Business Process Maturity Model

Business Process Maturity Model
12/22/14 © 2014 Amit Mitra and Larissa Zhurakovskaya

Evolution of Business Process Maturity
MATURITY OF BUSINESS PROCESS Level 1 (Initial) Individual/ad-hoc effort, no explicit governance or org. support Level 2 (Repeatable) Managers establish stable business processes in their work units Level 3 (Defined) Best Practices standardized for Organization Level 4 (Managed) Quantitative standards & controls in place to ensure predictable results Level 5 (Innovating) Innovation and continuous Process Improvement are routine

BEST PRACTICES FOR INSTITUTIONALIZING PROCESSES
INSTITUTIONALIZATION All Maturity Levels BEST PRACTICES FOR INSTITUTIONALIZING PROCESSES Describe and document the Process Goals: Determine laws, regulations, policies, specifications, and requirements that apply. Define and document the process. Review and agree on the process description with the right stakeholders. Revise the process description if necessary Plan the Work Goals: Get the right level of management sponsorship for the work and process Identify, document, and agree on the scope, rationale, requirements and constraints of the work to be done Obtain adequate funding and resources Assign responsibility and authority for the work Plan to involve the right stakeholders Document and approve the work plan Revise the plans when needed Provide people who will perform, support, or be affected by the practices needed knowledge, skills and information Goals: Determine expected roles of affected individuals. Identify the knowledge, skills and information needed by affected individuals. Determine gaps for each individual. Address knowledge, information and skills gaps with the right mix of training (class room, on-the-job), seminars, conferences, coaching and mentoring, Document and archive the results and records of training and development activities Measure, Monitor and Control Performance and Results Goals: Review achievements, outlook, issues, results, and outputs against requirements, plans, and commitments. Identify any significant issues from these reviews. Measure the right attributes of the process and its work products Determine the impacts on other organizational units and workgroups based on the results of the review. Identify corrective actions Take corrective actions and track to issues to closure Verify and address non-conformance with laws, regulations, standards, policies, business rules, processes, and procedures; Goals: Evaluate process descriptions and procedures against laws, regulations, standards, policies, business rules, processes, and procedures Evaluate process execution against laws, regulations, standards, policies, business rules, processes, and procedures Evaluate work products and services against Review results of the evaluations with staff and managers responsible for corresponding processes, products and services Resolve non-conformance issues with staff and managers responsible for corresponding processes, products and services Perform these practices in parallel with every goal, at every maturity level 3

LEVEL 2: BEST PRACTICES FOR BUSINESS PROCESS REPEATABILITY
CAPABILITY LEVEL 2 Establish stable business processes LEVEL 2: BEST PRACTICES FOR BUSINESS PROCESS REPEATABILITY Process Capability GOALS OF KEY PROCESS AREAS (KPAs) Organizational Process Leadership Goals: Establish the executive sponsorship and accountability for process improvement activities Executives sponsor process improvement Align management systems and activities with the organization’s process improvement goals and strategies. Institutionalize best practices for achieving sponsorship and alignment Organizational Business Governance Goals: Establish executive accountability for the organization’s work and results Executive management aligns the product and service work with business goals. Executive management approves, measures, and manages the business activities Practices for Business Governance are institutionalized. Work Unit Requirements Management Goals: Agree upon requirements and maintain written records for the work that a unit or project performs Evaluate requirements and the impact of changes Document and maintain a requirements baseline, agreed to by the unit doing the work. Institutionalize practices for Requirements Management within the unit Work Unit Planning and Commitment Goals: Plan the work required in an organizational unit or project Effort estimates and schedules based on documented, quantified parameters Commitments identified, planned, documented, and agreed to by affected stakeholders. Plans and methodology documented and consistent with requirements, commitments, and related plans. Institutionalize best practices for Planning and Committing Work Unit Monitoring and Control Goals: Measure, monitor, and tune process parameters such as individuals, work and resource assignments for the individuals and workgroups in the work unit or project to ensure results are aligned with requirements and plans Work Assignments are managed against requirements, plans, estimates, and commitments. Results Are Tracked against requirements, estimates, plans, and commitments Corrective actions are taken to address significant deviations from requirements, plans, or commitments Institutionalize best practices for monitoring and control CONTINUED ON NEXT PAGE

Establish stable business processes
CAPABILITY LEVEL 2 Establish stable business processes LEVEL 2: BUSINESS PROCESS BEST PRACTICES FOR BUSINESS PROCESS REPEATABILITY (continued) Process Capability CONTINUED FROM PREVIOUS PAGE GOALS OF KEY PROCESS AREAS (KPAs) Identify and communicate the work unit’s products and service offerings Work Unit Configuration Management: Goals: Manage, and control changes to the content of product-service baselines to ensure consistency and integrity of product-service releases Identify the unit’s product-service baseline items Manage and control the unit’s product-service baseline items Report the unit’s product-service baseline items to all impacted stake holders periodically, and when changes occur Institutionalize best practices for configuration management Sourcing Management Goals: Manage acquisition of products and services from suppliers outside the organization Commitments with a qualified supplier to provide products and services are agreed with impacted stakeholders. Sourcing agreements are satisfied by both the supplier and work unit. Acquired products and services are accepted and incorporated into the unit’s products, services processes infrastructure Best practices for Sourcing Management are institutionalized Process and Product Assurance Goals: Guidance and objective review of activities and work products to ensure they conform to regulations, laws, standards, organizational policies, business rules, process descriptions and procedures Activities and work products are evaluated to ensure conformance with laws, regulations, standards, policies, business rules, process descriptions, and work procedures. Non-conforming items are tracked, communicated, and resolved. Institutionalize best practices for Process and Product Assurance 5

Establish Stable Business Processes
CAPABILITY LEVEL 2 Establish Stable Business Processes ORGANIZATIONAL PROCESS LEADERSHIP ACTIVITIES Organizational Process Leadership Goals: Establish the executive sponsorship and accountability for process improvement activities Executives sponsor process improvement Align management systems and activities with the organization’s process improvement goals and strategies. Institutionalize best practices for achieving sponsorship and alignment KPA execution (activities) Executives establish and maintain reasons for investing in business process improvement Executives establish and maintain organization’s process improvement goals and strategies Executives sponsor process improvement Communicate the executive management’s expectations of process improvement goals and strategies Provide funding and other resources needed to implement the organization’s process improvement strategies. Executives review and approve the plans for implementing the process improvement strategies. Executives coordinate with external customers and other relevant stakeholders to address effects the process improvement activities CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes ORGANIZATIONAL PROCESS LEADERSHIP ACTIVITIES Organizational Process Leadership Goals: Establish the executive sponsorship and accountability for process improvement activities Executives sponsor process improvement Align management systems and activities with the organization’s process improvement goals and strategies. Institutionalize best practices for achieving sponsorship and alignment KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Establish and maintain definitions of the measures used to plan, manage, and evaluate results of the organization’s process improvement program Align management systems and activities with the organization’s process improvement goals & strategies The responsibilities and commitments of the units and their managers are kept consistent with the process improvement goals and strategies. Adjust the performance management and compensation systems to recognize contributions to the organization’s business performance and process improvement goals and strategies Executive management reviews progress in achieving the organization’s process improvement goals periodically Keep the managers and staff informed on the status and results of the process improvement activities and any changes in improvement goals and strategies

CAPABILITY LEVEL 2 Establish Stable Business Processes ORGANIZATIONAL BUSINESS GOVERNANCE ACTIVITIES Organizational Business Governance Goals: Establish executive accountability for the organization’s work and results Executive management aligns the product and service work with business goals. Executive management approves, measures, and manages the business activities Practices for Business Governance are institutionalized. KPA execution (activities) Executive management aligns the product and service work with business goals. Establish and maintain the organization’s business goals Establish and maintain definitions of the business outcome measures related to the organization’s near-term and long-term business Establish and maintain descriptions of the business activities and workflows required to develop, prepare, deploy, operate, and support the organization’s products & services Executive management establishes and maintains performance goals for business workflows that are drawn from the organization’s business strategy and goals Executive management establishes and maintains the organizational policies that govern the performance of the business activities

CAPABILITY LEVEL 2 Establish Stable Business Processes ORGANIZATIONAL BUSINESS GOVERNANCE ACTIVIES Organizational Business Governance Goals: Establish executive accountability for the organization’s work and results Executive management aligns the product and service work with business goals. Executive management approves, measures, and manages the business activities Practices for Business Governance are institutionalized. KPA execution (activities) Executive management approves, measures, and manages the business activities Executives and middle managers review and approve work commitments to external stakeholders Allocate resources for the units based on what they need to perform their assigned work and satisfy their requirements, plans, and commitments Establish and maintain definitions of the workflow measures used to monitor the performance of the units and business activities Executives and middle managers review the performance, status, and results of the organization’s business activities, and ensure appropriate corrective actions are performed when necessary

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT REQUIREMENTS MANAGEMENT ACTIVITIES Work Unit Requirements Management Goals: Agree upon requirements and maintain written records for the work that a unit or project performs Evaluate requirements and the impact of changes Document and maintain a requirements baseline, agreed to by the unit doing the work. Institutionalize practices for Requirements Management within the unit KPA execution (activities) Evaluate requirements and the impact of changes Identify the requirements and requirements changes proposed for a work unit Review the proposed requirements and requirements changes for a work unit to ensure they are understood, and obtain clarifications where needed Evaluate the proposed requirements and requirements changes for a work to ensure they can be implemented within the scope of responsibility, capability, and capacity of a work unit CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT REQUIREMENTS MANAGEMENT ACTIVITIES Work Unit Requirements Management Goals: Agree upon requirements and maintain written records for the work that a unit or project performs Evaluate requirements and the impact of changes Document and maintain a requirements baseline, agreed to by the unit doing the work. Institutionalize practices for Requirements Management within the unit KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Document and maintain a requirements baseline, agreed to by the unit doing the work Negotiate the proposed requirements and requirements changes for a work unit with the requirements providers and owners of affected products and services to ensure they are consistent with the scope of responsibility, capability, and capacity of the work unit Establish and maintain the specification of the agreed-to baseline requirements for a work unit Review a work unit’s agreed-to requirements on a periodic and event-driven basis and identify requirements that are inconsistent with the business needs

