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Future Maturity (P3M3) or Five Generation Workplace - RSM UK, Andy Murray | FuturePMO 2019

A survey by the Project Management Institute (PMI) showed a correlation between the maturity of PMOs and an organisation’s project/programme performance. PMOs are therefore centre stage in helping organisations improve their capability and ultimately the success of their projects and programmes.  So, how can PMOs use capability maturity models, such as P3M3®, as a means to identify, prioritise and drive performance improvements? In this session, RSM’s Head of Projects and Programmes practice, Andy Murray, explains how. Andy has been involved in the design/development of P3M3® and has been delivering P3M3® related services since 2007, since when his team have completed over 250 maturity assessments for public sector, private sector and charity sector organisations. Andy Murray presented at FuturePMO 2019 which is a 1 day PMO conference hosted by Wellingtone. www.FuturePMO.com

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PAGE 1
REF: 1547-33-001 / 4v0
NO MARKING REQUIRED
Material in this document has been sourced from P3M3® . Copyright © RSM UK Consulting LLP and AXELOS Limited 2015. All rights reserved
Based on AXELOS P3M3® material. Material is reproduced under licence from AXELOS
No part of this document may be reproduced in any form without the written permission of both the RSM UK Consulting LLP and AXELOS Limited.
Permission can be requested at andy.murray@rsmuk.com and from AXELOS at licensing@AXELOS.com .
USING P3M3 TO HONE YOUR PMO
PAGE 2
REF: 1547-33-001 / 4v0
NO MARKING REQUIRED
How can PMOs use capability
maturity models, such as
P3M3®, to prioritise and drive
performance improvements?
PAGE 3
REF: 1547-33-001 / 4v0
NO MARKING REQUIRED
A brief history of maturity models
In response to reviews of high profile US Department of Defense project
failures, quality guru Phil Crosby demonstrated that the quality of project
outputs are directly related to the quality of the processes used to create
them
The first Maturity Model was developed by Carnegie Mellon University in the
1980’s and was used by US Government to assess quality of processes of
software suppliers to enable a prediction of output quality
There was no straight “yes/no” answer
Suppliers exhibited different characteristics as they became more capable at
quality management – 5 levels
PAGE 4
REF: 1547-33-001 / 4v0
NO MARKING REQUIRED
A brief history of maturity models
There are now hundreds of maturity models across numerous management
disciplines based on the core Carnegie Melon University concept of 5 maturity
levels. For example:
CMMI’s Data Management Maturity Model
AXELOS’ ITIL Maturity Model
Gartner's Logistics Maturity Model
Change Management Institute’s Organisational Change Maturity Model
The hierarchical nature of maturity models provides framework for benchmarking
capability, diagnosing root-causes, identifying performance inhibitors and
prioritizing improvement initiatives
PAGE 5
REF: 1547-33-001 / 4v0
NO MARKING REQUIRED
Maturity models generally have 5 Levels
Level 1 – Aware
Level 2 – Repeatable
Level 3 – Consistent
Level 4 – Managed
Level 5 – Optimising
(Quantified)
(Embedded)
(Process discipline)
(Chaotic, Ad Hoc, Heroic)
(Process Improvement)
PAGE 6
REF: 1547-33-001 / 4v0
NO MARKING REQUIRED
Maturity models generally have 5 Levels
Certainty
Cost/Time
Target
Distribution of project outcomes
Level 1 – Aware
(Chaotic, Ad Hoc, Heroic)
The starting point for use
of a new process
Based on material by Carnegie Mellon University

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Future Maturity (P3M3) or Five Generation Workplace - RSM UK, Andy Murray | FuturePMO 2019

  • 1. PAGE 1 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Material in this document has been sourced from P3M3® . Copyright © RSM UK Consulting LLP and AXELOS Limited 2015. All rights reserved Based on AXELOS P3M3® material. Material is reproduced under licence from AXELOS No part of this document may be reproduced in any form without the written permission of both the RSM UK Consulting LLP and AXELOS Limited. Permission can be requested at andy.murray@rsmuk.com and from AXELOS at licensing@AXELOS.com . USING P3M3 TO HONE YOUR PMO
  • 2. PAGE 2 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED How can PMOs use capability maturity models, such as P3M3®, to prioritise and drive performance improvements?
