Building the case for improving your project           management maturity                  PMI Queensland          projec...
IntroductionOverview    Using key findings from recent maturity assessments the presentation will outline the frameworks f...
Assessing the level of Project Management Capability in anorganisationFinding the right level of Portfolio, Program and Pr...
Assessing the level of Project Management Capability in anorganisationFinding the right level of Portfolio, Program and Pr...
Setting the Scene – Maturity Models   There are a number of maturity models available. This   presentation will discuss P3...
Business Strategy, Portfolio, Programmes and Projects                                           Business                  ...
Business Strategy, Portfolio, Programmes and Projects         Strengths & Weaknesses                                      ...
Business Strategy, Portfolio, Programmes and Projects         Strengths & Weaknesses                                      ...
Business Strategy, Portfolio, Programmes and Projects              Strengths & Weaknesses                                 ...
Business Strategy, Portfolio, Programmes and Projects              Strengths & Weaknesses                                 ...
Business Strategy, Portfolio, Programmes and Projects                  Strengths & Weaknesses                             ...
Overview of P3M3®(Portfolio, Programme and Project Management Maturity Model)P3M3® is an overarching model containing   th...
Overview of P3M3®(Portfolio, Programme and Project Management Maturity Model)P3M3® is an overarching model containing   th...
Overview of P3M3®(Portfolio, Programme and Project Management Maturity Model)P3M3® is an overarching model containing   th...
Overview of P3M3®(Portfolio, Programme and Project Management Maturity Model)P3M3® is an overarching model containing   th...
P3M3® Assessment Levels             Level 1                           Level 2                          Level 3            ...
P3M3® - 7 Process PerspectivesOrganizational Governance                                 Risk Management    •   Alignment t...
Undertaking a P3M3® Assessment  A P3M3® capability assessment is like any other project and needs to be planned and  manag...
A P3M3® facilitated assessment checks 3 areas:                   What processes /                capabilities are in place...
Typical results from a P3M3 assessment*FMA levels from A Critical Assessment of P3M3 inAustralian Federal Government Agenc...
Typical results from a P3M3 assessment*FMA levels from A Critical Assessment of P3M3 inAustralian Federal Government Agenc...
Typical results from a P3M3 assessment*FMA levels from A Critical Assessment of P3M3 inAustralian Federal Government Agenc...
Typical results from a P3M3 assessment*FMA levels from A Critical Assessment of P3M3 inAustralian Federal Government Agenc...
Assessing the level of Project Management Capability in anorganisationFinding the right level of Portfolio, Program and Pr...
Governance requirements for maturity levels                                                                              G...
Governance requirements for maturity levels                                                                              G...
Governance requirements for maturity levelsLevel 1 – AwarenessLittle structuredapproach to dealing withProjects           ...
Governance requirements for maturity levels            Level 1Level 2 – RepeatableAreas that are beginning to             ...
Governance requirements for maturity levels                                                                               ...
Governance requirements for maturity levels                                                                               ...
Governance requirements for maturity levels                                                                        Level 4...
Governance requirements for maturity levels                                                                               ...
On average less than 1/3 of projects undertaken aredeemed a successSince 2000 the Standish Group has been measuring the su...
Organisations are relatively successful at project deliverybut only at a defined level of complexity                  90  ...
Organisations are relatively successful at project deliverybut only at a defined level of complexity                  90  ...
Organisations are relatively successful at project deliverybut only at a defined level of complexity                  90  ...
Organisations are relatively successful at project deliverybut only at a defined level of complexity                  90  ...
Delivery of projects beyond existing capability requiresinvestment to meet increased maturity levels                  90  ...
Delivery of projects beyond existing capability requiresinvestment to meet increased maturity levels                  90  ...
Delivery of projects beyond existing capability requiresinvestment to meet increased maturity levels                  90  ...
Assessing the level of Project Management Capability in anorganisationFinding the right level of Portfolio, Program and Pr...
Building competency takes time!  Knowlege   Experience          Competence                          MSP® is a registered t...
Building competency takes time!  Knowlege   Experience          Competence                                                ...
Building competency takes time!                                                                                        Inc...
3 dimensions of improvementAdapting the method to the                                                                    A...
Business case metrics•   Organisations that increase their maturity    levels do so by achieving greater    efficiency and...