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT PLANNING AND COMMITMENT ACTIVITIES Work Unit Planning and Commitment Goals: Plan the work required in an organizational unit or project Effort estimates and schedules based on documented, quantified parameters Commitments identified, planned, documented, and agreed to by affected stakeholders. Plans and methodology documented and consistent with requirements, commitments, and related plans. Institutionalize best practices for Planning and Committing KPA execution (activities) Individuals and workgroups in a work unit participate or are appropriately represented in estimating and planning the work Effort estimates and schedules based on documented, qualified parameters Lessons learned by a work unit are used in estimating and planning future work A work breakdown structure that partitions work assigned to a work unit into activities is established and maintained Definitions of the measures used to plan and manage a work unit are established and maintained Estimates are established and maintained for the base attributes of the work activities and work products for a work unit Estimates are established and maintained for the demand/production schedule the work unit needs to support Estimates are established and maintained for the effort, budget, and other resources required to satisfy a work unit’s requirements, demand/production schedule, and commitments CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT PLANNING AND COMMITMENT ACTIVITIES Work Unit Planning and Commitment Goals: Plan the work required in an organizational unit or project Effort estimates and schedules based on documented, quantified parameters Commitments identified, planned, documented, and agreed to by affected stakeholders. Plans and methodology documented and consistent with requirements, commitments, and related plans. Institutionalize best practices for Planning and Committing KPA execution (activities) CONTINUED FROM PREVIOUS PAGE A description of the workflow for the work unit is established and maintained Commitments identified, planned, documented, and agreed to by affected stakeholders Establish and maintain commitments to address critical dependencies between work units and other relevant stakeholders Review commitments between work units, other workgroups, and other relevant stakeholders, and agree to changes in the commitments Establish and maintain schedules for a work unit that describe the milestones, activities, and application of resources needed to satisfy the requirements, commitments, and demand/production schedule Balance the requirements, planning constraints, and the estimates of the planning parameters for a work unit with the available levels of resources, schedule, and budget Establish and maintain mechanisms to assign and regularly monitor the work performed by the individuals and workgroups in a work unit CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT PLANNING AND COMMITMENT ACTIVITIES Work Unit Planning and Commitment Goals: Plan the work required in an organizational unit or project Effort estimates and schedules based on documented, quantified parameters Commitments identified, planned, documented, and agreed to by affected stakeholders. Plans and methodology documented and consistent with requirements, commitments, and related plans. Institutionalize best practices for Planning and Committing KPA execution (activities) Commitments identified, planned, documented, and agreed to by affected stakeholders Establish and maintain plans for obtaining, assigning, and preparing the people to perform their roles in a work unit, and for reassigning people who are not needed Establish and maintain plans acquiring and deploying the non-people resources that are needed to perform the work and reallocate unneeded resources Establish and maintain plans for the collection, storage, management, and disposal of the critical data and information for a work unit Identify and analyze risks that could jeopardize satisfying a work unit’s requirements and commitments, and establish and maintain plans to manage them Reconcile the plans and commitments for a work unit with the plans and commitments of related work units and workgroups Organize the component plans for a work unit into a course of action for performing the work

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT PLANNING AND COMMITMENT ACTIVITIES Work Unit Monitoring and Control Goals: Measure, monitor, and tune process parameters such as individuals, work and resource assignments for the individuals and workgroups in the work unit or project to ensure results are aligned with requirements and plans Work Assignments are managed against requirements, plans, estimates, and commitments. Results Are Tracked against requirements, estimates, plans, and commitments Corrective actions are taken to address significant deviations from requirements, plans, or commitments Institutionalize best practices for monitoring and control KPA execution (activities) Work assignments are managed against requirements, plans, estimates, and commitments Analyze, prioritize, and plan work requests received by a work into the work unit’s activities Obtain, assign, and prepare the people needed to perform the work unit’s work according to the plans and needs of the work unit Acquire and deploy or reallocate the non-people resources needed to perform a work unit’s work according to the plans and the needs of the work unit Establish and maintain the assignment of work activities to individuals and workgroups within the work unit CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT PLANNING AND COMMITMENT ACTIVITIES Work Unit Monitoring and Control Goals: Measure, monitor, and tune process parameters such as individuals, work and resource assignments for the individuals and workgroups in the work unit or project to ensure results are aligned with requirements and plans Work Assignments are managed against requirements, plans, estimates, and commitments. Results Are Tracked against requirements, estimates, plans, and commitments Corrective actions are taken to address significant deviations from requirements, plans, or commitments Institutionalize best practices for monitoring and control KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Results are tracked against requirements, estimates, plans, & commitments Monitor the overall workflow of a work unit against the defined workflow description Monitor the work assigned to individuals and workgroups in a work unit on a regular basis, and make adjustments as needed Collect, analyze, and use measures defined in the plans for a work unit in managing the work On a regular basis, review the performance and the status of the activities, work products, and services for a work unit against its requirements, plans, and commitments Collect, store, manage, and dispose the critical data and information for a work unit according to the data management plans Manage the identified risks for a work unit CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT PLANNING AND COMMITMENT ACTIVITIES Work Unit Monitoring and Control Goals: Measure, monitor, and tune process parameters such as individuals, work and resource assignments for the individuals and workgroups in the work unit or project to ensure results are aligned with requirements and plans Work Assignments are managed against requirements, plans, estimates, and commitments. Results Are Tracked against requirements, estimates, plans, and commitments Corrective actions are taken to address significant deviations from requirements, plans, or commitments Institutionalize best practices for monitoring and control KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Corrective actions are taken to address significant deviations from requirements, plans, or commitments Identify and address significant deviations from a work unit’s requirements, estimates, plans, and commitments Identify and address the likely causes of significant deviations from a work unit’s requirements, estimates, plans, commitments, and other significant work unit issues Review the work unit’s status, accomplishments, issues, and risks for a work unit with relevant stakeholders, as needed Revise the plans for a work unit to reflect status, risk changes, commitment changes, and changes in the planning parameters Record lessons learned in performing and managing the work for a work unit and use in establishing future requirements, estimates, plans, and commitments

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT CONFIGURATION MANAGEMENT ACTIVITIES Work Unit Configuration Management Goals: Manage, and control changes to the content of product-service baselines to ensure consistency and integrity of product-service releases Identify the unit’s product-service baseline items Manage and control the unit’s product-service baseline items Report the unit’s product-service baseline items to all impacted stake holders periodically, and when changes occur Institutionalize best practices for configuration management KPA execution (activities) Identify the unit’s product-service baseline items Establish and maintain configuration management repositories for a work unit Establish and maintain a list of configuration items that will be controlled by a work unit Establish and maintain specifications of the CM product baselines that a work unit will create for use internal to the organization and for delivery to customers CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT CONFIGURATION MANAGEMENT ACTIVITIES Work Unit Configuration Management Goals: Manage, and control changes to the content of product-service baselines to ensure consistency and integrity of product-service releases Identify the unit’s product-service baseline items Manage and control the unit’s product-service baseline items Report the unit’s product-service baseline items to all impacted stake holders periodically, and when changes occur Institutionalize best practices for configuration management KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Manage and control the unit’s product-service baseline items Manage changes to a work unit’s configuration items Create a work unit’s CM product baselines or controlled service packs, as appropriate, for internal use and for delivery to customers Deliver a work unit’s CM product baselines or controlled service packs, as appropriate, for their intended use CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes WORK UNIT CONFIGURATION MANAGEMENT ACTIVITIES Work Unit Configuration Management Goals: Manage, and control changes to the content of product-service baselines to ensure consistency and integrity of product-service releases Identify the unit’s product-service baseline items Manage and control the unit’s product-service baseline items Report the unit’s product-service baseline items to all impacted stake holders periodically, and when changes occur Institutionalize best practices for configuration management KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Report the unit’s product-service baseline items to all impacted stakeholders periodically, and when changes occur Establish and maintain records of a work unit’s configuration items and CM product baselines Audit a work unit’s CM product baselines, their component configuration items, and associated records to ensure its integrity, and perform corrective actions Provide reports to relevant stakeholders on the work unit’s configuration management activities, and on the status and content of the configuration items and CM product baselines

CAPABILITY LEVEL 2 Establish Stable Business Processes SOURCING MANAGEMENT ACTIVITIES Sourcing Management Goals: Manage acquisition of products and services from suppliers outside the organization Commitments with a qualified supplier to provide products and services are agreed with impacted stakeholders. Sourcing agreements are satisfied by both the supplier and work unit. Acquired products and services are accepted and incorporated into the unit’s products, services processes infrastructure Best practices for Sourcing Management are institutionalized KPA execution (activities) Commitments with a qualified supplier to provide products and services are agreed with impacted stakeholders Establish and maintain descriptions of the sourcing needs of a work unit Establish and maintain the requirements for the products and services to be acquired for a work unit Select off-the-shelf products, as appropriate, that satisfy a work unit’s sourcing needs and other established criteria Select a supplier based on its capability to satisfy the sourcing requirements and its ability to work with the work unit and organization Establish and maintain the sourcing agreements for a selected supplier Select a supplier to perform each work order Establish and maintain work orders with a supplier to provide specified products and services CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes SOURCING MANAGEMENT ACTIVITIES Sourcing Management Goals: Manage acquisition of products and services from suppliers outside the organization Commitments with a qualified supplier to provide products and services are agreed with impacted stakeholders. Sourcing agreements are satisfied by both the supplier and work unit. Acquired products and services are accepted and incorporated into the unit’s products, services processes infrastructure Best practices for Sourcing Management are institutionalized KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Sourcing agreements are satisfied by both the supplier and work unit Balance a supplier’s plans and commitments with a work unit’s internal plans and commitments Satisfy the specified responsibilities of the work units and other involved workgroups to support the supplier Monitor a supplier’s progress and performance in providing specified products and services against the sourcing agreement, work orders, plans, commitments, and needs of the work unit Monitor and adjust the overall relationship with a supplier as needed to effectively and efficiently satisfy the sourcing agreement, work orders, plans, commitments, and needs of the work unit and organization End the sourcing relationship with a supplier when the sourcing agreement and associated work orders are satisfied or when other termination conditions are realized CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 2 Establish Stable Business Processes SOURCING MANAGEMENT ACTIVITIES Sourcing Management Goals: Manage acquisition of products and services from suppliers outside the organization Commitments with a qualified supplier to provide products and services are agreed with impacted stakeholders. Sourcing agreements are satisfied by both the supplier and work unit. Acquired products and services are accepted and incorporated into the unit’s products, services processes infrastructure Best practices for Sourcing Management are institutionalized KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Acquired products and services are accepted and incorporated into the unit’s products, services processes infrastructure Evaluate the products and services provided by a supplier against their requirements and the needs of the work unit Establish and maintain the work unit’s facilities, capability, and capacity to accept, incorporate, control, maintain, and support the acquired products Transition the acquired products into a work unit A supplier and acquiring work unit identify and address significant deviations from the sourcing agreement, work orders, performance results, and acceptability of the products and services A supplier and the acquiring work unit identify and address the likely causes of significant deviations from the sourcing agreement, work orders, performance results, and acceptability of the products and services Close each work order in a sourcing agreement when the work is completed and commitments are satisfied or when other termination conditions are realized