  • 3. PAGE 3 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED A brief history of maturity models In response to reviews of high profile US Department of Defense project failures, quality guru Phil Crosby demonstrated that the quality of project outputs are directly related to the quality of the processes used to create them The first Maturity Model was developed by Carnegie Mellon University in the 1980’s and was used by US Government to assess quality of processes of software suppliers to enable a prediction of output quality There was no straight “yes/no” answer Suppliers exhibited different characteristics as they became more capable at quality management – 5 levels
  • 4. PAGE 4 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED A brief history of maturity models There are now hundreds of maturity models across numerous management disciplines based on the core Carnegie Melon University concept of 5 maturity levels. For example: CMMI’s Data Management Maturity Model AXELOS’ ITIL Maturity Model Gartner's Logistics Maturity Model Change Management Institute’s Organisational Change Maturity Model The hierarchical nature of maturity models provides framework for benchmarking capability, diagnosing root-causes, identifying performance inhibitors and prioritizing improvement initiatives
  • 5. PAGE 5 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Maturity models generally have 5 Levels Level 1 – Aware Level 2 – Repeatable Level 3 – Consistent Level 4 – Managed Level 5 – Optimising (Quantified) (Embedded) (Process discipline) (Chaotic, Ad Hoc, Heroic) (Process Improvement)
  • 6. PAGE 6 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Maturity models generally have 5 Levels Certainty Cost/Time Target Distribution of project outcomes Level 1 – Aware (Chaotic, Ad Hoc, Heroic) The starting point for use of a new process Based on material by Carnegie Mellon University
  • 7. PAGE 7 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Maturity models generally have 5 Levels Certainty Cost/Time Target Level 2 – Repeatable (Process discipline) The process is used repeatedly Based on material by Carnegie Mellon University
  • 8. PAGE 8 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Maturity models generally have 5 Levels Target Certainty Cost/Time Level 3 – Defined (Embedded, Consistent) The process is defined/confirmed as a standard business process. Based on material by Carnegie Mellon University
  • 9. PAGE 9 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Maturity models generally have 5 Levels Certainty Cost/Time Target Level 4 – Managed (Quantified) Process management and measurement takes place Based on material by Carnegie Mellon University
  • 10. PAGE 10 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Maturity models generally have 5 Levels Certainty Cost/Time Target Level 5 – Optimising (Process Improvement) Deliberate optimisation/improvement Based on material by Carnegie Mellon University
  • 11. PAGE 11 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Value of increased maturity Typical Improved schedule and budget predictability Increased productivity Improved quality (as measured by defects) Increased customer satisfaction Improved employee morale Decreased cost of quality Reduced learning curves Less re-work Less duplication Examples Telco saved £16m p.a. attributable to maturity increase Telco reduced time to market from 400 days to 180 days IT company saved £2m p.a. in reparation costs London Underground claimed savings of £422m over 3 years when moving from level 1 to level 3
  • 12. PAGE 12 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED The value of increasing maturity Source: PMI 44% 70% With Project Management Maturity Initiative In Place 45% 72% 46% 72% No Project Management Maturity Initiative In Place No Programme Management Maturity Initiative In Place No Portfolio Management Maturity Initiative In Place With Programme Management Maturity Initiative In Place With Portfolio Management Maturity Initiative In Place % of Successful Strategic Initiatives
  • 13. PAGE 13 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED What is P3M3? “Portfolio, Programme and Project Management Maturity Model” Describes key attributes that organizations are expected to exhibit at five increasing levels of maturity Breaks down the complexity of project, programme and portfolio management to enable capability to be benchmarked and improvement plans to be formulated It helps accelerate capability development and helps avoiding wasteful initiatives P3M3 is not built around a particular body of knowledge or discipline, but has been specifically designed to be independent. Regardless of whether you are committed to an approach (such as PMBOK® or PRINCE2®) or a national professional body
  • 14. PAGE 14 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED P3M3 has 6 primary uses Base-lining current capability (for later comparison) Benchmarking capability against other organisations (possibly to harvest best practice from a community) Discovering capabilities to determine which areas to concentrate on Diagnosing systemic weaknesses to eliminate route-causes and non-conforming costs Prioritising improvement initiatives (based on any of the above) Certifying capability through independent assessment
  • 15. PAGE 15 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Using P3M3 © Copyright RSM UK An assessment (step 2) can take 1-6 weeks to complete depending on the scope of the assessment and the complexity of the organisation being assessed.
