Instantis RMMM

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Instantis RMMM

  1. 1. Resource ManagementMaturity Model™ -- RMMM --COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  2. 2. Resource Management Maturity Model™ WebinarWayne Prasad Raje AgendaCaccamo • 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 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  3. 3. Business Drivers So, why do we need another maturity model?Fills a void Large AudiencePPM maturity models exist Everybody’s doing resourceat a higher level, but there management at some level ofis no guidance exclusively complexity.focused on ResourceManagement.Strong Value Help NeededProposition RM initiative failures are largelyGetting resource the result of over- or under-management “just right’ is investing in process complexitycritical to IT and business and tools relative to resourcesuccess. info needs. COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  4. 4. Business Drivers (cont.)In practical terms, the RMMM better positions the IT or PMOorganization 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? COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  5. 5. 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-constrainedProcess Maturity Technology environments better align resource-related information needs with their level of PPM process and technology maturity. COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  6. 6. 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. COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  7. 7. Benefits to PractitionersTARGET 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. COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  8. 8. Maturity Model Development ProcessVersion 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 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  9. 9. RMMM Levels Defined Level 1 Level 2 Level 3 Level 4 Level 5 WORK CONTROLLED GOVERNED SCHEDULE-DRIVEN GRANULAR VISIBILITY ASSIGNMENT CAPACITY AVAILABILITY MANAGEMENTOrganizations A formal The focus shifts The resource Full task-levelhave visibility to resource to capacity assignment projectwho is working assignment management approval and scheduleon what. approval and the capacity details areHowever, process is introduction of management used to driveresources are introduced. project priority processes are the resourceassigned to However, considerations driven by assignmentwork without approvals are requiring more project and capacityany control or informed only by structured schedules at managementoversight. resource governance. the phase processes. availability. level. COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  10. 10. RMMM Dimensions Level 1 Level 2 Level 3 Level 4 Level 5 WORK CONTROLLED GOVERNED SCHEDULE-DRIVEN GRANULAR VISIBILITY ASSIGNMENT CAPACITY AVAILABILITY MANAGEMENTASSIGNMENTGRANULARITY 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 prioritiesGOVERNANCE The body (if any) that oversees PPM/RM processes and decision-making BUSINESS VALUE Business benefit at this level of maturity COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  11. 11. Assignment Granularity Dimension Resources are assigned a Level 1/2 fixed/constant utilizationResource percentage for the durationUtilization of the project(%) Level 3 Resource utilization canResource vary within duration of aUtilization project(%) Level 4 Resource utilization canResource vary by project phaseUtilization (driven by project WBS)(%) Resource utilization can Level 5 vary by individual projectResource activity (driven by projectUtilization WBS)(%) S COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY. E
  12. 12. RMMMSummary Matrix COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  13. 13. 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 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  14. 14. Key TerminologyResource capacityThe total time for a given resource that is intended to be managedin hours or % of FTE (can exclude non-project work capacity)Resource utilizationThe sum total of a resource’s assignment to project work for a givenduration in hours or % FTE.Resource availabilityThe difference between capacity and utilization for a given duration.Resource demandThe incremental potential work assignment for a given duration for aresource driven from proposed projects or incremental workrequests associated with on-going projects.ActivityThe generic name for any level of project work identified in a projectwork breakdown schedule (WBS).Resource Approval Workflow (RAW)The process by which a resource is assigned to work for a givenduration (parameters, routing, decision criteria, etc.) COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  15. 15. Level 1: Work VisibilityDimension DefinitionAssignment Simple, complete project list; Constant (average) % utilization by resourceGranularityProject Roles Only project managers and all others as team membersResource Cost Plan: Aggregate resource costs by project; Actual: TimesheetsResource Approval No approval processCapacity Planning No capacity planningGovernance No governanceBusiness Value Who is working on what; Resource over-use is visible COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  16. 16. Level 1 Resource GrabPM1 -- Project1PM2 -- Project2PM3 -- Project3PM4 -- Project4 Resources COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  17. 17. 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 3ResourceUtilization 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%ResourceUtilization 50%(%) 25% S1 S2 E1 S3 E2 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY. E3 time
  18. 18. Level 1 to Level 2When to make the transition: • Need to proactively manage resource utilization • Need better balanced utilization • Avoid project resource risks 1 2 3 4 5Key Dimension change • RAW process COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  19. 19. Level 2 Introduces Resource Approval WorkflowPM1 -- Project1PM2 -- Project2PM3 -- Project3PM4 -- Project4 R A W Resources COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  20. 20. Level 2: Controlled AssignmentDimension DefinitionAssignment Simple, complete project list; Constant (average) % utilization per resourceGranularityProject Roles Specific project roles; Roles define approvals; Cost rates; target % utilizationResource Cost Plan: aggregate resource costs by project and role; Actual: timesheetsResource RAW process defined; Considers availability in approvalsApprovalCapacity Individual and aggregate resource capacity is visible, managed, balancedPlanningGovernance No governance structure to resolve relative project prioritiesBusiness Value Resource utilization is balanced; Resource gaps vs. demand is clearly visible COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  21. 21. Assignment, RAW, Utilization (Level 2) Demand for Resource A 100% 75% Project 3ResourceUtilization 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%ResourceUtilization 50%(%) 25% S1 S2 E1 E2 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY. time