CAPABILITY LEVEL 2 Establish Stable Business Processes PROCESS AND PRODUCT ASSURANCE ACTIVITIES Process and Product Assurance Goal: Guidance and objective review of activities and work products to ensure they conform to regulations, laws, standards, organizational policies, business rules, process descriptions and procedures Activities and work products are evaluated to ensure conformance with laws, regulations, standards, policies, business rules, process descriptions, and work procedures. Non-conforming items are tracked, communicated, and resolved. Institutionalize best practices for Process and Product Assurance KPA execution (activities) Activities and work products are evaluated to ensure conformance with laws, regulations, standards, policies, business rules, process descriptions, and work procedures Provide assistance to the individuals, work units, and workgroups so they can understand and comply with the laws, regulations, organizational policies, business rules, and standards applicable to their work Provide information and assets obtained from performing the process and product assurance reviews to the management and staff of the work units so they can effectively plan, manage, and perform their work Objectively evaluate the process descriptions and work procedures used in performing the work against the applicable laws, regulations, standards, organizational policies, and business rules Objectively evaluate the performance of selected work activities against the applicable laws, regulations, standards, organizational policies, business rules, process descriptions, and work procedures Objectively evaluate selected work products and services that are outputs of the process against the applicable laws, regulations, standards, organizational policies, and business rules CONTINUED ON NEXT PAGE

PROCESS AND PRODUCT ASSURANCE ACTIVITIES
CAPABILITY LEVEL 2 Establish Stable Business Processes PROCESS AND PRODUCT ASSURANCE ACTIVITIES Process and Product Assurance Goal: Guidance and objective review of activities and work products to ensure they conform to regulations, laws, standards, organizational policies, business rules, process descriptions and procedures Activities and work products are evaluated to ensure conformance with laws, regulations, standards, policies, business rules, process descriptions, and work procedures. Non-conforming items are tracked, communicated, and resolved. Institutionalize best practices for Process and Product Assurance KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Non-conforming items are tracked, communicated, and resolved Review, on a regular basis, the results of the process and product assurance evaluations with the responsible individuals, work units, workgroups, and managers Review and resolve potential and actual non-conformance issues with the responsible individuals, work units, workgroups, and managers Escalate non-conformance issues not resolvable within the work unit or workgroup to designated higher level managers, and track to closure Identify and address the likely causes of significant non-conformance issues Establish, maintain, and make available records of the process and product assurance activities and results

LEVEL 3: BEST PRACTICES FOR BUSINESS PROCESS STANDARDIZATION
CAPABILITY LEVEL 3 Best Practices Standardized for Organization LEVEL 3: BEST PRACTICES FOR BUSINESS PROCESS STANDARDIZATION Process Capability GOALS OF KEY PROCESS AREAS (KPAs) Ensure that org. WORKFORCE COMPETENCIES are developed in advance Organizational Process Management Goals: Develop, deploy, and continually improve standard processes and templates based on organizational strengths and weaknesses Understand strengths and weaknesses of processes and templates, and improve them Establish and make standard processes and templates available to develop, deliver , operate and support products and services Use lessons learned to improve processes and templates Institutionalize Organizational Process Management practices Organizational Resource Management Goals: Manage acquisition, allocation, and (re)assignment of resources (people, materials, money, information, time, energy and facilities/places) needed to support the firm’s products and services Align available resources with the firm’s product and service portfolio resource needs Balance resource availability with demand Institutionalize Organizational Resource Management practices Organizational Configuration Management (OCM) Goals: Manage Product-service offering configurations, content and changes in a baseline Identify configuration items and corresponding baselines that will be controlled Manage changes to configuration items and maintain corresponding baselines Report the configuration items, content and status of product- service baselines to impacted stake holders Institutionalize OCM Best practices Product and Service Business Management (PSBM) Goals: Plan and manage the business and finances of product-service offerings Define features and capabilities of product-service offerings based on customer needs and market positioning Include or retire product-service offerings from the portfolio based a business case Continually manage business and financial aspects of each product-service in the portfolio Institutionalize PSBM practices CONTINUED ON NEXT PAGE 26

Best Practices Standardized
CAPABILITY LEVEL 3 Best Practices Standardized for Organization LEVEL 3: BEST PRACTICES FOR BUSINESS PROCESS STANDARDIZATION (continued) Process Capability CONTINUED FROM PREVIOUS PAGE GOALS OF KEY PROCESS AREAS (KPAs) Product and Service Work Management (PSWM) Goals: Manage activities and results of a product-service offering with the organization’s standard processes and templates that have been tailored for the product-service Estimate and plan product-service work based on the firm’s predefined end-to-end processes and templates Monitor activities, performance, and results against defined processes, plans, and commitments Take corrective action if activities, performance, or results for an offering significantly deviate from requirements, plans, or commitments Institutionalize PSWM practices Product-Service Preparation (PSP) Goals: Establish requirements for a product-service offering and prepare it for use Define and document requirements for a product-service Design, build and document the product-service in line with requirements Demonstrate readiness for deployment, operations and support Institutionalize PSP practices Product-Service Deployment (PSD) Goals: Install and adjust (modify/train, remove/replace) resources (people, information, equipment, computing and communication infrastructure, supplies) to operate and support the offering Document and agree upon plans for deploying the offering between all impacted parties, or their representatives Plan for dependencies with other products and services and ensure requisite capacity of resources to satisfy projected demand Demonstrate that the offering in question, as well as other offerings with dependencies with it are ready for operation and support Institutionalize PSD practices CONTINUED ON NEXT PAGE 27

Best Practices Standardized
CAPABILITY LEVEL 3 Best Practices Standardized for Organization LEVEL 3: BEST PRACTICES FOR BUSINESS PROCESS STANDARDIZATION (continued) Process Capability CONTINUED FROM PREVIOUS PAGE GOALS OF KEY PROCESS AREAS (KPAs) Product-Service Operations (PSO) Goals: Give customers access to the features and capabilities of the offering Provide customers resources, information and support for the offering Transact the offering; measure/verify end and intermediate results in the value chain Communicate results to all relevant stake holders Assemble and store verified results and communications; provide all stake holders access to store Institutionalize PSO Product-Service Support (PSS) Goals: Maintain resources needed to sustain the operation and availability of a deployed offering Maintain requisite infrastructure (buildings, computing hardware and software, communication hardware and software, other equipment and facilities), supplies, and other resources needed to operate and support an offering over the life of the offering Manage infrastructure, supplies, resources, mechanisms, data, and information to enable operation of the offering during and after disruptions Resolve Problems and issues identified in deploying, operating, and supporting the offering Institutionalize PSO Best practices

Best Practices Standardized for Organization
CAPABILITY LEVEL 3 Best Practices Standardized for Organization ORGANIZATIONAL PROCESS MANAGEMENT ACTIVITIES Organizational Process Management Goals: Develop, deploy, and continually improve standard processes and templates based on organizational strengths and weaknesses Understand strengths and weaknesses of processes and templates, and improve them Establish and make standard processes and templates available to develop, deliver , operate and support products and services Use lessons learned to improve processes and templates Institutionalize Organizational Process Management practices KPA execution (activities) Understand strengths and weaknesses of processes and templates, and improve them Establish and maintain the descriptions of the process needs, goals, and standards for the organization Periodically appraise the processes and process assets of the organization as needed to maintain an understanding of their strengths and weaknesses Identify and prioritize improvements to the organization’s processes and process assets Establish and maintain process action plans that address selected improvements to the organization’s processes and process assets Implement the organization’s process action plans CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization ORGANIZATIONAL PROCESS MANAGEMENT ACTIVITIES Organizational Process Management Goals: Develop, deploy, and continually improve standard processes and templates based on organizational strengths and weaknesses Understand strengths and weaknesses of processes and templates, and improve them Establish and make standard processes and templates available to develop, deliver , operate and support products and services Use lessons learned to improve processes and templates Institutionalize Organizational Process Management practices KPA execution (activities) Establish and make standard processes and templates available to develop, deliver, operate, & support products and services Establish and maintain descriptions of the organization’s standard processes Establish and maintain definitions of measures to characterize the organization’s standard processes and process assets Establish and maintain guidelines and criteria for tailoring the organization’s standard processes Establish and maintain repositories for storing and making available the organization’s process descriptions and measures and information on their use Deploy the organization’s process assets, and changes to them, across the organization CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization ORGANIZATIONAL PROCESS MANAGEMENT ACTIVITIES Organizational Process Management Goals: Develop, deploy, and continually improve standard processes and templates based on organizational strengths and weaknesses Understand strengths and weaknesses of processes and templates, and improve them Establish and make standard processes and templates available to develop, deliver , operate and support products and services Use lessons learned to improve processes and templates Institutionalize Organizational Process Management practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Use lessons learned to improve processes and templates Collect, package, and maintain process-related work products, measures, and improvement information derived from performing the organization’s processes in the organizational repositories Analyze information, work products, and measures derived from performing the organization’s processes to provide insight into and improve the organization’s standard processes and related process assets Provide status and results of the organization’s process management activities to relevant stakeholders

