Instantis RMMM

Resource
Management
Maturity Model™
-- RMMM --

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Resource Management
Maturity Model™ Webinar

Wayne
Prasad
Raje Agenda
Caccamo

• RMMM Business Drivers • RMMM Overview
• What is the RMMM? RMMM at Glance
Objective RMMM Levels
Structure RMMM Dimensions
Benefits Terminology

• Development Process • RMMM Drill-Down
• Conclusions
• Next Steps & Q&A


Business Drivers
So, why do we need another maturity model?

Fills a void Large Audience
PPM maturity models exist Everybody’s doing resource
at a higher level, but there management at some level of
is no guidance exclusively complexity.
focused on Resource
Management.

Strong Value Help Needed
Proposition RM initiative failures are largely
Getting resource the result of over- or under-
management “just right’ is investing in process complexity
critical to IT and business and tools relative to resource
success. info needs.


Business Drivers (cont.)

In practical terms, the RMMM better positions the IT or PMO
organization to be able to answer nagging questions like:
“What are these resources working on?”
“Why is it so difficult to take on new projects?”
“How come these resources are always overbooked, don’t
you control how work gets assigned to resources?”
“Will we have enough available capacity in three months to
take on these new important projects?”
“Do we have the right mix of skills to meet project
demand?”
“What is the cost of this group of resources for this month
on this set of projects?”
“How do I de-prioritize the work already under way to make
room for new work?”
“Can you spare this one critical resource for this period?


What is the RMMM?

OBJECTIVE

The Resource Management Maturity
Information Model™ (RMMM) enables organizations to
Needs define and execute an effective resource
management strategy.
Optimized
Resource It accomplishes this by helping
Deployment
stakeholders in resource-constrained
Process Maturity Technology environments better align resource-related
information needs with their level of PPM
process and technology maturity.


What is the RMMM? (cont.)

STRUCTURE

The RMMM identifies a logical progression of
1 2 3 4 5
resource and capacity management process
sophistication which is enumerated as five
levels of maturity.

Each level of maturity is described along
seven common dimensions.


Benefits to Practitioners

TARGET BENEFITS

Provide resource stakeholders with a
framework and common language for
communicating about resource management
objectives, issues and outcomes.
Deliver a roadmap and a guide to help
characterize the optimal, aspirational level of
maturity.
Expose clearly the implications and
consequences of operating at a particular
level of resource management.
Provide critical guidance in the PPM software
solution selection process.


Maturity Model Development Process

Version 1 is a hypothesis based on…

G5000 Enterprise Input
Customers, Prospects, Others

Sources

Internal Expertise Industry Analyst
Deployment Managers, Review
Consultants Gartner

Your input appreciated for Version 2


RMMM Levels Defined

Level 1 Level 2 Level 3 Level 4 Level 5

WORK CONTROLLED GOVERNED SCHEDULE-DRIVEN GRANULAR
VISIBILITY ASSIGNMENT CAPACITY AVAILABILITY MANAGEMENT

Organizations A formal The focus shifts The resource Full task-level
have visibility to resource to capacity assignment project
who is working assignment management approval and schedule
on what. approval and the capacity details are
However, process is introduction of management used to drive
resources are introduced. project priority processes are the resource
assigned to However, considerations driven by assignment
work without approvals are requiring more project and capacity
any control or informed only by structured schedules at management
oversight. resource governance. the phase processes.
availability. level.


RMMM Dimensions

Level 1 Level 2 Level 3 Level 4 Level 5

WORK CONTROLLED GOVERNED SCHEDULE-DRIVEN GRANULAR
VISIBILITY ASSIGNMENT CAPACITY AVAILABILITY MANAGEMENT

ASSIGNMENT
GRANULARITY Detail of work assignment and consideration of non-project work

PROJECT Treatment of potential project roles and associated attributes/properties
ROLES

RESOURCE
COST
Cost by project, phase, task; plan or actual, etc.

