The Software Dilemma: Balancing Creativity and Control on the Path to Sustainable Software

294 Pages·2012·1.918 MB·English

by  Roger Gutbrod, Christian Wiele (auth.)

Management for Professionals
Forfurthervolumes:
http://www.springer.com/series/10101
.
Roger Gutbrod (cid:129) Christian Wiele
The Software Dilemma
Balancing Creativity and Control
on the Path to Sustainable Software
Dr.RogerGutbrod Dr.ChristianWiele
Sandhausen Eppingen
Germany Germany
ISSN2192-8096 e-ISSN2192-810X
ISBN978-3-642-27235-6 e-ISBN978-3-642-27236-3
DOI10.1007/978-3-642-27236-3
SpringerHeidelbergNewYorkDordrechtLondon
LibraryofCongressControlNumber:2012933774
#Springer-VerlagBerlinHeidelberg2012
Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof
the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations,
recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor
informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar
methodologynowknownorhereafterdeveloped.Exemptedfromthislegalreservationarebriefexcerpts
inconnectionwithreviewsorscholarlyanalysisormaterialsuppliedspecificallyforthepurposeofbeing
enteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthework.Duplication
ofthispublicationorpartsthereofispermittedonlyundertheprovisionsoftheCopyrightLawofthe
Publisher’s location, in its current version, and permission for use must always be obtained from
Springer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyrightClearanceCenter.
ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt
fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
While the advice and information in this book are believed to be true and accurate at the date of
publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor
anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with
respecttothematerialcontainedherein.
Printedonacid-freepaper
SpringerispartofSpringerScience+BusinessMedia(www.springer.com)
To
my wife Vera
and my parents Lydia and Karl-Adam
To
Inga,
Lasse, Rasmus, and Kjell,
and
my parents
.
Foreword
By
Manfred Wolf, Senior Vice President, Head of Global Internal Audit
Services (GIAS), SAP AG
Corporations today are increasingly focusing on what the concept of Corporate
Governancemeansfortheiroperationsandstructures.Theimpactisfeltthroughout
the entire organization. This is true for all branches of industry, in particular for
modernsectorssuchasthesoftwareindustryandotherinnovativehigh-techfields,
includingbiochemistry,biotechnology,andenergyresearch.
Asaresult,corporationshavetobeassessedandmanagedincreasinglyinterms
ofrisk,inordertoensuretheExecutiveandSupervisoryBoards’accountabilityto
their employees and third parties, incl. customers, business partners, public
authorities, markets, banks and other financial institutions, and to comply with
internalandexternalregulatoryreportingrequirements.
In practical terms, this means that compliance with corporate rules and
regulationsisincreasinglyprevalentineachemployee’sdailyworkandisnolonger
restrictedtoafewindividuals.Consequently,allemployeesinthecorporationare
obliged to act in accordance with the rules and regulations which constitute
Corporate Governance. The individual employee’s obligation to adhere to the
documented corporate principles and guidelines applies to all lines of business in
the corporation. Needless to say, it is also relevant for all those creative and
innovative divisions, which (due to the very nature of their roles) have a strong
inclinationtowardsindividualityandautonomy.Here,itisimportanttoensurethat
theprinciplesandguidelines,embodiedinthecorporatevaluesystem,arenotseen
as a restriction on the individual, but more as a frame of reference that must be
clearly defined for employees, so that the impact on everyday work is clear.
Appropriate communication and training must also take place. A control and
monitoring function ensures that this framework is implemented in practice. This
general “supervisory” obligation is put into action using a range of approaches,
includingdifferentauditobjects(product/process)andvariousmonitoringmethods,
vii
viii Foreword
such as specific process controls or a cyclical audit engagement by the audit
department.
Inordertosecurebusinesssuccess,thecommongoalofallauditactivitiesmust
betoallowallemployeeandmanagementlevelstocontributefreelyandcreatively
tothevaluechain,whilealwaysoperatingwithintheprevailingCorporateGover-
nancetermsofreference.
The “Software Dilemma” looks at the resulting conflicting priorities facing an
audit function, namely striking anappropriate balance betweenindividualism and
creativity on the one hand, and Corporate Governance compliance on the other.
Thisworkimpressivelyillustratesthisdilemmaasconceptsandtoolsforefficiency
andeffectivenessarepresented:
As a background to the topic, Chap. 2 summarizes the challenges in software
developmentandcreatesageneralunderstandingofgovernancebycitingspecific
examplesfromthebusinessworldwhichapplyequallytothesoftwareindustry.In
Chap.3,theauthorsoutlinetherelevanceofthetopicforthethreeroles(CIO/CTO,
softwarearchitectandauditor)andtheircommoninterests.
Chapter 4 concentrates on the toolset required for software audits and Chap. 5
focuses on how software audits fit into the governance environment. Since these
chapters provide additional, optional content, depending on their own personal
interests,readersmaychoose tocontinuedirectlytoChap.6,whichaddressesthe
basic concept of Software Sustainability Audits. Chapter 7 develops the theme,
introducing an additional governance concept as well as the methodology behind
softwaresustainabilityaudits.
Processandproductaudits(specialvariantsofthesoftwaresustainabilityaudits
presentedinChaps.6and7)featureinChaps.8and9respectivelyand,alongwith
instrumentsforsoftwarearchitects,provideabasisforputtingtheoryintopractice.
Taking the example of software sustainability audits, Chap. 10 looks at risk
assessment.
Chapters11and12canbereadeitherasaself-containedunit,independentlyof
the software audit concepts presented in Chaps. 4–10, or as supplementary infor-
mation. The basics of effective control in software development are covered in
Chap.11,whiletheprincipleofcontrolself-assessmentsinsoftwaredevelopment
is explained in detail in Chap. 12. A recurring theme throughout “The Software
Dilemma”, the significance and impact of communication is examined in greater
depthinChap.13.
Thistypeofauditfunction,integratedinthesoftwaredevelopmentdivision,acts
as an operational monitoring function, which reports to the operational manage-
mentlevelresponsible,withtheaimofoptimizingprocessesinordertocontribute
efficientlytobusinessresults.Thisbookisintendedto(andsurelywill)encourage
otherdivisionstobuildupacomparablefunction.
Inaddition,oneoftheresponsibilitiesofthecorporation’sInternalAuditteam,
mandatedbytheCEOandSupervisoryBoard,istomonitorhowtheseoperational
audit departments function. This can lead to a variety of cooperation models for
jointauditactivities.InternalAuditthereforewelcomesthetrendtowardsincreased
auditactivitiesacrossthecorporationandencouragestheirfurtherdevelopment,as
Foreword ix
ameansofcollaboratingfortheoverallbenefitofthecorporationandtheassurance
to the Executive Board, to jointly ensure compliance with the Corporate Gover-
nanceframework,documentedindulydefinedprocessesandproducts.
Wewishourcolleaguesthebestofsuccessforthisbookwhichwerecognizeas
being the outcome of many hours of hard work and dedication. We hope that the
readers will be inspired to innovate and that the authors will be motivated by
stimulatingfeedbacktoworkonthenextedition.
.