CAPABILITY LEVEL 3 Best Practices Standardized for Organization ORGANIZATIONAL RESOURCE MANAGEMENT ACTIVITIES Organizational Resource Management Goals: Manage acquisition, allocation, and (re)assignment of resources (people, materials, money, information, time, energy and facilities/places) needed to support the firm’s products and services Align available resources with the firm’s product and service portfolio resource needs Balance resource availability with demand Institutionalize Organizational Resource Management practices KPA execution (activities) Align available resources with the firm’s product & service portfolio resource needs Establish and maintain a description of the organization’s portfolio of products and services Establish and maintain organizational budgets for the products and services in the organization’s portfolio Establish and maintain estimates for each of the organizational resources needed to support the product and service portfolio Reconcile the budgeted resources that are available and planned to support the organization’s portfolio of products and services with the capacity plans Establish and maintain plans to provide the units with the resources they need to perform the product and service work for the organization’s product and service portfolio CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization ORGANIZATIONAL RESOURCE MANAGEMENT ACTIVITIES Organizational Resource Management Goals: Manage acquisition, allocation, and (re)assignment of resources (people, materials, money, information, time, energy and facilities/places) needed to support the firm’s products and services Align available resources with the firm’s product and service portfolio resource needs Balance resource availability with demand Institutionalize Organizational Resource Management practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Balance resource availability with demand Integrate the organization’s resource management activities into the organization’s standard processes and other organizational process assets for the product and service work Allocate the organization’s available and planned resources to support the portfolio to the units based on what they need to perform their assigned product and service work Integrate the sources and suppliers of organizational resources needed for the product and service work into the organizational resource management process and the processes for performing the product and service work Monitor the quantity of each organizational resource consumed in supporting the organization’s product and services portfolio, and identify problems Use acquisition, allocation, and utilization of organizational resources trends and predictions to adjust the organizational resource estimates, budgets, and plans Reallocate the organization’s resources of each type to the units and product and service offerings, as needed, to maintain appropriate balance of capacity and plans

CAPABILITY LEVEL 3 Best Practices Standardized for Organization ORGANIZATIONAL RESOURCE MANAGEMENT ACTIVITIES Organizational Resource Management Goals: Manage acquisition, allocation, and (re)assignment of resources (people, materials, money, information, time, energy and facilities/places) needed to support the firm’s products and services Align available resources with the firm’s product and service portfolio resource needs Balance resource availability with demand Institutionalize Organizational Resource Management practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Identify configuration items and corresponding baselines that will be controlled Establish and maintain the strategy for performing and coordinating configuration management for the organization Establish and maintain configuration management repositories for the organization Establish and maintain a list of configuration items controlled by the organization Establish and maintain specifications of the organization’s CM product baselines that compose and support the organization’s product and service offerings Establish and maintain the description of the organizational configuration architecture CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization ORGANIZATIONAL RESOURCE MANAGEMENT ACTIVITIES Organizational Resource Management Goals: Manage acquisition, allocation, and (re)assignment of resources (people, materials, money, information, time, energy and facilities/places) needed to support the firm’s products and services Align available resources with the firm’s product and service portfolio resource needs Balance resource availability with demand Institutionalize Organizational Resource Management practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Manage changes to configuration items and maintain corresponding baselines Manage changes to the organization’s configuration items Create, as appropriate, the organization’s CM product baselines or controlled service packs for internal use and for delivery to customers Deliver, as appropriate, the organization’s CM product baselines or service pack for their intended use CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization ORGANIZATIONAL RESOURCE MANAGEMENT ACTIVITIES Organizational Resource Management Goals: Manage acquisition, allocation, and (re)assignment of resources (people, materials, money, information, time, energy and facilities/places) needed to support the firm’s products and services Align available resources with the firm’s product and service portfolio resource needs Balance resource availability with demand Institutionalize Organizational Resource Management practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Report the configuration items, content, and status of product-service baselines to impacted stakeholders Establish and maintain organization’s configuration items and CM product baselines records Periodically audit the organization’s configuration management activities, the configuration management repositories, and the associated records to ensure their integrity, and perform corrective actions Audit the organization’s CM product baselines, service packs, their component configuration items, and associated records to ensure they are ready for use, and perform corrective actions Provide reports to relevant stakeholders on the organization’s configuration management activities, and on the status and content of the configuration items and CM product baselines

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT AND SERVICE BUSINESS MANAGEMENT ACTIVITIES Product and Service Business Management (PSBM) Goals: Plan and manage the business and finances of product-service offerings Define features and capabilities of product-service offerings based on customer needs and market positioning Include or retire product-service offerings from the portfolio based a business case Continually manage business and financial aspects of each product-service in the portfolio Institutionalize PSBM practices KPA execution (activities) Define features and capabilities of product-service offerings based on customer needs and market positioning Regularly evaluate the current market situation and trends related to a product and service offering to identify their effects on customer needs and their likely buying decisions Regularly evaluate the current competitive situation for a product and service offering and likely changes in the competitive situation Establish and maintain descriptions of the customer needs for a product and service offering Establish and maintain business goals covering quality, market share, financial returns, and other business and technical factors for a product and service offering Establish and maintain descriptions of the business requirements, including the capabilities and features, for a product and service offering to address the business goals Identify laws, regulations, and standards that are applicable to a product and service offering CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT AND SERVICE BUSINESS MANAGEMENT ACTIVITIES Product and Service Business Management (PSBM) Goals: Plan and manage the business and finances of product-service offerings Define features and capabilities of product-service offerings based on customer needs and market positioning Include or retire product-service offerings from the portfolio based a business case Continually manage business and financial aspects of each product-service in the portfolio Institutionalize PSBM practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Include or retire product-service offerings from the portfolio based a business case Establish and maintain estimates of the potential sales and consumption of a product and service offering Establish and maintain estimates of the organization’s costs for a product and service offering Establish and maintain the pricing structure and pricing strategy for a product and service offering Establish and maintain estimates of the financial return, revenue/profit timeline, and other impacts and benefits of a product and service offering Evaluate the characteristics, financial position, core competencies, and capacity of the organization against what is needed for the product and service offering Establish and maintain the business justification for including a product and service offering in the organization’s portfolio CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT AND SERVICE BUSINESS MANAGEMENT ACTIVITIES Product and Service Business Management (PSBM) Goals: Plan and manage the business and finances of product-service offerings Define features and capabilities of product-service offerings based on customer needs and market positioning Include or retire product-service offerings from the portfolio based a business case Continually manage business and financial aspects of each product-service in the portfolio Institutionalize PSBM practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Continually manage business & financial aspects of each product-service in the portfolio Establish and maintain business strategies and plans for a product and service offering Determine business risks inherent in a product and service offering, and establish and maintain plans to manage them Track business performance and financial results achieved for a product and service offering against the business plans Manage business risks inherent in a product and service offering Identify and address significant deviations from the business plans and financial estimates and plans for a product and service offering Review, as needed, progress, accomplishments, issues, and risks related to the business plans and financial estimates for a product and service offering with relevant stakeholders

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT AND SERVICE WORK MANAGEMENT ACTIVITIES Product and Service Work Management (PSWM) Goals: Manage activities and results of a product-service offering with the organization’s standard processes and templates that have been tailored for the product-service Estimate and plan product-service work based on the firm’s predefined end-to-end processes and templates Monitor activities, performance, and results against defined processes, plans, and commitments Take corrective action if activities, performance, or results for an offering significantly deviate from requirements, plans, or commitments Institutionalize PSWM practices KPA execution (activities) Estimate and plan product-service work based on the firm’s predefined end-to-end processes and templates Establish and maintain the defined processes covering the product and service work for an offering Establish and maintain the master schedule for producing and providing services for a product and service offering Establish and maintain the master plans for satisfying the operations and support requirements for a product and service offering Establish and maintain definitions of the measures used to plan and manage the product and service work for an offering and to satisfy organizational measurement requirements Establish and maintain assigned work responsibilities for each unit and workgroup involved in the product and service work for an offering Establish and maintain commitments to address critical dependencies for the product and service work for an offering Determine risks that could jeopardize the product and service work for an offering, and establish and maintain plans to manage them Establish and maintain integrated work plans for the product and service offering, including plans for the participating units and workgroups CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT AND SERVICE WORK MANAGEMENT ACTIVITIES Product and Service Work Management (PSWM) Goals: Manage activities and results of a product-service offering with the organization’s standard processes and templates that have been tailored for the product-service Estimate and plan product-service work based on the firm’s predefined end-to-end processes and templates Monitor activities, performance, and results against defined processes, plans, and commitments Take corrective action if activities, performance, or results for an offering significantly deviate from requirements, plans, or commitments Institutionalize PSWM practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Monitor activities, performance, and results against defined processes, plans, and commitments Manage the product and service work for an offering using the integrated plans and the defined processes Manage risks that could jeopardize the product and service work for an offering Determine and report to executive management the amount of each type of resource needed to perform the product and service work for an offering for use in managing the organizational resources Contribute work products, measures, documented experiences, and improvements from the product and service work for an offering to the organization’s process assets CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT AND SERVICE WORK MANAGEMENT ACTIVITIES Product and Service Work Management (PSWM) Goals: Manage activities and results of a product-service offering with the organization’s standard processes and templates that have been tailored for the product-service Estimate and plan product-service work based on the firm’s predefined end-to-end processes and templates Monitor activities, performance, and results against defined processes, plans, and commitments Take corrective action if activities, performance, or results for an offering significantly deviate from requirements, plans, or commitments Institutionalize PSWM practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Take corrective action if activities, performance, or results for an offering significantly deviate from requirements, plans, or commitments Identify and address significant deviations from the requirements, estimates, plans, and commitments for the product and service offering results and work Identify and address the likely causes of significant deviations from the requirements, estimates, plans and commitments for the product and service offering results Review, as needed, progress, accomplishments, and issues related to the product and service work for an offering with relevant stakeholders Revise the estimates, commitments, and plans related to the product and service work for an offering to reflect accomplishments, progress, risk changes, corrective actions, and plan changes Record lessons learned in planning, performing, and managing the product and service work for an offering and use in establishing future requirements, estimates, plans, and commitments

