Professional Development Day
PMI Honolulu - May 3, 2006
OPM3 - Organizational
Project Management
Maturity Model
Walter A. Viali, CSQA, PMP
PMO To Go LLC
What is OPM3
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PMI’s Organizational Project Management
Maturity Model
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Organizational project management is the
systematic management of projects,
programs and portfolios in alignment with
the achievement of strategic goals
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Walter A. Viali
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Over 32 years in Information Technology
“Retired” from Texaco Inc. in 1999 after 25 years
Co-founder and Principal Consultant for PMO To Go LLC
Certified Software Quality Analyst (CSQA)
Certified Project Management Professional (PMP)
Certified Project Management Instructor
Member of the faculty of the Project Management Program for the Bauer
College Business (University of Houston)
JAD Session Leader with over 4,000 hours of planning and project
facilitation experience
SEI CMM and PMI OPM3 knowledge and assessment experience
Implemented several Project Management Office (PMO) organizations
Experience in Strategic Business and IT Planning
Past President of the Houston Chapter of the Society for Software
Quality (SSQ) and of the Texas Application Process User Group
Sr. Vice President, External Operations, PMI Houston Chapter
Consulting with major companies on Process Improvement, Project
Management, PMO implementation, Strategic Planning, JAD facilitation
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What are Maturity Models?
• Tools for analyzing business and technical
performance of 3 interrelated components
– People
– Processes
– Technology
• Detailed models that help identify
performance characteristics of these
components at various stages of growth
• Frameworks for benchmarking the
effectiveness of an organization
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The Need for Maturity Models
• Progress and continuous improvement are an
integral part of our way of life
• Organizations need a well construed approach to
understand where they are, where they need to
be and the resulting gap
• Current maturity models offer a well organized
and linear roadmap for continuous improvement
• Maturity models offer a quick and often precise
snapshot of an organization’s effectiveness and
reliability
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The Standish Group
1994 Chaos Report
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17% of projects succeed
31% of projects fail
52% of projects are challenged
$78 billion dollars total project waste
(against $250 billion in project spending)
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The Standish Group
2003 Chaos Report
• 34% of projects succeed (100% improvement
over 1994)
• 15% of projects fail (down from 31% in 1994)
• 51% of projects are challenged
• $55 billion dollars total project waste (against
$255 billion in project spending)
– $38 billion in lost dollars for US projects in 2002
– $17 billion in cost overruns
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Need for Improved Performance with…
Could dismal results be a clue?
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Where did it all start?
• The DoD and the problem of software bugs
• The need to identify reliable contractors
• The Software Engineering Institute (SEI) is
established at Carnegie Mellon University in
Pittsburgh, PA
• Watts Humphrey, former IBM executive, is
placed in charge of the SEI
• The SEI collects “best practices” from large
U.S. companies
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Capability Maturity Model(SM)
Optimizing
- Continuous Improvement
Managed
- Focus on QA and QC Measures
Defined
- Process Mgmnt. Focus
Repeatable
- Project Mgmnt. Focus
Initial
- Ad hoc, Informal
- Hero Driven
Software
Engineering
Institute
1991
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Proliferation of Maturity Models
• SEI People CMM
– Compensation, Participatory Culture, Monitoring and Workforce
Innovation
• SEI Software Acquisition CMM
– Requirements, Solicitation, Acquisition, Project Management,
Risk, Contract
• SEI Systems Engineering CMM
– Engineering, Project and Organization Domains
• SEI Integrated Product Development
– Product lifecycle, design, product built, tested, supported and
retired
• SEI PSP
– Personal Software Process, the SW CMM for the individual
• SEI CMMI
– Integration of SW-CMM, IPD, SE, SA maturity models
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Proliferation of Maturity Models
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Data Management Maturity Model
Testing Maturity Model
Security Maturity Model
Internal Controls Maturity Model
Project Management Maturity
Models
• PMO Maturity Models
• Etc.
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Project Management Maturity Models
• ESI Framework for Project Management
• Dr. William Ibbs’ PM Maturity Model
(Berkeley)
• PM Solutions PM and PMO Maturity
Models
• Institute for International Learning PM
and PMO Maturity Models
• Etc.
