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Does maturity refer to knowing what your limitations are?
       OPM Maturity Model for Projectized Organizations
                             Maria Malinina
         National Research University “Higher school of economics”
                             Moscow, Russia
Agenda
             •   Goal of the research paper
             •   The evolution of maturity models
             •   4M concept
             •   OPM effect estimation and recommendations
             •   Conclusion




28.10.2011                                                   2
Is it worth?
             «The published data about different companies including AT&T,
             Boeing, Hewlett Packard, IBM and GM, show that direct results
             of the organizational project management introduction are:
                 • The product launch time decrease by 30-65%,
                 • Blemishes and reworks decrease by 35-75%,
                 • Substantial and engineering alterations decrease by 45-
                   68%,
                 • Average profits decrease by 6%,
                 • Investments profitability increase by 20% in some cases».

                   “Development of project management systems”, Anthony Eve. – Emerald Group
                         Publishing Limited, Industrial and Commercial Training, vol.39 №2, 2007



28.10.2011                                                                                         5
Goal and tasks of the paper
             Goal
             • to define an interconnection between overall
               organizational efficiency and OPM maturity
             Tasks
                                     Efficiency ? Maturity
                                     Econometric model

                                      Statistics on projectized
                                             companies




                     Efficiency indicator                   Maturity indicator

                            Expert                                Expert

28.10.2011                                                                       6
MM evolution
Organizational project management maturity                                                                        Project    PM ESI Project CCTA/OGC PMMM             PMI                 OGC          PMI      IPMA
                                                                                                                 Excellence Delta Framework PMMM1.0 Kerzner          OPM3                 P3M3       OPM3 2.0    AoD
Project, Program, Portfolio management                                                                 PRINCE2                                                        ISO                            PMBoK PRINCE2
                                                      PMBoK PRINCE                                                 PM2                                P2M                                ICB 3.0
                                                                                                         1.0                                                         10006                            4.0    1.0

1920 1973            1979        1984        1985 1987        1989       1991      1992       1993     1996        1997    1998     1999     2000     2001    2002 2003        2004        2006        2008     2009   2010

                   QMMG Demming                       ISO                           ISO                QPMMG ISO                                                                ISO        ISO
                                                                         EFQM
Quality Management Crosby Juran                       9000                        10012 -1             Crosby 10012 -2                                                       15504-1 IS 15504-5 IS
                                                                        SEI Sw-              SEI Sw-                      ISO/IEC                             CMMi                                                     CMMi
SPC Nolan                                    Radice          Humphrey                                                                      CMMi 1.0                                      CMMi 1.2
                                                                        CMM 1.0              CMM 1.1                       15504                               1.1                                                      1.3
Software Development                                                                                                      (SPiCE)




 28.10.2011                                                                                                                                                                                                              8
MM types                                                                                                       ше
                                                                                                                               ни
                                                                                                                          уч сса
                                                                                                                        Ул оце
                                                                                                                                 е         Уровень 5

                                                                                                                                          Непрерывное
                                                                                                                          пр               улучшение




             • Level
                                                                                                                   ие     Уровень 4
                                                                                                                 ен м
                                                                                                              вл
                                                                                                           р а ссо
                                                                                                         Уп оце
                                                                                                           пр            Бенчмаркинг


                                                                                                    е      Уровень 3
                                                                                                  ни
                                                                                                ле а
                                                                                             де
                                                                                          р е е сс          Единая
                                                                                        Оп роц
                                                                                           п              методология




                                                         Ба
                                                              з   ов
                                                                     ые
                                                                        з   на
                                                                                 ни
                                                                                   я        Уровень 2

                                                                                             Общие
                                                                                            процессы
                                                                                                                                                         1
                                                                                                                                                        Подготовь
                                                                                                                                                          тесь к
                                                                                                                                                         Оценке



                                                                  Уровень 1                                                                                                         Удовлетво-
                                                                                                                                                                                     ренность
                                                             Общая                                                                                                                  результата
                                                                                                                                                                                        ми
                                                          терминология




                                                                                                                                         5
                                                                                                                                       Повторяйте
                                                                                                                                                                          2
                                                                                                                                                                         Произве-




             • Continuous
                                                                                                                                                                           дите
                                                                                                                                        Процесс
                                                                                                                                                                          Оценку




                                                                                                                                             4
                                                                                                                                           Внедряйте
                                                                                                                                           Улучшения
                                                                                                                                                                      3
                                                                                                                                                                    Планируйте
                                                                                                                                                                    Улучшения



