make a particular investment it will end badly”.

It is essential to maintain a good dialogue with the organisation putting forward these arguments in order to see if they are relevant, if the objective can be achieved in a different way, or if they are simply being outspoken. It is therefore important for there to be maturity in expertise and understanding of behaviours when dealing with expressions of emotion. This type of argument is understandable. Most people have a good degree of ambition and a desire to improve an organisation.

Preparing capability development

It is nonetheless important to nudge things along and deploy resources where they are most useful, and where they are used and delivered on time and with the right functionality.

In any case, when investing several million SEK it makes sense to prepare well and set aside enough time to see whether the capability development project has been thought through properly. If this is done well, there is a good chance of success. Checklists are a simple tool to ensure good quality in preparation work.

Basic prerequisites for capability investments

There are a number of assessments and considerations that constitute important prerequisites for managing capability development and directing it towards those investments that will lead to a long-term increase in organisational capability levels.

It is therefore necessary to pay attention to the prerequisites for financing opportunities and profitability requirements, balanced against overall assessments for business, product and organisational requirements. Analyses and coordination meetings must therefore take place in order to focus organisational capabilities, both in the long term via organisational development plans and, in particular, for the upcoming years focus directive for organisational plans.

Any problems can then be adjusted, and experiences and ideas on development opportunities for future investments can be taken into account.

Selecting and planning capability development

Before launching and evaluating proposed new changes, it is important to consider how deep the evaluation needs to go. A rough selection is always necessary before engaging in the analysis at all. Many capability development proposals disappear at an early stage and can quickly be discarded.

This is usually because the proposals do not support the focus that has been defined for change work in the coming year or years. However, all capability development proposals have been saved so that they can be taken up again at a later stage. Sometimes proposals that have not been suitable at a given time will be appropriate for implementation at a later point. Alternatively, various proposals may be combined in order to end up in the right area.

In the end, it is the available financial framework that sets the limits for what can be done. Another factor that sets the real limits is whether there are sufficient human resources available for implementation.

The steps to be handled when planning capability changes can be seen as a flow of activities, where certain assessments are made at particular points.

  1. If this flow is initiated with the overall focus on the organisational capabilities that are documented in the organisational development plan, then the needs and requirements for capability development have been captured. This provides the answers to the questions of what capabilities need to be developed and why.
  2. Breaking the organisational development plan down into roadmaps and focus directives will lead to the growth of proposals for capability development. These proposals are then reconciled with the line organisation’s various organisational plans, which will give rise to proposals for various change projects.
    These change project proposals will be reconciled with the needs within the line organisation and the product development projects. Change projects are planned jointly to produce suitable synergies, and change projects are then selected based on various criteria. This will provide answers to the questions: “Where should we invest resources and funds?” and “How should the change projects be implemented?”
  3. In order to realise the selected change projects, plans of action need to be produced so that the implementation and introduction of the changes can be coordinated and planned.
    These plans of action are coordinated with the relevant product development projects and the line organisations involved. The administration and required methodological support are also improved in order to support those who are affected by the changes. Carrying out these actions will provide answers to the questions: “When should the change projects be implemented?” and “Who is affected?”
  4. Based on the result produced and the experiences from the changes documented in lessons learned, feedback can take place for the upcoming year’s work on the organisational development plan.

The effects of a planned organisational change are analysed with respect to evaluation criteria from a profitability and benefit perspective. Firstly changes are evaluated in monetary terms, and secondly the chance of achieving positive target effects is evaluated.

Viewpoints on what is important

Picking out the capability investments that provide the greatest economic effect and organisational benefits is a challenging task; many highly relevant viewpoints are put forward by stakeholders whose job is to improve and develop their part of the organisation.

For local investments on a smaller financial scale, a certain financial sum can usefully be distributed without the need for detailed monitoring in order to stimulate creativity and trigger a capability for innovation. The affected PM&T areas and line organisations can then distribute these funds to activities that strengthen everyday rationalisations and continuous improvement.

