P3M3 introduction maturity model for PRINCE2

Van Dam Orenda product development consultants

Frank van Dam

1

P3M3 intro 2

1. Introductions 2. Maturity models; names and costs 3. Does it work (higher maturity = better performance?) 4. P3M3 examples

1. introductions

Van Dam Orenda

Product Development Consultants

3

P3M3 intro

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 .

P3M3 intro 4

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

P3M3 intro 5

Orenda Clients , 18 yrs

Creation 10 x R&D process-improvement

20 x mechatronics

Control 15x Positioning, portfolio

30 x clustering and financing

Accredited PRINCE2®, MSP® consultants

People 30x team role analysis, courses

10x culture analysis

Maxi-Cosi, Power Packer,

Holec, Atag, Batavus, Philips Healthcare, Koppert

Nedinsco, Kappa, Stork, BTG,

Sara Lee/DE, Mecon, Netagco, Norma, VDL- ETG, ECN/ NRG, ministries, KLM

VNO-NCW, EVD, KCE, ICM

P3M3 intro 6

7 P3M3 intro

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 8

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

P3M3 intro

9

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

P3M3 intro 10

Some of our consultants

Frank van Dam

‘58, ir, MBA

D&E, Volvo, ten

Cate

Industry, RO, Infra

(Graham Bosman)

‘50, MSc, MBA

programmes,

author P3M3

Industry, infra

P3M3 intro 11

Tonny Grimberg

• ‘52, ing, ir

• R&D, Philips, Thales

• Industry, RO

2. Maturity Models

set-up and big names

P3M3 intro 12

Maturity measured in 5 levels:

P3M3 intro 13

Maturity models (and their use)

General:

EFQM / INK (x 103 per year)

R&D&E

CMMi (x 103)

Stage-Gate (x 102)

RACE (x 10)

Projects:

PWC-survey (x 102)

P3M3 (x 102)

OPM3 (none or a few)

14

P3M3 intro

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

P3M3 intro 15

P3M3 intro 16

P3M3 = maturity model for PRINCE2, MSP, MoP etc.

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 17

P3M3 in 3 versions

P3M3 intro 18

1. P3M3 introduction Organisational

complexity

No of people involved

No of departments

Psychological distances

Type of teams

Choose A, B or C

A

<6

1 or 2

Alll 1 group

Loosely connected

A

B

7 – 50

3 to 5

Limited differences

1 or a few real teams

B

C

50+

5+

Great differences

Hierarchy of teams

C

Product / process

composition

Mono,

1 part or step

Simple grouping / assembly

Family, large grouping / assy

no of disciplines / knowledge

areas

1 main + few minor/ sub

Few main, more minor / sub

More main, many sub

How big a change?

Few changes

Gradual change

Radical renewal

choice

X

Y

Z

1

2

2

3

4

4

5

Organizational complexity

Product / process complexity

At what level

should we

operate? Indication based on BRACE

P3M3 intro 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.

P3M3 intro 20

2. P3M3 traditional short output

level 1 organisation not (always) lot of timesyes yes lot of timesnot (always) 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 timesyes yes lot of timesnot (always) 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?

Samenvatting scores P3M3 Norma IMS

P3M3 intro 21

2. P3M3 traditional long input

P3M3 intro 22

2. P3M3 traditional long output

Level Description Management Control Average

1 Programme management terminology may be used but not consistently. The general approach will be focused on project rather than programme level.

Yes Always

2 Some general understanding exists of the concepts of programme management and its control mechanisms but adoption is localized.

Yes Always

3 There is a centrally defined and documented approach to a programme management life cycle and controls, and it is applied in all programmes by capable staff that support programme teams.

Yes

Sometimes

4 Programme management is seen as a key tool for the delivery of strategic objectives. Within the programme environment the focus is on improvement of delivery through measurement and analysis of performance.

Occasionally

5 Management controls ensure that the programme approach delivers the

strategic aims and objectives of the organization.

Acceptance of programme management as the optimal approach to strategic

delivery is organization-wide.

Occasionally

Determine the current P3M3 maturity scores using

the 7 perspectives

Characterise client projects to understand the

unique challenges of the organization

The system determines the maturity profile that

results in the highest likelihood of success given

the complexity profile

The system will generate a report which includes the

analysis of current practice versus right practice

and areas for improvement

Current Practice Levels

Complexity

Right Practice Levels

Report generation

P3M3 intro 23

P3M3 intro 24

3. P3M3 index input 1

P3M3 intro 25

3. P3M3 index input 2

0

1

2

3

4

5

ManagementControl

BenefitsManagement

FinancialManagement

StakeholderEngagement

RiskManagement

Organiza

onalGovernance

ResourceManagement

RolesandResponsibilies

ExperienceinProjectManagement

CapabilityDevelopment

PlanningandEsmangProcess

InformaonandDocumentaon

ScrunyandReview

PjM

3ProjectManagementMaturityLevel

CurrentPrac ceversusRightPrac ce

CurrentPrac ce

RightPrac ce

0

1

2

3

4

5ManagementControl

BenefitsManagement

FinancialManagement

StakeholderEngagement

RiskManagement

Organiza onalGovernance

ResourceManagementRolesandResponsibili es

ExperienceinProjectManagement

CapabilityDevelopment

PlanningandEs ma ngProcess

Informa onandDocumenta on

Scru nyandReview

CurrentPrac ceversusRightPrac ce

CurrentPrac ce RightPrac ce

• Complexity scores and profile

• Current practice versus Right

Practice for:

• 7 perspectives

• 6 generic attributes

• Recommended areas for

improvement

• Detailed descriptions of Right

Practice controls

P3M3 intro 26

3. P3M3 index output reports

P3M3 costs per use (once); excl application license

type

Self-assessment:

Paper P3M3

P3M3 + complexity

P3M3 + complexity

+ Right Practice

verification

Tool costs (€ k)

0

0

1

5

5 - 10

P3M3 intro 27

man costs (€ k)

0

10 - 15

10 – 15

15 – 20

5 - 10

3. Does it work?

(higher maturity = better performance?)

P3M3 intro 28

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

P3M3 intro 29

Performance van PPP 30

Performance = f (maturity)

development-projects

P3M3 intro 30

4. P3M3 examples

By Van Dam Orenda

31

P3M3 intro

VDL- ETG

1600 p; 4 plants,

Part of very large group

Precision manufacturing

P3M3 intro 32

P3M3 intro 33

P3M3 intro 34

P3M3 intro 35

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 p. 36

ETG benchmark scores:

from 1+ to 3-

Norma

4 companies, 500 p.

Ultra high precision manufacturing

P3M3 intro 37

P3M3 intro

p. 38

Heroic efforts,

inspired by challenge!

‘06

P3M3 intro

p. 39

Well begun

better done,

inspired by challenge!

‘07

P3M3 intro 40

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 41

Additional screenshots

P3M3 intro 42

P3M3 intro 44

P3M3 intro 45

P3M3 intro 46

P3M3 intro 47