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July 09, 2020

Operational Excellence - SPEAKER SPOTLIGHT : Improving Business Outcomes through the Application of Enterprise-wide Operational Excellence

Courtesy of CACI's Brian Gallagher, below is a transcript of his speaking session on 'Improving Business Outcomes through the Application of Enterprise-wide Operational Excellence' to Build a Thriving Enterprise that took place at Business Transformation & Operational Excellence Summit & Industry Awards.

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Session Information:

Improving Business Outcomes through the Application of Enterprise-wide Operational Excellence

This session will describe the application of Operational Excellence concepts to enable business outcomes within CACI, a $4.3B defense contractor providing solutions and services supporting critical missions.  Operational Excellence is one of three strategies helping CACI enjoy sustained, profitable growth, outpacing its peers.  The session will describe how OpEx is implemented at CACI, the tools and methods, outcomes achieved, and future plans

  • OpEx as one of three enterprise objectives
  • Applying techniques to the lowest levels
  • Improving customer focused work and program performance]
  • Tools and Techniques applies
  • Quantitative results discussed

Session Transcript:

He's also been with the Air Force and and necessary wide-ranging experience and even read his Bible but but because you will definitely want to find out more but I'm going to tell you some stuff that you might not know and which me gave me permission to do so Brian is he's a PhD that's why we call him doctor and senior VP of x4 CACI international.

So I asked him what what what is the one thing you want give you people to know he said here's what you get what you're going to have your today is what you get when you let an engineer design and operational excellence from approach their program a later architectural approach table X so we're going to I can't tell you what that means but we're going to find out we think about his bio that you might not know.

He would tell you this Brian Gallagher is a high school dropout he's a former rock band member he's retired military and he has a PhD in systems that you can know so that's about that first or if you're going to want to buy him a drink and find out how we went from one extreme to the other thank you to the heart of all that the introductions were great you really set the bar high for me to have to combine operational excellence so that's the title enterprise-wide erational I'm not here to sell you anything about a vendor.

If I sell the tool I'm going to share with you experiences that we have in our company and how you implement it operational excellence and some of the things that we do and that works for us and we'll give you an example of one of the things that we did recently last year which is over there shared services center which was a big change for our organization.

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So we're kind of watching that so let's start a little bit this is baby that was me my daughter like yeah so system software engineering mission I was in the Air Force so of the software engineer the Air Force the systems engineer workspace and Intel type systems with the Carnegie Mellon University not as a student but with a research center and turning over the person for 12 years of software institute that is the home of the CMMI.

So we may be played with that so it did a little bit after Authority now CHD is the operational efficiency all right so a little bit about the company just to give you some context you know I'm not trying to sell you guys what kind of set the stage for our jury of what we've done to 20,000 people were like 5 billion annual revenue we're all over the place headquarters is in Virginia inside the beltway so we have a very large presence all over so we've got folks over the u.s. folks overseas really all over the place and the thing that we do is we provide solutions and services primarily to government.

You need Intel agencies federal agencies and a very wide variety of let's get that one just all flow the here gets to the markets that we serve so you know one of the things to figure out is what do you want to do as a company and you could do anything and everything and about seven years ago we were doing just about anything everything.

We actually ran a bakery on a base and we have another program that was billion touch of horseshoes you know doing shoes for special operations and new say you know what this is probably not what we want to be as a company just doing everything for it but I'm just chasing everything so how did Hedgehog how to factor in that or what we do well was there pay us for you know where is the market going to get a lot of market analysis.

The strategy and we came up with these twelve areas of focus now twelve and still be a lot to do a lot of things so very diverse set of programs very first set of customers that we deal with things like we've got the largest in personnel system of the world that we're developing employee on its army invaded paying personnel system to the other so the US Army is going through a branding paying ersonnel system and we're the primary rated for that that contract developing at that PeopleSoft time that's for the Army National Guard reserves it's a big program we also only manage what's called camel which is the Air Force satellite control network.

