Organizational Project Management Maturity Model …journeyconsulting.org/yahoo_site_admin/assets/docs/JGB...OPM3: What is it? “The right project, done correctly, each time.” Organizational

Organizational Project Management Maturity Model 3

(OPM3)

An Overview of PMI’s 2nd

Edition Standard

Joanne Greene-Blose, PMP

Questions to Answer Today

� What is OPM3?

� What are the Benefits?

� What are its Components?

www.theprojectsolvers.com 2

� What are its Components?

� What is an Assessment Like?

� What do Assessment Results Look Like?

OPM3: What is it?“The right project, done correctly, each time.”

� Organizational Project Management Maturity Model� Chartered in 1998 to create a global standard for organizational

project management, released in 2003� 27 other MMs looked at and none found that would describe a

model the way the team would like; that is tied to the PMBOK,


model the way the team would like; that is tied to the PMBOK, covers all relevant Best Practices, includes a self-assessment in addition to a 3rd party assessment.

� A basis for self-examination, not prescriptive� Identifies Best Practices of hundreds of public and private

organizations� Based on 4th edition of PMBOK, 2nd edition of Program

Management Standard, and 2nd edition of Portfolio Management Standard

� Currently 1500 companies world wide have had online assessments

OPM3: What is it?

� A framework made up of:

� Best Practices – requires Capability (competency)

to execute and derive strategic results

� Capabilities – the degree of the competency

� Outcomes – the result of the execution of the Best Practice after


� Outcomes – the result of the execution of the Best Practice after applying Capability. Outcomes are measured by KPIs, Key Performance Indicators

� Comprised of three basic steps:1. Knowledge – the contents of the standard2. Assessment – comparison to the standard3. Improvement – towards organizational change

Value of Project Management Maturity

* Organizations with more developed organizational project management, experience better project performance (benefits) in areas of:

� Cost predictability (first time estimating 20% improvement)


� Cost predictability (first time estimating 20% improvement)� Project predictability (duration reduced by 50%)� Resource allocation (effort reduced by 25%)� Improved quality (Cost-Of-Quality improvement of 10%)� Identification and selection of projects that align with the

strategy

*from pmi.org

OPM3: What are the Benefits?

� Provides organizations a means to assess and improve its ability to execute and achieve its organizational strategies� Goal is not better process!

Aid portfolio management through better


� Aid portfolio management through better identification and selection of projects to pursue� How possible?

� Assure alignment between portfolio and organization’s goal and strategies

� Minimize project risk

� Drive sustainable, repeatable, predictable results

Multi-Dimensional Maturity View

Multi-dimensional Maturity Path

Rather than attaining maturity in a step by step linear fashion, OPM3 allows you to pursue maturity on several planes


maturity on several planes of maturity. Flexible, holistic, robust. Continuums exist for:

• PPP Domain approach (Project, Program, Portfolio)

• Process Improvement approach (SMCI)

• PMBOK Process Group approach

OPM3: What are its Components?

� Best Practices� SCMI – Standardize, Measure, Control, and

Improve; stages of process improvement

OE – Organizational Enablers (new in the 2nd


� OE – Organizational Enablers (new in the 2nd

Edition)

� Structural, Cultural, Technological, Resource

� Are met through satisfaction of two or more associated Capabilities.

� ~600 BPs exist

Sample SCMI BPs

� “Project Distribute Information Process standards

are established.”� What type is this?

� “Project Plan Risk Responses Process measures


� “Project Plan Risk Responses Process measures are established, analyzed, and assembled.”

� “Manage Program Issues Process problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented.”

Organizational Enabler Categories

OE’s promote smooth transitions within the domain, stages, and process groups

�Benchmarking� Competency Management

� Organizational Project Management Methodology

� Organizational Project Management Policy and Vision

� Organizational Project Management Practices

� Organizational Project


� Competency Management� Management Systems� Organizational Structures� Resource Allocation� Strategic Alignment� Sponsorship� Project Management Metrics� Project Management

Training� Project Success Criteria

� Organizational Project Management Techniques

� Knowledge Management and PMIS

� Individual Performance Appraisals

� Organizational Project Management Communities

Sample Org Enabler BPs

� “The organization has a formal process for assigning resources to projects and recording assignments.”