                                                     Стратегическое
                                                     планирование

                              Корпоративная                                                       Управление
                                 культура                                                         портфелем

                                                    35             20                  40


             • Radar        База знаний             20                                 25               Методология УП



                                               60                  40
                                                                                        70        Управление
                                Оргструктура
                                                                                                  персоналом

                                                              КСУП


28.10.2011                                                                                                                                                                                       9
Advantages of the ‘radar’ model
             • Unites advantages of leveled and continuous
               MM
             • Flexibility and adaptiveness for each
               organization
             • More differentiation in process management
               competencies description
                                                                   Стратегическое


             • The model configuration flexibility
                                                                   планирование

                                                 Корпоративная                          Управление
                                                    культура                            портфелем
                                                                       35   20     40

                                                База знаний        20              25       Методология УП


                                                                  60        40
                                                   Оргструктура                     70 Управление
                                                                                        персоналом

                                                                            КСУП


28.10.2011                                                                                                   10
What’s new?
             • A complex maturity assessment with real and
               target profiles development for projectized
               organizations
             • More flexible and adaptive to the features of
               an organization




28.10.2011                                                     11
28.10.2011   13
28.10.2011   14
Estimation levels

                      Portfolio management

                      Program management

                       Project management



28.10.2011                                   15
Convolution
                                                             Estimation
             Aggregate indicator   Weigh   Indicator    criteria/scales with
                                                       qualitative description


                 Estimation                                  Estimation
                                   Weigh   Indicator    criteria/scales with
                                                       qualitative description


                                                             Estimation
                                   Weigh   Indicator    criteria/scales with
                                                       qualitative description




28.10.2011                                                                       16
Convolution: example
             Methodology                           0 – No CS
                           0,2    OPM Corporate    2 – CS as a high-level document, defines company’s PM policy
                 cut                standard
                                                   4 – CS as a package of regulations on processes, objects, agents of management
                                                   6 – CS includes documents templates
              Estimation
                                                   8 – CS contains the description of the basic and auxiliary PM procedures
                                                   10 – CS contains process assessment metrics and criteria as well as improvement
                                                   procedures description


                                                   0,2           Initiation           Estimation is made on the basis of processes’
                           0,2       Processes                                        regualtion and formalization:
                                                   0,3          Planning
                                                                                      0 – No common procedure for the object transfer

                                                   0,2          Execution             4 – Processes are standardized
                                                                                      6 – Process assessment metrics exist
                                                   0,2          Monitoring            8 – Process control methods exist
                                                                                      10 – Assessment and improvement procedures
                                                   0,1           Closing              exist


                           0,2       Objects



                           0,2        Agents        0 – No KB
                                                    1 – One-person level KB
                                                    3 – Separate projects and teams level KB
                           0,15   Knowledge base
                                                    5 – Separate solutions level KB
                                                    7 – Department level KB
                                                    10 – Entire company common KB
                                     Standard
                           0,1
                                     solutions

28.10.2011                                                                                                                              17
Real and target profiles
             Project management profile                                                                  Program management profile
                           Methodolo                                                                                     Methodology
                              gy                                                                                          10
                             10                                               Real profile                                 8
                              8 6,28                                                                                           6,03
                              6                                               Target profile                               6

                              4 2,66                                                                                       4
                                                                                                                               2,54
                              2                9,3                                                                         2
                                                                                                                                              7,80
                                                                                                          Model   4,60    2,00
                                                                                                                           0           3,46          Men
             Model   4,6   1,20         4,96    Men
                                                                                                                             4,00
                                2,8


                                7,2                   Portfolio management profile                                             5,60


                           Maintenanc                                Methodology                                         Maintenance
                               e                                       10
                                                                        8
                                                                             5,21
                                                                        6
                                                                        4
                                                                        2 0,94
                                                                                     4,80
                                                      Model   3,30       0                         Men
                                                                                            6,34
                                                                     1,20
                                                                              1,60



                                                                             7,20

                                                                     Maintenance

28.10.2011                                                                                                                                                 18
Recommendations
             •   To hold on maturity assessment and planning development should a
                 proficient specialist which has a profound knowledge and understanding
                 of OPM
             •   A strategic planning of maturity and managing maturity development
                 process as a multi-project with its milestones, inputs and outputs,
                 measurements and resources
             •   While working-out a corporate standard on OPM it is important to avoid
                 some wide-spread mistakes
             •   The first step is to create a PM Office and a Corporate standard
                 development
             •   All people in the company are adherent to continuous improvement; top-
                 managers are to see the value of maturity development and support this
                 process