For all larger capability development projects, a more careful review is required. Assessments and considerations must be made on the basis of profitability and possible financing, as well as the short and long-term investment needs that exist.

Overall reviews

If the capability development is of a more comprehensive nature, an overall review of the project and its effects on the organisation should be carried out. Reviews should then be conducted with respect to:

  • Time
  • Cost
  • Benefit/effect
  • Quality
  • Risk

It is important for decisions on long-term capability investments to be made on the basis of an overall assessment of business, product and organisational needs. This is especially important if it affects collaboration with other partners and includes information systems that need to handle all the specific security requirements in place.

Before starting a major capability development, it is advisable to benchmark organisational capabilities with selected external companies with outstanding capability growth and capability maturity. Furthermore, it is self-evident that lessons learned should be done for previous similar capability development projects. Specifically, it is advisable to review how a project has been implemented previously and how affected persons experienced it.

Before starting, it is necessary to assess requirements and needs, why a capability development project needs to be started and what needs to be implemented. To see whether there is a clear-cut business improvement, it is a good idea to have identified where in the life cycle a product development project or product is, in order to assess the potential effect and benefit.

Business needs and stakeholders must be identified in order to assess whether the capability investment is in line with the defined strategies in the business area’s organisational plan and the business plan. Is it possible to assess whether the capability investment produces a sufficient improvement in terms of levels with respect to possible risks and the scope of the project?

Experiences from implemented change projects

Over the years, a large number of capability investments have been made where capability development projects have met or exceeded almost all their objectives. However, a number of projects have missed an important objective: being ready on time!

This can turn out to be costly, as the effect of the change can turn out much lower or be completely lost. Before starting, it must be clear how the value can be measured; in many cases it takes several years for the full value to be attained and secured. This also means that continuous measurements need to be made during the period in which the change is ongoing, e.g. for a new working procedure, a new information system etc.

The figure below illustrates the link between cost and effect.

When a change project is in the planning stage, it is necessary to ask oneself questions about how the implementation will take place and what level of ambition exists. Is implement ability defined with regard to, for example, risk, resources, capability and potential for implementation? Can the implementation be divided up so that continuous deliveries are made during the implementation period?

A particularly important question to ask oneself is: Is there a responsible recipient who has agreed to receive the project result, and has the financing of the result’s administration been clarified and budgeted?

In a constantly learning company, it must be ensured that experiences are documented, both during a project and after the project’s results have been delivered.

 

Selection criteria – selections based on value streams

The overall selection criteria for selecting the change projects for the coming year are summarised below.

  1. Does the change need to be made to fulfil a contractual commitment? This type of chance can be called basic functionality. An example might be a change that affects lead times for handling deliveries.
  2. Does the change need to be made to fulfil regulatory requirements? This type of chance can be called a must-have requirement. An example might be ensuring that airworthiness requirements and environmental requirements are fulfilled by changing new working methods and technical processes.
  3. Selections according to business case are made to increase effectiveness and profitability. An example might be changing value streams with regard to information management and logistics, which simplifies work tasks and lowers costs.
  4. Selections to increase long-term capabilities are made to secure long-term competitiveness. An example might be introducing model-based working procedures that simplify work tasks and increase quality, as well as providing new, higher capabilities in the organisation. Overall, it is important to be able to increase total organisational capabilities for the company.

Practical preparations for handling risks and problems

Other preparations that it is important to plan include booking resources so that the resource planning works. Forecasts at least one year into the future are normally required for more extensive projects. In the quality plan that is required for a larger capability development project, it is necessary for the required processes and methods for implementation to be defined, as well as the tools and working methods that will be used.

If there have been a lot of technical problems, it is not uncommon for a certain weariness to arise within the framework of the project, which puts the focus on sorting out various suppliers’ technical issues rather than developing an organisation. It is highly relevant to review which technical development and technological changes will affect the organisation to be changed.

