OPM 3 Redux PMIs Newest Assessment Model Joseph

OPM 3 Redux: PMI’s Newest Assessment Model Joseph J. Spigai WOOD Consulting Services, Inc. PMI Silver Spring Chapter April 8, 2009 1

Overview A brief review of the evolution of PMI’s newest version of their Organizational Project Management Maturity Model (OPM 3® Second Edition) 2

• • Outline What’s OPM 3? ? A little history (with Dilbert’s help) CMMI CIMM OPM 3 The OPM 3 -- Second Edition Improvements Why Do I Care? A Message from our Sponsor 3

But First…… What’s Organizational Project Management? 4

from Hargrove, 2009 5

PMI defines organizational project management as: “The consistent application of knowledge, skills, tools and techniques to organizational and project activities to achieve the aims of an organization through projects. ” 6

What is OPM 3? ? The Organizational Project Management Maturity Model (OPM 3®) is the standard methodology of the Project Management Institute ® (PMI) for determining organizational project management maturity through comparison with industry best practices. 7 ASSSIGNED TO INDIVIDUAL, NOT COMPANY 7

OPM 3® is the bridge to success by linking projects with organizational strategy 8 8

OPM 3 Features • A tool to assess an organization‘s current process management capabilities. • A methodology for educating and training people involved in organization processes management. • A framework for institutionalizing process improvement in organizations and increasing process management capabilities. 9

OPM 3 uses the elements of Knowledge, Assessment, and Improvement based on industry-accepted best practices, capabilities, and key performance indicators. Implementation of appropriate best practices will enhance an organization’s position against its competitors by executing its projects more predictably. 10

OPM 3® addresses the entire spectrum of project success: Project Management Program Management Portfolio Management Organizational Enablers This powerful tool can help lower costs and improve the predictability of your projects. 11

PMI’S ONLINE TOOL FOR OPM 3 12

OPM 3 Product Suite® • PMI’s proprietary software : – produces tailored protocols (questionnaires) for each specific case, – uses proprietary algorithms to analyze OPM 3 assessment responses which provide maturity levels in the project, program and portfolio domains. • Accessible only to PMI Certified OPM 3 Assessors/ Consultants • Companion software : OPM 3 Online® provides an OPM 3 Self Assessment model. (Shortened version of 125 questions) – for sale by PMI. 13

A Little History… 14

CMMI • Capability Maturity Model Integration • Developed by Carnegie Mellon’s Software Engineering Institute between 1986 and 1993 • Now the world-recognized standard for measuring the maturity of (software development) organizations • Five levels of maturity: Initial, Repeatable, Defined, Managed, and Optimizing • SCAMPI = formal rating methodology using Authorized Lead Appraisers ref. : Humphrey, et. al. , 1989 15

CIMM • Capability Immaturity Model • Originally defined by A. Finkelstein, 1992 ; 3 levels: Foolish, Stupid, Lunatic • Refined by T. Scorch, 1996; • 4 Levels: Negligent, Obstructive, Contemptuous, and Undermining 16

Not so crazy as it sounds… 17

As of tomorrow, employees will only be able to access the building using individual security cards. Pictures will be taken next Wednesday, and employees will receive their cards in two weeks. " © Copyright © 2009 Scott Adams [ACTUAL STATEMENTS BY REAL COMPANIES] 18

Copyright © 2009 Scott Adams E-mail is not to be used to pass on information or data. It should be used only for company business 19

OPM 3 • PMI started in 1998 with an advisory group of hundreds of PMPs to develop the OPM 3 Best Practices as the basis for Assessments. • Created an OPM 3 Knowledge Foundation standard document. • Group developed 557 PMBOK-based Best Practices and extensive Assessment protocol (questionnaires). • Developed an abbreviated do-it-yourself-Self Assessment as a saleable product • Developed concept of Certified OPM 3 Assessors/Consultants to carry out Assessments. • Product. Suite software was developed; OPM 3 Assessor/Consultant training begun • OPM 3 launched in 2003 - goal: 1000 Assessors/Consultants in a decade. 20

Copyright © 2009 Scott Adams This project is so important we can't let things that are more important interfere with it. " 21

What’s happened since? • Det Norske Veritas Norwegian risk management & certification company, was given the entire OPM 3 sales, promotion, certification, and software support contract. Result: 3000+ sales of OPM 3 Self Assessment module (mostly Europe); 90+ certified Assessors/Consultants (half in Europe) 22

We know that communication is a problem, but the company is not going to discuss it with the employees. " 23