RESOURCE
APPROVAL
Characteristics of assignment approval process (or lack thereof)

CAPACITY
PLANNING Process for addressing availability constraints and business priorities

GOVERNANCE The body (if any) that oversees PPM/RM processes and decision-making

BUSINESS
VALUE Business benefit at this level of maturity


Assignment Granularity Dimension

Resources are assigned a
Level 1/2 fixed/constant utilization
Resource percentage for the duration
Utilization of the project
(%)

Level 3 Resource utilization can
Resource vary within duration of a
Utilization project
(%)

Level 4 Resource utilization can
Resource vary by project phase
Utilization (driven by project WBS)
(%)

Resource utilization can
Level 5 vary by individual project
Resource activity (driven by project
Utilization WBS)
(%)

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E

RMMM
Summary
Matrix


Survey Time!

Which best describes your RM maturity level?
1: Work Visibility: We know only who is working on what
58%

2: Controlled Assignment: Resource approval based on availability only
11%

3: Governed Capacity: Focus on capacity and business priorities
26%

4: Schedule-Driven Assignment: Bottom-up, project phase-level info drives RM
0%
5: Granular Management: Project schedule details drive RM process
5%

Note: % responses are actual results from poll taken during 08-25-11 live Webinar


Key Terminology

Resource capacity
The total time for a given resource that is intended to be managed
in hours or % of FTE (can exclude non-project work capacity)
Resource utilization
The sum total of a resource’s assignment to project work for a given
duration in hours or % FTE.
Resource availability
The difference between capacity and utilization for a given duration.
Resource demand
The incremental potential work assignment for a given duration for a
resource driven from proposed projects or incremental work
requests associated with on-going projects.
Activity
The generic name for any level of project work identified in a project
work breakdown schedule (WBS).
Resource Approval Workflow (RAW)
The process by which a resource is assigned to work for a given
duration (parameters, routing, decision criteria, etc.)


Level 1: Work Visibility

Dimension Definition
Assignment
Simple, complete project list; Constant (average) % utilization by resource
Granularity

Project Roles Only project managers and all others as team members

Resource Cost Plan: Aggregate resource costs by project; Actual: Timesheets

Resource Approval No approval process

Capacity Planning No capacity planning

Governance No governance

Business Value Who is working on what; Resource over-use is visible


Level 1 Resource Grab

PM1 -- Project1
PM2 -- Project2
PM3 -- Project3
PM4 -- Project4

Resources


Assignment, Utilization (Level 1)
Resources are assigned a
Demand for Resource A fixed/constant utilization
100% percentage for the duration
of the project

75%
Project 3
Resource
Utilization 50%
(%) Project 1
Project 2
25%

time
S1 S2 E1 S3 E2 E3

At this level process
Aggregate % Utilization for Resource A maturity (assignment
100% granularity) there is a risk of
resource over-utilization.

75%

Resource
Utilization 50%
(%)

25%

S1 S2 E1 S3 E2
E3 time

Level 1 to Level 2

When to make the transition:
• Need to proactively manage
resource utilization
• Need better balanced utilization
• Avoid project resource risks 1 2 3 4 5

Key Dimension change
• RAW process


Level 2 Introduces
Resource Approval Workflow

PM1 -- Project1
PM2 -- Project2
PM3 -- Project3
PM4 -- Project4

R A W

Resources


Level 2: Controlled Assignment

Assignment
Simple, complete project list; Constant (average) % utilization per resource
Granularity

Project Roles Specific project roles; Roles define approvals; Cost rates; target % utilization

Resource Cost Plan: aggregate resource costs by project and role; Actual: timesheets

Resource
RAW process defined; Considers availability in approvals
Approval
Capacity
Individual and aggregate resource capacity is visible, managed, balanced
Planning

Governance No governance structure to resolve relative project priorities

Business Value Resource utilization is balanced; Resource gaps vs. demand is clearly visible


Assignment, RAW, Utilization (Level 2)

