Instantis RMMM

Resource

Management Maturity Model™

-- RMMM --

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Agenda

• RMMM Business Drivers

• What is the RMMM?

� Objective

� Structure

� Benefits

• Development Process

• RMMM Overview

� RMMM at Glance

� RMMM Levels

� RMMM Dimensions

� Terminology

• RMMM Drill-Down

• Conclusions

• Next Steps & Q&A

Wayne

Caccamo

PrasadRaje

Resource Management Maturity Model™ Webinar


Business DriversSo, why do we need another maturity model?

Help NeededRM initiative failures are largely the result of over- or under-investing in process complexity and tools relative to resource info needs.

Fills a voidPPM maturity models exist at a higher level, but there is no guidance exclusively focused on Resource Management.

Large AudienceEverybody’s doing resource management at some level of complexity.

Strong Value PropositionGetting resource management “just right’ is critical to IT and business success.


Business Drivers (cont.)

� “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?

In practical terms, the RMMM better positions the IT or PMO

organization to be able to answer nagging questions like:


What is the RMMM?

The Resource Management Maturity

Model™ (RMMM) enables organizations to

define and execute an effective resource

management strategy.

It accomplishes this by helping

stakeholders in resource-constrained

environments better align resource-related

information needs with their level of PPM

process and technology maturity.

Optimized

ResourceDeployment

Information

Needs

Process Maturity Technology

OBJECTIVE


What is the RMMM? (cont.)

The RMMM identifies a logical progression of

resource and capacity management process

sophistication which is enumerated as five

levels of maturity.

Each level of maturity is described along

seven common dimensions.

1 2 3 4 5

STRUCTURE


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 InputCustomers, Prospects, Others

Industry Analyst

ReviewGartner

Internal ExpertiseDeployment Managers,

Consultants

Your input appreciated for Version 2

Sources


RMMM Levels Defined

WORK

VISIBILITY

CONTROLLED

ASSIGNMENT

GOVERNED

CAPACITY

SCHEDULE-DRIVEN

AVAILABILITY

GRANULAR

MANAGEMENT

Level 1 Level 2 Level 3 Level 4 Level 5

The focus shifts to capacity management and the introduction of project priority

considerations

requiring more structured governance.

The resource assignment approval and capacity management processes are driven by project schedules at the phase level.

Full task-level project schedule details are used to drive the resource assignment and capacity

management

processes.

Organizations have visibility to who is working on what. However, resources are assigned to work without any control or oversight.

A formal resource assignment approval process is introduced. However, approvals are informed only by resource availability.


RMMM Dimensions

WORK

VISIBILITY

CONTROLLED

ASSIGNMENT

GOVERNED

CAPACITY

SCHEDULE-DRIVEN

AVAILABILITY

GRANULAR

MANAGEMENT

ASSIGNMENT

GRANULARITY

PROJECT

ROLES

RESOURCE

COST

RESOURCE

APPROVAL

CAPACITY

PLANNING

GOVERNANCE

BUSINESS

VALUE

Level 1 Level 2 Level 3 Level 4 Level 5

Process for addressing availability constraints and business priorities

Detail of work assignment and consideration of non-project work

Treatment of potential project roles and associated attributes/properties

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

Characteristics of assignment approval process (or lack thereof)

Business benefit at this level of maturity

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


Assignment Granularity Dimension

Resource

Utilization (%)

Resource

Utilization (%)

Level 1/2

Level 3

Resource

Utilization (%)

Level 4

Resources are assigned a fixed/constant utilization

percentage for the duration of the project

Resource utilization can vary within duration of a

project

Resource utilization can vary by project phase

(driven by project WBS)

Resource

Utilization (%)

Level 5

S E

Resource utilization can vary by individual project activity (driven by project

WBS)


RMMM

Summary

Matrix


Survey Time!

Which best describes your RM maturity level?