  • 16. PAGE 16 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED P3M3 Model Structure P3M3 Model Project Management Sub-Model Programme Management Sub-Model Portfolio Management Sub-Model Levels The maturity level of an organisation provides a way to characterise its performance Perspectives P3M3 focuses on 7 perspectives which group together one or more project, programme or portfolio disciplines Threads Threads are ways of grouping attributes. There 13 threads that are common to all perspectives
  • 17. PAGE 17 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED P3M3 sub-model structure Certification Statement (what the Assessor rates) Diagnostic Attribute 1 Diagnostic Attribute 2 … Diagnostic Attribute n (qualifies the certification statement and provides detailed diagnostic capability)
  • 18. PAGE 18 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Example result (perspectives) Perspectives Level 1 Level 2 Level 3 Level 4 Level 5 Assessment Score Certification Score Rank Benefits Management 1.59 0 5 Finance Management 2.77 2 1 Management Control 1.73 1 3 Organisational Governance 1.64 0 4 Resource Management 2.27 2 2 Risk Management 1.18 0 6 Stakeholder Management 0.59 0 7 Overall Scores 1.68 0
  • 19. PAGE 19 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Example result (finance perspective)
  • 20. PAGE 20 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Example result (heatmap) Benefits Management Finance Management Management Control Organisational Governance Resource Management Risk Management Stakeholder Management Asset Management Assurance Behaviours Commercial-Commissioner Information & Knowledge Management Infrastructure & Tools Organisation Planning Process Standards Techniques
  • 21. PAGE 21 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED So how can PMOs help raise maturity? 1.Performance monitoring Monitor and review Reporting 1.Portfolio build, prioritisation, analysis and reporting Quality assurance Secretariat Programme and project setup and closure Stakeholder engagement and communication Planning and estimating Capacity planning, demand and resource management Benefits management Risk management Issue management Change control Finance Commercial Information management Transition management Standards and methods Internal consultancy Organisational learning and knowledge management People and skills
  • 22. PAGE 22 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Conclusion The Portfolio, Programme and Project Management Maturity Model (P3M3) breaks down the broad disciplines of portfolio, programme and project management into a hierarchy of perspectives. The hierarchical approach enables organizations to – assess their current capability – plot a roadmap for improvement prioritised by those perspectives which will make the biggest impact on performance – Check progress of improvement initiatives There is a clear link between capability and performance There is also a clear link between PMOs and capability PMOs play a vital role in securing Level 3 maturity and enabling the journey to Level 5 How your PMO helps enable or drive capability improvements depends on your remit (scope and role)
  • 23. PAGE 23 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED Material in this document has been sourced from P3M3® . Copyright © RSM UK Consulting LLP and AXELOS Limited 2015. All rights reserved Based on AXELOS P3M3® material. Material is reproduced under licence from AXELOS No part of this document may be reproduced in any form without the written permission of both the RSM UK Consulting LLP and AXELOS Limited. Permission can be requested at andy.murray@rsmuk.com and from AXELOS at licensing@AXELOS.com . ANY QUESTIONS?
