When I mention software to senior executives, I get lots of reactions. Most are frustrated. They complain about missed commitments, quality problems, and unpleasant surprises. Others have been less closely involved. Software was a problem, but those problems have been handled. No one mentions the business opportunities of software. They think of software as a necessary evil—something to be avoided if possible. While most executives would agree that the software part of their business is growing very quickly, they never think of it as an asset or an opportunity.

By using the methods described in this book, organizations have transformed their software groups. The first Boeing team cut test time by 94%; an air force group doubled productivity; a Teradyne project delivered a large defect-free product. These and other organizations are getting outstanding results. However, they all started with a management focus on the opportunities with software.

Threat or Opportunity

Software is a truly incredible technology. It has a zero production cost, can be distributed worldwide in seconds, does not wear out or deteriorate, and is the most economical and flexible way to implement almost any complex function. In just about any field of engineering or science, more than half a typical professional's time is now spent in using, developing, enhancing, or maintaining software. By any measure, software is big business.

To visualize the opportunities with software, consider the inverse: potential threats. Take manufacturing, for example. Suppose your leading competitor mastered a technology that cut manufacturing costs in half, eliminated distribution delays, and provided products that never wore out or deteriorated. If you did not quickly capitalize on that technology, you would almost certainly be in trouble. Conversely, think of the opportunities if your organization mastered this technology and your competitors did not. While software is precisely such a technology, few organizations see it as either an opportunity or a threat. The principal reason is that many executives don't think their organizations do much software work and, of those that do, few have enough software knowledge or experience to appreciate how it contributes to their business. Once they think the software problems are under control, they do their best to avoid the subject.

A growing number of executives have found that software is a powerful business asset. However, these same executives have also found that moving into the modern world of engineered software requires an organizational transformation. What is more, they have discovered that they must personally lead this transformation. It is not a simple change and, like all changes, this transformation involves more than just telling people what to do. The best way to explain what is involved is to tell the story of how the methods described in this book were created.