PM
Organizational Project Management
Maturity Assessments
A CMM®-Based Appraisal of Project
Management Practices
Presented by: Alice Zavala, PMP
Management Concepts
Presentation Outline
1. Organizational Project Management Maturity
2. Current Project Environment
3. Project Management Maturity Assessments
4. Project Management Maturity Model
5. Assessment Process
6. Post Assessment and Next Steps
2
Organizational Project Management Maturity
“The degree to which an organization applies the
knowledge, skills, tools, and techniques to
organizational and project activities to achieve
the aims of the organization through projects”
OPM3, Project Management Institute, 2003
3
Maturity
▪
Implies capabilities must be grown over time in
order to produce repeatable success.
▪
Connotes understanding or visibility into why
success occurs and ways to correct or prevent
common problems.
▪
Model implies change, a progression, or steps
in a process.
4
PM
The Current
Project Environment
Standish Group’s Survey of IT Projects, 2004
I.T. Projects in the United States, 2004 Survey *
Succeeded:
29%
Over Time or
Budget: 53%
71%
Failed: 18%
* Source: The Standish Group, 2004
Third Quarter Research
Report
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Failed and Challenged Projects
▪ Not from lack of technical expertise
▪ Due to the inability to manage the work
– The project
– The business requirements
▪ Inadequate requirement information
– Leads to poor estimates
– Makes time and cost management virtually
impossible
7
Software Development is in Crisis
▪
Nearly 70% of projects fail (Standish)
▪
50% are rolled back out of production
(Gartner)
▪
40% of problems are found by end users
(Gartner)
▪
25%-40% of all spending on projects is
wasted as a result of rework (Carnegie
Mellon)
8
Organizational Strategic Project Management
Executives
•Define strategy
•Set priorities
•Establish measures
Strategic
Goals
Portfolio
Management Team
•Selects programs & projects
•Allocate resources
•Manages portfolio
Strategic CrossFunctional Project Teams
•Launch projects
•Manage projects
•Deliver value
Enterprise PMO
Programs
Projects
Activities – Teams – Results
Environment for Project Success
9
Project-Based Organizations
Immature
Mature
▪
Project managers are fire
fighters
▪
PM practices tied to
strategic goals
▪
No standard processes is
in place
▪
▪
When the schedule is
short, functionality
is shaved off the product
and quality is
compromised
Altered structure,
operations and culture to
incorporate PM practices
▪
Managed by projects
rather than by specialized
functions
▪
Enable project managers
to achieve success on
their projects
▪
Quality efforts are
curtailed or eliminated
▪
Problems are fixed in the
field
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PM
Project Management
Maturity Assessments
What is an Organizational Project
Management Maturity Assessment?
▪ Independent review of organizational project
management practices
▪ Usually takes place when an organization
– Is experiencing too many project failures
– Has the need to stabilize runaway projects
– Has a rapid increase in demand for project work
– Realizes the strategic value of projects
– Is benchmarking as part of an improvement plan
12
Why Do Assessments?
