Organizational Project Management Maturity Model (OPM3)

Organizational Organizational Project Project

Management Management Maturity Model Maturity Model

(OPM3)(OPM3)

Dr. Khaled Dr. Khaled BubshaitBubshait

Dr. Khaled Ahmed Bubshait

Khaled Bubshait is a Professor of project/operations Management at King Fahd University of Petroleum and Minerals. He was the former Director of the Economic and Management Center at the Research Institute at KFUPM, Dhahran, Saudi Arabia. He received his undergraduate degree B.S in applied Civil Engineering (1976) , his MBA from KFUPM(1978), and his PhD from Georgia State University, USA (1984). He published several articles in the area of project Management, operations Management, Total Quality Management, Business Incubator and SME Strategies . Also he led the project team for establishing a National Training Plan for the Kingdom of Saudi Arabia. He is also in the Editorial Board of the Business Process Reengineering & Management Journal and the Benchmarking Journal. And Dr. Bubshait was the former president pf the American Cost Engineer Arabian Gulf Section Tel . 055842500

PRESENTATION OUTLINESPRESENTATION OUTLINES

The philosophy of Project ManagementThe philosophy of Project Management Reasons For project Failure Reasons For project Failure OPM3 DefinitionOPM3 Definition Implementation ProcessImplementation Process BenefitsBenefits SourceSource

The philosophy of The philosophy of Project ManagementProject Management

WORRY

TIME

DEADLINE

PROPOSALPROPOSAL PLANPLAN CONTROLCONTROL

ANALYSISANALYSISDECISIONDECISION

PROJECT MANAGEMENT CYCLEPROJECT MANAGEMENT CYCLE

Time DataCost DataPerformance DataProcurement DataOwner special Data

Brainstorming ProcessCompany NeedsMarket Research.Feasibility StudyChange of ObjectivesNew Product Development

Proposal DevelopmentConceptual Estimate PaperDesign basis PaperFull Proposal

Proposal

Project Plan

Project Control

AnalysisCorrectiveActions

Commissioning

Project MeetingProject Status ReportProgress MeasureProcurementContractual Conditions

Contractor ProductivityProcurement DeadlinesManpower LoadingClaim Request

Change OrdersAdditional Time/Cost Analysis

Project Management SystemsProject Management Systems

More than $250 billion is More than $250 billion is spent each year in the United spent each year in the United

States on IT application States on IT application development of development of

approximately 175,000 approximately 175,000 projects. projects.

31.1% of projects will be 31.1% of projects will be canceled before they ever get canceled before they ever get

completed.completed.

PracticesPractices

52.7% of projects will cost 52.7% of projects will cost 189% of their original 189% of their original

estimates. estimates.

Lost opportunity costs are Lost opportunity costs are not measurable, but could not measurable, but could easily be in the trillions of easily be in the trillions of

dollars. dollars.

• 69% of organizations have no 69% of organizations have no formal organizational definition formal organizational definition of project management roles and of project management roles and responsibilitiesresponsibilities

• 62% of project resources are 62% of project resources are allocated to projects on a part-allocated to projects on a part-time or informal basistime or informal basis

• 81% of resource assignments 81% of resource assignments occur with no formal coordination occur with no formal coordination or organizational managementor organizational management

• 64.5% of project managers have 64.5% of project managers have little or no formal training in little or no formal training in project management or resources project management or resources allocation.allocation.

• Most people working as project Most people working as project managers today didn't set out as such managers today didn't set out as such as their career path. In point of fact, as their career path. In point of fact, for many project managers it still isn't for many project managers it still isn't their career path.their career path.

• Many still have full-time jobs and Many still have full-time jobs and functional responsibilities, and the task functional responsibilities, and the task of keeping one--or several--projects in of keeping one--or several--projects in line is just one of many balls they line is just one of many balls they juggle as they navigate their day.juggle as they navigate their day.

The Top 10 Reasons Projects Fail The Top 10 Reasons Projects Fail (1)(1)

• Inadequately trained and/or Inadequately trained and/or inexperienced project managers;inexperienced project managers;

• Failure to set and manage Failure to set and manage expectations;expectations;

• Poor leadership at any and all Poor leadership at any and all levels;levels;

• Failure to adequately identify, Failure to adequately identify, document and track requirements;document and track requirements;

• Poor plans and planning processes;Poor plans and planning processes;

• Poor effort estimation;Poor effort estimation;• Cultural and ethical misalignment;Cultural and ethical misalignment;• Inadequate or misused methods; andInadequate or misused methods; and• Inadequate communication, including Inadequate communication, including

progress tracking and reporting;progress tracking and reporting;• Misalignment between the project Misalignment between the project

team and the business or other team and the business or other organization it serves.organization it serves.

