Organizational Project Management Maturity Model OPM 3 PMIMN

Organizational Project Management Maturity Model (OPM 3) PMI-MN Breakfast sessions Process Management Organizational Project Management Maturity

Objectives Review • Process Management • Describing the process • Process Management Best Practices • 2

Review Best Practices • Domains • Organizational Project Management Process Improvement • 3

Process Maturity Progression W. Edwards Deming and post-WWII Japan Do. D and SEI in 1986 Watts Humphrey’s – Managing the Software Process 1989 Mark Paulk – Capability Maturity Model for Software 1991 Key concepts: Define the process Incorporate industry best practices Standardize the process Measure and analyze the process Focus on feedback and feed forward controls Make any improvements necessary. 4

SEI-CMM Maturity Levels Continuously Improving Process Predictable Process Consistent Process Disciplined Process Optimizing (5) Managed (4) Defined (3) Repeatable (2) Initial (1) 5

A Repeatable Organization u. Level 2 Characterized by · Policies are established and followed · Processes are practiced, documented, enforced, trained, measured, and improved · Project standards are defined and faithfully followed · Institutionalize effective project management processes

Remaining Levels u Level 3 - Defined · Organization process focus & process definition · Integrated software management & product engineering u Level 4 - Managed · Quantitative process management · Software quality management u Level 5 - Optimizing · Defect prevention · Technology change management · Process change management

Six Sigma Concepts • Identify the problem process Standardize • Describe the process Measure • Identify inputs and outputs • Use inputs and outputs to prioritize • Identify and implement measures Control • Analyze measurements for variations • Identify root causes of unwanted variations Improve • Identify and implement process changes

Questions? What do maturity models seem to have in common? What would you expect to see in a maturity model but don’t? What is the value of having levels?

What Does OPM 3 Have? What do maturity models seem to have in common? –Process Standardization –Process Measurement –Process Control –Process Improvement –Process Governance

What Does OPM 3 Have? What would you expect to see in a maturity model but don’t? –Reference to Program and Portfolio management –Reference to Resource management, Procurement management, etc. –Strategic Alignment –Incorporating process improvement goals into portfolio planning

What Does OPM 3 Have? What is the value of having levels? –Identifying improvement targets –Support maturity assessment –Identifying where your organization is on a continuum –Communicate a sequence to increasing maturity –Ability to benchmark against similar organizations

Maturity Models • • • OPM 3 reviewed over 30 maturity models Most were extensions of the SEI CMM model Very few addressed multi-projects or programs Most focused only on the project domain Most included standardize, measure, control, and improve

OPM 3 is Not Just Another Model Project Management Maturity Model, by Knapp & Moore Pty Ltd. US Federal Aviation Administration Integrated Capability Maturity Mod SEI P-CMM People Capability Maturity Model V-Model Balanced Scorecard AACE International’s Certification Program SEI SW-CMM Capability Maturity Model SM for Software APM Bo. K Review. SEI CMM-I Integrated Capability Maturity Model PRINCE SPICE IBM Progress Maturity Model. EFQM Excellence Trillium ESI International's Project. FRAMEWORK ICB - IPMA Competency Baselin Malcolm Baldrige Quality Award Integrated Project Systems’ model “Barron Maturity Model” (Ortho Clinical Diagnostics) Microframe’s Mode SEI SE-CMM Capability Maturity Model for Systems Engineering Australian Institute of Project Management (AIPM). 1996. National Competency Standards for Project Management: Various Volumes, Competency Standards, Level 6. Hartman's SMART model 14

Maturity Models • • • OPM 3 reviewed over 30 maturity models Most were extensions of the SEI CMM model Most focused only on the project domain Very few addressed multi-projects or programs Most included standardize, measure, control, and improve

Process Model Overview What process are we trying to improve?

Process Modeling Controls Inputs Process Description Outputs Tools and Techniques Processes transform inputs into outputs, guided by controls, and aided by tools and techniques.