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE PREPARATION ACTIVITIES Product-Service Preparation (PSP) Goal: Establish requirements for a product-service offering and prepare it for use Define and document requirements for a product-service Design, build and document the product-service in line with requirements Demonstrate readiness for deployment, operations and support Institutionalize PSP practices KPA execution (activities) Define and document requirements for a product-service Establish and maintain the requirements specification for a product and service offering Validate the requirements for a product and service offering Establish and maintain the allocation of requirements for a product and service offering to the components of the offering Establish and maintain bi-directional traceability between the requirements for a product and service offering and the associated plans and work products CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE PREPARATION ACTIVITIES Product-Service Preparation (PSP) Goal: Establish requirements for a product-service offering and prepare it for use Define and document requirements for a product-service Design, build and document the product-service in line with requirements Demonstrate readiness for deployment, operations and support Institutionalize PSP practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Establish and maintain capacity models for the product and service offering Design, build, and document the product-service in line with requirements Identify business risks inherent in a product and service offering, and include support to manage the risks in the design, construction, and documentation of the product and service offering Establish and maintain the overall design of a product and service offering Establish and maintain the designs of the components that comprise a product and service offering Establish and maintain descriptions of additions and revisions to the organization’s standard processes and other organizational process assets needed for the product and service work Develop or acquire the hardware, software, supplies, and other components that comprise a product and service offering and needed to deploy, operate, and support the offering Establish and maintain documentation needed for deploying, operating, and supporting a product and service offering and for training those who perform these activities CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE PREPARATION ACTIVITIES Product-Service Preparation (PSP) Goal: Establish requirements for a product-service offering and prepare it for use Define and document requirements for a product-service Design, build and document the product-service in line with requirements Demonstrate readiness for deployment, operations and support Institutionalize PSP practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Demonstrate readiness for deployment, operations and support Review the design and construction of the components of a product and service offering on a regular basis to determine if they satisfy their requirements, and perform corrective actions Integrate the components that comprise a product and service offering Verify a product and service offering against the applicable requirements Validate a product and service offering for use The owner of the offering approves and accepts a product and service offering as it is ready for deployment and operations Assemble the components for a product and service offering into a package for delivery and deployment

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE DEPLOYMENT ACITVITIES Product-Service Deployment (PSD) Goal: Install and adjust (modify/train, remove/replace) resources (people, information, equipment, computing and communication infrastructure, supplies) to operate and support the offering Document and agree upon plans for deploying the offering between all impacted parties, or their representatives Plan for dependencies with other products and services and ensure requisite capacity of resources to satisfy projected demand Demonstrate that the offering in question, as well as other offerings with dependencies with it are ready for operation and support Institutionalize PSD practices KPA execution (activities) Document and agree upon plans for deploying the offering between all impacted parties, or their representatives Determine estimates of the changes in capacity needed for the deployment of a product and service offering Define the approach for deploying a product and service offering Establish and maintain plans for deploying a product and service offering Establish and maintain plans for migrating customers and the people performing the operations and support work following the deployment of a product and service offering Reconcile and coordinate plans for deploying a product and service offering and for migrating the customers and the people performing the product and service work with related plans and ongoing activities CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE DEPLOYMENT ACITVITIES Product-Service Deployment (PSD) Goal: Install and adjust (modify/train, remove/replace) resources (people, information, equipment, computing and communication infrastructure, supplies) to operate and support the offering Document and agree upon plans for deploying the offering between all impacted parties, or their representatives Plan for dependencies with other products and services and ensure requisite capacity of resources to satisfy projected demand Demonstrate that the offering in question, as well as other offerings with dependencies with it are ready for operation and support Institutionalize PSD practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Plan for dependencies with other products & services & ensure requisite capacity of resources to satisfy projected demand Deploy a product and service offering according to the plans When deploying a product and service offering make changes to the capacity as needed Deploy the appropriate documentation or documentation changes needed to operate and support the offering when deploying a product and service offering Deploy processes and process changes needed to operate and support a product and service offering as needed when deploying the offering Establish and maintain the support activities needed to accomplish a smooth transition during and following the deployment of a product and service offering Obtain staffing skills are adjusted and additional skills as needed, when deploying a product and service offering CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE DEPLOYMENT ACITVITIES Product-Service Deployment (PSD) Goal: Install and adjust (modify/train, remove/replace) resources (people, information, equipment, computing and communication infrastructure, supplies) to operate and support the offering Document and agree upon plans for deploying the offering between all impacted parties, or their representatives Plan for dependencies with other products and services and ensure requisite capacity of resources to satisfy projected demand Demonstrate that the offering in question, as well as other offerings with dependencies with it are ready for operation and support Institutionalize PSD practices KPA execution (activities) Demonstrate that the offering in question, as well as other offerings with dependencies with it, are ready for operation and support Verify the changes deployed for a product and service offering against the requirements for the offering and the service-level agreements The owner(s) of that and other related offerings and relevant stakeholders approve and accept each deployment of a product and service offering Migrate customers and the people performing the product and service operations, maintenance, and support work for an offering that is being terminated in accordance with the migration plans Continue each terminated or replaced product and service offering as needed to allow the customers and users to transition off the terminated or replaced offering

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE OPERATIONS ACTIVITIES Product-Service Operations (PSO) Goals: Give customers access to the features and capabilities of the offering Provide customers resources, information and support for the offering Transact the offering; measure/verify end and intermediate results in the value chain Communicate results to all relevant stake holders Assemble and store verified results and communications; provide all stake holders access to store Institutionalize PSO KPA execution (activities) Provide customers resources, information, & support for the offering Provide the customers of a product and service offering with the information they need to understand the nature of a product and service offering and its transactions Provide the customers of a product and service offering with the equipment, computing and communication infrastructure, supplies, and other resources they need to perform their roles in the product and service offering Provide the customers of a product and service offering with a point of contact for asking questions, getting information, and resolving issues regarding any aspect of the product and service offering Provide assistance to the customers of a product and service offering to address problems in understanding and using any component of the offering CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE OPERATIONS ACTIVITIES Product-Service Operations (PSO) Goals: Give customers access to the features and capabilities of the offering Provide customers resources, information and support for the offering Transact the offering; measure/verify end and intermediate results in the value chain Communicate results to all relevant stake holders Assemble and store verified results and communications; provide all stake holders access to store Institutionalize PSO KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Transact the offering; measure/verify end and intermediate results in the value chain Obtain and verify the information and resources needed to perform each transaction of a product and service offering Perform the requested transactions for a product and service offering Identify exceptional conditions in performing each transaction of a product and service offering Define, approve, and perform actions for handling exceptional conditions encountered in performing each transaction of a product and service offering Provide the customers of a product and service offering with intermediate status and other intermediate information they need to perform their role in the transactions CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE OPERATIONS ACTIVITIES Product-Service Operations (PSO) Goals: Give customers access to the features and capabilities of the offering Provide customers resources, information and support for the offering Transact the offering; measure/verify end and intermediate results in the value chain Communicate results to all relevant stake holders Assemble and store verified results and communications; provide all stake holders access to store Institutionalize PSO KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Communicate results to all relevant stakeholders; assemble and store verified results and communication & provide all stakeholders access to store Provide the results of each transaction of a product and service offering to the affected customers Convey information on the results of the transactions for a product and service offering to relevant stakeholders Assemble, verify, and store the final permanent information and data for each completed transaction in accordance with applicable laws, regulations, organizational policies, and service level agreements

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE SUPPORT ACTIVITIES Product-Service Support (PSS) Goals: Maintain resources needed to sustain the operation and availability of a deployed offering Maintain requisite infrastructure (buildings, computing hardware and software, communication hardware and software, other equipment and facilities), supplies, and other resources needed to operate and support an offering over the life of the offering Manage infrastructure, supplies, resources, mechanisms, data, and information to enable operation of the offering during and after disruptions Resolve Problems and issues identified in deploying, operating, and supporting the offering Institutionalize PSO Best practices KPA execution (activities) Maintain requisite infrastructure (buildings, computing hardware and software, communication hardware and software, other equipment & facilities) Establish and maintain the supply of consumables needed to support the operations of a product and service offering Update data, rules, and other information that are subject to change and are built into the product and service offering and used to perform the transactions Perform periodic and event-driven maintenance on the offering infrastructure Monitor the operations and availability of the offering infrastructure continually, and make adjustments to address problems and maintain the service-level agreements CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE SUPPORT ACTIVITIES Product-Service Support (PSS) Goals: Maintain resources needed to sustain the operation and availability of a deployed offering Maintain requisite infrastructure (buildings, computing hardware and software, communication hardware and software, other equipment and facilities), supplies, and other resources needed to operate and support an offering over the life of the offering Manage infrastructure, supplies, resources, mechanisms, data, and information to enable operation of the offering during and after disruptions Resolve Problems and issues identified in deploying, operating, and supporting the offering Institutionalize PSO Best practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Manage infrastructure, supplies, resources, mechanisms, data & information to enable operation of the offering during & after disruptions Plans are established and maintained to prepare for and recover from disasters and other disruptive events and to continue operations of a product and service offering during and following these events The infrastructure, supplies, and other resources that comprise the disaster recovery facilities are established and maintained The data and information needed for a product and service offering are backed-up on a regular basis to support both disaster recovery and other operational recovery needs The backed-up product and service offering data and information are restored as needed to support both disaster recovery and incidental operational recovery needs CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 3 Best Practices Standardized for Organization PRODUCT-SERVICE SUPPORT ACTIVITIES Product-Service Support (PSS) Goals: Maintain resources needed to sustain the operation and availability of a deployed offering Maintain requisite infrastructure (buildings, computing hardware and software, communication hardware and software, other equipment and facilities), supplies, and other resources needed to operate and support an offering over the life of the offering Manage infrastructure, supplies, resources, mechanisms, data, and information to enable operation of the offering during and after disruptions Resolve Problems and issues identified in deploying, operating, and supporting the offering Institutionalize PSO Best practices KPA execution (activities) Resolve problems & issues identified in deploying, operating, & supporting the offering Provide assistance to the people performing the product and service work to address problems in using any component of the offering Document, collect, and track problem reports and change requests against any component used in the product and service work Analyze each product and service offering problem report and change request to determine its priority, and define the plans for making and deploying any needed changes Approve, implement, verify, and validate each change package for a product and service offering, consisting of changes for a set of problem reports and change requests Approve and accept each change package for a product and service offering, consisting of changes for a set of problem reports and change requests, for use by the owner of that offering, the owners of other affected offerings, and other relevant stakeholders Deploy each change package for a product and service offering, consisting of approved changes for a set of problem reports and change requests to affected locations Provide the owner of a product and service offering, the people performing the product and service work, and other relevant stakeholders with information on the operational and performance status and change plans for the equipment and computing and communication infrastructure