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OPM3
• PMI’s answer to the plethora of Project
Management Maturity Models is OPM3
– Organizational Project Management
Maturity Model
– Comprised of three general elements
• Knowledge – content of the standard
• Assessment – method for comparison with the
standard
• Improvement – setting the stage for
organizational changes
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The OPM3 Standard
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PMI’s OPM3
• Organizational Project Management Maturity
Model
• Standard developed under the stewardship of PMI
• Provide a way to understand organizational project
management
• Measure a company’s maturity against a
comprehensive set of project management Best
Practices
• Improve organizational project management
maturity
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Bridging the Gap
Moving to Project Driven Organizational Models…
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Links Among the Process Groups in a
Project Phase and in OPM3
Planning
Processes
Initiating
Processes
Controlling
Processes
Executing
Processes
Closing
Processes
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Organizational Project Management
Processes – the Domains
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Organizational Project Management
Improving Performance
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PM Maturity Increases Along a
Continuum
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OPM3 Stages of Maturity
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OPM3
Portfolio Management Process Models
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Portfolio Initiating Processes (1)
Portfolio Planning Processes (21)
Portfolio Executing Processes (7)
Portfolio Controlling Processes (8)
Portfolio Closing Processes (2)
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OPM3
Program Management Process Models
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Program Initiating Processes (1)
Program Planning Processes (21)
Program Executing Processes (7)
Program Controlling Processes (8)
Program Closing Processes (2)
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What About Project Management?
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OPM3
Portfolio and Program Management
Process Models
Portfolio Scope Initiation
Inputs
Organizational
Objective
function
description
1.
2.
Strategic Plan
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3.
Historical
Information
1.
Controls
Tools & Techniques
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4.
Program and
Project
Selection
Methods
1.
Scoring
Methods
2.
Risk Tolerance
3.
Business Goals
4.
Investment
Decisions
5.
Executive
Oversight
Techniques such
as NPV and
ROI
Expert
Judgment
Outputs
Organizational
financial
expectations or
constraints
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1.
Portfolio
Charter
2.
Portfolio
Leader
identified and
assigned
3.
Portfolio
Project Mix
4.
Constraints
5.
Assumptions
Links Among the Process Groups in a
Project Phase and in OPM3
Initiating
Processes
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Planning
Processes
Controlling
Processes
Executing
Processes
Closing
Processes
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Portfolio Planning Processes
• Portfolio Plan Development
– Use the output of the other planning processes, including
strategic planning to create a consistent, coherent document
that can be used to guide both Portfolio execution and
Portfolio control
• Portfolio Scope Planning
– Progressively determining and defining the scope of the
Portfolio
• Portfolio Scope Definition
– Further categorization of the types of Projects and Products
that the organization is expected to undertake
• Portfolio Project Activity Definition
– Activities that must be performed to produce the various
Portfolio products (Portfolio Program and Project lists)
• Portfolio Project Dependency Analysis
– Identifying and documenting schedule dependencies across
Programs and Projects within the Portfolio
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Portfolio Planning Processes
• Portfolio Duration Estimating for Programs and
Projects
– Estimating the number of work periods needed to complete
the Programs and Projects in the Portfolio
• Portfolio Schedule Development
– Analyzing Program and Project sequences, duration and
resource requirements to create the Portfolio schedule
• Portfolio Resource Planning
– Define resource options and best fit of resources to
proposed Programs/Projects and initiatives, with constraints
and tolerances to maximize results
• Portfolio Cost Estimating
– Develop an estimate of the costs of the resources needed to
complete Portfolio activities
• Portfolio Cost Budgeting
– Establish priorities and make preliminary budget allocations
among existing and proposed Programs/Projects
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Portfolio Planning Processes
• Portfolio Quality Planning
– Identify which standards are relevant to the Portfolio and
determine how to satisfy them
• Portfolio Organizational Planning
– Identify, document and assign Portfolio roles, responsibilities
and reporting relationships
• Portfolio Staff Acquisition
– Plan for the continued availability of appropriate human
resources needed to support the Portfolio
• Portfolio Communications Planning
– Determine the information and communication needs of the
Portfolio stakeholders: who needs what information, when
they need it and how it will be given to them
• Portfolio Risk Management Planning
– Evaluate and plan risk management activities across the
Portfolio
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Portfolio Planning Processes
• Portfolio Risk Identification
– Determine which risks might affect the
Portfolio and document their characteristics
• Portfolio Qualitative Risk Analysis
– Perform a qualitative analysis of risks and
conditions to prioritize their effects on
Portfolio objectives
• Portfolio Quantitative Risk Analysis
– Measure the probability and consequences
of Portfolio risks and estimate their
implications for Portfolio objectives
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Portfolio Planning Processes
• Portfolio Risk Response Planning
– Develop procedures and techniques to
enhance opportunities and reduce threats
to the Portfolio’s objectives
• Portfolio Procurement Planning
– Determine what to procure and when.
