1 Organizational Project Management (OPM), With a focus on OPM3 PMINEO Chapter meeting March 15, 2012 Presented by Bob Zoller, PMP See notes in “Notes Page” view

2 Agenda 1. Introduction to OPM 2. OPM3 framework from PMI® 3. OPM3 assessment exercise 4. Maturity Assessment Process 5. Alternative frameworks CMMI, IVI IT-CMF, Kerzner KPM3 6. Summary of options 7. Benefits 8. References & More Information 9. Discussion (Short questions during program, and discussion at the end)

3 1. Introduction to OPM (not OPM3) Gartner survey of 130 organizations: “What is the top success criterion for your projects?” Note that alignment is #1 at 29%. Cost, budget, scope (triple constraint) total to only 40%. Reference (1) PMI standard presentation on OPM3

4 1. Introduction to OPM. OPM = Organizational Project Management: OPM:The alignment and systematic management of projects, programs and portfolios to achieve strategic organizational goals Reference (2) Ginger Levin general slides © Ginger Levin, 2011 Does your organization use OPM? Or does the “squeaky wheel get the grease” ?

5 2. OPM3 framework from PMI® PMI® recognized a need and created “Organizational Project Management Maturity Model” (OPM3) 2003 First Edition of OPM3 standard 2008 Second Edition; alignment with other PMI® standards OPM3 acceptance level has been low, is being addressed: Newer versions of software are not buggy, as earlier ones were OPM3 standard being rewritten in more business-friendly terms PMI® is promoting OPM3 more heavily

6 2. OPM3 framework from PMI® Library of PMI® Global Standards 1. Foundational Standards Project Management (PMBOK®) Program Management Portfolio Management Organizational Project Management (OPM3) 2. Practice Standards and Frameworks (7) exist, including: Risk; Scheduling; WBS 3. Foundational Extensions (2) exist; PMBOK® for construction, government See:

7 2. OPM3 framework from PMI® OPM3 Best Practice concepts, 488 total: (A) Domain processes x 4 improvement stages Project (42 processes) x 4 = 168 Best Practices Program (47 processes) x 4 = 188 Best Practices Portfolio (14 processes) x 4 = 56 Best Practices (B) Organizational Enablers (76) Total: = 488 Best Practices

8 2. OPM3 framework from PMI® OPM3 Best Practice concepts, 488 total: (A) Domain processes x 4 improvement stages Four Process Improvement Stages, SMCI: Standardize = Consistent, documented, communicated Measure = Identify & measure: inputs, characteristics, results Control = Control plan is developed and implemented Improve = Identify problems, implement sustainable improvements

9 2. OPM3 framework from PMI® OPM3 Best Practice concepts, 488 total: (A) Domain processes x 4 improvement stages Example process: Develop Project Charter Standardized ? Measured ? Controlled ? Improve ?

10 2. OPM3 framework from PMI®. (B) OPM3 - Organizational Enablers Facilitate implementation and sustainability 22 groups, with 76 total OE items. Examples: PMIS and Knowledge Management  7365: Project Management Information System  7375: Intellectual Capital Reuse  5660: Manage Portfolio Value Resource Allocation  5220: Provide Competent Organizational PM Resources  1590: Record Project Resource Assignments

11 3. OPM3 Assessment Exercise Group exercise: Review lists of OPM3 BestPractices… See separate documents with Best Practices lists, and with survey of PMINEO chapter meeting attendees on PMBOK practice standardization.

12 4. Maturity Assessment Process OPM3 assessment options Self-assessment using online tools. Simpler tool (Yes/No questions) for roughly $1,000 Benchmark against other companies Hire certified assessor Assessor uses more robust toolset Low end: $15-20K, 2-3 weeks total, single site Higher: multiple months, $100K, international scope Can limit scope (ex: Portfolio, or “Standardize”) What:

13 4. Maturity Assessment Process. Common steps, with OPM3 or most frameworks: 1) Obtain organizational commitment; hold a kickoff meeting 2) Review organizational documents (ex: policies) 3) Review sample program and project documents 4) Distribute questionnaires 5) Conduct interviews 6) Analyze results 7) Report results and recommendations for improvement 8) Determine when to reassess Reference (3) Ginger Levin, “Maturity Models”

14 5. Alternative Frameworks 5.1) CMMI = Capability Maturity Model Integration 5.2) IT-CMF from IVI (Innovation Value Institute) 5.3) Kerzner Project Management Maturity Model Local notes: Rockwell Automation has been considering OPM3 as a standard Progressive is considering a combination of OPM3 and IT-CMF from IVI