The numbers are compelling  Assuming a 20% decrease in project governance costs for each  movement in levels. Moving from ...
Benefits of increasing P3M3® LevelSome examples of benefits of improving P3M maturity levels are :    • NZ Treasury in 201...
Quick wins to improve maturity Levels    Towards Level 2                   Towards level 3                  Towards level ...
90 Day Plan• Understand your current P3M3® level• Decide what level of competence is required for your organisation•   Ini...
Final remarks  P3M3® is a diagnostic tool – it defines what level organisation is  currently operating at.  The optimum P3...
Building the case for improving your project           management maturity                  PMI Queensland          projec...
For further information contact:Wired ConsultingWired Consulting (Wired) is an Accredited Consultancy Organisation (ACO) s...
Upcoming SlideShare
Loading in...5
×

Building the case for improving your project management maturity (P3M3) - PMI Queensland

1,130

Published on

Using key findings from recent maturity assessments the presentation will outline the frameworks for examining the maturity of an organizations’ Portfolio, Program and Project Management capability. 

It will describe how the maturity of an organisation is assessed, the key components of the maturity levels and the actions that organisations have taken to improve their maturity level.
 
The presentation will help you understand:
 
How much project governance does your organisation have and how does that reflect on the level of project management capability in the organisation? 
What level of capability in Portfolio, Program and Project Management is right for your organisation?
What can you implement in the next 90 days to see a rapid improvement in your maturity level?

Published in: Business

Building the case for improving your project management maturity (P3M3) - PMI Queensland

  1. 1. Building the case for improving your project management maturity PMI Queensland project management conference 12th July 2012 Philip Reid
  2. 2. IntroductionOverview Using key findings from recent maturity assessments the presentation will outline the frameworks for examining the maturity of an organizations’ Portfolio, Program and Project Management capability. It will describe how the maturity of an organisation is assessed, the key components of the maturity levels and the actions that organisations have taken to improve their maturity level.The presentation will help you understand: 1. How much project governance does your organisation have and how does that reflect on the level of project management capability in the organisation? 2. What level of capability in Portfolio, Program and Project Management is right for your organisation? 3. What can you implement in the next 90 days to see a rapid improvement in your maturity level? MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 2 © Wired Consulting (Australia) pty ltd 2012
  3. 3. Assessing the level of Project Management Capability in anorganisationFinding the right level of Portfolio, Program and ProjectManagement for your organisation90 day implementation plan to see a rapid improvement in yourmaturity level? MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 3 © Wired Consulting (Australia) pty ltd 2012
  4. 4. Assessing the level of Project Management Capability in anorganisationFinding the right level of Portfolio, Program and ProjectManagement for your organisation90 day implementation plan to see a rapid improvement in yourmaturity level? MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 4 © Wired Consulting (Australia) pty ltd 2012
  5. 5. Setting the Scene – Maturity Models There are a number of maturity models available. This presentation will discuss P3M3® which is based on CMMI MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 5 © Wired Consulting (Australia) pty ltd 2012
  6. 6. Business Strategy, Portfolio, Programmes and Projects Business Strategies MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 6 © Wired Consulting (Australia) pty ltd 2012
  7. 7. Business Strategy, Portfolio, Programmes and Projects Strengths & Weaknesses Business Strategies Internal capabilities MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 7 © Wired Consulting (Australia) pty ltd 2012
  8. 8. Business Strategy, Portfolio, Programmes and Projects Strengths & Weaknesses Opportunities & Threats Business Strategies External market forces MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 8 © Wired Consulting (Australia) pty ltd 2012
  9. 9. Business Strategy, Portfolio, Programmes and Projects Strengths & Weaknesses Opportunities & Threats Business Strategies Portfolio: the totality of an organisations investment in the changes required to achieve its strategic objectives. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 9 © Wired Consulting (Australia) pty ltd 2012
  10. 10. Business Strategy, Portfolio, Programmes and Projects Strengths & Weaknesses Opportunities & Threats Business Strategies Portfolio: the totality of an Programme: a temporary, flexible organisations investment in the organisation created to co-ordinate, direct changes required to achieve its Programmes and oversee the implementation of a set of strategic objectives. related projects and activities in order to deliver outcomes and benefits related to the organisations strategic objectives MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 10 © Wired Consulting (Australia) pty ltd 2012
