Challenge

An important manager, who was responsible for the company’s main product, quit his job. The change came as a surprise, but not without prior warning. Several internal and external indicators raised concerns about the technology, functionality, marketability of this next-generation “ready-to-ship" product and the overall product management. There was an urgent need for action. On the other hand, filling the vacant position in a small and highly transparent market was a sensitive act that had to be done with the necessary care, caution and control. An experienced interim manager was needed who could quickly provide a reliable diagnosis and a convincing turnaround strategy. In addition, he had to have the charisma to bring team and management on board for an expectedly uncomfortable journey.

Solution

Diagnosis: In order to narrow down the problem area, the following measures were taken: Estimation of the system size, expressed in LoC and Function Points of the SAP ABAP code by applying a backfiring methodology. Architecture and design validation using a selected third-party measurement tool. Application of a standard error model, in particular to determine the expected amount of undetected errors. Reclassification of defects in the defect database according to customer feedback plus expert judgement. It quickly became apparent that a code monster had been created with the best of intentions, whose limits of maintainability became apparent. At the same time the next version was due for delivery. Meanwhile, existing customers were desperately waiting for the list of existing bugs to be fixed.

The following immediate measures were taken: Stop delivery of the next release until adequate system stability was achieved. Start of a comprehensive customer communication to communicate the new strategy “no more false promises" and in return get their approval for extended delivery periods. Creation and communication of an emergency action plan for the shareholders to secure medium-term financing of the measures. Full concentration on the “Quality First Paradigm", complemented by the emphasis on a “Clean Code" approach. Introduction of agile management methods: Scrum for implementation projects, Kanban for maintenance activities.

The medium-term measures included the examination of near-shoring opportunities, the preparation of a long-term business plan, a realistic investment forecast, a proposed new management structure for the “Professional Services" area, the hiring of a product manager and a service delivery manager and finally the handover to the new management.

Results

On the one hand, the new transparency helped to open the eyes of management and the board of directors for the severity of the situation and the amount of “technical debt" that had accumulated over the years. On the other hand, the revitalization program, developed a strong persuasive power. The vision presented was supported by solid numerical calculations. Thus, it was possible to avoid giving up an entire market segment without having a realistic alternative at hand. In the meantime, the ad hoc activities showed first positive results and strengthened the confidence in the feasibility of this project. With new hope and the first positive signals from the market, the handover to the new management gave new momentum and was generally perceived as a new start.