15 5.1) CMMI CMMI = Capability Maturity Model Integration One of the best known maturity models CMMI replaced CMM (developed from ) CMMI: A Process Improvement Approach Identify strengths and weaknesses Assessment leads to overall maturity ranking of 1, 2, 3, 4, or 5 Plan process changes to address weaknesses References: (4) CMMI site, (5) Wikipedia

16 5.1) CMMI Most organizations start in CMMI at level 1 or 2 Growth to level 3 (govmt contracts) can take a few years

17 5.1) CMMI. CMMI currently addresses three areas of interest: 1. Product and service Development (CMMI-DEV), 2. Service establishment, management, and delivery — (CMMI-SVC) 3. Product and service acquisition — (CMMI-ACQ). The CMMI model mostly deals with what processes should be implemented, and not so much with how they can be implemented.

18 5.2) IT-CMF from IVI IVI = Innovation Value Institute A global consortium of industry, government, non-profit, and academic organizations, established in 2006 Goal: define standard for managing IT for business value Includes Intel, Ernst & Young, Google, Microsoft, SAP IT-CMF = IT Capability Maturity Framework An assessment framework for total IT business value Portfolio/Program/Project are components of total scope Reference: (7) Managing IT for Business Value

19 5.2) IT-CMF from IVI

20 5.2) IT-CMF from IVI

21 5.2) IT-CMF from IVI. Levels of membership exist, for education, assessment, mentoring Full adoption journey covers months, including education, assessment, review, new practices Options include self-help with online tools, IVI staff, consulting organizations

22 5.3) Kerzner PM3 Perform self-assessment using an online tool: Each participant answers 183 multiple choice questions Generate a score for your organization & Project Managers Benchmark your scores against your industry and overall Create a list of actionable recommendations Focus is on Project Management and PMBOK List price is $95 per person, with volume discounts

23 5.3) Kerzner PM3

24 5.3) Kerzner PM3. Level 1: common language. “Definition of Scope Management is...” Level 2: common processes. “Our executives have demonstrated a willingness to change….“ Level 3: singular methodology. “My company actively uses the following processes….” Level 4: benchmarking. “Benchmarking has found companies with tighter cost controls…“ Level 5: continuous improvement. “Methodology improvements have pushed us closer to customers….“

25 6. Summary of Options. OptionNotes OPM3 Scope: Portfolio/Program/Project management, for IT or other Uses Best Practices; does not provide summary score CMMI Scope: Development, Service, Acquisition processes Uses 5 levels of progressive maturity Summary level scores well-known (ex: “3” for govmt contracts) IT-CMF of IVI Scope: IT, overall, including projects and operations Addresses 32 process areas, in four groupings Note that IVI is seeking to collaborate with CMMI KPM3 Scope: Project Management and PMBOK Uses 5 generally progressive levels of maturity Can be done on self-help basis, at low cost, w optional consulting

26 7. Benefits. CMMI site has published results of projects Costs: Siemens reduced cost of quality from 45% to 30% in 3 years Schedule: GM improved percent of milestones met from 50% to 85% Productivity: Warner Robbins reduced effort to deliver test program sets by 25% Quality: Siemens reduced defect density an average of 71% in 3 technical areas Customer Satisfaction: Northrup Grumman received 98% of customer award fees ROI: Accenture experienced 5 to 1 ROI for quality activities Reference: (4), CMMI site, page See published appraisal results.

27 8. References & More Information References (1) OPM3 standard presentation slides from PMI (2) Ginger Levin, certified OPM3 consultant; engagement slides (3) Ginger Levin, “Maturity Models” chapter for book by Dr. Rodney Turner (4) CMMI website ( (5) CMMI on Wikipedia ( (6) “Managing IT for Business Value” the Boston Consulting Group, for IVI and IT-CMF (7) Claudia Baca, OPM3 committee, certified consultant (8) Kerzner PM3 from (9) “Capability Immaturity Model”, Schorsch, Nexus, 1996 (10) OPM3 standard from PMI 2 nd Edition, 2008

28 8. References & More Information. More Information a) PMI “Community of Practice” for OPM Free membership; newsletters; webinars See: b) IVI, Innovation Value Institute See: See also Boston Consulting Group at: c) ESI International Training, assessment, support, for Portfolio//ProgramProject Mgmt. See: d) OPM3 and other standards publications are available for on-line viewing for PMI members, on PMI.org

29 9. Discussion 1. Standing Ovation 2. Discussion

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