Identify economic opportunities across the
portfolio
• Portfolio Solicitation Planning
– Document organizational requirements and
identify potential sources to meet
procurement need
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The OPM3 Cycle
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Step One: Prepare for the Assessment
Step Two: Perform the Assessment
Step Three: Plan for Improvements
Step Four: Implement Improvements
Step Five: Repeat the Process
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The OPM3 Cycle
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OPM3 Structure
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Best Practices (586)
Capability (two or more) per Best Practice
Measurable Outcomes per Capability
Key Performance Indicator for each Outcome
Paths to each Best Practice
Applicable to Portfolio, Program and Project
Management, as well as to the
Standardization, Measurement, Control and
Continuous Improvement “Maturity Phases”
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OPM3 Structure
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Comprehensive Assessment
• Determine which capabilities exist or
are absent for each Best Practice
• Which outcomes exist and are
observable in the organization for each
capability?
• Gain a more in-depth understanding of
the organization’s maturity in
organizational project management
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Dependencies Between Best Practices
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OPM3 - What's In It For Me
• Great project management will be of
limited effect in the absence of
organizational project management
• In fact, PMP certification can be viewed
only as the first step in improving
internal project management practices
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OPM3 - What's In It For Me
• Companies wishing to align internal project
management practices with PMI’s PMBOK®
Guide and future PMI standards, should begin to
embrace PMI’s OPM3, especially if ready to
embark on a project management improvement
journey
• PMOs need the right tools to improve the
organization’s project management practices
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Maturity Models and the PMO
Strategic
Business
Planning
Project
Management
Office
Strategic
IT
Planning
Business
Process
Reengineering
Project
Portfolio
Management
Maturity
Models
Projects
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OPM3 - What's In It For Me
• PMI will continue to enhance this model and
allow third-party vendors to develop and market
products and services based on OPM3
– OPM3 2008 Update Project under way
– DNV (Det Norske Veritas) and the APS program
• It’s important to embrace organizational project
management and make sure we don’t lose the
boat the way IT vendors did with the SEI CMM
during the past 15 years
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The Future of Maturity Models
DoD
CMMI
OPM3
Common
Standard
?
ISO
Baldrige
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In Conclusion
• Maturity Models are a very important
component of the overall organizational
effectiveness picture
• The IT industry has ignored process
improvement for too long and is now
paying the price
• This is analogous to the way American
industry ignored Deming after WWII, as
he was “exiled” to Japan
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In Conclusion
• Instead of taking the easy way out, companies
need to embrace maturity models as part of
organizational project management and start the
long journey towards “survival”
• Fortunately, some of the largest U.S. corporations
are embracing organizational project management
and not all hope is lost
• However, if organizational project management
continues to be ignored by the majority of
companies, tomorrow’s project managers and
PMOs will go the same way as the programmers
and other “outsourced” professionals of today
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You think you have problems….
• The Great Pyramid at Giza….
– Schedule of 10 years
• Built starting around 2,550 b.c.
• 3 years to prepare, 5 years to build, 2 years to ´clean up´
– Resources
• 13,200 men (peak of 40,000)
• Artisan village (4,000-5,000 people)
• 2 million blocks
– Labor expended
• 36.7 million days or 131,200 man-years
– Labor costs
• 111 million jugs of beer
• 126 million loaves of bread
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Professional Development Day
PMI Honolulu - May 3, 2006
OPM3 - Organizational
Project Management
Maturity Model
Walter A. Viali, CSQA, PMP
PMO To Go LLC