28.10.2011                                                                                19
OPM effect
                   Grade          Coef.   Wage rate, r.u.   W.hours    Costs, r.u.
             Expert                   3                 1         2               6
                                                                                          OPM development
             Leading specialist     1,8                 1         2             3,6   systematic approach effect
             Senior specialist      1,3                 1         2             2,6      for a separate project
             Specialist               1                 1         2               2                      Basic indicators
             Assistant              0,7                 1         2             1,4                      CPMS effect
                                                   Total         10          15,6
                                                                                                                       15,6

                                                                                                                                  11,7
                   Grade          Coef.   Wage rate, r.u.   W.hours    Costs, r.u.      10
             Expert                   3                 1          1              3                8,5
             Leading specialist     1,8                 1        1,5            2,7
             Senior specialist      1,3                 1          2            2,6
                                                                                             15%                            25%
             Specialist               1                 1          2              2
             Assistant              0,7                 1          2            1,4
                                                   Total         8,5         11,7     Working hours                      Costs
                                              % change          15%          25%




28.10.2011                                                                                                                               20
Conclusion
             • The 4M model provides a methodological basis for planning the
               OPM maturity development in practice
             • Keeping focused on maturity and continuous improvement reduces
               the number of interrupted and wrecked projects via providing the
               basis for best practice implementation.
             • If there is no strategic planning of maturity, its achievement can
               take years.




28.10.2011                                                                          21
Thank you!




28.10.2011        22

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Malinina paper presentation_is_maturity_knowing_what_your_limitations_are