  11. 11. Business Strategy, Portfolio, Programmes and Projects Strengths & Weaknesses Opportunities & Threats Business Strategies Portfolio: the totality of an Programme: a temporary, flexible organisations investment in the organisation created to co-ordinate, direct changes required to achieve its Programmes and oversee the implementation of a set of strategic objectives. related projects and activities in order to deliver outcomes and benefits related to the organisations strategic objectives Project: a unique set of co- ordinated activities, with Operations: the day-to-day definite starting and finishing processes and procedures Projects Operations which enable the points, undertaken by an individual or team to meet organisation to operate specific objectives within efficiently and effectively. defined time, cost and performance parameters as specified in the business case MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 11 © Wired Consulting (Australia) pty ltd 2012
  12. 12. Overview of P3M3®(Portfolio, Programme and Project Management Maturity Model)P3M3® is an overarching model containing three sub-models • Portfolio Management Maturity Model (PfM3) • Programme Management Maturity Model (PgM3) • Project Management Maturity Model (PjM3)P3M3® uses a five-level maturity framework • The maturity of each sub-model is independent of the other sub-modelsMaturity is focused on seven process perspectives which exist in all three sub-models P3M3 TM • Maturity can be determined at the process perspective levelEach perspective at each level has specific attributes which describe the requirements to achieve that levelThere are generic attributes which are common to all process perspectives at a given maturity levelThe latest copy of the P3M3® model is available at: • www.P3M3-officialsite.com MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 12 © Wired Consulting (Australia) pty ltd 2012
  13. 13. Overview of P3M3®(Portfolio, Programme and Project Management Maturity Model)P3M3® is an overarching model containing three sub-models • Portfolio Management Maturity Model (PfM3) • Programme Management Maturity Model (PgM3) • Project Management Maturity Model (PjM3) OrganisationalP3M3® uses a five-level maturity Governance framework • The maturity of each sub-model is independent of the other sub-modelsMaturity is focused on seven process perspectives which exist in all three sub-models P3M3 TM • Maturity can be determined at the process perspective levelEach perspective at each level has specific attributes which describe the requirements to achieve that levelThere are generic attributes which are common to all process perspectives at a given maturity levelThe latest copy of the P3M3® model is available at: • www.P3M3-officialsite.com MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 13 © Wired Consulting (Australia) pty ltd 2012
  14. 14. Overview of P3M3®(Portfolio, Programme and Project Management Maturity Model)P3M3® is an overarching model containing three sub-models • Portfolio Management Maturity Model (PfM3) • Programme Management Maturity Model (PgM3) • Project Management Maturity Model (PjM3) OrganisationalP3M3® uses a five-level maturity Governance framework • The maturity of each sub-model is independent of the other sub-modelsMaturity is focused on seven process perspectives which exist in all three sub-models P3M3 TM • Maturity can be determined at the process perspective levelEach perspective at each level has specific attributes which describe the requirements to achieve that levelThere are generic attributes which are common to all process perspectives at a given maturity levelThe latest copy of the P3M3® model is available at: • www.P3M3-officialsite.com MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 14 © Wired Consulting (Australia) pty ltd 2012
  15. 15. Overview of P3M3®(Portfolio, Programme and Project Management Maturity Model)P3M3® is an overarching model containing three sub-models • Portfolio Management Maturity Model (PfM3) • Programme Management Maturity Model (PgM3) • Project Management Maturity Model (PjM3) OrganisationalP3M3® uses a five-level maturity Governance framework • The maturity of each sub-model is independent of the other sub-modelsMaturity is focused on seven process perspectives which exist in all three sub-models P3M3 TM • Maturity can be determined at the process perspective levelEach perspective at each level has specific attributes which describe the requirements to achieve that levelThere are generic attributes which are common to all process perspectives at a given maturity levelThe latest copy of the P3M3® model is available at: • www.P3M3-officialsite.com MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 15 © Wired Consulting (Australia) pty ltd 2012