1: Work Visibility: We know only who is working on what

2: Controlled Assignment: Resource approval based on availability only

3: Governed Capacity: Focus on capacity and business priorities

4: Schedule-Driven Assignment: Bottom-up, project phase-level info drives RM

5: Granular Management: Project schedule details drive RM process

58%

11%

26%

5%

0%

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


Key Terminology

Resource capacityThe total time for a given resource that is intended to be managed

in hours or % of FTE (can exclude non-project work capacity)

Resource utilizationThe sum total of a resource’s assignment to project work for a given duration in hours or % FTE.

Resource availabilityThe 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.

ActivityThe 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

Who is working on what; Resource over-use is visibleBusiness Value

No governanceGovernance

No capacity planningCapacity Planning

No approval processResource Approval

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

Only project managers and all others as team membersProject Roles

Simple, complete project list; Constant (average) % utilization by resourceAssignment

Granularity

DefinitionDimension


Level 1 Resource Grab

PM1 -- Project1

PM2 -- Project2

PM3 -- Project3

PM4 -- Project4

Resources


Assignment, Utilization (Level 1)

Demand for Resource A

time

Resource

Utilization (%)

25%

100%

S1 E1 S3 E3E2S2

Resources are assigned a fixed/constant utilization

percentage for the duration of the project

Project 1Project 2

Project 3

50%

75%

time

Resource

Utilization (%)

25%

100%

Aggregate % Utilization for Resource A

75%

50%

S1 E1 S3 E3E2S2

At this level process maturity (assignment

granularity) there is a risk of resource over-utilization.


Level 1 to Level 2

When to make the transition:

• Need to proactively manage

resource utilization

• Need better balanced utilization

• Avoid project resource risks

Key Dimension change

• RAW process

1 2 3 4 5


Level 2 IntroducesResource Approval Workflow

PM1 -- Project1

PM2 -- Project2

PM3 -- Project3

PM4 -- Project4

Resources

R A W


Level 2: Controlled Assignment

Resource utilization is balanced; Resource gaps vs. demand is clearly visibleBusiness Value

No governance structure to resolve relative project prioritiesGovernance

Individual and aggregate resource capacity is visible, managed, balancedCapacity

Planning

RAW process defined; Considers availability in approvalsResource

Approval

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

Specific project roles; Roles define approvals; Cost rates; target % utilizationProject Roles

Simple, complete project list; Constant (average) % utilization per resourceAssignment

Granularity

DefinitionDimension


Assignment, RAW, Utilization (Level 2)


time

Resource

Utilization (%)

25%

100%

S1 E1 S3 E3E2S2

time

Resource

Utilization (%)

25%

100%


Project 1

Project 3

50%

75%

50%

75%

S1 E1 E2S2

Project 2

At Level 2, the RM can disapprove the request of

Resource A for assignment to Project 3 to avoid the over-utilization scenario


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

existing projects instead of simply

adding new resources


• Governance

1 2 3 4 5


Level 3 introduces aGovernance Structure

PM1 -- Project1

PM2 -- Project2

PM3 -- Project3

PM4 -- Project4

Resources

R A W

Governance

CANCEL


Prioritization drives Approval at Level 3


time

Resource

Utilization (%)

25%

100%

S1 E1 S3 E3E2S2

time

Resource

Utilization (%)

25%

100%


Project 1Project 2

Project 3

50%

75%

50%

75%

S1 E1 S3 E3E2S2

Here we are at the original Level 1 / 2

granularity of resource demand

This resulted in over-utilization of Resource A


Prioritization drives Approval at Level 3


time

Resource

Utilization (%)

25%

100%

S1 E1 S3 E3E2S2

time

Resource

Utilization (%)

25%

100%


Project 1Project 2

Project 3

50%

75%

50%

75%

S1 E1 S3 E3E2S2

Here we are at the original Level 1 / 2

granularity of resource demand

At Level 3 Governance can cancel Project 2 and

Approve Project 3


time

Resource

Utilization (%)

25%

100%

S1 E1 S3 E3E2S2

time

Resource

Utilization (%)