  • 24. PAGE 24 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED http://www.rsmuk.com/ https://www.linkedin.com/company/rsm-uk https://twitter.com/RSMUK We help organisations become more capable of delivering their bids, projects, programmes and portfolios effectively and efficiently. We help raise confidence among senior executives, stakeholders, regulators and shareholders that the time and effort invested will yield the desired results. Where needed we also provide advice and assistance in implementing the changes which are necessary to gain the capability you seek. Contact Us +44 (0) 7776 301602 andy.murray@rsmuk.com Partner +44 (0) 7796 274640 nigel.bennett@rsmuk.com. Nigel Bennett Consulting Director Andy Murray
  • 25. PAGE 25 REF: 1547-33-001 / 4v0 NO MARKING REQUIRED About RSM The UK group of companies and LLPs trading as RSM is a member of the RSM network. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm each of which practises in its own right. The RSM network is not itself a separate legal entity of any description in any jurisdiction. The RSM network is administered by RSM International Limited, a company registered in England and Wales (company number 4040598) whose registered office is at 50 Cannon Street, London EC4N 6JJ. The brand and trademark RSM and other intellectual property rights used by members of the network are owned by RSM International Association, an association governed by article 60 et seq of the Civil Code of Switzerland whose seat is in Zug. RSM Corporate Finance LLP, RSM Restructuring Advisory LLP, RSM Risk Assurance Services LLP, RSM Tax and Advisory Services LLP, RSM UK Audit LLP, RSM UK Consulting LLP, RSM Employer Services Limited, RSM Northern Ireland (UK) Limited and RSM UK Tax and Accounting Limited are not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. RSM Legal LLP is authorised and regulated by the Solicitors Regulation Authority, reference number 626317, to undertake reserved and non-reserved legal activities. It is not authorised under the Financial Services and Markets Act 2000 but is able in certain circumstances to offer a limited range of investment services because it is authorised and regulated by the Solicitors Regulation Authority and may provide investment services if they are an incidental part of the professional services that it has been engaged to provide. Baker Tilly Creditor Services LLP is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities. RSM & Co (UK) Limited is authorised and regulated by the Financial Conduct Authority to conduct a range of investment business activities. Whilst every effort has been made to ensure accuracy, information contained in this communication may not be comprehensive and recipients should not act upon it without seeking professional advice. © 2017 RSM UK Group LLP, all rights reserved

Editor's Notes

  1. Processes are not usually documented. There are no, or only a few, process descriptions. They will generally be acknowledged, in that managers may have some recognition of the necessary activities, but their actual practice is determined by events or individual preferences, and is highly subjective and variable. Processes are therefore undeveloped, although there may be a general commitment to process development in the future. Undeveloped or incomplete processes mean that the necessary activities for better practice are either not performed at all or are only partially performed. There will be little, if any, guidance or supporting documentation and even terminology may not be standardized across the organization (e.g. business case, risk, issues etc. may not be interpreted in the same way by all managers and team members).  Top management should be aware of the need to use a process‐based approach to P3M and have committed to improving it, but may lack sufficient engagement. Level 1 organizations may have achieved a number of successful initiatives, but these are often based on key individuals’ competencies rather than organization‐wide knowledge and capability. In addition, such ‘successes’ are often achieved with budget and/or schedule overruns and, due to the lack of formality, Level 1 organizations often over‐commit themselves, abandon processes during a crisis, and are unable to repeat past successes consistently. There is very little planning and executive buy‐in, and process acceptance is limited.
  2. Top management will be taking the lead on a number of the initiatives but there may be inconsistency in the levels of engagement and performance. The organization will be able to demonstrate, by reference to particular programmes or projects, that basic management practices have been established (e.g. tracking expenditure and scheduling resources) and that processes are developing. There are key individuals who can demonstrate a successful track record and, through them, the organization is capable of repeating earlier successes on similar programmes and projects in the future. Process discipline is unlikely to be rigorous, but where it does exist, programmes and projects are performed and managed according to their documented plans. Project status and delivery will be visible to management at defined points, such as on reaching major milestones. Level 2 is also achieved if the organization has defined the approach but it hasn’t yet been universally deployed or adopted, so it is on the way to level 3. There is still a significant risk of exceeding cost and time estimates. Key factors that may have preconditioned the organization to experience difficulties or failure include: Inadequate measures of success  Unclear responsibilities for achievement Ambiguity and inconsistency in business objectives Lack of a fully integrated risk management process Limited experience in change management Inadequacies in communications strategy.