Depending on the organisation and the systems to be used, a review should be made of what will change over the next 2–5 years for the organisation that is to be changed.

It is important to identify which information systems may be introduced and which will be affected by the change. It is advisable to carry out a risk assessment for major changes. Preferably, the entire value stream affected by the change should be analysed if possible and appropriate.

Who is actually affected by a change?

Identifying who is affected by a change seems self-evident, but it is not always clear when reviewing an entire value stream. Perhaps an external partner is indirectly involved. In such cases, it is relevant to review the impact on processes and the geographical locations that are affected. It can then be assumed that the information architecture that exists might need to be changed, and it should be checked whether interfaces and information flows are affected.

There may be several user scenarios that need to be analysed. If a partner is affected, there are security issues that need to be clarified and rights regarding IPR that need to be taken care of, and the issue of ownership needs to be defined with regard to products and working procedures. What do we own?

Processes, methodologies and IT infrastructures should also be reviewed to see whether the level of ambition is affected and whether the change project can be managed effectively.

Difficult questions!

Are management and cooperative capability defined in capability development in collaboration with a partner? Who is responsible? Is there international experience in the management of the change project? Have decision-making criteria and risks been defined and accepted with regard to how work is to be done?

These questions have proved to be extremely important ones to deal with. It is highly important to be able to understand other cultures and adapt to working in an international environment, where procedures are very different from the Swedish working procedure with decisions made by consensus.

Forms of work and cooperation – where and how is work done?

It is sometimes necessary in capability development to hire various partners who can contribute a particular skill; it is important in such cases to clarify whose methodology will be used. If the development work on an information system is carried out in the form of a work package and takes place to a large extent on the premises of a partner or supplier, it is very important to decide initially how the system is to be integrated into the existing infrastructure and to decide on the allocation of responsibilities at this stage.

For change projects, the milestones at which deliveries will take place must be defined before commencing and there must be continuous monitoring to ensure that the progress and results of the change work take place in accordance with the agreed plan.

The planning work for change work includes designing project resources and support systems for the full life cycle of the change project. Introduction, training and handover are included here in the administration of the entire change; this is an important prerequisite for achieving continuity and avoiding difficult handovers.

Agreements on the receipt of results

It is also advisable to revise whether it is possible to package the various changes in order to achieve synergies with several organisations.

To ensure that the result of a change project really is adopted and applied, it is essential to draw up a so-called contract of receipt. This contract includes all the information required to reach a binding agreement and the distribution of resources in order to implement capability development.

The main advantage of the contract of receipt is in the process it entails. All stakeholders involved in the development of a capability must reach an agreement; those who sign the agreement commit to carrying out the assignment.

This means that responsibility is collective: everybody has to help out, and each person is a core value in the true meaning of the term. Nobody can blame anyone else for not having done something.

In purely practical terms, capability development is no different from other development activity, which is why the same project methodology is used to implement the capability development.

The figure shows the process for implementing projects.

Three documents form the basis for decisions on capability development: The project directive, the contract of receipt and the project plan. For all tasks, a project directive and a contract of receipt are produced; for major tasks/projects, a project plan is also produced.

The figure shows the approved documents that a more extensive change project needs to contain in order to commence (DP means “decision point”).

The contract of receipt has a standard formulation; the tasks to be agreed upon are:

  • Name of change project.
  • Names of milestones and deliverables.
  • Specification of delivery times for each milestone.
  • Specifically, each delivery for a product development project must be specified separately.
  • Defining the recipient and user of the results.

There must also be a reference to the relevant project directive and to a resource allocation form showing what resources the capability project needs for at least the upcoming year.