LEVEL 4: BEST PRACTICES FOR QUANTITATIVE BUSINESS PROCESS MANAGEMENT
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Results LEVEL 4: BEST PRACTICES FOR QUANTITATIVE BUSINESS PROCESS MANAGEMENT Process Capability GOALS OF KEY PROCESS AREAS (KPAs) Common Cross-Organizational Asset Management (OCAM) Goals: Determine and exploit common characteristics of current and future products and services to improve performance, quality, cycle time, throughput, and predictability of processes Develop shared assets based on the results and knowledge of the end-to-end process; its work products and lessons learned Deploy and use common assets across the organization Institutionalize OCAM practices Organizational Capability and Performance Management (OCPM) Goals: Quantitatively measure the capability of the end-to-end standard process by providing models, data and baselines to quantitatively manage products, services and related work effort Define quantitative performance and quality goals, and quantitative methods for managing the capabilities of the processes Ensure availability of capability baselines and predictive models to quantitatively manage the organization’s product and service activities Quantify the firm’s standard processes Institutionalize OCPM practices Product-Service Process Integration (PSPI) Goals: Weave together processes of different disciplines and roles in the offering to improve efficiency and effectiveness of collaborative work Integrate processes of the different disciplines involved in a product-service offering to increase efficiency and effectiveness of collaboration Use integrated processes to plan, manage and perform the activities needed for an offering Institutionalize PSPI Quantitative Product and Service Management (QPSM) Goals: Ensure that activities are managed to achieve quantitative goals for each offering Quantify performance and quality goals for a product-service, as well as processes, plans, models, and methods needed to achieve these goals Understand variation in the performance of the work processes for a work effort and manage to support achieving its quantitative goals Manage product-service work statistically to achieve quantitative goals Institutionalize QPSM practices Quantitative Process Management (QPM) Goals: Statistically manage activities for developing, preparing, deploying, operating, and supporting a product-service, in support of assigned quality and performance goals for those activities Plan work to achieve quantitative goals Manage work statistically to achieve quantitative goals Institutionalize QPM practices 55

COMMON CROSS-ORGANIZATIONAL ASSET MANAGEMENT ACTIVITIES
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result COMMON CROSS-ORGANIZATIONAL ASSET MANAGEMENT ACTIVITIES Common Cross-Organizational Asset Management (OCAM) Goals: Determine and exploit common characteristics of current and future products and services to improve performance, quality, cycle time, throughput, and predictability of processes Develop shared assets based on the results and knowledge of the end-to-end process; its work products and lessons learned Deploy and use common assets across the organization Institutionalize OCAM practices KPA execution (activities) Develop shared assets based on the results and knowledge of the end-to-end process; its work products and lessons learned Analyze the organization’s products and services and the processes, work products, and infrastructure used in developing, preparing, deploying, delivering, and supporting them to identify common attributes and characteristics Capture work products, lessons, knowledge, and other results that emerge from the organization’s product and service work and that are potentially reusable Identify common assets for the organization based on the organization’s product and service portfolio and business strategies Establish and maintain common assets for the organization using selected elements captured from the organization’s product and service work CONTINUED ON NEXT PAGE

COMMON CROSS-ORGANIZATIONAL ASSET MANAGEMENT ACTIVITIES
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result COMMON CROSS-ORGANIZATIONAL ASSET MANAGEMENT ACTIVITIES Common Cross-Organizational Asset Management (OCAM) Goals: Determine and exploit common characteristics of current and future products and services to improve performance, quality, cycle time, throughput, and predictability of processes Develop shared assets based on the results and knowledge of the end-to-end process; its work products and lessons learned Deploy and use common assets across the organization Institutionalize OCAM practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Deploy and use common assets across the organization Revise the organization’s standard processes as necessary to encourage and support the identification, development, and improvement of common assets Include provisions for the use of common assets in the organization’s standard processes and related infrastructure, as appropriate Deploy common assets, and changes to them, across the organization Capture and make available information on the development, maintenance, contents, and use of common assets to relevant stakeholders

ORGANIZATIONAL CAPABILITY AND PERFORMACE MANAGEMENT ACTIVITIES
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result ORGANIZATIONAL CAPABILITY AND PERFORMACE MANAGEMENT ACTIVITIES Organizational Capability and Performance Management (OCPM) Goals: Quantitatively measure the capability of the end-to-end standard process by providing models, data and baselines to quantitatively manage products, services and related work effort Define quantitative performance and quality goals, and quantitative methods for managing the capabilities of the processes Ensure availability of capability baselines and predictive models to quantitatively manage the organization’s product and service activities Quantify the firm’s standard processes Institutionalize OCPM practices KPA execution (activities) Define quantitative performance and quality goals, and quantitative methods for managing the capabilities of the processes Quantitative performance and quality goals for the organization’s products and services are established and maintained based on the organization’s business goals and the quantitative capability of the organization’s processes The critical process elements, attributes, and measures that are used to quantitatively characterize the performance of the organization’s standard processes are identified Definitions of statistical and other quantitative techniques for evaluating the capability of organization’s product and service processes for achieving performance and quality goals are established and maintained CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result ORGANIZATIONAL CAPABILITY AND PERFORMACE MANAGEMENT ACTIVITIES Organizational Capability and Performance Management (OCPM) Goals: Quantitatively measure the capability of the end-to-end standard process by providing models, data and baselines to quantitatively manage products, services and related work effort Define quantitative performance and quality goals, and quantitative methods for managing the capabilities of the processes Ensure availability of capability baselines and predictive models to quantitatively manage the organization’s product and service activities Quantify the firm’s standard processes Institutionalize OCPM practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Ensure availability of capability baselines and predictive models to quantitatively manage the organization’s product and service activities Collect measures of process attributes and performance and quality results emerging from the organization’s product and service work on a periodic basis and store in the organizational measurement repository Establish and maintain capability baselines for the organization’s standard product and service processes and process elements Establish and maintain quantitative predictive models that support the quantitative planning and managing of the organization’s product and service work and achievement of its performance and quality goals Make the organization’s capability baselines, quantitative predictive models, and guidance for using them in the planning and managing the organization’s product and service work available for use CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result ORGANIZATIONAL CAPABILITY AND PERFORMACE MANAGEMENT ACTIVITIES Organizational Capability and Performance Management (OCPM) Goals: Quantitatively measure the capability of the end-to-end standard process by providing models, data and baselines to quantitatively manage products, services and related work effort Define quantitative performance and quality goals, and quantitative methods for managing the capabilities of the processes Ensure availability of capability baselines and predictive models to quantitatively manage the organization’s product and service activities Quantify the firm’s standard processes Institutionalize OCPM practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Quantify the firm’s standard processes Analyze the organization’s capability baselines, quantitative predictive models, and process attribute data on a regular basis to understand the performance and quality results of the organization’s product and service work Perform corrective actions to address issues in the organization’s performance and quality results Make available reports describing the analyses of the results of organizational capability baselines, predictions from the organization’s predictive models, and the performance and quality results of the product and service work to relevant stakeholders

PRODUCT-SERVICE PROCESS INTEGRATION ACTIVITIES
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result PRODUCT-SERVICE PROCESS INTEGRATION ACTIVITIES Product-Service Process Integration (PSPI) Goals: Weave together processes of different disciplines and roles in the offering to improve efficiency and effectiveness of collaborative work Integrate processes of the different disciplines involved in a product-service offering to increase efficiency and effectiveness of collaboration Use integrated processes to plan, manage and perform the activities needed for an offering Institutionalize PSPI KPA execution (activities) Integrate processes of the different disciplines involved in a product-service offering to increase efficiency and effectiveness of collaboration Analyze dependencies and interfaces among the functions, disciplines, and roles involved in the product and service work to identify processes that would benefit if integrated Integrate highly interdependent processes among the functions, departments, and roles that are involved in the product and service work to improve the efficiency and effectiveness of the product and service offering Establish and maintain definitions of measures used to plan and manage the product and service work using functionally integrated processes CONTINUED ON NEXT PAGE

PRODUCT-SERVICE PROCESS INTEGRATION ACTIVITIES
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result PRODUCT-SERVICE PROCESS INTEGRATION ACTIVITIES Product-Service Process Integration (PSPI) Goals: Weave together processes of different disciplines and roles in the offering to improve efficiency and effectiveness of collaborative work Integrate processes of the different disciplines involved in a product-service offering to increase efficiency and effectiveness of collaboration Use integrated processes to plan, manage and perform the activities needed for an offering Institutionalize PSPI KPA execution (activities) Use integrated processes to plan, manage, and perform the activities needed for an offering Adjust organizational structures and workforce practices to support the product and service work as needed to encourage and support the performance of functionally integrated processes Adjust product and service work activities to incorporate the integrated processes Base the estimating, planning, monitoring, and control of the work involved in the product and service work on the integrated processes Individuals, work units, and workgroups perform their product and service work using functionally integrated processes where appropriate

QUANTITATIVE PRODUCT AND SERVICE MANAGEMENT ACTIVITIES
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result QUANTITATIVE PRODUCT AND SERVICE MANAGEMENT ACTIVITIES Quantitative Product and Service Management (QPSM) Goals: Ensure that activities are managed to achieve quantitative goals for each offering Quantify performance and quality goals for a product-service, as well as processes, plans, models, and methods needed to achieve these goals Understand variation in the performance of the work processes for a work effort and manage to support achieving its quantitative goals Manage product-service work statistically to achieve quantitative goals Institutionalize QPSM practices KPA execution (activities) Quantify performance and quality goals for a product-service, as well as processes, plans, models, and methods, needed to achieve these goals Establish and maintain quantitative performance and quality goals for a product or service Establish and maintain defined processes and plans that can achieve the quantitative performance and quality goals for a product or service Establish and maintain intermediate performance and quality goals for identified process elements involved in the product and service work Define and calibrate quantitative predictive models and other quantitative methods for managing the achievement of the goals for a product and service offering CONTINUED ON NEXT PAGE

