how to use P3M3 to assess project maturity

1. P3M3 introduction
maturity model for PRINCE2
Van Dam Orenda
product development consultants
Frank van Dam
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2. 1. Introductions
2. Maturity models; names and costs
3. Does it work (higher maturity = better performance?)
4. P3M3 examples
P3M3 intro
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3. 1. introductions
Van Dam Orenda
Product Development Consultants
P3M3 intro
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4. Van Dam Orenda:
 Product development consultants, working on:
 Creation (development tools and methods)
 Control (processes, project mgt, in- and external fit)
 People (team-work, roles, knowledge circulation)
 registered consulting organisation
 PRINCE2 ®, MSP ® and P3M3 ®.
 PRINCE2® is a Registered Trade Mark of the Cabinet Office
 MSP® is a Registered Trade Mark of the Cabinet Office
 P3M3® is a Registered Trade Mark of the Cabinet Office
 The Swirl logo™ is a Trade Mark of the Cabinet Office .
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5. Control
 Development projects that fit strategy
 Projects that are on-time and on-budget
 Stakeholders properly managed
 We can help you gain more control
 We assess and improve project management
capabilities
 We teach, coach, fix project teams
 We help match development processes to controls
 We help supply chains speak the same project-
management -language
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6. Orenda Clients , 18 yrs
Creation
10 x R&D process-improvement Maxi-Cosi, Power Packer,
20 x mechatronics Holec, Atag, Batavus, Philips
Healthcare, Koppert
Control
15x Positioning, portfolio Nedinsco, Kappa, Stork, BTG,
30 x clustering and financing Sara Lee/DE, Mecon, Netagco,
Accredited PRINCE2®, MSP® Norma, VDL- ETG, ECN/ NRG,
consultants ministries, KLM
People
30x team role analysis, courses VNO-NCW, EVD, KCE, ICM
10x culture analysis
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7. P3M3 intro
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8. Potato harvester
? changing market; new
strategy
? Which product would
fit?
 QFD and project mgt
 New standard in class
 Start modular familiy
 In record time (50%)
P3M3 intro
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9. Costprice reduction PMS
? Outsourcing under price
pressure
? Buyers and suppliers have
different goals
 Open communication
 Process-sketch of final
customer as translator for both
 Target Costing, Value-analysis
 Open calculation on the basis
of “live and let live”
 30% cost price reduction
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10. Frank van Dam
 Mechanical engineer
 Marketing and finance MBA
 Product developer
 Philips, Volvo, ten Cate
 Consulting company
 Van Dam Orenda
 Accredited Prince2 + MSP consulting organisation
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11. Some of our consultants
Frank van Dam Tonny Grimberg (Graham Bosman)
 ‘58, ir, MBA • ‘52, ing, ir  ‘50, MSc, MBA
 D&E, Volvo, ten • R&D, Philips,  programmes,
Cate Thales author P3M3
 Industry, RO, Infra  Industry, infra
• Industry, RO
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12. 2. Maturity Models
set-up and big names
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13. Maturity measured in 5 levels:
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P3M3 intro

14. Maturity models (and their use)
 General:
 EFQM / INK (x 103 per year)
 R&D&E  Projects:
 CMMi (x 103)  PWC-survey (x 102)
 Stage-Gate (x 102)  P3M3 (x 102)
 RACE (x 10)  OPM3 (none or a few)
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15. Competitors pricing; cost to clients
 Survey € 100 – 200
 Appraisal: € 15.000 – 20.000 from approved auditors
 appraisal: $ 5.000 - $ 10.000 for larger comp., academic
for smaller comp; reduced price
 Survey: $ 300-500, incl comparison
 Appraisal: $ 3.000 – 5.000 from approved consultant
 Survey: ???? Free ????
 Appraisal: $ 12.500 from approved consultant
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16. P3M3 = maturity model
for PRINCE2, MSP, MoP etc.
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17. P3M3 in 3 versions
1. Introduction
 1 piece of paper / matrix
 To start discussion
2. Traditional, consultant led
 Questionnaires, multiple entry or single entry
 Based on paper version, also on-line version
 Measures current practice
3. APMG Index
 Online questionnaires, current and required levels
 Automatic comparison and report generation
P3M3 intro
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18. 1. P3M3 introduction
Organisational
Organizational complexity
A B C
At what level complexity
No of people
<6 7 – 50 50+
involved
should we No of
departments
1 or 2 3 to 5 5+
Psychological Limited Great
operate? distances
Type of teams
Alll 1 group
Loosely
differences
1 or a few
differences
Hierarchy
Indication based on BRACE connected real teams of teams
Choose
A, B or C A B C
no of
Product /
disciplines / How big a
process choice
knowledge change?
composition
areas
Mono,
1 part or step
1 main + few
minor/ sub
Few changes X 1 2
Simple grouping
/ assembly
Few main, more
minor / sub
Gradual change Y 2 3 4
Family, large
grouping / assy
More main,
many sub
Radical
renewal Z 4 5
Product / process complexity
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19. 2. P3M3 traditional
short input
P2 vragen maturity uit P3M3 MPM (input Marcel)
level 1 org lowest level is combined level, use judgement!
yes sometimes not always never comment
1.01 distinguish line from project x
1.02 does mgt review regularly? x
1 project overall / weighed average is combined score
yes sometimes not always never comment
2.01 are project objectives agreed x Soms wordt het ook wel opgelegd vanuit het management of de
klant
2.02 changes identified and communicated x
2.03 outline plan for key activities x bij een groot project en kostbaar project wel. Als de klant er
specifiek om vraagt ook.