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So the Air Force flies a lot of the sandbox and communications with and we know where they are we track where they're at we do command control we schedule the usage of those satellites that's one of the programs that we have so we maintain that worldwide universality building those two examples just to show the experience by what is and a mission critical systems engineering where the software mission-critical activities the other day the personnel system an information system that we worked under deploy.

We also have programs where we deploy Intel analysts in weird locations around the world or in which they do things for the government we also have a big program with OPM that does background investigations if you guys ever have security clearance some becomes the knocks on the door the interview we have left there 200 people in our company that do that around the world for O'Neal the Office of Personnel Management so very diverse set of things really falls in these these twelve twelve areas.

I can go on about that stuff in here it just gives you a sense we have about six hundred programs and we call a program anything over two million or above an annual revenue sum of a much larger than that so we have a lot of a lot of programs that were managing we're very diverse diverse set of customers around them around the world.

We have three strategies so very very simple win new business we want to win more than our fair share of businesses those call barriers we all want to win all of our we compete typically gives you a contract for a set period of time and it's an ongoing kind of contract that week the feedback that we learned it with all of our region's perform with operational excellence and that's what we've talked about here that's one of our three main strategies and we're receiving our customers expectations and we're doing in a way that makes money company as well as benefits the customer that's operational excellence and they grow through acquisition so our company in the last 25 years or so has had about 60 acquisitions.

So we do a lot of acquisitions that we closed on 1/2 weeks ago 1300 came into the company about three months ago another thousand people we close to the company they became in a great game so imagine bringing people in agriculture making sure that they understand how we operate it's a very big challenge so that's kind of our three main areas of strategy so for us here's how we define operational excellence and this is probably familiar with a lot of folks here.

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You've heard something similar to this but first we want to make sure they every single employee understands how what they do on a day to day basis contributes to our end customer mission okay so if you're doing invoices or if you're in procurement or if you're embedded with the customer we want everybody to understand how their job contributes to the end users company and when they see something that's going to impact that delivery they do something about and as Judy Could say without naturally your vision right they fix it and we call it the finding picture right by the problem you fix a call and so that's kind of continuous improvement operational excellence.

I said however sometimes you get a problem like this right it's not just the final fix that kind of thing it's not just uh you know you've got your normal workflow and adventure and overwork this isn't that little workflow this is something where you got to rally the forces to really do something big with the company and so we're doing those following for middle things we're proving performance but we're also tackling some very large things like integrating big companies into our culture and the example we give today is saying that the shared service is similar to good entertainment for us as well so this is the layered architecture and I have a hard time suppose it's lateness to people cuz they look at say I'll get it but immediately try the way.

I would get our organization and operational excellence is there's a value because a value stream from us to our to our customer so if you think about layered architecture of an engineer think about an ISO static related architecture usually at the top of the architecture is the value to the customer the applications the thing that somebody sees that later then is supported by the next layer which is supported by the next layer insoluble.

So if you think about what we do we help our customers achieve their vision so that's the very top table later la required architecture and that mission is enabled by the solutions with services that we provide as a Condon the solutions and services are delivered by programs and those programs are supported by our instruction so for us when we think about operational excellence we're looking across the entire architecture the looking for things to improve if you've ever been involved in it would be very frustrating I use it all the time I like.

I like the critical thinking tools that they use but the thing that always bothered me about period restraint instead okay line up the constraints and then but they kind of pass through then act upon those constraints where the ability to look in the first place for those constraints would be improving your process for us we want to make sure a radar screen is wide enough so that we can find those constraints across the board and it's a mix of Portability and innovation finding those constraints in fish tanks so just a couple things here we have a lot of people that are vetted with our customer in their workspace so we have people that know they the contract says people that are left-handed panic occurs right now which is show up at this location and we'll tell them.

What to do well they were there with the customer mission all the time really done any purpose or until analyst sir they're doing they're doing mission kinds of things so they're looking at the customer mission we also have solutions the services that we provide so I mentioned the painters house the service universe had a control network activity we have a product that we sell all the sky tracker which is an anti derivative system if you think about critical in the structure if they have drones flying and critical infrastructure.