•
Provides a clear picture of current state
•
Defines the future state
•
Identifies the gaps and provides a roadmap
for organizational change
•
Motivates the organization to reach a better
state
•
Motivates individuals to grow and develop
current skills
•
Educate the organization on industry best
practices
13
Assessment Benefits
▪ Return on Investment of 7:1
▪ 37% average gain per year in productivity
▪ 18% increase per year in proportion of defects
found in pre-test
▪ 19% reduction in time to market
▪ 45% reduction in filed error reports per year
Adapted from SEI CMM: CMU/SEI 950MM-003
14
PM
Project Management
Maturity Model
Capability Maturity Model (CMM)
▪ A structure that enables organizations to
increase their management capability
▪ Focused on key process areas and
associated key practices
▪ Must satisfy preceding level capabilities
▪ Uses a survey mapped to the model
▪ Provides basis for comparison with
competitors & industry benchmarks
▪ Decision framework
16
Project Management Maturity Model
Continuous
Improvement
Strategic PM
Complex PM
Basic PM Control
Repeatable
(2)
Ad Hoc
Initial
(1)
• Integration
• Scope
• Time & Cost
• Procurement
Defined
(3)
Optimizing
(5)
Managed
(4)
• Strategic PMO
• Strategic Goals
• Portfolio
• Management
• Executive Oversight
• Metrics
• Risk
• HR
• Quality
• EVM
• Communications
• Stakeholder Mgt./Politics
• Maturity
• Assessments
• Project
• Assessments
• PM Skill
• Assessments
• Improvement
• Projects
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Level 1
▪ Ad hoc and informal
▪ Practices performed inconsistently across
projects
▪ No standard procedures defined or followed
▪ Success, if it occurs, is based on heroic
efforts of individuals
▪ Problems are fixed in the field
18
Level 2: Repeatable
▪ Characteristics
– Basic management controls
institutionalized across the
organization
– Mastery of integration,
scope, time, cost and
procurement management
– Some training in project
management
▪ Goals
– Project plans are prepared
approved and baselined
– Project charter, WBS,
requirements defined
– Schedule if prepared and
baselined
– Resource planning,
estimating and cost
baseline
– Communications
requirements and status
reporting
– Risk identification and
response planning
– Procurement planning,
management and control
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Level 3: Defined
▪ Characteristics
▪ Goals
– Advanced Project
Management practices are
institutionalized across the
organizations
– Standard PM methodology
applied to all projects,
PMIS, integrated change
control
– Mastery of risk and quality
management, advanced
communication and team
building
– Integrated cost and
schedule performance
– Quality management and
improvement, customer
focus
– Team development, highperforming teams
– Communications planning,
stakeholder analysis and
lessons learned
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Level 4: Managed
▪ Characteristics
▪ Goals
– Project management has
been elevated to a
strategic management
practice
– Quantitative objectives are
defined
– Cultural and organizational
behaviors, structures and
processes are in place to
assure projects are
strategically aligned
– Portfolio management
– Organizational performance
reporting
– Best practices fostered
– Organizational PMO
supports project managers
– Mentoring and coaching
– PM as a core competency
– Open communication about
risk management
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Level 5 - Optimizing
▪ Characteristics
▪ Goals
– Project Management is
characterized as in
continuous improvement
mode
– PM improvements
fostered at individual,
team and
organizational level
– The organization
emphasizes continuous
improvement to its
project management
practices
– Organizational
strategy translated into
projects
– Metrics are tracked
across the
organization
22
Skipping Maturity Levels
▪ Each level forms a foundation on which to
build the next level of practices
▪ Skipping levels is often counterproductive
▪ Keeps teams focused on current needs of
the organization
23
Maturity Levels Mapped to OPM3
Portfolio
X
Continuously Improve
X
X
X
X
X
X
X
X
X
X
Control
Measure
Standardize
X
Program
Continuously Improve
Control
X
X
X
Measure
X
X
X
X
X
X
X
X
X
X
X
Standardize
X
Project
Continuously Improve
Control
Measure
X
X
X
X
Standardize
X
X
X
X
Level 2
Level 3
Level 4
Level 5
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PM
Project Management Maturity
Assessment Process
Assessment Structure
Assessment
Sponsor
Assessment Report



Maturity Rating
Survey Results
Action Plan
Sets direction &
Expectations
Opens kickoff meeting
Management