Process Model How it can be used Controls Govern how the process operates Inputs Measure for specifications Process Description Tools and Techniques Are resources available to the process Outputs Measure for performance and stability

Process Modeling Project Schedule Development Controls • Strategic plan, • Business goals Inputs • Project network diagrams, • Duration estimates, • Resource requirements, • Resource pool description, • Constraints, • Assumptions, • Risk management plan Analyzing program and project sequences, durations, and resource requirements to create the Project schedule. Tools and Techniques • Mathematical analysis, • Duration compression, • Resource leveling, • Project management software, • Expert Judgment Outputs • Project schedule, • Supporting detail, • Project schedule management plan, • Resource requirement updates

Portfolio Management If we want to address process maturity within the domain of portfolio management, we must understand what that process is.

Question? Describe the process of managing a portfolio of projects

Project Management Process Review Initiate Plan Exploring the Request Execute Project Plan Execution Performance Reporting Vendor Administration Quality Assurance Team Development Sustain Commitment Scope Planning & Definition Activity Definition & Sequencing Resource Planning Duration Estimating Schedule Development Cost Estimating & Budgeting Project Plan Development Quality Planning Communications Planning Risk Management Planning Procurement Planning Resource Acquisition Control Overall Change Control Scope Change Control Schedule Control Cost Control Risk Response Control Close Project Closure Administrative Closure

Portfolio Management Process Proposal Initiate Plan Organizational Business Plans Scope Management Process Management Resource Planning Portfolio Plan Development Cost Budgeting Quality Planning Communications Planning Risk Management Procurement Planning Organizational Planning Staff Acquisition Execute Portfolio Plan Execution Performance Reporting Vendor Administration Quality Assurance Workforce Development Control Scope Change Control Portfolio Schedule Control Cost Control Risk Response Control Close of the planning or budgetary cycle

OPM 3 Extended the PMBOK® Guide processes to the program and portfolio domains Allows organizations to focus on process improvements in all three domains Permits the analysis of interactions between the domains 24

There are many Interactions between Organizational Project Management Domains Portfolio Management Program Management Project Management

Domain Interactions Strategic Plan Domain interactions should also be included in the maturity assessment and improvement. What are the interactions between project, program, and portfolio risk management? Vision, Goals, Objectives, Initiatives Initiate Plan Control Execute Close Org. Scope, Authorization Resources Policies Mechanisms Initiate Plan Control Execute Close Performance Information, Corrective Action, Risks, Released Resources, Project Info.

Best Practices in Process Management 27

Overview Key aspects of process management • Represented as best practices • “Process maturity is the extent to which a specific process is explicitly defined, managed (standardized), measured, controlled, and effective. ” 28

Process Management Process Governance Process Standardization Process Measurement Authorizing governing bodies to be responsible for process improvement goals and plans. Process Control Process Improvement 29

Process Management Process Standardization Process Tools Assemble, develop, purchase, or otherwise acquire a common process. Monitor compliance with process. Standardize the common process. Access to Information 30

Process Management Process Measurement Tool Internal standards regarding process performance Identify critical process characteristics Measure critical characteristics Identify upstream measures. Measure process critical inputs Measurement Analysis 31

Process Management Process Control Plan Process Audits Identify Root Problems Develop a process control plan System for maintaining process control Audit process stability Identify root problems during process execution 32

Process Management Process Improvement Best Practices Implementing Improvements Integration with Standardization Identify process improvements Continuous process improvement. Integrate process improvements with process standardization 33

Summary Process Model Method of organizing best practices • Incorporates relationships based on the flow of outputs to inputs • • Incorporates relationships between domains • Information flows • Controls • Standardized Tools and Techniques • Communicating to Management 34

Summary Process Management • Maps process management best practices to processes • Standardization, measurement, control, and improvement apply to all processes, and all domains • Framework for the dimensions of maturity – – – • SMCI Processes Domains The ability to apply maturity assessment and improvement to any part of the model. 35

Questions? For more information, contact: Ade Lewandowski 3 M Corporate IT Applications aglewandowski@mmm. com 36