25%

100%


Project 1

Project 3

50%

75%

50%

75%

S1 E1 S3 E3E2S2

At Level 3 Governance can cancel Project 2 and

Approve Project 3

This action removed a utilization- related risk

to Project 3 which governance has

prioritized highest


Level 3: Governed Capacity

Reduces strategy execution risk

Dynamic ability to react to changing business conditionsBusiness Value

Steering committee manages demand (intake) prioritization and

makes in-flight decisions on project hold, slip, cancelGovernance

Capacity directed at higher priority projects; Ability to re-direct capacity

as priorities change; What-if modeling under various scenariosCapacity Planning

Level 2 + considers project priority in making approvalsResource Approval

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

Level 2 + RAW process considers roles, skills, poolsProject Roles

Allow non-constant allocations on projectsAssignment

Granularity

DefinitionDimension


Level 3: The RMMM Sweet Spot

For many companies Level 3

offers the best alignment and

balance of:

• Need for information detail and accuracy

• Process maturity

• Required technology

sophistication

• Business benefit

1 2 3 4 5


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

different with the extra

information detail


• Assignment Granularity

1 2 3 4 5


Level 4 introduces Phase Level Resource Demand

PM1 -- Project1

PM2 -- Project2

PM3 -- Project3

PM4 -- Project4

Resources

R A W

Governance


Level 4 Resource Granularity Concepts


time

Resource

Utilization (%)

25%

100%

S1 E1 S3 E3E2S2

Here we are at Level 1,2 granularity of demand info with Level 3 capability to cancel or shift projects

Project 1Project 2

Project 3

50%

75%

time

Resource

Utilization (%)

25%

100%


75%

50%

S1 E1 S3 E3E2S2

…and this is what the resulting aggregate

utilization looked like for Resource A


Level 4 Resource Granularity Concepts


time

Resource

Utilization (%)

25%

100%

S1 E1 S3 E3E2S2

Here we are at Level 1,2 granularity of demand info with Level 3 capability to cancel or shift projects

Project 1Project 2

Project 3

50%

75%

time

Resource

Utilization (%)

25%

100%


75%

50%

S1 E1 S3 E3E2S2

At Level 4, Phase level detail allows us to fit demand into

Resource A’s schedule w/out canceling project


time

Resource

Utilization (%)

25%

75%

time

Resource

Utilization (%)

25%

75%

S E S” E”E’S’


Project 1

Project 3

S1 E1 S3 E3S2

E2

Project 2

Phase-Level Detail

At Level 4, Phase level detail allows us to fit demand into

Resource A’s schedule w/out canceling project


Level 4: Schedule Driven Availability

Finer control over resources, may enable more projects to be taken on by

eliminating false-positives on resource over-utilization

Business

Value

Level 3 + steering committee decisions may be different based on phase-

level information. Potential for improper decisions based on unreliable data.Governance

Level 3 + project phases held/slipped to manage capacityCapacity

Planning

Level 3 + phase-level approvalsResource

Approval

Level 3 + phase level resource costsResource Cost

Level 3Project Roles

Resources utilization measured from phase-level assignments

(phase dates MUST be accurate, up-to-date; NOTE data explosion)

Assignment

Granularity

DefinitionDimension


Level 5: Granular Management

Finer control over resources, may enable more projects to be taken on by

eliminating false-positives on resource over-utilization

Business

Value

Level 4 + Steering Committee decisions may be different based on task-level

information. Potential for improper decisions based on unreliable data.Governance

Level 4 + project tasks held/slipped to manage capacityCapacity

Planning

Level 4 + task-level resource approvalsResource

Approval

Level 4 + task level resource costsResource Cost

Level 4 + RACIProject Roles

Resources utilization measured from task-level assignments

(task dates MUST be accurate, up-to-date; NOTE data explosion)

Assignment

Granularity

DefinitionDimension


WBS-driven RM Complexity

Level 4/5 WBS-driven RM

puts the burden on project managers to accurately:

(1) Maintain and update project phase dates

(2) Assign individual resources to the relevant phases; and

(3) Provide utilization

requirements by phase.

Example

Portfolio Size: 100 Projects

Average # of Phases per Project: 5

Average # of Resources per Phase: 5

Required # of data values be kept up-to-date: 7,500! (100x5x5x3)

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)

Documents

Instantis RMMM