  3. The management and technical processes necessary to achieve the organizational purpose will be documented, standardized and integrated to some extent with other business processes. There is likely to be process ownership and an established process group with responsibility for maintaining consistency and process improvements across the organization. Such improvements will be planned and controlled, perhaps based on assessments, with planned development and suitable resources being committed to ensure that they are coordinated across the organization. Top management are engaged consistently and provide active and informed support. A key distinction between Levels 2 and 3 is the scope of standards, process descriptions and procedures (i.e. stated purposes, inputs, activities, roles, verification steps, outputs and acceptance criteria). These standard processes can be tailored within programmes and projects to suit specific circumstances, but these will be in accordance with tailoring guidelines. There will be universally adopted common approach in place. There is likely to be an established training and development programme to develop the skills and knowledge of individuals so they can more readily perform their designated roles. A key aspect of quality management will be the widespread use of peer reviews of identified products, to better understand how processes can be improved and thereby eliminate possible weaknesses.
  4. Level 4 is characterized by behaviour and processes that are quantitatively managed (i.e. controlled using metrics and quantitative techniques). There will be evidence of quantitative objectives for quality and process performance, and these will be used as criteria in managing processes. The measurement data collected will contribute towards the organization’s overall performance measurement framework and will be imperative in analysing the portfolio and ascertaining the current capacity and capability constraints. Top management will be committed, engaged and proactively seeking innovative ways to achieve goals. Using process metrics, management can effectively control processes and identify ways to adjust and adapt them to particular projects without loss of quality. Organizations will also benefit through improved predictability of process performance.
  5. The organization will focus on optimization of its quantitatively managed processes to take into account predicted business needs and external factors. It will anticipate future capacity demands and capability requirements to meet delivery challenges (e.g. through portfolio analysis). Top managers are seen as exemplars, reinforcing the need and potential for capability and performance improvement. It will be a learning organization, propagating into other programmes and projects the lessons learned from past reviews. The organization’s ability to rapidly respond to changes and opportunities will be enhanced by identifying ways to accelerate and share learning. The organization will be able to show that continuous process improvement is being enabled by quantitative feedback from its embedded processes and from validating innovative ideas and technologies. There will be a robust framework addressing issues of performance management. The organization will be able to demonstrate strong alignment of organizational objectives with business plans, and this will be cascaded down through scoping, sponsorship, commitment, planning, resource allocation, risk management and benefits realization.
  6. As the rate of change accelerates, organizations continually strive to identify and leverage competitive and performance advantage from improved efficiency and delivery. Best practice continues to evolve as the understanding of what makes organizations perform well grows.   In many sectors, management models have grown in importance to become the foundation for assessing organizational capability and identifying opportunities for improvement. P3M3® (Portfolio, Programme and Project Management Maturity Model) was one of the earliest maturity models in the portfolio, programme and project management (P3M) sector. It was first released in 2005 and is now in its third iteration. P3M3 is not built around a particular body of knowledge or discipline, but has been specifically designed to be independent. Regardless of whether you are committed to an approach (such as PMBOK® or PRINCE2®) or a national professional body (such as the Project Management Institute, the International Project Management Institute, the UK Association of Project Management or the Australian Institute of Project Management), P3M3 will be of value to you.
  7. A key benefit of using P3M3 is that it provides a publicly available set of independent benchmarks. These are not proprietary or exclusive and may be used by all organizations irrespective of their methodology.   The general benefits that can be gained from using P3M3 include:   Helping organizations to decide what maturity level they need to achieve to meet their business needs Creating a reliable P3M (portfolio, programme and project management) capability baseline against which improvements in P3M capability performance can be objectively measured Focusing investment on those aspects of P3M that will yield the best improvements for the specific organizational context Recognizing achievements from previous investment in capability improvement Comparing the organization against accepted maturity levels that can be certified Enabling comparison of capabilities between organizations Assuring quality through the use of accredited consulting partners (ACPs) Providing plans for continual progression Focusing on the organization’s maturity, not specific initiatives (you can run good programmes and projects without having high levels of maturity – but not consistently) Providing an objective assessment of strengths and weaknesses Justifying investment in P3M infrastructure Providing accreditation of an organization’s maturity Demonstrating service quality to support proposals to prospective clients Reducing costs and increasing benefits delivery in P3M.