  16. 16. P3M3® Assessment Levels Level 1 Level 2 Level 3 Level 4 Level 5 Initial Process Repeatable Process Defined Process Managed Process Optimised Process The organisation’s The organisation ensures The organisation have its The organisation obtains The organisation runs Executive Board recognise that each programme own centrally controlled and retains specific continuous process programmes and projects and/or project in its programme and project management metrics on improvement with Portfolio and run an informal list of its portfolio is run with its own processes and can its whole portfolio of proactive problem and investments in programmes processes and procedures individual programmes and programmes and projects technology management and projects to a minimum specified projects flex within these as a means of predicting for the portfolio in order to (There may be no formal standard. processes to suit the future performance. improve its ability to depict tracking and reporting (There may be limited particular programmes The organisation assesses performance over time and process.) consistency or co- and/or project. its capacity to manage optimise performance. ordination.) The organisation has its programmes and projects own portfolio management and prioritises them process accordingly The organisation The organisation ensures The organisation has its The organisation obtains The organisation runs Programme recognises programmes that each programme is own centrally controlled and retains specific continuous process and run them differently to run with its own processes programme processes and measurements on its improvement with projects. and procedures to a can individual programmes programme management proactive problem and (Programmes may be run minimum specified flex within these processes performance and runs a technology management informally with no standard standard. to suit the particular quality management for programmes in order to process or tracking system.) (There may be limited programme. organisation to better improve its ability to depict consistency or co- predict future programme performance over time and ordination between outcomes. optimise processes. programmes.) The organisation The organisation ensures The organisation has its The organisation obtains The organisation runs recognises projects and that each project is run own centrally controlled and retains specific continuous process runs them differently from with its own processes and project processes and can measurements on its improvement with Project its on-going business. procedures to a minimum individual projects flex project management proactive problem and (Projects may be run specified standard. within these processes to performance and run a technology management informally with no standard (There may be limited suit the particular project. quality management for projects in order to process or tracking system.) consistency or co- organisation to better improve its ability to depict ordination between predict future performance. performance over time and projects.) optimise processes. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 16 © Wired Consulting (Australia) pty ltd 2012
  17. 17. P3M3® - 7 Process PerspectivesOrganizational Governance Risk Management • Alignment to strategic • Identification, mitigation and objectives management • Organizational standards and • Review, supporting processes controls and structuresManagement Control Financial Management • Objectives, scope and output • Business case and financial or outcomes appraisal • Internal controls throughout • Management of costs the lifecycle • Provision of funds • Review and decision making Stakeholder ManagementBenefits Management • Identification, analysis and • Business change, outcomes engagement and transition • Communications • Ownership, realisation and Resource Management management • Acquisition and supply chain • Measurement and tracking • Capacity planning, prioritisation and performance management MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 17 © Wired Consulting (Australia) pty ltd 2012
  18. 18. Undertaking a P3M3® Assessment A P3M3® capability assessment is like any other project and needs to be planned and managed. Key principles that contribute to project success need to be adhered to including: • Continued business justification (inc. clear objectives, scope and the business case) • Learning from previous experiences • Defined and agreed roles and responsibilities (executive sponsorship and commitment) • Planning, monitoring and control on a stage-by-stage basis • Defined tolerances and limits of delegated authority • Strong stakeholder engagement, ownership and commitment A P3M3® assessment can be self-assessed (download at www.P3M3-officialsite.com) or undertaken with the use of an external P3M3 accredited consultancy. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 18 © Wired Consulting (Australia) pty ltd 2012
  19. 19. A P3M3® facilitated assessment checks 3 areas: What processes / capabilities are in place Proof (artifacts) its being done that way Understanding of the processes and capabilities MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 19 © Wired Consulting (Australia) pty ltd 2012
  20. 20. Typical results from a P3M3 assessment*FMA levels from A Critical Assessment of P3M3 inAustralian Federal Government Agencies – Oct 11University of Canberra MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 20 © Wired Consulting (Australia) pty ltd 2012