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20. 2. P3M3 traditional
short output
Samenvatting scores P3M3 Norma IMS
level 1 organisation not (always)
lot of times yes lot ofnot (always)
yes times
level 1 project
distinguish line from project are project objectives agreed
does mgt review regularly? changes identified and communicated
outline plan for key activities
level 2 organisation not (always)
lot of times yes lot ofnot (always)
yes times
level 2 project
resource allocation supported by sr mgt? objectives + benefits defined and understood?
approved by sr mgt before start? key roles in place?
does sr mgt monitor benefits, cost, risks? clear definition of scope?
scope broken into PBS / PFD?
team aware of approach?
is there a project plan covering time,resources
key stakeholders identified and managed
external supliers managed effectively?
changes controlled, how?
performance for time, cost, quality monitored
major risks identified
quality controls in place
BC as rationale for approval?
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21. 2. P3M3 traditional
long input
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22. 2. P3M3 traditional
long output
Level Description Management Control Average
1 Programme management terminology may be used but not consistently. The Yes Always
general approach will be focused on project rather than programme level.
Some general understanding exists of the concepts of programme Yes Always
2 management and its control mechanisms but adoption is localized.
There is a centrally defined and documented approach to a programme Yes
3 management life cycle and controls, and it is applied in all programmes by
capable staff that support programme teams. Sometimes
Programme management is seen as a key tool for the delivery of strategic Occasionally
4 objectives. Within the programme environment the focus is on improvement
of delivery through measurement and analysis of performance.
5 Management controls ensure that the programme approach delivers the Occasionally
strategic aims and objectives of the organization.
Acceptance of programme management as the optimal approach to strategic
delivery is organization-wide.
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23. Determine the current P3M3 maturity scores using
Current Practice Levels
the 7 perspectives
Complexity Characterise client projects to understand the
unique challenges of the organization
The system determines the maturity profile that
Right Practice Levels results in the highest likelihood of success given
the complexity profile
The system will generate a report which includes the
Report generation analysis of current practice versus right practice
and areas for improvement
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24. 3. P3M3 index
input 1
P3M3 intro
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25. 3. P3M3 index
input 2
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26. 3. P3M3 index
output reports
Current Prac ce versus Right Prac ce
5
PjM3 Project Management Maturity Level
4
• Complexity scores and profile
•
3
Current practice versus Right
Practice for: 2
Current Prac ce
• 7 perspectives 1
Right Prac ce
• 6 generic attributes
0
• Recommended areas for
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Detailed descriptions of Right
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Management Control
5
Scru ny and Review Benefits Management
Practice controls Informa on and Documenta on
4
3 Financial Management
2
1
Planning and Es ma ng Process Stakeholder Engagement
0
Capability Development Risk Management
Experience in Project Management Organiza onal Governance
Roles and Responsibili es Resource Management
Current Prac ce Right Prac ce
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27. P3M3 costs
per use (once); excl application license
type Tool costs (€ k) man costs (€ k)
 Self-assessment:  0  0
 Paper P3M3  0  10 - 15
 P3M3 + complexity  1  10 – 15
 P3M3 + complexity  5  15 – 20
+ Right Practice
 verification  5 - 10  5 - 10
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28. 3. Does it work?
(higher maturity = better performance?)
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29. YES, it works:
Research has shown that higher maturity
results in better performance
At level 1 and 2 there are a large
number of organisations with
low project performance
and a small number with high
project performance.
At levels 4 and 5 the opposite is
true.
Global survey of 200 organisations
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30. Performance = f (maturity)
development-projects
P3M3 intro Performance van PPP
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31. 4. P3M3 examples
By Van Dam Orenda
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32. VDL- ETG
1600 p; 4 plants,
Part of very large group
Precision manufacturing
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33. 33
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35. 35
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36. ETG benchmark scores:
from 1+ to 3-
 From individual styles + “bleeder”projects
 And accompanying score of 1+
To
 Consistent approach to projects
 And clear budgets, customer agreement in seconds!
 But not company-wide yet, hence 3-
P3M3 intro
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37. Norma
4 companies, 500 p.
Ultra high precision manufacturing
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38. Heroic efforts,
inspired by challenge!
‘06
p. 38
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39. Well begun
better done,
inspired by challenge!
‘07
p. 39
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40. P3M3 intro
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41. How can we help you to
improve project maturity?
Van Dam Orenda
product development consultants
PB 62
7620 AB BORNE, NETHERLANDS
+31-74 - 250.9155
www.orenda.nl
Frank van Dam
vandam@orenda.nl
nurturing creation
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42. Additional screenshots
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44. P3M3 intro
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45. P3M3 intro
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47. P3M3 intro
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