We have a system that the texels shuts them down or takes with pixel over that's one of the products that you that we provide so we're looking at innovations in the solutions and services' air as well and then how we manage programs so our structures with programs how much Quality Assurance be how much risk management risk you take on how do you manage your critical suppliers in your supply chain so thinking about how that you are current activities and then the infrastructure so things like how we organize what kinds of benefits do you have with people what's our job families for our folks to work across all those different areas sometimes when people do an operational excellent the appropriate.

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They'll focus on maybe one layer of this in this architecture we'll think about well maybe we're just gonna focus on how we do our solution to services and not think about the rest but if it's if you think about it a layered architecture the solutions the services are supported by programs or supported by our infrastructure if we can do some things here that are innovative and address affordability we're going to support that entire stack okay.

So here's the example in here that dramatically reduced in transactional cost so talking about some of the neat things you do at a customer area we'll talk about something that's kind of back office there's a transactional kind of kind of activity so what we found was a lot of our fruitive activities really were but was founded under layers right the program's solutions and services and so forth and not so much of a lower level here that our focus was external customer focus kind of a kind of activity.

So what happens over time you start doing a lot of inefficiency in those other layers that Hospice is people can do it forever our cousins around 55 years I don't think with anybody that's been in the company 55 years but we've had people that were there a long time a lot of tribal knowledge if you will we had a new things especially both back office areas and it was very expensive our transactional kinds of activities were where our headquarters is at news to the DC area.

A very high possibility living area so it was very expensive had an efficiency through tendencies and it was leading to the external as well as internal customer satisfaction think about getting an invoice out before making sure that we're doing something pure about time those those types of things so without dramatic change we felt that our business objectives were threatened.

So think about if we're going to acquire another company image like thousand people or a thousand people that strain of that kind of a fragile infrastructure wasn't very good so we needed to do something there so I'm going to talk about it in terms of seeing am I you know I mentioned three strengths we didn't succeed but whatever methodology you use we panel to CMMI for services was a very good match for what we were doing in setting up our shared services center.

So I'm going to talk about the areas of CMI that addressed risk management managing performance strategic service management service delivery management incident resolution and Prevention and continuity and also some sprinkles and assistant and so forth so what is this do for us why we use a lot like this if you're standing up something like we did a shared services center and you wonder like if it looks like it's what it's a good service delivery look like you go to something like this as a standard to look at some people use ice okay that's a 20km IT Service Management.

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We were doing non IT service man they're doing contracts so we wanted something that would help us stand up a ervice delivery for world-class service delivery organization so we use these know why they don't let us do that so a study will be decided to stand up our shared services center at the lower cost of living area Oklahoma City not alone so most of our operations are DC and now we're going to move a larger set of things to Oklahoma City.

So right now you better take risk that risk up there we also have to think about you know strategic service management which means what the services are going to define how do you document those have to make sure that they're deployed and so forth so that provided us the opportunity to collect those things that were done over 55 years kind of different different over locations and standardizing refresh them make sure they have repeatable performance here goes up to a single organizational structure because all those things reported in different different areas but put into one location and five of them over tops of living areas.

So almost a lower cost for us this is about 300 FTE so move 300 positions we remove those positions say so I think that's a change anything about that I think it's a big risk it's a big concerns with something like that so as a group we have to figure out which services do we want to move we decided hurting the transactional services services where somebody is in a back office who gets us to do something and problems that requested pieces to our internal customer.

So these are the areas of contracts procurement HR finance information systems that security security be processing of clearances and passing through quests and so forth this is just an example in the Eric contract so under each one of these things these are the service areas they had additional things that they did contracts it was things like customer complaints and contract closeout Freedom of Information Act requests and so forth so those are the kinds of things that would be moved where you know everybody kind of knew.

It was Charlie ready to go ahead the office here we talked to Charlie to give you Mike attitude now it's going to be somewhere in the middle of the country and I'm going to pick up the phone that much you're going to get accident was a lot of risk associated that obscenity law so we had to find the service system again these evolve over 55 years they had to extensive findings so something in some cases it was all of the people status right they didn't have dripping down procedures.