Supports
assessment
activities
PMO
Drives assessments
Provides assistance
Maintains benchmarks
and metrics
Assessment
Team
Independent
Senior Consultants
Project
Managers
Project Teams
Focus Groups
26
Assessment – Selection of Projects
▪ Select 3 – 5 representative projects
– Identify common types of projects supported
by the organization
– Identify projects that will roll out all phases of
the project and product life cycles
– Obtain agreement from assessment team on
selection of projects
27
Assessment – Selection of Team
▪ Independent external team
▪ Experienced
▪ Minimum of two team members
▪ No member from the organization being
assessed
28
Assessment – Establish Guidelines
▪ Develop survey and / or interview questions
▪ Develop procedures, instructions and tools to
support the assessment
▪ Develop structure for Data
–
–
–
–
Categories
Methods to ensure accuracy
Must be defensible
Keep current
29
Assessment - Develop Timeline
Wk-1
Planning
Wk-3
Wk-2
KICK-OFF
Surveys Due
Management Interviews
Project Team
Interviews
Assessment Begins
Focus Groups
Validation &
Prioritization
Final Deliverables
Findings Presentation
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Assessment - Deliverables
▪ Assessment plan, schedule
▪ Assessment kickoff presentation
▪ The assessment
– Surveys, Interviews, Artifact Reviews
▪ Survey results report
▪ Findings & recommendations report &
presentation
– Strengths and opportunities for improvement
– Prioritized recommendations
31
Planning the Assessment
1. Form assessment team & set up a “war room”
2. Establish guidelines for assessment
3. Conduct management interviews
4. Select representative projects
5. Conduct stakeholder analysis
6. Schedule assessment activities
7. Launch assessment – conduct kickoff meeting
32
Prepare for Interviews
▪ Identify assessment expectations
▪ Document and review interview guidelines
and procedures
▪ Prepare questions
▪ Determine interview team, roles and
responsibilities
▪ Set the climate
▪ Prepare supporting templates and
documentation guidelines
33
Review Project Artifacts
To validate survey responses review:
▪ Project management deliverables
– Charter, Schedule, Budget, Communications
Plans
▪ Project management processes
– Change/Scope, Quality, Risk, Communication,
Time, Cost, HR, Procurement, Integration
Management
34
Conduct Interview
▪ Individual interviews
▪ Small-groups
▪ Focus group sessions with project
practitioners and team members
35
Confidentiality
▪ Interview discussions must remain
confidential
▪ No comment is attributed to any one person
▪ The focus is on process not people
36
Assessment Findings
▪ Results analyzed, scores compared,
information distilled
– into high-impact information
– measurable recommendations
▪ Participants validate & prioritize findings
–
–
–
–
Did we hear you, Did we get it right?
Prioritize the top 3 – 5 topics
Stay positive and encouraging
Do not debate – take feedback and incorporate it
▪ Prepare and complete assessment
deliverables
37
Present Findings
▪ Report to management
– Sensitive information relayed verbally; not
attributed to a source
– Obtain management commitment to follow up
activities to implement high-priority actions
▪ Formal findings presentation to team
– Strengths and Recommendations
– Immediate Next Steps
▪ Reports published and distributed
38
PM
Post Assessment
Post-Assessment Activities
▪ Planning meetings to implement high-priority
recommendations
▪ Provide support to implement recommendations
– Facilitated planning sessions
– Coaching and mentoring
– Training
– Tools
– Best practice procedures and processes
▪ Focus on critical projects first
40
Acting on Assessment Results
▪ Driven by senior management
▪ Develop an implementation plan
▪ Commit resources
▪ Develop metrics and measures of success
41
Conduct Periodic Assessments
▪ Allow enough time to implement and apply
improvements
▪ Conduct reassessment
▪ Compare results
▪ Identify improved maturity and CMM level
▪ Update implementation plan
42
Summary
▪ Assessing organizational project management
maturity provides a framework to evaluate
progress in pursuit of project success
▪ Assessments build an organization’s readiness
to change
▪ Assessments identify a capability baseline and
prescriptive action plan for improvement
▪ Select high-priority improvement actions that
provide the foundation for the next level
43
Wrap Up
▪ Comments
▪ Questions
▪ Drawing for PM Essentials Library
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For Further Information
Alice Zavala, PMP
Management Concepts
AZavala@managementconcepts.com
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