Does maturity refer to knowing what your limitations are? OPM Maturity Model for Projectized Organizations

Maria Malinina National Research University “Higher school of economics”

Moscow, Russia

Agenda

• Goal of the research paper

• The evolution of maturity models

• 4M concept

• OPM effect estimation and recommendations

• Conclusion

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Is it worth? «The published data about different companies including AT&T, Boeing, Hewlett Packard, IBM and GM, show that direct results of the organizational project management introduction are:

• The product launch time decrease by 30-65%,

• Blemishes and reworks decrease by 35-75%,

• Substantial and engineering alterations decrease by 45-68%,

• Average profits decrease by 6%,

• Investments profitability increase by 20% in some cases».

“Development of project management systems”, Anthony Eve. – Emerald Group Publishing Limited, Industrial and Commercial Training, vol.39 №2, 2007

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Goal and tasks of the paper

Goal • to define an interconnection between overall

organizational efficiency and OPM maturity

Tasks

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Efficiency ? Maturity

Econometric model

Statistics on projectized

companies

Efficiency indicator Maturity indicator

Expert Expert

MM evolution

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SPC

1920 1979 19871985

Radice

1984 1989

Humphrey

1991

SEI Sw-

CMM 1.0

1993

SEI Sw-

CMM 1.1

1996 1997

PM2

Project

Excellence

1998

ISO/IEC

15504

(SPiCE)

PM

Delta

1999

ESI Project

Framework

2000

CMMi 1.0

2001

CCTA/OGC

PMMM1.0

PMMM

Kerzner

2002

PRINCE2

1.0

ISO

15504-1 IS

2003

ISO

10006

PMI

OPM3

2006

ICB 3.0

OGC

P3M3

ISO

15504-5 IS

CMMi 1.2

2008

PMI

OPM3 2.0

2009

IPMA

AoD

Software Development

1973

Nolan

PMBoK

4.0

CMMi

1.1

2010

CMMi

1.3

PRINCE2

1.0P2M

20041992

Quality Management

Project, Program, Portfolio management

Organizational project management maturity

QMMG

Crosby

Demming

Juran

ISO

9000

PMBoK PRINCE

EFQMISO

10012 -1

QPMMG

Crosby

ISO

10012 -2

MM types

• Level

• Continuous

• Radar

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Уровень 1

Общая

терминология

Уровень 2

Общие

процессы

Уровень 3

Единая

методология

Уровень 4

Бенчмаркинг

Уровень 5

Непрерывное

улучшение

Базовые зн

ания

Определение

процесса

Управление

процессом

Улучшение

процесса

5Повторяйте

Процесс

3Планируйте

Улучшения4Внедряйте

Улучшения

Удовлетво-

ренность

результата

ми

1Подготовь

тесь к

Оценке

2Произве-

дите

Оценку

20 40

25

70 40 60

20

35

Стратегическое планирование

Управление портфелем

Методология УП

Управление персоналом

КСУП

Оргструктура

База знаний

Корпоративная культура

Advantages of the ‘radar’ model

• Unites advantages of leveled and continuous MM

• Flexibility and adaptiveness for each organization

• More differentiation in process management competencies description

• The model configuration flexibility

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20 40

25

70 40 60

20

35

Стратегическое планирование

Управление портфелем

Методология УП

Управление персоналом

КСУП

Оргструктура

База знаний

Корпоративная культура

What’s new?

• A complex maturity assessment with real and target profiles development for projectized organizations

• More flexible and adaptive to the features of an organization

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Estimation levels

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Portfolio management

Program management

Project management

Convolution

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Aggregate indicator

Estimation

Indicator

Indicator

Indicator

Weigh

Weigh

Weigh

Estimation criteria/scales with

qualitative description

Estimation criteria/scales with

qualitative description

Estimation criteria/scales with

qualitative description

Convolution: example

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Methodology

cut

Processes

Objects

Agents

Estimation

0,2

0,2

0,2

Knowledge base

Standard

solutions

0,15

0,1

Initiation

Planning

Execution

Monitoring

Closing

0,2

0,3

0,2

0,2

0,1

Estimation is made on the basis of processes’

regualtion and formalization:

0 – No common procedure for the object transfer

4 – Processes are standardized

6 – Process assessment metrics exist

8 – Process control methods exist

10 – Assessment and improvement procedures

exist

0 – No KB

1 – One-person level KB

3 – Separate projects and teams level KB

5 – Separate solutions level KB

7 – Department level KB

10 – Entire company common KB

OPM Corporate

standard

0,2

0 – No CS

2 – CS as a high-level document, defines company’s PM policy

4 – CS as a package of regulations on processes, objects, agents of management

6 – CS includes documents templates

8 – CS contains the description of the basic and auxiliary PM procedures

10 – CS contains process assessment metrics and criteria as well as improvement

procedures description

Real and target profiles

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2,66

4,96

2,8

1,2

6,28

9,3

7,2

4,6 0

2

4

6

8

10

Methodology

Men

Maintenance

Model

Project management profile

2,54

3,46

4,00 2,00

6,03

7,80

5,60

4,60 0

2

4

6

8

10 Methodology

Men

Maintenance

Model

Program management profile

0,94 4,80

1,60 1,20

5,21

6,34

7,20

3,30 0

2

4

6

8

10 Methodology

Men

Maintenance

Model

Portfolio management profile

Real profile

Target profile

Recommendations • To hold on maturity assessment and planning development should a

proficient specialist which has a profound knowledge and understanding of OPM

• A strategic planning of maturity and managing maturity development process as a multi-project with its milestones, inputs and outputs, measurements and resources

• While working-out a corporate standard on OPM it is important to avoid some wide-spread mistakes

• The first step is to create a PM Office and a Corporate standard development

• All people in the company are adherent to continuous improvement; top-managers are to see the value of maturity development and support this process

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OPM effect

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Grade Coef. Wage rate, r.u. W.hours Costs, r.u.

Expert 3 1 2 6

Leading specialist 1,8 1 2 3,6

Senior specialist 1,3 1 2 2,6

Specialist 1 1 2 2

Assistant 0,7 1 2 1,4

Total 10 15,6

Grade Coef. Wage rate, r.u. W.hours Costs, r.u.

Expert 3 1 1 3

Leading specialist 1,8 1 1,5 2,7

Senior specialist 1,3 1 2 2,6

Specialist 1 1 2 2

Assistant 0,7 1 2 1,4

Total 8,5 11,7

% change 15% 25%

10

15,6

8,5

11,7

Working hours Costs

OPM development systematic approach effect

for a separate project Basic indicators

CPMS effect

15% 25%

Conclusion • The 4M model provides a methodological basis for planning the

OPM maturity development in practice

• Keeping focused on maturity and continuous improvement reduces the number of interrupted and wrecked projects via providing the basis for best practice implementation.

• If there is no strategic planning of maturity, its achievement can take years.

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Thank you!

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