  21. 21. Typical results from a P3M3 assessment*FMA levels from A Critical Assessment of P3M3 inAustralian Federal Government Agencies – Oct 11University of Canberra MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 21 © Wired Consulting (Australia) pty ltd 2012
  22. 22. Typical results from a P3M3 assessment*FMA levels from A Critical Assessment of P3M3 inAustralian Federal Government Agencies – Oct 11University of Canberra MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 22 © Wired Consulting (Australia) pty ltd 2012
  23. 23. Typical results from a P3M3 assessment*FMA levels from A Critical Assessment of P3M3 inAustralian Federal Government Agencies – Oct 11University of Canberra MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 23 © Wired Consulting (Australia) pty ltd 2012
  24. 24. Assessing the level of Project Management Capability in anorganisationFinding the right level of Portfolio, Program and ProjectManagement for your organisation90 day implementation plan to see a rapid improvement in yourmaturity level? MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 24 © Wired Consulting (Australia) pty ltd 2012
  25. 25. Governance requirements for maturity levels Governance Lo Med Hi MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 25 © Wired Consulting (Australia) pty ltd 2012
  26. 26. Governance requirements for maturity levels Governance Lo Med Hi MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 26 © Wired Consulting (Australia) pty ltd 2012
  27. 27. Governance requirements for maturity levelsLevel 1 – AwarenessLittle structuredapproach to dealing withProjects Level 1 Governance Lo Med Hi MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 27 © Wired Consulting (Australia) pty ltd 2012
  28. 28. Governance requirements for maturity levels Level 1Level 2 – RepeatableAreas that are beginning to Level 2use standard approaches toprojects but there is noconsistency of approachacross the organisation. Governance Lo Med Hi MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 28 © Wired Consulting (Australia) pty ltd 2012
  29. 29. Governance requirements for maturity levels Level 3 – Defined A consistent set of standards being used by all projects Level 3 Level 2 Governance Lo Med Hi MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 29 © Wired Consulting (Australia) pty ltd 2012
  30. 30. Governance requirements for maturity levels Level 3 Level 4 - Managed Level 4 The organisation monitors and measures its process efficiency, with active interventions to improve Governance Lo Med Hi MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 30 © Wired Consulting (Australia) pty ltd 2012
  31. 31. Governance requirements for maturity levels Level 4 Level 5 Level 5 – Optimised The organisation will be focusing on optimisation of its processes to take into account changing business needs and external factors. Governance Lo Med Hi MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 31 © Wired Consulting (Australia) pty ltd 2012
  32. 32. Governance requirements for maturity levels Level 3 – DefinedLevel 1 – Awareness A consistent set of standards being used by allLittle structured projectsapproach to dealing withProjects Level 1 Level 3Level 2 – Repeatable Level 4 - Managed Level 2 Level 4Areas that are beginning touse standard approaches to Level 5 The organisation monitors and measures its processprojects but there is no efficiency, with active Level 5 – Optimisedconsistency of approach interventions to improveacross the organisation. The organisation will be focusing on optimisation of its processes to take into account changing business needs and external factors. Governance Lo Med Hi MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 32 © Wired Consulting (Australia) pty ltd 2012
  33. 33. On average less than 1/3 of projects undertaken aredeemed a successSince 2000 the Standish Group has been measuring the success rates of projects. The2009 report shows that project success rates have decreased over the previous surveyperiod. On average only 32% of projects succeed (delivered on time, on budget, withrequired features and functions); 44% will be challenged (late, over budget, and/or withless than the required features and functions); and 24% of projects failed (cancelledprior to completion or delivered and never used). MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 33 © Wired Consulting (Australia) pty ltd 2012
  34. 34. Organisations are relatively successful at project deliverybut only at a defined level of complexity 90 Performance % Its often assumed that the level of 80 performance is proportional to the complexity of a project however… 70 60 50 40 30 20 3 3.5 4 4.5 5 5.5 6 6.5 7 Complexity Score MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 34 © Wired Consulting (Australia) pty ltd 2012
  35. 35. Organisations are relatively successful at project deliverybut only at a defined level of complexity 90 Performance % 80 70 60 50 40 30 20 3 3.5 4 4.5 5 5.5 6 6.5 7 Complexity Score In reality once complexity increases beyond their capability level, project performance decreases significantly. This has been called the “complexity cliff” (* Helmsman Institute) MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 35 © Wired Consulting (Australia) pty ltd 2012