  • 1. Does maturity refer to knowing what your limitations are? OPM Maturity Model for Projectized Organizations Maria Malinina National Research University “Higher school of economics” Moscow, Russia
  • 2. Agenda • Goal of the research paper • The evolution of maturity models • 4M concept • OPM effect estimation and recommendations • Conclusion 28.10.2011 2
  • 3. Is it worth? «The published data about different companies including AT&T, Boeing, Hewlett Packard, IBM and GM, show that direct results of the organizational project management introduction are: • The product launch time decrease by 30-65%, • Blemishes and reworks decrease by 35-75%, • Substantial and engineering alterations decrease by 45- 68%, • Average profits decrease by 6%, • Investments profitability increase by 20% in some cases». “Development of project management systems”, Anthony Eve. – Emerald Group Publishing Limited, Industrial and Commercial Training, vol.39 №2, 2007 28.10.2011 5
  • 4. Goal and tasks of the paper Goal • to define an interconnection between overall organizational efficiency and OPM maturity Tasks Efficiency ? Maturity Econometric model Statistics on projectized companies Efficiency indicator Maturity indicator Expert Expert 28.10.2011 6
  • 5. MM evolution Organizational project management maturity Project PM ESI Project CCTA/OGC PMMM PMI OGC PMI IPMA Excellence Delta Framework PMMM1.0 Kerzner OPM3 P3M3 OPM3 2.0 AoD Project, Program, Portfolio management PRINCE2 ISO PMBoK PRINCE2 PMBoK PRINCE PM2 P2M ICB 3.0 1.0 10006 4.0 1.0 1920 1973 1979 1984 1985 1987 1989 1991 1992 1993 1996 1997 1998 1999 2000 2001 2002 2003 2004 2006 2008 2009 2010 QMMG Demming ISO ISO QPMMG ISO ISO ISO EFQM Quality Management Crosby Juran 9000 10012 -1 Crosby 10012 -2 15504-1 IS 15504-5 IS SEI Sw- SEI Sw- ISO/IEC CMMi CMMi SPC Nolan Radice Humphrey CMMi 1.0 CMMi 1.2 CMM 1.0 CMM 1.1 15504 1.1 1.3 Software Development (SPiCE) 28.10.2011 8
  • 6. MM types ше ни уч сса Ул оце е Уровень 5 Непрерывное пр улучшение • Level ие Уровень 4 ен м вл р а ссо Уп оце пр Бенчмаркинг е Уровень 3 ни ле а де р е е сс Единая Оп роц п методология Ба з ов ые з на ни я Уровень 2 Общие процессы 1 Подготовь тесь к Оценке Уровень 1 Удовлетво- ренность Общая результата ми терминология 5 Повторяйте 2 Произве- • Continuous дите Процесс Оценку 4 Внедряйте Улучшения 3 Планируйте Улучшения Стратегическое планирование Корпоративная Управление культура портфелем 35 20 40 • Radar База знаний 20 25 Методология УП 60 40 70 Управление Оргструктура персоналом КСУП 28.10.2011 9
  • 7. Advantages of the ‘radar’ model • Unites advantages of leveled and continuous MM • Flexibility and adaptiveness for each organization • More differentiation in process management competencies description Стратегическое • The model configuration flexibility планирование Корпоративная Управление культура портфелем 35 20 40 База знаний 20 25 Методология УП 60 40 Оргструктура 70 Управление персоналом КСУП 28.10.2011 10
  • 8. What’s new? • A complex maturity assessment with real and target profiles development for projectized organizations • More flexible and adaptive to the features of an organization 28.10.2011 11
  • 11. Estimation levels Portfolio management Program management Project management 28.10.2011 15
  • 12. Convolution Estimation Aggregate indicator Weigh Indicator criteria/scales with qualitative description Estimation Estimation Weigh Indicator criteria/scales with qualitative description Estimation Weigh Indicator criteria/scales with qualitative description 28.10.2011 16
  • 13. Convolution: example Methodology 0 – No CS 0,2 OPM Corporate 2 – CS as a high-level document, defines company’s PM policy cut standard 4 – CS as a package of regulations on processes, objects, agents of management 6 – CS includes documents templates Estimation 8 – CS contains the description of the basic and auxiliary PM procedures 10 – CS contains process assessment metrics and criteria as well as improvement procedures description 0,2 Initiation Estimation is made on the basis of processes’ 0,2 Processes regualtion and formalization: 0,3 Planning 0 – No common procedure for the object transfer 0,2 Execution 4 – Processes are standardized 6 – Process assessment metrics exist 0,2 Monitoring 8 – Process control methods exist 10 – Assessment and improvement procedures 0,1 Closing exist 0,2 Objects 0,2 Agents 0 – No KB 1 – One-person level KB 3 – Separate projects and teams level KB 0,15 Knowledge base 5 – Separate solutions level KB 7 – Department level KB 10 – Entire company common KB Standard 0,1 solutions 28.10.2011 17
  • 14. Real and target profiles Project management profile Program management profile Methodolo Methodology gy 10 10 Real profile 8 8 6,28 6,03 6 Target profile 6 4 2,66 4 2,54 2 9,3 2 7,80 Model 4,60 2,00 0 3,46 Men Model 4,6 1,20 4,96 Men 4,00 2,8 7,2 Portfolio management profile 5,60 Maintenanc Methodology Maintenance e 10 8 5,21 6 4 2 0,94 4,80 Model 3,30 0 Men 6,34 1,20 1,60 7,20 Maintenance 28.10.2011 18
  • 15. Recommendations • To hold on maturity assessment and planning development should a proficient specialist which has a profound knowledge and understanding of OPM • A strategic planning of maturity and managing maturity development process as a multi-project with its milestones, inputs and outputs, measurements and resources • While working-out a corporate standard on OPM it is important to avoid some wide-spread mistakes • The first step is to create a PM Office and a Corporate standard development • All people in the company are adherent to continuous improvement; top- managers are to see the value of maturity development and support this process 28.10.2011 19
  • 16. OPM effect Grade Coef. Wage rate, r.u. W.hours Costs, r.u. Expert 3 1 2 6 OPM development Leading specialist 1,8 1 2 3,6 systematic approach effect Senior specialist 1,3 1 2 2,6 for a separate project Specialist 1 1 2 2 Basic indicators Assistant 0,7 1 2 1,4 CPMS effect Total 10 15,6 15,6 11,7 Grade Coef. Wage rate, r.u. W.hours Costs, r.u. 10 Expert 3 1 1 3 8,5 Leading specialist 1,8 1 1,5 2,7 Senior specialist 1,3 1 2 2,6 15% 25% Specialist 1 1 2 2 Assistant 0,7 1 2 1,4 Total 8,5 11,7 Working hours Costs % change 15% 25% 28.10.2011 20
  • 17. Conclusion • The 4M model provides a methodological basis for planning the OPM maturity development in practice • Keeping focused on maturity and continuous improvement reduces the number of interrupted and wrecked projects via providing the basis for best practice implementation. • If there is no strategic planning of maturity, its achievement can take years. 28.10.2011 21