Organizational Project Management Maturity Assessments A CMM®-Based Appraisal of Project Management Practices Presented by: Alice Zavala, PMP Management Concepts

Presentation Outline Organizational Project Management Maturity Current Project Environment Project Management Maturity Assessments Project Management Maturity Model Assessment Process Post Assessment and Next Steps _____________________________________________________________________

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 _____________________________________________________________________

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. _____________________________________________________________________

The Current Project Environment

Standish Group’s Survey of IT Projects, 2004 _____________________________________________________________________

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 _____________________________________________________________________

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) _____________________________________________________________________

Organizational Strategic Project Management Executives Define strategy Set priorities Establish measures Strategic Goals Portfolio Management Team Selects programs & projects Allocate resources Manages portfolio Enterprise PMO Programs Strategic Cross-Functional Project Teams Launch projects Manage projects Deliver value Projects _____________________________________________________________________ Activities – Teams – Results Environment for Project Success

Project-Based Organizations Immature Project managers are fire fighters No standard processes is in place When the schedule is short, functionality is shaved off the product and quality is compromised Quality efforts are curtailed or eliminated Problems are fixed in the field Mature PM practices tied to strategic goals 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 _____________________________________________________________________

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 _____________________________________________________________________

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 _____________________________________________________________________

Adapted from SEI CMM: CMU/SEI 950MM-003 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

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 _____________________________________________________________________

Project Management Maturity Model Continuous Improvement Optimizing (5) Strategic PM Managed (4) Maturity • Assessments Project PM Skill Improvement • Projects Complex PM Defined (3) Strategic PMO Strategic Goals Portfolio • Management Executive Oversight Metrics Basic PM Control _____________________________________________________________________ Repeatable (2) Risk HR Quality EVM Communications Stakeholder Mgt./Politics Ad Hoc Initial (1) Integration Scope Time & Cost Procurement

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 _____________________________________________________________________

Level 2: Repeatable Goals 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 _____________________________________________________________________

Level 3: Defined Goals Characteristics Standard PM methodology applied to all projects, PMIS, integrated change control Integrated cost and schedule performance Quality management and improvement, customer focus Team development, high-performing teams Communications planning, stakeholder analysis and lessons learned Characteristics Advanced Project Management practices are institutionalized across the organizations Mastery of risk and quality management, advanced communication and team building _____________________________________________________________________

Level 4: Managed Characteristics Goals Project management has been elevated to a strategic management practice Cultural and organizational behaviors, structures and processes are in place to assure projects are strategically aligned Goals Quantitative objectives are defined Organizational performance reporting Portfolio management Best practices fostered Organizational PMO supports project managers Mentoring and coaching PM as a core competency Open communication about risk management _____________________________________________________________________

Level 5 - Optimizing Goals Characteristics Project Management is characterized as in continuous improvement mode The organization emphasizes continuous improvement to its project management practices Goals PM improvements fostered at individual, team and organizational level Organizational strategy translated into projects Metrics are tracked across the organization _____________________________________________________________________

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 _____________________________________________________________________

Maturity Levels Mapped to OPM3 Portfolio   Continuously Improve X Control Measure Standardize Program Project Level 2 Level 3 Level 4 Level 5 _____________________________________________________________________

Project Management Maturity Assessment Process

Assessment Structure Assessment Sponsor Management PMO Assessment Team 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

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 _____________________________________________________________________

Assessment – Selection of Team Independent external team Experienced Minimum of two team members No member from the organization being assessed _____________________________________________________________________

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 _____________________________________________________________________

Assessment - Develop Timeline Wk-1 Wk-2 Wk-3 Planning KICK-OFF Surveys Due Management Interviews Project Team Interviews Assessment Begins Focus Groups _____________________________________________________________________ Validation & Prioritization Final Deliverables Findings Presentation

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  _____________________________________________________________________

Planning the Assessment Form assessment team & set up a “war room” Establish guidelines for assessment Conduct management interviews Select representative projects Conduct stakeholder analysis Schedule assessment activities Launch assessment – conduct kickoff meeting _____________________________________________________________________

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 _____________________________________________________________________

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 _____________________________________________________________________

Conduct Interview Individual interviews Small-groups Focus group sessions with project practitioners and team members _____________________________________________________________________

Confidentiality Interview discussions must remain confidential No comment is attributed to any one person The focus is on process not people _____________________________________________________________________

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 _____________________________________________________________________

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 _____________________________________________________________________

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 _____________________________________________________________________

Acting on Assessment Results Driven by senior management Develop an implementation plan Commit resources Develop metrics and measures of success _____________________________________________________________________

Conduct Periodic Assessments Allow enough time to implement and apply improvements Conduct reassessment Compare results Identify improved maturity and CMM level Update implementation plan _____________________________________________________________________

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 _____________________________________________________________________

Wrap Up Comments Questions Drawing for PM Essentials Library _____________________________________________________________________

For Further Information Alice Zavala, PMP Management Concepts AZavala@managementconcepts.com _____________________________________________________________________