The value creation that the project is intended to result in must be specified in monetary terms (SEK ’000). Where this value arises and when it is expected to take place over time must also be specified. The contract must specify whether the value is of a one-off nature or ongoing (over a number of years). It must also specify where the value arises and how it will be reported. The value must be reported in terms of earnings within one or more of the following areas:

  • Budget
  • Project
  • Contract
  • Balance sheet

In cases where effects other than economic value are produced, these must also be specified as target effects. If an effect cannot be translated into an economic value, this must be described and justified.

The responsibility in the agreement is worded as follows in the contract of receipt:

“By signing this contract, the Operations Manager/Project Manager named below personally undertakes to carry out the assignment, both within his/her own area of responsibility and in collaboration with all other signatories of this contract of receipt. The responsibility means that the full result shall be delivered in accordance with the relevant project directive with the corresponding resource allocation.”

The agreement covers the Operations Managers/Project Managers who are involved in each specific change project. The contract of receipt also forms a basis for the utilisation of resources for the organisational areas affected.

The purpose of the change project governs who needs to sign the contract of receipt. For change projects that are directly linked to a delivery milestone in a product project, signatures may be required from the holders of all the roles listed below. For other change projects, signatures are required from at least the line manager for the affected organisation, the line manager acting as primary resource manager and manager of administration and PM&T.

The holders of the following roles may sign the agreement:

  • The project manager or sub-project manager for product projects regarding value creation.
  • The line manager responsible for receiving results.
  • The line manager acting as primary resource manager.
  • The manager of the technology area(s).
  • The person responsible for administering the results.
  • The manager of the affected PM&T.

Implementation and Monitoring

Performance is monitored and measured continuously in order to administer the existing infrastructure, processes, methods and IT systems and for the purposes of capability development. The business area’s management group for capability development is responsible for ensuring that this monitoring is carried out.

Every quarter, the situation is monitored and reviewed more comprehensively, and a full summary of all the activities within a PM&T is drawn up. The situation in terms of administration and capability development is then reported.

Monitoring of capability development at the PM&T area level takes place with varying frequency and takes different forms depending on the scope and content of the change project. Each PM&T area defines the level of monitoring for the specific daily and weekly work. Mandatory monitoring is carried out on all large-scale change activities and covers all PM&Ts.

Every month, the situation in terms of progress of results for milestones and economic processing is reported. If changes are required due to problems in change projects, there are procedures for resolving them within the individual PM&Ts. There are also procedures for obtaining help with resolving these problems, if they are of a nature that requires a greater investment of other resources from the line organisation or product project.

The progress report for capability development and administration is always based on the objectives that have been defined at overall levels, in the focus directive and organisational plans and in the PM&T’s own organisational plan.

The questions below relate to the administration of IT systems and IT infrastructures. Within these areas, there are a number of important questions that need to be assessed.

Objectives related to systems administration:

  1. How administration of methodology works.
    A balanced assessment of user support needs, the number of support queries and the number of errors or omissions in documentation and instructions is carried out here.
  2. How much/frequently the tools and processes, instructions etc. available to users are used.
    The assessment of benefit and functionality is subjective, and is carried out by asking a number of users how they experience this type of support.
  3. Availability to users
    A balanced assessment of interruption statistics, the number of support queries and their severity, and users’ subjective experience of availability is carried out here.
  4. Performance in both individual systems and in various system environments.
    Various types of measurement take place here, as well as a balanced assessment of users’ subjective experience of performance.
  5. Economy with regard to the processing of the systems administration budget.

Objectives related to systems capability development:

  1. Capability as a balanced assessment of the results, with regard to capability development for each PM&T’s capability development project portfolio.
    This is a quality assessment of the content, functionality and benefit of the results delivered at each milestone and at final delivery.
  2. Delivery precision for milestones for product development projects and line organisation.
    The method for measuring delivery precision and the objectives to be achieved are defined here.
  3. Delivery object, which is an assessed comparison between the defined contents of a delivery as specified in the agreed and approved project specification and what was then delivered.
    The usage and benefit of the working procedures and information systems set in administration are measured and assessed.
  4. Use of processes and methodology, which is an assessment of how much and how frequently the processes and instructions in the operational management system were used.
    This assessment is based on questions to selected users.
  5. Economy with regard to the processing of the capability development budget.