Demand for Resource A
100%

75%
Project 3
Resource
Utilization 50%
(%) Project 1
Project 2
25%

time
S1 S2 E1 S3 E2 E3

At Level 2, the RM can
Aggregate % Utilization for Resource A disapprove the request of
Resource A for assignment
100% to Project 3 to avoid the
over-utilization scenario
75%

Resource
Utilization 50%
(%)

25%

S1 S2 E1 E2
time

Level 2 to Level 3

• A need to focus on projects with
greatest business impact
• Need to dynamically respond to
changing business priorities
• Fulfill new demand by re-prioritizing 1 2 3 4 5
existing projects instead of simply
adding new resources

• Governance


Level 3 introduces a
Governance Structure

Governance

PM1 -- Project1
PM2 -- Project2
PM3 -- Project3 CANCEL

PM4 -- Project4

R A W

Resources


Prioritization drives Approval at Level 3

100%

Here we are at the
75% original Level 1 / 2
Resource
Project 3 granularity of resource
Utilization 50% demand
(%) Project 1
Project 2
25%

time
S1 S2 E1 S3 E2 E3

Aggregate % Utilization for Resource A This resulted in over-
100% utilization of Resource A

75%

Resource
Utilization 50%
(%)

25%

S1 S2 E1 S3 E2
E3 time

Prioritization drives Approval at Level 3

100%

At Level are at the
Here we Governance
At Level 33Governance
75% can cancel Project2 and
original Level 1 /
can cancel Project 22and
Project 3 granularity ofProject 3
Approve resource
Resource Approve Project 3
Utilization 50% demand
(%) Project 1
Project 2
25%

time
S1 S2 E1 S3 E2 E3

Aggregate % Utilization for Resource A
100%
This action removed a
utilization- related risk
75% to Project 3 which
governance has
Resource
Utilization 50% prioritized highest
(%)

25%

S1 S2 E1 S3 E2
E3 time

Level 3: Governed Capacity

Assignment
Allow non-constant allocations on projects
Granularity

Project Roles Level 2 + RAW process considers roles, skills, pools

Resource Cost Level 2 + “plan vs. actual” compared and managed

Resource Approval Level 2 + considers project priority in making approvals

Capacity directed at higher priority projects; Ability to re-direct capacity
Capacity Planning
as priorities change; What-if modeling under various scenarios
Steering committee manages demand (intake) prioritization and
Governance
makes in-flight decisions on project hold, slip, cancel
Reduces strategy execution risk
Business Value
Dynamic ability to react to changing business conditions


Level 3: The RMMM Sweet Spot

For many companies Level 3
offers the best alignment and
balance of:
• Need for information
detail and accuracy
1 2 3 4 5 • Process maturity
• Required technology
sophistication
• Business benefit


Level 3 to Level 4

• Resource utilization varies greatly
by phase of project
• Extra detail is accurate and up-to-
date
• Governance decisions would be
1 2 3 4 5
different with the extra
information detail

• Assignment Granularity


Level 4 introduces
Phase Level Resource Demand

Governance

PM1 -- Project1
PM2 -- Project2
PM3 -- Project3
PM4 -- Project4

R A W

Resources


Level 4 Resource Granularity Concepts

100%

Here we are at Level 1,2
75% granularity of demand info
Project 3 with Level 3 capability to
Resource
50% cancel or shift projects
Utilization
(%) Project 1
Project 2
25%

time
S1 S2 E1 S3 E2 E3

…and this is what the
Aggregate % Utilization for Resource A resulting aggregate
100% utilization looked like for
Resource A

75%

Resource
Utilization 50%
(%)

25%

S1 S2 E1 S3 E2
E3 time

Level 4 Resource Granularity Concepts

100% Phase-Level Detail
Project 3
At Level 4,are at Level 1,2
Here we Phase level detail
75% 75% allows us to fit demand into
granularity of demand info
Project 3 with Level 3 A’s schedule
Resource capability to
Resource w/out canceling project
cancel or shift projects
Utilization 50%
(%) Project 1
Project 1 Project 2
Project 2
25% 25%

time time
S1 S1 S2 S2 E1 E1 S3 S3 E2 E3 E3
E2
At Level 4, Phase level detail
Aggregate % Utilization for Resource A allows us to fit demand into
Resource A’s schedule
100%
w/out canceling project

