Today’s enterprises expect their technology organizations to deliver more business value at a faster pace. A modern delivery model – which unifies methodologies to automate and improve the solution build-and-release process with approaches that help ensure the right solutions are being built in the right way to deliver optimum value at the pace customers require – is key to meeting this expectation.
But the modern delivery approach won’t work if your workforce isn’t fit-to-task. Here are KPMG’s five steps to ensuring that you have the right resources to make modern delivery a success in your enterprise.
- Decide which portion/s of your portfolio should operate in a modern delivery model
Regardless of its benefits, modern delivery may not be the best model for parts of your portfolio at particular points in time. So, you need to begin by determining where to apply it in the near term. Criteria you should look at include business criticality of the value streams and the current technology architecture.
- Determine your existing internal skills, and what you need to source externally
Critical skills required to make modern delivery a success include full-stack software developers, engineers, and product management. You must start this step by carefully evaluating internal availability of these skilled resources. After you know the lay of the internal skills land, you can round out the team, if/as needed, by hiring employees or contractors, and bringing on appropriate resources through third parties.
There’s no one-size-fits-all target labor mix of employees to vendor resources; it all depends on the maturity, goals, and business cycle of each individual company. Indeed, after comprehensive evaluation, you may determine that your internal employee talent pipeline has the knowledge and skills to tackle the same tasks vendors had been handling for years, at a more efficient rate. Or, you may quickly realize that it is cost-prohibitive to spend time and resources developing internal resources, and instead opt to increase use of vendor resources with the necessary skills.
- Identify silos and other inefficiencies
While modern delivery can bring a host of benefits to your business, you’ll greatly reduce the value you gain unless you eliminate inefficiencies driven from friction points and silos. For example, if multiple groups are working in the same part of the SDLC, but all working in different geographies, you might want to consolidate the teams, collocate the resources, or implement automation. And, if you’re working with a third-party provider, you should look beyond your own internal resources. For example, if there is a heavy vendor presence in a role that will be automated, it’s time to re-evaluate resource requirements. As part of that, you may need to re-negotiate your contract.
- Build your action plan
The next step is producing a workforce strategy action plan. Your starting point should be creating a business case to account for any hiring needs. Next, you should create a vendor contract adjustment plan to account for any increases or decreases in third-party resources. Armed with the business case and the adjustment plan as the basis of your action plan, you can then plan timing for employee hiring and for knowledge transfer of any vendor resource roll-offs.
- Engage vendor management and HR to validate the sourcing plan
Once you have your draft action plan in hand, you need to have it reviewed and approved by HR and vendor management before execution can begin. HR will examine and validate feasibility of the business case; it could also provide input regarding hiring locations and roles to ensure internal alignment. Vendor management can outline any terms and conditions that would negatively impact your company, e.g., penalties, minimum spend agreements, etc. When you’ve made the appropriate changes to the action plan based on the input from both groups of stakeholders, you’ll be ready to kick-off your modern delivery plan.
Each of these sequential steps will help your workforce and organization be better prepared for the new way of working enabled via technology and process changes as part of your shift to modern delivery.
To learn more about how KPMG enables you to achieve your modern sourcing vision, please visit our modern delivery webpage.