So we had to make sure our policies our procedures everything that and they alive - what we wanted to do and we are trying to get this out of people who we've already told you're no longer going to be with the company after after static so 300 people who were working for the company and the last thing we're going to do is it's very very gentlemanly but we implement a common request system so with the past it was.

I know I'd call that or I know Sally that we had a common questions later active voice system as well as a service battle for services and yourself we also divide off novel processes so we've not only what does it mean to do the right thing but what happens when things were bad was that what's the what's the checklist if you will for a momento bad and we based this all on our current work so here we are kind of trying to figure out what size.

We need what capacity we need based on the system that's not well-defined so there are seven easy iteration of the univer to have some struggles as we move along so that is kind of where we started up again up here the steel wires that helped us managing performance and metrics and that measurement piece IRP incident response and prevention.

So you delivered in the system you're looking at incidents you responded to those kinds of activities service delivery management how you deliver services and against a competing service management so there was guidance in that model that helped us establish those things so transitioning was a big deal right so we were having to move all these services that were being operated to what place to the new place so we established these or our operational readiness reviews.

So if you're engineer to their window before you deploy a system view and/or are so we use that concept for each of these services for Standells up extensive planning activities to make sure that we had captured the knowledge that we had trained the new folks we hire the new folks if they understood what their roles or the tools were available to perform we tested the service and we want to make sure is it going to work and some area been do parallel operations just to make sure that we're reducing those areas.

We both help formal operational readiness reviews for each of our each of our service areas so what is it now it's it's fully operational its requests are being processed filled we've got incidents we're going to cause analysis and other kind of problems again we couldn't do this before because it was scattered throughout the DC area we're doing these kinds of activities we have SLA the standard dashboard for folks to understand.

What the progress is on our shared services we're making adjustments because we kind of guess what's the capacity we were finding maybe we need more people in this area versus versus that area and we're continuing to capture risks opportunity disease as we go forward again all those things up there are process areas that help us do that so one area that we didn't do so well is think about continuity of operations so so as we were going to do our ours.

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We started asking what happens if there's a tornado so what happens if they have ice storm that people can't get to take it to their work location so we had a special activity kind of a little bit late when we started working on this cognitive operations things like understanding what business impact analysis is if a service goes down what's the impact go to the company of the business hazard analysis you see the inclement weather the tornado.

Those are real things that happen especially we want to make sure that the employers were these over so could they work from home did they have a generator that they have internet access could they perform their job from home do we have the tools that they needed to workable and then the service error visually it's kind of all bubble up so for that as well so a lot of activity in how do we make sure that we think about resiliency and continuity of operations.

Which by the way we never thought about before we're the DC area nobody thought about what happens if we really had to think about it from from this perspective so what are our next steps we're going to optimize the service delivery so now we have common services that are being delivered elevation we're going to optimize that we can kind of manage it over time and approve it over time we can also look for opportunities to take on more transactional services.

So are there other things that we might be able to to our shared services center things that we didn't get the first time things that make sense to be in that location to be vanishing the same to the same kind of way this enables growth so again as I mentioned just a couple weeks ago we closed on an acquisition so in a very short amount of time we had to bring all those people had already to our systems.

We had to give them all badges then give them all cell phones and laptops teach them how to do things our shared services center with Bible in that activity making sure they came up morning very very much as an April growth initiative we're about 4.5 billion we have we have an aspiration to get the 10 doing so the doubling in size and so this is going to help us some of that with that you know people have asked okay you kind of follow see my you want go ahead and do a formal appraisal to get a phrase that a seal behind the church level that's not what we did we didn't do it to get a maturity level or to get to check the box kind of paper shared services center.

We did it because it was good practice and gave us some things to think about including maybe we have to think about continuity planning which we hadn't thought about on our own it could be a badge of honor for the staff there we would through that could help identify the recruiting areas but right now this is not a burden we use that to help us improve them to help us implement the Shared Services Center not necessarily that you go out and say we've seen a little X which is what you don't usually get for defense contractor right we always say we've seen Y whatever okay.