QUANTITATIVE PRODUCT AND SERVICE MANAGEMENT ACTIVITIES
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result QUANTITATIVE PRODUCT AND SERVICE MANAGEMENT ACTIVITIES Quantitative Product and Service Management (QPSM) Goals: Ensure that activities are managed to achieve quantitative goals for each offering Quantify performance and quality goals for a product-service, as well as processes, plans, models, and methods needed to achieve these goals Understand variation in the performance of the work processes for a work effort and manage to support achieving its quantitative goals Manage product-service work statistically to achieve quantitative goals Institutionalize QPSM practices KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Manage product-service work statistically to achieve quantitative goals Monitor the performance and quality results of the work efforts involved in the product and service work and compare to their quantitative performance and quality goals Quantitatively analyze the defined processes and plans for the product and service work on a regular basis to determine if they are capable of achieving the quantitative performance and quality goals Perform corrective actions when it is determined that the defined processes and plans for the product and service work are not capable of achieving the quantitative performance and quality goals Record the performance and quality goals, measures, analyses, predictions, and results of corrective actions for a product or service for local use and stored in the organizational measurement repository

QUANTITATIVE PROCESS MANAGEMENT ACTIVITIES
CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result QUANTITATIVE PROCESS MANAGEMENT ACTIVITIES Quantitative Process Management (QPM) Goals: Statistically manage activities for developing, preparing, deploying, operating, and supporting a product-service, in support of assigned quality and performance goals for those activities Plan work to achieve quantitative goals Understand variation in the performance of the work processes for a work effort and manage to support achieving its quantitative goals Manage work statistically to achieve quantitative goals Institutionalize QPM practices KPA execution (activities) Plan work to achieve quantitative goals Approve the quantitative performance and quality goals allocated to the process elements performed by a work unit or work group and incorporated into plans for the work effort Establish and maintain the definitions of the measurable attributes relevant to understanding and controlling the variation in the work processes and managing the achievement of the work effort’s quantitative performance and quality goals Identify quantitative and other analytic techniques needed to understand and control the variation in the work processes and manage the achievement of a work effort’s quantitative performance and quality goals and adapt for use CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result QUANTITATIVE PROCESS MANAGEMENT ACTIVITIES Quantitative Process Management (QPM) Goals: Statistically manage activities for developing, preparing, deploying, operating, and supporting a product-service, in support of assigned quality and performance goals for those activities Plan work to achieve quantitative goals Understand variation in the performance of the work processes for a work effort and manage to support achieving its quantitative goals Manage work statistically to achieve quantitative goals Institutionalize QPM practices KPA execution (activities) Understand variation in the performance of the work processes for a work effort and manage to support achieving its quantitative goals CONTINUED FROM PREVIOUS PAGE Analyze the defined processes and other characteristics of a work effort to identify the significant sources of variation Identify the assignable causes of variation in the performance of the work processes of a work effort Perform corrective actions to address identified assignable causes of variation and manage their impact on the performance of product and service work CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 4 Quantitative Standards & Controls in Place to Ensure Predictable Result QUANTITATIVE PROCESS MANAGEMENT ACTIVITIES Quantitative Process Management (QPM) Goals: Statistically manage activities for developing, preparing, deploying, operating, and supporting a product-service, in support of assigned quality and performance goals for those activities Plan work to achieve quantitative goals Understand variation in the performance of the work processes for a work effort and manage to support achieving its quantitative goals Manage work statistically to achieve quantitative goals Institutionalize QPM practices KPA execution (activities) Manage work statistically to achieve quantitative goals Quantitatively evaluate the results of a work effort’s processes to determine their impact on achieving the allocated performance and quality goals, and identify significant issues Identify assignable causes for deviations between the product and service results and the capability required to achieve the allocated performance and quality goals Take corrective actions to address significant deviations between the results of the product or service work and the capability required to achieve the allocated performance and quality goals Record the performance and quality goals, performance and capability measures, analyses, and the results of corrective actions for a work effort for local use and organizational use

Innovation and Continuous Process Improvement Become Routine
CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine LEVEL 5: BEST PRACTICES FOR INNOVATIVE BUSINESS PROCESS & PRODUCT-SERVICE MANAGEMENT Process Capability GOALS OF KEY PROCESS AREAS (KPAs) Organizational Improvement Planning (OIP) Goals: Align quantitative improvement goals and infrastructure with business objectives, strategies, and issues Goals for innovative process improvement efforts planned (should-achieve-goals) Stretch targets for defect and problem prevention and continuous improvement (nice-to-achieve goals) Align organizational infrastructure and systems with strategies for quantified continuous improvement of performance and quality Define improvement goals quantitatively Ensure improvement activities and results are consistent with improvement strategies and quantitative improvement goals Institutionalize OIP Organizational Performance Alignment (OPA) Goals: Maintain alignment of business strategies and quantitative business goals across organizational levels and product-service offerings Align offering and work group (task forces as well as organizational unit) plans, commitments and quantitative goals with the firm’s business strategies and quantitative business goals Align performance and results of product and service offerings, individuals, workgroups, and organizational units with the firm’s quantified goals and business strategies Institutionalize OPA Defect and Problem Prevention (DPP) Goals: Identify and address root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals to prevent their recurrence Systematically determine root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals Systematically address root causes identified to prevent defects and obstacles from recurring Inform other stakeholders, who might benefit from the information, about identified causes, remedies and activities Institutionalize DPP CONTINUED ON NEXT PAGE 68

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine LEVEL 5: BEST PRACTICES FOR INNOVATIVE BUSINESS PROCESS & PRODUCT-SERVICE MANAGEMENT Process Capability CONTINUED FROM PREVIOUS PAGE GOALS OF KEY PROCESS AREAS (KPAs) Continuous Capability Improvement (CCI) Goals: Continually improve process performance by identifying and implementing incremental improvements Continually improve individual performance and results produced Continually improve work group performance and results Institutionalize CCI Organizational Innovative Improvement (OII) Goals: Formulate a radical or end-to-end solution to achieve assigned quantitative improvement goals Identify opportunities for improvement that will achieve quantitative goals assigned by a plan Develop and verify a complete solution to achieve these quantitative goals Prepare the solution for deployment Institutionalize OII Organizational Improvement Deployment (OID) Goals: Systematically deploy and sequence improvements from the portfolio to continually improve organizational performance and quality Plan and quantitatively predict results of improvements that will be deployed to meet (quantified) organizational goals Deploy improvements to meet (quantified) organizational goals Improve the improvement program by recording, analyzing, and communicating results, activities, and achievements of the program Institutionalize OID

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL IMPROVEMENT PLANNING ACTIVITIES Organizational Improvement Planning (OIP) Goals: Align quantitative improvement goals and infrastructure with business objectives, strategies, and issues Goals for innovative process improvement efforts planned (should-achieve-goals) Stretch targets for defect and problem prevention and continuous improvement (nice-to-achieve goals) Align organizational infrastructure and systems with strategies for quantified continuous improvement of performance and quality Define improvement goals quantitatively Ensure improvement activities and results are consistent with improvement strategies and quantitative improvement goals Institutionalize OIP KPA execution (activities) Align organizational infrastructure and systems with strategies for quantified continuous improvement of performance & quality Establish and maintain descriptions of the organization’s critical improvement issues and their priorities Establish an organizational improvement program to plan and direct the organization’s efforts of continuously and measurably improving its performance and quality Establish and maintain quantitative improvement goals for the organization and their priorities CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL IMPROVEMENT PLANNING ACTIVITIES Organizational Improvement Planning (OIP) Goals: Align quantitative improvement goals and infrastructure with business objectives, strategies, and issues Goals for innovative process improvement efforts planned (should-achieve-goals) Stretch targets for defect and problem prevention and continuous improvement (nice-to-achieve goals) Align organizational infrastructure and systems with strategies for quantified continuous improvement of performance and quality Define improvement goals quantitatively Ensure improvement activities and results are consistent with improvement strategies and quantitative improvement goals Institutionalize OIP KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Define improvement goals quantitatively Analyze measures of the organization’s processes, activities, performance, and results on a regular basis to identify areas that need the most improvement Gather inputs periodically from the people performing the organization’s processes to identify changes that would improve performance, quality, and employee satisfaction Obtain improvement ideas from the organization’s customers/other relevant external stakeholders and by analyzing the organization’s business and competitive environment Establish plans for improvement efforts that the organization will perform CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL IMPROVEMENT PLANNING ACTIVITIES Organizational Improvement Planning (OIP) Goals: Align quantitative improvement goals and infrastructure with business objectives, strategies, and issues Goals for innovative process improvement efforts planned (should-achieve-goals) Stretch targets for defect and problem prevention and continuous improvement (nice-to-achieve goals) Align organizational infrastructure and systems with strategies for quantified continuous improvement of performance and quality Define improvement goals quantitatively Ensure improvement activities and results are consistent with improvement strategies and quantitative improvement goals Institutionalize OIP KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Ensure improvement activities & results are consistent with improvement strategies and quantitative improvement goals Monitor the organization’s improvement activities and results against the organization’s improvement strategies and quantitative improvement goals Monitor measures and quantitative projections of the organization’s improvements against the organization’s quantitative improvement goals Perform corrective actions when the organization’s improvement activities and results deviate significantly from the improvement strategies and quantitative improvement goals Record lessons learned in planning, performing, and monitoring the organization’s improvement activities and incorporate into the organization’s improvement activities Provide information, status, measures, and other results of the organization’s improvement activities to relevant stakeholders and communicate it across the organization