� “Sponsors actively participate in supporting the project.”

� “The organization establishes and uses mathematical models for planning and replanning.”

Categories of Best Practices

Categories aid org in areas to focus


� Domain� SMCI stage� Organizational Enablers *� Process Groups� Knowledge Area (9 in the

PMBOK) *� Business Results *

� Project Predictability� Resource Allocation - ability to id,

deploy, and release

� Balanced Scorecard - uniform reports measured consistently *� Business Outcome� Outcome / Activity� Business Requirement

Category

* New in version 2


Relationship of OPM3 Components

� Best Practices are comprised of >= 2 Capabilities, which are evidenced by Outcomes, which are measured by KPIs.

� An org must demonstrate


� An org must demonstrate ALL Capabilities associated with a BP in order to fulfill that BP.

� Outcomes are tangible or intangible result of applying a Capability

� KPIs can be binary, quantitative, qualitative, or monetary

Dependencies Among Capabilities

� May be serial within the same BP (Capability 1 must be in place before Capability 2 can be achieved)


achieved)� May be dependent

on one or more Capabilities from another BP� Should work on

these BPs simultaneously in this instance

An Example

Sample Best Practice: #1020

BP Name: “Standardize Develop the Project Management Plan Process”

BP Description: “Develop Project Management Plan Process


BP Description: “Develop Project Management Plan Process standards are established.”

Capabilities: 4, one of which is:“Process-oriented governing bodies have been established, and the

appropriate people have been assigned to them. They meet on a regular schedule to discuss process management issues and suggestions for improvements.”

Outcome: “Active process governing body”

KPI: Exists

The Three-Step OPM3 Cycle

1. Knowledge- why?Step One: Prepare for Assessment• Knowledge Foundation• Self-Assessment Method (SAM); online

tool2. Assessment

Step Two: • Perform High-Level Assessment;


determine which BPs are currently demonstrated

• Perform Comprehensive Assessment; which Capabilities within each BP

3. ImprovementStep Three: Plan Improvements

Rank Capabilities and Outcomes needed for improvement; Review dependency map so that prerequisites are included

Step Four: Implement Improvements~90% of time spent here

4. Iterate to AssessmentStep Five: Repeat the process

OPM3: What is an Assessment Like?

� OPM3 Maturity Assessment� Indicates at a given point in time the degree that an

organization can meet its objectives (not extent to which it follows a process!)

� Maturity can be assessed at multi-dimensions. Domain:


� Maturity can be assessed at multi-dimensions. Domain: project level, program level, and/or portfolio-level.

� Can be:� Self-administered (OPM3 Online tool)

� 120 online questions

� $600 for a single user license ($700 if not a member)

� Certified Assessors (OPM3 Product Suite)� 91 Certified Assessors (51 in the US, 1 in Rochester [Harris])

Sample Assessment Result

� Dark areas show degree of Best Practices implemented, white show areas of improvement


� Organization determines priority for where/how to improve; can be horizontally or vertically

Online Assessment Questions


What do Assessment Results look like?

PPP Progress

Report


PPP/SMCI Report


SMCI/PPP Report


Best Practices Report


Summary

� OPM3 is a scalable, multi-dimensional organizational maturity model

� Aligned with PMI standards

Can self-administer assessments


� Can self-administer assessments

� Best practices designed to improve project execution and strategy fulfillment

� Provides organization with evidence of improvement

� Flexible enough to allow focus on areas of choice; domains, KA, Process stages, etc.

For More Info:

� http://www.pmi.org/BusinessSolutions/Pages/OPM3.aspx

� Contact us at The Project Solvers


� (585) 764-5663

� [email protected]

Documents

Organizational Project Management Maturity Model …journeyconsulting.org/yahoo_site_admin/assets/docs/JGB...OPM3: What is it? “The right project, done correctly, each time.” Organizational