So well we need to go you know the parts of see why they helped us make that same opportunity and risk management is it's an opportunity that we want to go after is it a risk for us to do additional things as the airship you should be okay with that pretty quick I do what I know kind of provinces of the last page on the Shared Services Center this is the actual center that's there it's located in Oklahoma City in an area.

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That was a data center so it's built for resiliency in the first place you know staff who doesn't see it so forth we took a part of that it's huge complex we're not Brett the only defense a multi-tenant facility dr. Jack London is our executive chairman of the board he's from Oklahoma City.

When we named it the doctor Jack wasn't shared services center and its operational and they're doing a great job and continue to improve as we go through so a little bit about the recognition for our approach to operational excellence.

I gave that one example you could go on together as examples how we manage programs we've got a lot of work in managing programs and transparency and reporting and improving our awardees and CPR sports our customers a lot of work in that area that's part of the architecture to look at but this was just one example these are the kinds of recognition that begin what they know that it should see a lie we just went through a cy4 development for our solutions side.

Which are you love a free appraisal using version 2.0 does a lot of academic long words there but it's kind of significant because we're the first company in the United States to go through the first company cos we weren't the first company in the world might be able to say that we actually started first but we were a little bit more deliberate than our appraisal activities for other companies jump dead before they stay into before we ended so so first first in the u.s. not first another person world three-three a China wanted to give that leads to go so.

I said that thousand kilo that's blowing management system 20,000. I mentioned IP security I can service again even 27,000 like the security management as you imagine fixed contracts are very concerned about how we maintain our networks our customers data and then we have some program specification.

Okay whatever that you would though was the homework the sale people what is in the playful IRA position if I were to think about my organization and how we do business what does it look like how many layers do I have maybe I've got six later they get been three don't know what your organization looks like I think about a problem.

What's your customers mission the very top the very top of the architectures your customers vision what supports that customs mission what supports that what supports that do you think about what are those things one of those layers within your organization that support your customers mission fill those in and then start thinking about affordability innovation and how do you any better she permission I think we have a big image I got the real question.

So pretty quick read through that questions comments in your definition again not without bracelet eyes I don't use the word teams how does team sort of how to steam sort of playing in all this yes so even if you have a 2500 thousand person organization work is done so so it's typically a team of seven people doing work so we want to make sure that that team they're a power to operate in a kind of self-organizing way and they're performed for what we do so we want to make sure team to understand.

What they're doing to have individual support those teams and how this team support most efficient so even with the larger organization work is done yes LTS so we just acquired a great company LGS innovations we've got one team engineers and we're real excited about that acquisition that they have all right I speak up just filled this tub back either.

So I know we're on the shitter descended years ago and wanted to know and I'm sure it's because it's obviously pretty so it was difficult you could imagine some areas nothing it was pretty bad okay so we had that we had to do an extensive amount of policy procedure writing and in some cases we extended people out beyond you know it wasn't a better than the state.

Now we handed it over there were some risk areas for exactly what you what you think you got to make sure that you just don't get paid that you had to go through so we extended some some of those folks to and gave them incentives so we acidifies into the state he state we get this extra out to help with that knowledge transfer so part of that incentives for skinny people and a lot of that capture and was or are very very important cause of walking every language area.

So if you can capture the knowledge of the trailer people so any other questions since we're we have a little bit of time before in the next session the process is written down how did you know to do a thorough analysis all those processes go into a design mode or problem solving over his head wrap okay yes okay so we had a standard of what we wanted to see from a graph of an outlet we want to make sure we had policies that procedures a supporter to the checklist and so forth so where there was a gap we had to go into design mode that anything else mm product.

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About the Author

more (53)Brian Gallagher,
SVP, Operational Excellence,
CACI.

Dr. Gallagher is Senior Vice President of Operational Excellence for CACI International Inc, a $4 billion information systems solutions and services company. In this role, he is responsible for CACI’s integrated program management and delivery methods, process effectiveness, quality assurance, and continuous improvement initiatives.     