What I need is an exact list of specific unknown problems we might encounter. " Copyright © 2009 Scott Adams 24 2 2

Post-2003, continued • Results in Europe were, understandably, more productive than the U. S. • An un-intended consequence : sales of Self Assessment model have “competed” with the Assessors/Consultants • PMI, unhappy with the five year progress of OPM 3, took back all control in 2008, and • Undertook a major revision, marketing plan and upgraded support services in 2008. • Formed a User Advisory Panel to recommend improvements • Although work remains- the results have been encouraging… 25

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Improvements in OPM 3 Second Edition • Shortened Best Practices core to 488 • Aligned revised OPM 3 Knowledge Foundation standard with the three other PMI standards published in 2008 (PMBOK, Program, and Portfolio Management) • Created User Advisory Group and Consultants Working Group • Revamped Product. Suite; made tailoring easier • Considering ending Self Assessment sales • Combined Assessor/Consultant…now only OPM 3 Consultants 27

Improvements, cont’d. • A streamlined comparison against a broad set of best practices to better understand organizational project management and to measure maturity. • An improved global standard developed, under the stewardship of PMI, by PM professionals from around the globe. The team researched over 27 maturity models and developed a more concise list of 488 project management best practices. • Represents, for project management, the next generation of the highly successful Capability Maturity Model Integration (CMMI®) Model from the Software Engineering Institute at Carnegie-Mellon University. 28

What Results Can You Expect? • An overall “Maturity” score , either based on a continuum from 0 to 100 using Self Assessment, or , a more detailed score and detailed analysis, by domain, using the improved Product. Suite. • A list of best practices (and their included capabilities) that you have achieved, and by extension… • Knowledge about those PM best practices (and capabilities) that you still need to achieve. • An OPM 3 Consultant can prepare a follow-on Improvement Plan to map/tailor short-term needs to best maximize productivity, strategic alignment, return on investment, and organizational maturity. 29

Detailed Results by Domain Project 30

Relative Maturity By Domain 31

Detailed findings… Assessment Findings – Project Management A 1004 - 1. 1 - NOTE: This FINDING is also a COMMENT and is applicable to all sections OF 1. 0 -Project Management QAI, Inc. is a privately-held company. The QAI Process for managing projects is essentially ad hoc, and, in general, does not follow a standard (PMBOK) -type process. Their work process , for both Document Management and Laboratory Management businesses (portfolios) is well documented --but their management processes are not. There is one Program Manager for the business line and each project has a Project Lead , who generally follows work plan and schedule, the management of which is ad hoc and customer-driven for the most part. There is a formalized "On Ramp" process to begin each new project, but beyond that -processes aren't formalizedany formal project management process that may be required is generally customized to client requirements and/or needs (customer-driven) -or not done. QAI has no overall Strategic Plan to tie projects to, although there are Operational Documents/ Business Plans , which have tolerance limits ("comfort zones") known mainly only to the owners. 32

Statistical Summaries by Department… 33

What’s left to do? A major PMI marketing plan is underway to : • Increase OPM 3 visibility nationwide • Strengthen links with CMMI • Recruit/train more OPM 3 Consultants • Eliminate Self Assessment competition • Award staged maturity certificates 34 • Establish a U. S. data storage center

“Doing it right is no excuse for not meeting the schedule. " 35

Why Should I Care? Value of Improving Your Project Management Maturity Organizations with less developed project management Capabilities: • Miss budgets by 20% and Miss schedules by 40% Organizations with more developed organizational project management, experience better project performance (benefits) in areas of: • • • Cost predictability (first time estimating: 20% improvement) Project predictability (duration reduced by 50%) Resource allocation (effort reduced by 25%) Improved quality (Cost-Of-Quality improvement of 10%) Identification and selection of projects that align with strategy 36

A (Quick) Word From Our Sponsor… 37

WOOD Consulting Services, Inc. • Largest contingent of PMI Certified OPM 3 Consultants in the U. S. (six of 45) • Member of PMI’s OPM 3 Advisory Board • A number of Assessments already completed and in the planning stage for gov’t. & commercial organizations • In addition, our PMPs, CSEPs, CMMI and process specialists add to critical mass of Project Management experts to address any PM issue or assignment. • WOOD’s position allows us to better understand both the linkages and pitfalls of maturity models and assessments in order to provide more and better valueadded customer process improvement 38

For more information: • www. pmi. org/business solutions/opm 3 • For PM matters at WOOD Consulting: Dr. Joseph J. Spigai jspigai@woodcons. com 301 -377 -5327 39

THE END Questions? ? 40