When assessing performance, it is advisable to have some form of checklist to facilitate this. The points below have been used for assessments of capability development and for administering processes, methodology, and IT systems and tools.

Items to be checked when assessing capability development

  1. The number of milestones must be checked in good time.
  2. The results at each milestone must have the agreed content.
  3. It must be checked that the milestones have the agreed value creation according to a particular calculation method.
  4. When introducing and deploying new systems and working procedures: - Have security accreditation, introduction planning and training been carried out?

Items to be checked when assessing the administration of processes, methodology, and IT systems and tools.

  1. Frequency of use – done by measurements.
  2. Support requirements – documenting the organisations that require support.
  3. Ease of use – measured by asking selected persons.
  4. Methodological support for users – measured by time required for methodological support.

In order to measure performance for the various objectives, there are a number of key performance indices (KPI) specified; examples of such KPIs are given below.

Examples of criteria for measuring effectiveness and being able to fulfil obligations within systems administration

  • Administration costs for each administration area must be within the assigned financial framework (applies to process, methodology, tools and systems administration within IT).
  • Economic processing vs. budget for all administration and all further development projects may not deviate by more than 10% within a given calendar year.
  • The number of safety-approved systems upon administration take-over must be at least 80% within a given calendar year.

Examples of KPIs

  • System availability for the IT infrastructure (% of normal working hours) is 99%. For specific IT systems, KPI is defined in an administration directive (for the relevant IT system).
  • Availability of tools and IT systems is defined in the administration directive (for the specific tool or IT system).
  • Methodological support to users for process and methodology must be at least 50% of reported time vs. framework for the budget item “Administration of processes and methods” within a given calendar year.
  • Introduction planning (according to the defined deployment date) for tools/system environments must reach at least 80% of deployment cases according to the schedule (maximum deviation is 10 days).

Examples of criteria for measuring effectiveness and increasing organisational capabilities

  • The number of further development projects implemented where the agreed final results have been delivered in accordance with the agreed schedule upon administration take-over must be at least 80%.
  • The agreed value creation in change projects (in product projects or lines) should be more than 80% of the defined level according to the business case.
  • Near-tool methodologies are used by assessing the need for support to users on a scale of 1–3.

Examples of KPIs

  • Economy – keeping to the assigned cost framework for all change projects; costs may deviate by no more than 10% within a given calendar year.
  • Delivery precision is at least 90% for all milestones, with delivery within five days of the defined delivery date for the product project.
  • Delivery objects are calculated as follows:
  1. Usage after introduction for delivery objects must correspond to the agreed content specified in the project specification.
  2. At least 20% of users are to use the result at the start. All users no later than three months for large projects; all users within one month for small projects.
  • Usage after commissioning for the number of users as a percentage of total users who can make use of the final result after the result has been in administration for three months must be at least 30%; after six months, 100% (refers to larger further development projects).

This KPI is reported through an assessment on a green/yellow/red signal scale on the basis of the project manager’s monthly report. Green = OK, yellow = action plan being produced within the change project, red = action plan being produced in collaboration with the line and product project.

The table shows a summary of all PM&Ts’ results within the Technology PM&T area within one year, with quarterly totals.

A consolidated assessment of capability development and administration is also presented on a quarterly basis to the business area’s management group for capability development. The consolidated assessment contains an overall assessment of both administration and capability development. The results for the primary objectives for which a particular PM&T area is responsible are shown here.

The consolidated assessment is a balanced assessment of KPIs from all PM&Ts who were part of the PM&T area. In addition, assessments of the most important activities carried out during the quarter (or year) are available.

The report also describes the problems and opportunities that are of a sufficient scale that the management group needs to be made aware of them. In addition, proposed actions to be considered by the management group are also presented.

The author´s reflections