Prior to this position, Brian was the Director of Engineering and Mission Assurance for Northrop Grumman’s Intelligence and Cyber Divisions where he provided leadership critical to mission success involving engineering, quality assurance, process effectiveness, program execution, and supplier assurance.   

Previously Dr. Gallagher served as Director of Acquisition Support at the Software Engineering Institute (SEI), Carnegie Mellon University, leading teams serving the Department of Defense and other government agencies. He also served in the U.S. Air Force, with assignments as Deputy Chief of Software Engineering with the Air Intelligence Agency; Chief Engineer on the Range Operations Control Center Project at Cape Canaveral in Florida; program manager on the Titan IV Program; and as an engineer with the Strategic Air Command. 

Dr. Gallagher earned a PhD in Systems Engineering through Colorado State University, an MS degree in Computer Science from the Florida Institute of Technology and a Bachelor of Technology degree from Peru State College. He is Six Sigma trained, PMP certified, and is certified as a CMMI high maturity lead appraiser for CMMI for Development and CMMI for Services. He is an associate fellow of AIAA and a member of IEEE, NDIA, PMI, AFCEA, and INCOSE, as well as a contributing author of the Guide to the Systems Engineering Body of Knowledge (SEBoK).  Dr. Gallagher is an associate professor at University of Maryland, University College where he teaches graduate course in Systems Engineering and Information Technology.

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Start learning today!
 

Proqis Digital Virtual Conference Series

View our schedule of industry leading free to attend virtual conferences. Each a premier gathering of industry thought leaders and experts sharing key solutions to current challenges.

Watch On-Demand Recordings For Free

Watch On-Demand Recording - Access all sessions from progressive thought leaders free of charge from our industry leading virtual conferences.
 

Best-In-Class Training

Delivered by the industry's most progressive thought leaders from the world's top brands.
Start learning today!
 

Proqis Digital Virtual Conference Series

View our schedule of industry leading free to attend virtual conferences. Each a premier gathering of industry thought leaders and experts sharing key solutions to current challenges.

Watch On-Demand Recordings For Free

Watch On-Demand Recording - Access all sessions from progressive thought leaders free of charge from our industry leading virtual conferences.
 

Best-In-Class Training

Delivered by the industry's most progressive thought leaders from the world's top brands.
Start learning today!
 

Proqis Digital Virtual Conference Series

View our schedule of industry leading free to attend virtual conferences. Each a premier gathering of industry thought leaders and experts sharing key solutions to current challenges.

Watch On-Demand Recordings For Free

Watch On-Demand Recording - Access all sessions from progressive thought leaders free of charge from our industry leading virtual conferences.
 

Best-In-Class Training

Delivered by the industry's most progressive thought leaders from the world's top brands.
Start learning today!
 

Proqis Digital Virtual Conference Series

View our schedule of industry leading free to attend virtual conferences. Each a premier gathering of industry thought leaders and experts sharing key solutions to current challenges.

Watch On-Demand Recordings For Free

Watch On-Demand Recording - Access all sessions from progressive thought leaders free of charge from our industry leading virtual conferences.
 

Best-In-Class Training

Delivered by the industry's most progressive thought leaders from the world's top brands.
Start learning today!
 

Proqis Digital Virtual Conference Series

View our schedule of industry leading free to attend virtual conferences. Each a premier gathering of industry thought leaders and experts sharing key solutions to current challenges.

Watch On-Demand Recordings For Free

Watch On-Demand Recording - Access all sessions from progressive thought leaders free of charge from our industry leading virtual conferences.
 

Best-In-Class Training

Delivered by the industry's most progressive thought leaders from the world's top brands.
Start learning today!
 

Proqis Digital Virtual Conference Series

View our schedule of industry leading free to attend virtual conferences. Each a premier gathering of industry thought leaders and experts sharing key solutions to current challenges.

Watch On-Demand Recordings For Free

Watch On-Demand Recording - Access all sessions from progressive thought leaders free of charge from our industry leading virtual conferences.
 

Best-In-Class Training

Delivered by the industry's most progressive thought leaders from the world's top brands.
Start learning today!