Using the Cloud to Improve Business Performance

Jim Hill, Ed.D.

CEO, Proofpoint Systems Los Altos, CA

Using the Cloud to Improve

Business Performance

Objectives

• Review the imperative

• Introduce Cloud Consulting

• Prepare you as a cloud consulting advocate

• Prepare you to make the shift

Imperatives

• Service support and advisory consultants are costly

and time consuming

• 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

For Clarity…A Definition

What it isn’t

• Spreadsheets • Sharepoint

What it is

Services-Based “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.

Scalable and Elastic

Scales capacity up or down as the need demands.

Shared Services share a pool of resources to build economies of

scale. Resources used with maximum efficiency.

Uses Internet The service is delivered using secure methods available

A self-help approach to rapid, data-driven analysis and performance improvement

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?

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 2010

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,

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

Why Move Consulting to the Cloud?

Because information is too valuable

But…Highly intangible assets tend to lose value over time.

In the private sector, the value of intellectual property = 50% to 75%

of an organization’s valuation (Hatley, 2009)

Put them in an accessible system

Why Move Consulting to the Cloud?

Because information is too valuable

But…Highly intangible assets tend to lose value over time.

In the private sector, the value of intellectual property = 50% to 75%

of an organization’s valuation (Hatley, 2009)

It’s Safe and Secure

Every day we use the web for personal activities

Every day we use the web for business activities

- Shopping - Taxes - Banking - Buying/Selling - Data Exchange - Financials - Payroll - File Sharing - Chat/Info Sharing - Gambling

- Watch Movies, Shows - Get News

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

The Elements of Work Performance Support

1.Create target architecture diagram 2.Create risk benefit chart 3.Monitor progress in account 4.Collect account information 5.Create business flow diagram Tasks Conditions Account History Domain Knowledge Personal Contacts Competitive FUD Market Conditions 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 1.Create target architecture diagram 2.Create risk benefit chart 3.Monitor progress in account 4.Collect account information 5.Create business flow diagram Tasks Conditions Account History Domain Knowledge Personal Contacts Competitive FUD Market Conditions 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

Improve

Track & Report on

Metrics & Improvement Initiatives

4

Input

Input Data

& Respond to Standard Questions

(in the field or by upload)

1

Review

Develop Management Reviews & Aggregate Data

2

Analyze

Generate Reports & Analyze Data

3

Cloud Consulting Supports Performance

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

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 Tasks Conditions Account History Domain Knowledge Personal Contacts Competiti ve F UD Market Conditions Financial Health Personal Bandwidth & Priorities Inputs Industry trends, standards, best practices Competiti ve 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 dri vers 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 Consequences Established trusted advisor relationship Close business with proposed solutions Influence future business Help establish enterprise architecture planning Build domai n knowledge and personal contacts Lock out competition 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 Tasks Conditions Account History Domain Knowledge Personal Contacts Competiti ve F UD Market Conditions Financial Health Personal Bandwidth & Priorities Inputs Industry trends, standards, best practices Competiti ve 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 dri vers 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 Consequences Established trusted advisor relationship Close business with proposed solutions Influence future business Help establish enterprise architecture planning Build domai n knowledge and personal contacts Lock out competition

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

Example: Global Security Cooperation Assessment

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

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

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

5. When selecting solutions, consider all the moving parts

6. Ensure you have support for fixing the issue

7. Support the communication plan

1. Create target architecture di agram 2. Create risk benefit chart 3. Monitor progress in account 4. Collect account inform ation 5. Create business flow diagram

Tasks Conditions Account History Domain Knowledge Personal Contacts Competiti ve FUD Market Conditions Financial Health Personal Bandwidth & Priorities

Inputs

Industry trends, standards, best practices Competiti ve di rection

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 managem ent Response to diagrams Client execs and contacts Deal status/disposition Media Customer satisfaction Competitors Customer loyalty

Competiti ve displacement

Outputs

Client engagement strategy Business flow diagram List of client business dri vers 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

Consequences

Established trusted advisor relationship Close business with proposed solutions Influence future business

Help establish enterprise architecture planning Build domain knowl edge and personal contacts Lock out competition

1. Create target architecture di agram 2. Create risk benefit chart 3. Monitor progress in account 4. Collect account inform ation 5. Create business flow diagram

Tasks Conditions Account History Domain Knowledge Personal Contacts Competiti ve FUD Market Conditions Financial Health Personal Bandwidth & Priorities

Inputs

Industry trends, standards, best practices Competiti ve di rection

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 managem ent Response to diagrams Client execs and contacts Deal status/disposition Media Customer satisfaction Competitors Customer loyalty

Competiti ve displacement

Outputs

Client engagement strategy Business flow diagram List of client business dri vers 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

Consequences

Established trusted advisor relationship Close business with proposed solutions Influence future business

Help establish enterprise architecture planning Build domain knowl edge and personal contacts Lock out competition

PLUS…the cloud

provides a platform for solution simulation

• 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

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

PC

1

2

3

Only 3 System Requirements

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

Benefits

More Info, Comments, or Questions?

Check out this link: http://proofpoint.net/products.asp

Call: 650.968.7032

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.

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.

OK

40 / 54

Example #2: Identifying Task-Step Deficiencies

(of deficient tasks)

Verify with Data Determine if Accomplished to Standard 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

 conditions?  times?  locations?  performers/workers? Continue to Prioritization

Example #3: Assessing Likely Solution Impact

Adapted fro m T. F. Gilbert, 1996; Data fro m Hill, 2005

Information & Feedback

Tools & Resources Incentives

Skills & Knowledge

Capacity Mood

28-35% 25-38% 10-12%

12-15% 8-10% 2-5%

Adapted fro m T. F. Gilbert, 1996; Data fro m Hill, 2005

Information & Feedback

Tools & Resources Incentives

Skills & Knowledge

Capacity Mood

28-35% 25-38% 10-12%

12-15% 8-10% 2-5%

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

Combine:

Weights of the issues + Organizational factors + Performance factors + Solution factors