  36. 36. Organisations are relatively successful at project deliverybut only at a defined level of complexity 90 Performance % 80 70 60 + Maturity 50 - Maturity 40 30 20 3 3.5 4 4.5 5 5.5 6 6.5 7 Complexity Score Increases and decreases in relative project management maturity correspond to a corresponding ability to undertake more/less complex projects. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 36 © Wired Consulting (Australia) pty ltd 2012
  37. 37. Organisations are relatively successful at project deliverybut only at a defined level of complexity 90 Performance % 80 70 60 + Maturity 50 - Maturity 40 30 20 3 3.5 4 4.5 5 5.5 6 6.5 7 Complexity Score But once complexity increases beyond their capability level, project performance decreases significantly. This has been called the “complexity cliff” (* Helmsman Institute) MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 37 © Wired Consulting (Australia) pty ltd 2012
  38. 38. Delivery of projects beyond existing capability requiresinvestment to meet increased maturity levels 90 Performance % Level 1 Level 2 Level 3 Level 4 Level 5 80 70 60 Existing project 50 delivery capability 40 30 20 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 Complexity Score e.g. the capability of an organisation may only manage projects of certain complexity. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 38 © Wired Consulting (Australia) pty ltd 2012
  39. 39. Delivery of projects beyond existing capability requiresinvestment to meet increased maturity levels 90 Performance % Level 1 Level 2 Level 3 Level 4 Level 5 80 70 60 Existing Potential project project 50 delivery delivery capability capability 40 30 20 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 Complexity Score The organisation may have the ability to increase their capability in the short term. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 39 © Wired Consulting (Australia) pty ltd 2012
  40. 40. Delivery of projects beyond existing capability requiresinvestment to meet increased maturity levels 90 Performance % Level 1 Level 2 Level 3 Level 4 Level 5 80 70 60 Existing Potential Consider project project external 50 delivery delivery project capability capability delivery 40 capability 30 20 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 Complexity Score However, complex projects beyond the near term capabilities of the organisation may require external project delivery support to increase performance. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 40 © Wired Consulting (Australia) pty ltd 2012
  41. 41. Assessing the level of Project Management Capability in anorganisationFinding the right level of Portfolio, Program and ProjectManagement for your organisation90 day implementation plan to see a rapid improvement in yourmaturity level? MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 41 © Wired Consulting (Australia) pty ltd 2012
  42. 42. Building competency takes time! Knowlege Experience Competence MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 42 © Wired Consulting (Australia) pty ltd 2012
  43. 43. Building competency takes time! Knowlege Experience Competence Learning a new skill e.g. driving a car, takes time – both knowledge and experience MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 43 © Wired Consulting (Australia) pty ltd 2012
  44. 44. Building competency takes time! Incompetence Competence Level 3 Conscious Level 2 Knowlege Experience Competence Level 5 Unconscious Level 4 Level 1 • Unconscious incompetence – You don’t know what you don’t know (ignorance is bliss) • Conscious incompetence – You are aware of how much you have to learn. You realize you need more skills, time or practice in order to move forward. • Conscious competence – You’ve started to master the new skill, but you still have to actively think about whether you are doing it right. • Unconscious competence – You don’t even have to think about it any more – the new skill comes naturally and/or finishing the goal becomes completely do-able. “In the zone.” • Reflective competence - Conscious of own unconscious competence / looking at own unconscious competence from the outside MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 44 © Wired Consulting (Australia) pty ltd 2012
  45. 45. 3 dimensions of improvementAdapting the method to the Adoption of the method.environment. Tailoring Focus on: Focus on: • Process responsibilities • Adapting the strategies and controls • Scaling rules/guidance (e.g. score • Incorporating specific terms/language card) • Revising the standard templates for the • Standards (templates, definitions) environment • Training and development • Clarifying the role descriptions for • Integration with business processes • Adjusting the processes to match the • Tools above. • Process assurance. Embedding Augmenting the method. Focus on: Enhancing • Additional skills • Specific roles e.g. Scheduler • Supplemental techniques e.g. EVA • Process improvements. LEAN 6s • Integrated controls e.g risk • Enhanced toolsets MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 45 © Wired Consulting (Australia) pty ltd 2012
