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OPM3 - Organizational Project Management
Maturity Model
Walter A. Viali, CSQA, PMP
PMO To Go LLC
Professional Development Day PMI Honolulu - May 3, 2006
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What is OPM3
• PMI’s Organizational Project Management Maturity Model
• 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• 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
• 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)
Software Engineering Institute1991
Initial- Ad hoc, Informal - Hero Driven
Repeatable- Project Mgmnt. Focus
Defined- Process Mgmnt. Focus
Managed- Focus on QA and QC Measures
Optimizing- Continuous Improvement
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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
• 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
InitiatingProcesses
Planning Processes
Controlling Processes
Executing Processes
ClosingProcesses
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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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OPM3Portfolio Management Process Models
• Portfolio Initiating Processes (1)
• Portfolio Planning Processes (21)
• Portfolio Executing Processes (7)
• Portfolio Controlling Processes (8)
• Portfolio Closing Processes (2)
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OPM3Program Management Process Models
• 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?4.1
Develop Project Charter
5.1Scope
Planning 6.1Activity
Definition
6.2Activity
Sequencing
5.2Scope
Definition
6.4Act. Duration Estimating
7.1Cost
Estimating
11.1Risk
Management Planning
6.5Schedule
Development
7.2Cost
Budgeting
4.3Develop Project
Management Plan
8.1Quality
Planning
9.1Human
Resource Planning
11.2Risk
Identification
11.3Qualitative
Risk Analysis
11.4Quantitative
Risk Analysis
11.5Risk Response
Planning
10.1Communications
Planning
12.1Plan
Purchases and Acquisitions
12.2Plan
Contracting
8.2Perform Quality
Assurance
9.3Develop
Project Team
10.2Information Distribution
5.4Scope
Verification
5.5Scope Control
6.6Schedule Control
12.3Request
Seller Responses
12.4Select Sellers
12.5Contract Admin
7.3Cost
Control
8.3Perform
Quality Control
11.6Risk
Monitoring & Control
4.4 Direct and Manage Project
Execution
10.3Performance
Reporting
4.6Integrated Change Control
12.6Contract Closure
4.7Close Project
Initiating Processes
Planning Processes
Closing Processes
Executing Processes
Controlling Processes
Project Management Processes
Adapted from the Third Edition of A Guide to the Project Management Body of Knowledge
© Project Management Institute , 2004
5 Scope6 Time7 Cost
8 Quality9 HR
10 Communications
11 Risk12 Procurement
4 Integration
4.2 Develop Preliminary Project Scope Statement
5.3 Create WBS
6.3 Activity
Resource Estimating
9.2 Acquire
Project team
4.5Monitor and
Control Project Work
9.4 Manage
Project team
10.4 Manage
Stakeholders
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OPM3Portfolio and Program Management
Process Models
Inputs Tools & Techniques Controls Outputs
1. Organizational Objective function description
2. Strategic Plan
3. Historical Information
1. Program and Project Selection Methods
2. Scoring Methods
3. Techniques such as NPV and ROI
4. Expert Judgment
1. Organizational financial expectations or constraints
2. Risk Tolerance
3. Business Goals
4. Investment Decisions
5. Executive Oversight
1. Portfolio Charter
2. Portfolio Leader identified and assigned
3. Portfolio Project Mix
4. Constraints
5. Assumptions
Portfolio Scope Initiation
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Links Among the Process Groups in a Project Phase and in OPM3
InitiatingProcesses
Planning Processes
Controlling Processes
Executing Processes
ClosingProcesses
21
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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
• 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• 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
Business Process
Reengineering
Strategic IT
Planning
Project Portfolio
ManagementProjects
Project Management
Office
Maturity Models
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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
CMMI
OPM3
ISO
Common Standard
?
Baldrige
DoD
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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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OPM3 - Organizational Project Management
Maturity Model
Walter A. Viali, CSQA, PMP
PMO To Go LLC
Professional Development Day PMI Honolulu - May 3, 2006