75% 75%

Resource
Utilization 50%
(%)

25% 25%

S S1 S’ S2 E E1 S” S3 E2 E’
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Level 4: Schedule Driven Availability

Assignment Resources utilization measured from phase-level assignments
Granularity (phase dates MUST be accurate, up-to-date; NOTE data explosion)

Project Roles Level 3

Resource Cost Level 3 + phase level resource costs

Resource
Level 3 + phase-level approvals
Approval
Capacity
Level 3 + project phases held/slipped to manage capacity
Planning
Level 3 + steering committee decisions may be different based on phase-
Governance
level information. Potential for improper decisions based on unreliable data.
Business Finer control over resources, may enable more projects to be taken on by
Value eliminating false-positives on resource over-utilization


Level 5: Granular Management

Assignment Resources utilization measured from task-level assignments
Granularity (task dates MUST be accurate, up-to-date; NOTE data explosion)

Project Roles Level 4 + RACI

Resource Cost Level 4 + task level resource costs

Resource
Level 4 + task-level resource approvals
Approval
Capacity
Level 4 + project tasks held/slipped to manage capacity
Planning
Level 4 + Steering Committee decisions may be different based on task-level
Governance
information. Potential for improper decisions based on unreliable data.
Business Finer control over resources, may enable more projects to be taken on by
Value eliminating false-positives on resource over-utilization


WBS-driven RM Complexity

Level 4/5 WBS-driven RM
puts the burden on project
managers to accurately: Example
(1) Maintain and update Portfolio Size: 100 Projects
project phase dates Average # of Phases per Project: 5
(2) Assign individual Average # of Resources per Phase: 5
resources to the Required # of data values be kept up-to-date: 7,500!
relevant phases; and (100x5x5x3)
(3) Provide utilization
requirements by
phase.

RISK If the organization does not possess adequate process maturity, the dependent
capacity planning and governance processes will be driven from a mass of unreliable
underlying information.


Interpreting and Using the Model

• In general, it is recommended that all dimensions of
maturity are achieved before progressing to the next level
• Maturity levels represent recommended best practices;
what companies actually or should do depends on
corporate culture, industry context, technology
sophistication, etc.
• The key is understanding whether variances from the
model are based on conscious/valid organizational
decisions and context or symptomatic of dysfunction that
should be addressed.
• RMMM does not necessarily apply to time/budget-driven
RM processes; it specifically targets resource-constrained
environments
• Remember, higher levels of maturity are not necessarily
better

Key Model Premises and Take-Aways

• The level “Assignment Granularity” detail is the key model driver. The
level of granularity an organization chooses to plan and track effort
largely drives where it should be along other maturity model dimensions.

• There is a “chasm” between maturity levels 3 and 4. Many organizations
pre-maturely rush to Level 4 -- which includes activity-level effort roll ups
-- and fail.

• For most organizations, Level 3 is the sweet spot to strive for providing
“just right” process sophistication given the level of information needed
by the business to make effective resource-related decisions.

• Systems should be configured to align with the level of process maturity
and not encourage IT organizations to bite off more functionality than
they can chew.


Next Steps

1. Assess your own company’s level of existing
process maturity and see where it fits in the Maturity
Model.
2. Examine the business benefits at your company’s
maturity level.
3. If the additional process maturity business benefits
are important, perform a gap analysis and identify
what critical “dimensions” need to progress at your
level of maturity.
4. Communicate the findings to others in your
company and get buy-in to fix the gaps.
5. Lay out a roadmap of how your company should get
to the next level and work towards getting there.


More Information

Download the RMMM White Paper from www.instantis.com

Review the RMMM Webinar Recording

Join the Discussion on Linked-In (by Joining the “Enterprise PPM
Community” group)

Follow Instantis on Twitter for Updates (twitter.com/instantis)

Comment on RMMM posts on the Instantis Blog (info.instantis.com)


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