  46. 46. Business case metrics• Organisations that increase their maturity levels do so by achieving greater efficiency and staff deployment effectiveness across multiple process disciplines.• Enforcing repeatable processes provides time/costs savings where the amount of time taken to do a task reduces by a fixed amount every time the number of times a task has been done doubles• Return on investment for can be 3:1 and more. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 46 © Wired Consulting (Australia) pty ltd 2012
  47. 47. The numbers are compelling Assuming a 20% decrease in project governance costs for each movement in levels. Moving from level 1 to level 3 (4) will provide: • 12% (17%) increase in number of projects that can be undertaken with same staff and budget • 18% (36%) increase in the total number of projects undertaken with same resources during improvement period • 10% (15%) Reduction in headcount required to manage same number of projects • 300% return on investment for each movement in Levels MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 47 © Wired Consulting (Australia) pty ltd 2012
  48. 48. Benefits of increasing P3M3® LevelSome examples of benefits of improving P3M maturity levels are : • NZ Treasury in 2011 stated that between 3-6% of all project costs ($189 – 378M) are being saved by improving P3 maturity levels and an additional saving of $1.5 - 3bn per annum is being made in the reduction of benefits-leakage. • London Underground’s CFO in May 2011 attributed a $700M (£422M) saving over 3.5 years rising to $1.5bn (£866M) over 5 years to using the P3M3 maturity assessment process. They initially assessed their Portfolio, Programme and Project Maturity in 2007 and developed an improvement plan. The sequence was repeated in 2009 and 2011 by when $700m of benefits had been achieved. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 48 © Wired Consulting (Australia) pty ltd 2012
  49. 49. Quick wins to improve maturity Levels Towards Level 2 Towards level 3 Towards level 4 Towards level 5 Level 5 1 2 3 4  Maintain steady state• Project delivery • Enforce standard  Define key process • Continual lifecycle framework approach metrics and how to improvement  Continual• Common templates • Implement gates measure these. • What part of cycle is improvement of• Reporting structure • Tailoring of templates in “steady state” processes  Implement feedback• Governance to match project size loops for • Use process• Roles and • Project assurance Stakeholder, etc. improvement responsibilities • Quality assurance techniques to identify  Systems to enforce• Financial justification • Reduce variability bottlenecks and and measure and tracking Benefits • PMO structure devise more efficient processes (in business case) • Define strategies for ways.• Schedules each perspective• Resource Plans Awareness Repeatable Defined Managed Optimized MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 49 © Wired Consulting (Australia) pty ltd 2012
  50. 50. 90 Day Plan• Understand your current P3M3® level• Decide what level of competence is required for your organisation• Initiate a capability improvement project .• Understand key characteristics for target level of maturity and gaps• Identify and implement quick wins first• Monitor improvements throughout the project stages• Once project has been closed re-assess capability using P3M3® capability assessment MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 50 © Wired Consulting (Australia) pty ltd 2012
  51. 51. Final remarks P3M3® is a diagnostic tool – it defines what level organisation is currently operating at. The optimum P3M3® level for an organisation is a factor of the complexity of the initiatives that are undertaken. Strive for continuous improvement and be on the look out for quick wins e.g. can your processes be streamlined so documentation content is only ever entered once? If you want/need to operate at higher levels strong controls will need to be in place which will require integrated systems. Consider ways in which to record metrics at all levels. MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 51 © Wired Consulting (Australia) pty ltd 2012
  52. 52. Building the case for improving your project management maturity PMI Queensland project management conference 12th July 2012 Philip Reid
  53. 53. For further information contact:Wired ConsultingWired Consulting (Wired) is an Accredited Consultancy Organisation (ACO) specialising inPortfolio, Programme and Project Management with Registered Consultants who are authorised toundertake consultancy assignments based on the P3M3TM Model.Philip Reid(MBA, GAICD, PMP, PRINCE2, PPM RC, MSP, P3M3,ITIL) Philip has over 20 years experience working in Finance, IT and Government in the UK, US, Asia and Australia. Having held senior management roles at a number of organisations, his Programme and Project management skills have been utilised to establish, develop, improve and manage diverse business outcomes. He has an MBA from Cranfield Business School and is a PMP®, PRINCE2® Practitioner, MSP® Advanced Practitioner, a PPM Registered Consultant and is qualified to undertake P3M3® and OPM3® assessments. 1300 00 2000 /philip@wiredconsulting.com MSP® is a registered trade mark of the Cabinet Office P3M3® is a registered trade mark of the Cabinet Office The Swirl logo™ is a trade mark of the Cabinet Office 53 © Wired Consulting (Australia) pty ltd 2012

×