  22. 22. Level 2 to Level 3When to make the transition: • 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 resourcesKey Dimension change • Governance COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  23. 23. Level 3 introduces a Governance Structure GovernancePM1 -- Project1PM2 -- Project2PM3 -- Project3 CANCELPM4 -- Project4 R A W Resources COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  24. 24. Prioritization drives Approval at Level 3 Demand for Resource A 100% Here we are at the 75% original Level 1 / 2Resource Project 3 granularity of resourceUtilization 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%ResourceUtilization 50%(%) 25% S1 S2 E1 S3 E2 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY. E3 time
  25. 25. Prioritization drives Approval at Level 3 Demand for Resource A 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 resourceResource Approve Project 3Utilization 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 hasResourceUtilization 50% prioritized highest(%) 25% S1 S2 E1 S3 E2 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY. E3 time
  26. 26. Level 3: Governed CapacityDimension DefinitionAssignment Allow non-constant allocations on projectsGranularityProject Roles Level 2 + RAW process considers roles, skills, poolsResource Cost Level 2 + “plan vs. actual” compared and managedResource Approval Level 2 + considers project priority in making approvals Capacity directed at higher priority projects; Ability to re-direct capacityCapacity Planning as priorities change; What-if modeling under various scenarios Steering committee manages demand (intake) prioritization andGovernance makes in-flight decisions on project hold, slip, cancel Reduces strategy execution riskBusiness Value Dynamic ability to react to changing business conditions COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  27. 27. Level 3: The RMMM Sweet Spot For many companies Level 3 offers the best alignment and balance of: • Need for information detail and accuracy1 2 3 4 5 • Process maturity • Required technology sophistication • Business benefit COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  28. 28. Level 3 to Level 4When to make the transition: • 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 detailKey Dimension change • Assignment Granularity COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  29. 29. Level 4 introduces Phase Level Resource Demand GovernancePM1 -- Project1PM2 -- Project2PM3 -- Project3PM4 -- Project4 R A W Resources COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  30. 30. Level 4 Resource Granularity Concepts Demand for Resource A 100% Here we are at Level 1,2 75% granularity of demand info Project 3 with Level 3 capability toResource 50% cancel or shift projectsUtilization(%) 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%ResourceUtilization 50%(%) 25% S1 S2 E1 S3 E2 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY. E3 time
  31. 31. Level 4 Resource Granularity Concepts Demand for Resource A 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 toResource w/out canceling project cancel or shift projectsUtilization 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%ResourceUtilization 50%(%) 25% 25% S S1 S’ S2 E E1 S” S3 E2 E’ COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY. E” E3 time time
  32. 32. Level 4: Schedule Driven AvailabilityDimension DefinitionAssignment Resources utilization measured from phase-level assignmentsGranularity (phase dates MUST be accurate, up-to-date; NOTE data explosion)Project Roles Level 3Resource Cost Level 3 + phase level resource costsResource Level 3 + phase-level approvalsApprovalCapacity Level 3 + project phases held/slipped to manage capacityPlanning 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 byValue eliminating false-positives on resource over-utilization COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  33. 33. Level 5: Granular ManagementDimension DefinitionAssignment Resources utilization measured from task-level assignmentsGranularity (task dates MUST be accurate, up-to-date; NOTE data explosion)Project Roles Level 4 + RACIResource Cost Level 4 + task level resource costsResource Level 4 + task-level resource approvalsApprovalCapacity Level 4 + project tasks held/slipped to manage capacityPlanning Level 4 + Steering Committee decisions may be different based on task-levelGovernance information. Potential for improper decisions based on unreliable data.Business Finer control over resources, may enable more projects to be taken on byValue eliminating false-positives on resource over-utilization COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  34. 34. WBS-driven RM ComplexityLevel 4/5 WBS-driven RMputs the burden on projectmanagers 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 dependentcapacity planning and governance processes will be driven from a mass of unreliableunderlying information. COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  35. 35. 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 COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  36. 36. 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. COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  37. 37. Next Steps1. 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. COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.
  38. 38. More InformationDownload the RMMM White Paper from www.instantis.comReview the RMMM Webinar RecordingJoin the Discussion on Linked-In (by Joining the “Enterprise PPMCommunity” group)Follow Instantis on Twitter for Updates (twitter.com/instantis)Comment on RMMM posts on the Instantis Blog (info.instantis.com) COPYRIGHT INSTANTIS INC. – ALL RIGHTS RESERVED. DO NOT DISTRIBUTE OUTSIDE YOUR COMPANY.

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