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL PERFORMACE ALIGNMENT ACTIVITIES Organizational Performance Alignment (OPA) Goals: Maintain alignment of business strategies and quantitative business goals across organizational levels and product-service offerings Align offering and work group (task forces as well as organizational unit) plans, commitments and quantitative goals with the firm’s business strategies and quantitative business goals Align performance and results of product and service offerings, individuals, workgroups, and organizational units with the firm’s quantified goals and business strategies Institutionalize OPA KPA execution (activities) Align offering and work group (task forces as well as organizational unit) plans, commitments, and quantitative goals with the firm’s business strategies and quantitative business goals Establish and maintain the allocation of the organizational quantitative business goals and responsibilities to the organization’s product and service offerings and units Evaluate and align the responsibilities, plans, and commitments of the units to ensure that, individually and in aggregate, they provide the best fit for the organization’s business strategies and goals Establish and maintain the work assignments of workgroups and individuals in the work units to support the achievement of the business goals for the units CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL PERFORMACE ALIGNMENT ACTIVITIES Organizational Performance Alignment (OPA) Goals: Maintain alignment of business strategies and quantitative business goals across organizational levels and product-service offerings Align offering and work group (task forces as well as organizational unit) plans, commitments and quantitative goals with the firm’s business strategies and quantitative business goals Align performance and results of product and service offerings, individuals, workgroups, and organizational units with the firm’s quantified goals and business strategies Institutionalize OPA KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Align performance and results of product and service offerings, individuals, workgroups, and organizational units within the firm’s quantified goals & business strategies The performance and results of the individuals, workgroups, units, and product and service offerings are monitored on a regular basis against their business goals Corrective actions are performed when the performance and results of the individuals, workgroups, units, and product and service offerings deviate significantly from their business goals The overall performance and results of organization are monitored on a regular basis against the organization’s quantitative improvement goals and strategies Corrective actions are performed when the performance and results of the organization deviate significantly from the organization’s quantitative business goals The likely causes of misaligned performance are identified and addressed

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine DEFECT AND PROBLEM PREVENTION ACTIVITIES Defect and Problem Prevention (DPP) Goals: Identify and address root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals to prevent their recurrence Systematically determine root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals Systematically address root causes identified to prevent defects and obstacles from recurring Inform other stakeholders, who might benefit from the information, about identified causes, remedies and activities Institutionalize DPP KPA execution (activities) Systematically determine root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals Select defects and other problems that are the primary obstacles to achieving the work unit’s or workgroup’s plans and goals for analysis and preventive action Identify defects and other problems that are similar to the selected defects and problems d and include with those selected for analysis and preventive action Identify root causes of the selected defects and problems Identify process weaknesses that allow the selected defects and problems to remain undetected CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine DEFECT AND PROBLEM PREVENTION ACTIVITIES Defect and Problem Prevention (DPP) Goals: Identify and address root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals to prevent their recurrence Systematically determine root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals Systematically address root causes identified to prevent defects and obstacles from recurring Inform other stakeholders, who might benefit from the information, about identified causes, remedies and activities Institutionalize DPP KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Systematically address root causes identified to prevent defects and obstacles from recurring Identify and perform corrective actions to address the root causes of the selected process weaknesses that allowed the defects and problems to remain undetected Coordinate defect and problem prevention activities within a work effort Inform those performing the work within the work unit or workgroup of actions they can perform to prevent the selected defects and problems from recurring Measure and analyze the effects of the work unit’s or workgroup’s defect and problem prevention actions on its plans and quantitative improvement goals CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine DEFECT AND PROBLEM PREVENTION ACTIVITIES Defect and Problem Prevention (DPP) Goals: Identify and address root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals to prevent their recurrence Systematically determine root causes of defects and primary obstacles to achieving unit level plans and quantitative improvement goals Systematically address root causes identified to prevent defects and obstacles from recurring Inform other stakeholders, who might benefit from the information, about identified causes, remedies and activities Institutionalize DPP KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Inform other stakeholders, who might benefit from the information, about identified causes, remedies and activities Document the work unit’s and workgroup’s defect and problem prevention information, measures, analyses, and results Share the defect and problem prevention information, results, and records of a work unit or workgroup with those who are responsible for related processes and work efforts

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine CONTINUOUS CAPABILITY IMPROVEMENT ACTIVITIES Continuous Capability Improvement (CCI) Goals: Continually improve process performance by identifying and implementing incremental improvements Continually improve individual performance and results produced Continually improve work group performance and results Institutionalize CCI KPA execution (activities) Each individual establishes and maintains quantitative and qualitative descriptions of the performance and results of their personal work process Continually improve individual performance & results produced Each individual evaluates their personal work process to identify opportunities for improvement Each individual establishes and maintains quantitative improvement goals and improvement plans for their personal work process Each individual develops, documents, and incorporates selected improvements into their personal work process to improve their performance and results Coordinate changes made to each individual’s personal work processes with relevant stakeholders Document improvements identified by each individual that are also potential improvements to other processes and provide them to those responsible for these related processes CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine CONTINUOUS CAPABILITY IMPROVEMENT ACTIVITIES Continuous Capability Improvement (CCI) Goals: Continually improve process performance by identifying and implementing incremental improvements Continually improve individual performance and results produced Continually improve work group performance and results Institutionalize CCI KPA execution (activities) Each workgroup establishes and maintains quantitative and qualitative descriptions of the performance and results of their processes Continually improve work group performance & results Each workgroup makes adjustments to how their work is performed to account for the skills and other unique characteristics of the workgroup and its members Each workgroup evaluates their processes to identify opportunities for improvement Each workgroup establishes and maintains quantitative improvement goals and improvement plans for their processes Each workgroup develops, documents, and incorporates selected improvements into their processes to improve their performance and results Coordinate changes made to each workgroup’s work processes with relevant stakeholders Document improvements identified by each workgroup that are also potential improvements to other processes and provide them to those responsible for these related processes

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL INNOVATIVE IMPROVEMENT ACTIVITIES Organizational Innovative Improvement (OII) Goals: Formulate a radical or end-to-end solution to achieve assigned quantitative improvement goals Identify opportunities for improvement that will achieve quantitative goals assigned by a plan Develop and verify an complete solution to achieve these quantitative goals Prepare the solution for deployment Institutionalize OII KPA execution (activities) Identify opportunities for improvement that will achieve quantitative goals assigned by a plan Establish an improvement workgroup and assign responsibility and authority for achieving specific quantitative improvement goals Establish a work plan to achieve the assigned quantitative improvement goals and the improvement workgroup or unit maintains it Identify candidate improvements that address the quantitative improvement goals assigned to an improvement workgroup or unit and select for evaluation Rigorously evaluate candidate innovative improvements to determine their costs, impacts, and contribution to achieving the quantitative improvement goals assigned to an improvement workgroup CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL INNOVATIVE IMPROVEMENT ACTIVITIES Organizational Innovative Improvement (OII) Goals: Formulate a radical or end-to-end solution to achieve assigned quantitative improvement goals Identify opportunities for improvement that will achieve quantitative goals assigned by a plan Develop and verify an complete solution to achieve these quantitative goals Prepare the solution for deployment Institutionalize OII KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Develop and verify a complete solution to achieve these quantitative goals Prepare a set of changes that makes up a complete improvement solution and evaluate them to determine if the solution will achieve the assigned quantitative improvement goals Perform corrective actions when the results and predictions of the pilots and other measurements and evaluations activities indicate that the assigned improvement goals will not be achieved or have other significant problems Record lessons learned in performing and managing a planned improvement effort and incorporate them in planning and performing this and other process improvement efforts CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL INNOVATIVE IMPROVEMENT ACTIVITIES Organizational Innovative Improvement (OII) Goals: Formulate a radical or end-to-end solution to achieve assigned quantitative improvement goals Identify opportunities for improvement that will achieve quantitative goals assigned by a plan Develop and verify an complete solution to achieve these quantitative goals Prepare the solution for deployment Institutionalize OII KPA execution (activities) CONTINUED FROM PREVIOUS PAGE Prepare the solution for deployment Prepare the complete improvement solution that will be deployed to achieve the assigned quantitative goals Provide information, status, measures, and other results of a planned improvement effort to relevant stakeholders and communicate them across the organization

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL IMPROVEMENT DEPLOYMENT ACTIVITIES Organizational Improvement Deployment (OID) Goals: Systematically deploy and sequence improvements from the portfolio to continually improve organizational performance and quality Plan and quantitatively predict results of improvements that will be deployed to meet (quantified) organizational goals Deploy improvements to meet (quantified) organizational goals Improve the improvement program by recording, analyzing, and communicating results, activities, and achievements of the program Institutionalize OID KPA execution (activities) Plan & quantitatively predict results of improvements that will be deployed to meet (quantified) organizational goals Select improvements that will be deployed across the organization Establish and maintain plans for deploying the selected improvements Initially predict the costs, contribution to achieving the organization’s quantitative improvement goals, and other significant impacts and benefits of the improvements and update them during deployment CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL IMPROVEMENT DEPLOYMENT ACTIVITIES Organizational Improvement Deployment (OID) Goals: Systematically deploy and sequence improvements from the portfolio to continually improve organizational performance and quality Plan and quantitatively predict results of improvements that will be deployed to meet (quantified) organizational goals Deploy improvements to meet (quantified) organizational goals Improve the improvement program by recording, analyzing, and communicating results, activities, and achievements of the program Institutionalize OID KPA execution (activities) Deploy improvements to meet (quantified) organizational goals Manage selected improvements deployment in accordance with the deployment plans Measure the costs, contribution to achieving the organization’s quantitative improvement goals, and other significant impacts and benefits of the deployed improvements and compare them to the predicted values throughout and following the deployment Perform corrective actions when the results and measurements of the deployed improvements indicate significant deviations from the deployment plans, predicted results, or indicate other significant problems CONTINUED ON NEXT PAGE

CAPABILITY LEVEL 5 Innovation and Continuous Process Improvement Become Routine ORGANIZATIONAL IMPROVEMENT DEPLOYMENT ACTIVITIES Organizational Improvement Deployment (OID) Goals: Systematically deploy and sequence improvements from the portfolio to continually improve organizational performance and quality Plan and quantitatively predict results of improvements that will be deployed to meet (quantified) organizational goals Deploy improvements to meet (quantified) organizational goals Improve the improvement program by recording, analyzing, and communicating results, activities, and achievements of the program Institutionalize OID KPA execution (activities) Improve the improvement program by recording, analyzing, and communicating results, activities, and achievements of the program Record lessons learned in deploying improvements and incorporate them in planning, managing, and performing the deployment of this and other improvements Establish and maintain records of the organization’s improvement deployment activities Provide information, status, measures, and other results of the organization’s improvement deployment activities to relevant stakeholders and communicated across the organization

Business Process Maturity Model

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Business Process Maturity Model

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