Assessing your Organisation’sProject Management Capability

from Theory to Practice

Harold AinsworthPROJECT MANAGERS NETWORKPROJECT MANAGERS NETWORKPROJECT MANAGERS NETWORKPROJECT MANAGERS NETWORK

Presentation Outline

1 The Capability Maturity Model (CMM) - software

2 Attempts at a PM Maturity Model based on CMM

3 Benefits of Project Management

4 Other Material on Best Practices in PM

5 Current PMI Research - OPM3

6 Building an interim Model

7 Future Scenarios

Why the level of interest in ProjectWhy the level of interest in ProjectWhy the level of interest in ProjectWhy the level of interest in ProjectManagement byManagement byManagement byManagement by organisations organisations organisations organisations? –? –? –? –

Projects are about accountabilityProjects are about accountabilityProjects are about accountabilityProjects are about accountability

“Project Management in the future will be“Project Management in the future will be“Project Management in the future will be“Project Management in the future will be

a multi-faceted disciplinea multi-faceted disciplinea multi-faceted disciplinea multi-faceted discipline

which which which which recognises recognises recognises recognises Project ManagersProject ManagersProject ManagersProject Managers

for the value they bringfor the value they bringfor the value they bringfor the value they bring

to the corporate bottom lineto the corporate bottom lineto the corporate bottom lineto the corporate bottom line

instead of a cost instead of a cost instead of a cost instead of a cost centre centre centre centre …”…”…”…”

Future of ProjectManagement

Linda Kretz, 20/20 Solutions quoted in “In Search of Excellence in Project Management”,by Harold Kerzner

The Capability MaturityModel for Software

Defect prevention, changing processesOptimising(continuous improvement)

Quantitative processesManaged(predictable process)

Process management, training, managementcoordination, peer reviews

Defined(standard and consistentprocess)

Requirements, planning, tracking,sub-contract management, quality assurance,configuration management

Repeatable(disciplined process)

None specifiedInitial(ad hoc, heroics)

Key Process for Each LevelLevel

From the CMM Technical Report, Software Engineering Institute, Carnegie Mellon University, USA

Operational Definition of theCapability Maturity Model (CMM)

Maturity Levels

Key Process Areas

Common Features

Key Practices

contain

Organised by

contain

From CMM Technical Report Software EngineeringInstitute, CMU www.sei.cmu.edu

Project ManagementMaturity Model – PM3 (1)

Databases. Cost – schedule integration.Integration across enterprise.

5. Adaptive

Models used. Historical experience used.Standard templates.

4. Managed

Planning is based on models. Improvedintegration and management of constraints.

3. Organised

First but haphazard efforts to introduce projectdisciplines. Schedule not derived from disciplinedplanning methodology.

2. Abbreviated

Each project viewed as unique and autonomous.1. Ad hoc

DescriptionLevel

From: R Remy, “Adding focus to improvement efforts with PM3”, PM Network, July, 1997

Project Management Maturity Model – PM3 (2)

Management and control of projects in a multiproject environment.

Project performancemanagement

Human factors and project culturalenvironment.

Leadership & management

CategoriesArea

From: R Remy, “Adding focus to improvement efforts with PM3”, PM Network, July, 1997

To assess maturity there are 8 areas and 51 sub categories

Examples of other areas are Problem-risk opportunity management,

multi project management, management information ….

Paradoxically, many companies that “live

or die” on the success of projects only

score a maturity level of 1 or 2.

Many of these organisations have been

successful because of extraordinary

individual efforts …. Finding their supply of

heroes diminished and past successes hard

to repeat, many are now striving to

systemise project management

Quote from Ron Remy of PM3

Value of Project Management

Research Results:

show that organisations who were moremature at project management, had bettercost performance index

ie Actual costs v’s planned cost

BUT Actual schedule v’s planned schedule

Not proven yet

from “The Benefits Of Project Management” C W Ibbs & Y H Kwak, PMI, 1997

Cost index

Overall PM Maturity rating

Line of Best fit

Best Practices ofProject Management

! Project management and the organisation

! Personnel related issues

! Costing and performance tracking

! Methods and procedures

From: "Best Practices of PM Groups in large functional organisations - Results ofthe Fortune 500 PM Benchmarking Study", F Toney & R Powers, PMI, 1997

Six Components of Excellence

! Integrated Processes

! Culture

! Management Support

! Training and Education

! Informal Project Management

! Behavioural Excellence

From: Harold Kerzner - "In Search of Excellence in Project Management"

Project ManagementCompetence

! Competent project professionals

! Project team competence

! Organisational projectcompetence- processes, culture- training, resources etc

From J D Frame, “Building Project Management Competence – 1999

by PMI

1st Wave - define PM maturity model

2nd Wave - assessment method

‘sister project’ - PM competency model

Organisational ProjectManagement MaturityModel Research (OPM3)

(www.pmI.org/opm3/)

OPM3 Research

" Will consider• Assessment of existing models

• Literature search/review

• Field survey of organisations

• Requirements for model design phase

" And attemptTo build a model which describes the collectionof capabilities and other qualities that combineto yield organisation project success.

OPM 3

PMI Conference ’98 – Open sessionidentified these capabilities to beconsidered:

• PM Methodologies and Processes

• Human Resource Factors

• Organisation Support Structure for Projects

• Alignment of Projects to Business Strategy

• Organisation Learning

Project ManagementCompetencies

PM ‘nuts &bolts’

PeopleManagement

‘make it happen’ Leadership &Client Mgt

• PMBOK

• Tools• Emotional Intelligence

• Team Building

• Persuasion

• Listening• Results driven

• Tolerates change and paradox

ProjectManagement

Competencies

A Project ManagementCapability Assessment Model

People & TeamDevelopment

ProjectManagementProcesses andSupport

OrganisationLearning

CorporateControls

PASTPASTPASTPAST

• ISO certification for organisations ISO certification for organisations ISO certification for organisations ISO certification for organisations

• CMM assessments for software companies CMM assessments for software companies CMM assessments for software companies CMM assessments for software companies

• PMP certification for individuals PMP certification for individuals PMP certification for individuals PMP certification for individuals

FUTUREFUTUREFUTUREFUTURE

• P M maturity assessments for organisations P M maturity assessments for organisations P M maturity assessments for organisations P M maturity assessments for organisations

Future scenariosFuture scenariosFuture scenariosFuture scenarios

will Project Management maturity will Project Management maturity will Project Management maturity will Project Management maturity assessment be worthwhile?assessment be worthwhile?assessment be worthwhile?assessment be worthwhile?

Depends on:Depends on:Depends on:Depends on:

• rigour of assessment rigour of assessment rigour of assessment rigour of assessment

• but allows for it to be implemented in but allows for it to be implemented in but allows for it to be implemented in but allows for it to be implemented in various waysvarious waysvarious waysvarious ways

• why organisations undertake assessment why organisations undertake assessment why organisations undertake assessment why organisations undertake assessment

A Question to considerA Question to considerA Question to considerA Question to consider