The Top 10 Reasons Projects The Top 10 Reasons Projects Fail (2)Fail (2)

What Does it Take?

• Project integration management; Project integration management; • Project scope management; Project scope management; • Project time management;Project time management;• Project cost management; Project cost management; • Project quality management; Project quality management; • Project human resource Project human resource

management; management; • Project communications Project communications

management; management; • Project risk management; and Project risk management; and • Project procurement Project procurement

management. management.

TOP MANAGEMENT

ENG. UTILITIES

OPERATIONS MANAGEMENT

MI

DDLE

MANAGEMENT

Misalignment between the project teamMisalignment between the project team and the business or other organization it servesand the business or other organization it serves

Since 1998, hundreds of Since 1998, hundreds of professionals have professionals have contributed to the contributed to the

development of a new PMI development of a new PMI standard called “OPM3” that standard called “OPM3” that

will help organizations will help organizations address these issues.address these issues.

WHAT IS OPM3?WHAT IS OPM3?

OPM3 is an acronym for OPM3 is an acronym for thethe

Organizational Organizational Project Management Project Management

Maturity ModelMaturity Model

a standard developed a standard developed under the stewardship of under the stewardship of the Project Management the Project Management Institute. Institute.

ss

The purpose of this The purpose of this standardstandard

is to provide a way for is to provide a way for organizations to understand organizations to understand organizational project organizational project management and to measure management and to measure

their their maturity maturity against a against a comprehensive and broad-comprehensive and broad-based set of organizational based set of organizational project management project management Best Best PracticesPractices. .

OPM3 also helps OPM3 also helps organizations wishing to organizations wishing to increase their organizational increase their organizational project management maturity project management maturity to to plan for improvement.plan for improvement.

Organizational Maturity Levels

Level 5 – OptimizingProcesses and performance continually improved through quantitative measures and analysis. (leader)

Level 4 – Quantitatively Managed

Product quality and process performance are quantitatively measured. A repository of measures exists to support fact-based decision-making.( Lesson learned) Saudi Aramco

Level 3 – Defined

Processes are defined, understood, and consistently applied from an organizational perspective.Processes are proactively managed and improved.

Level 2 – Managed

Repeatable processes are practiced on a project level. Process discipline is maintained through times of stress. Visibility to Status and delivery of work products at defined intervals.

Level 1 - Initial

Processes are ad hoc. Results are unpredictable. Success is dependent on heroics of the project team.

OPM3 WHAT FOR?OPM3 WHAT FOR?

PMI’s Organizational Project PMI’s Organizational Project Management Maturity Model or Management Maturity Model or OPM3 is designed to OPM3 is designed to guideguide organizations in the development of organizations in the development of the Capabilities necessary to the Capabilities necessary to achieve achieve Best PracticesBest Practices in in Organizational Project Management Organizational Project Management (OPM). OPM combines portfolio, (OPM). OPM combines portfolio, program, and project management program, and project management to achieve the to achieve the goals/strategiesgoals/strategies of an of an organization through projects.organization through projects.

OPM3 SPECIFICALLY ADDRESSES THE OPM3 SPECIFICALLY ADDRESSES THE FOLLOWING 10 AREASFOLLOWING 10 AREAS::

1. Standardization and Integration of 1. Standardization and Integration of ProcessesProcesses2. Utilization of Performance Metrics2. Utilization of Performance Metrics3. Commitment to the Project Management 3. Commitment to the Project Management ProcessProcess4. Alignment and Prioritization of Projects4. Alignment and Prioritization of Projects5. Implementation of Continuous 5. Implementation of Continuous Improvement ProcessesImprovement Processes6. Using Success Criteria for results analysis6. Using Success Criteria for results analysis7. Understanding People and Competence7. Understanding People and Competence8. Allocation of Resources to Projects8. Allocation of Resources to Projects9. Organizational Fitness9. Organizational Fitness10. Teamwork.10. Teamwork.

HOW DOES OPM3 WORKS?HOW DOES OPM3 WORKS?

There are There are threethree basic elements to basic elements to applying OPM3 in an organization:applying OPM3 in an organization:

•KnowledgeKnowledge

•AssessmentAssessment

•ImprovementImprovement

..

HOW DOES OPM3 WORKS?HOW DOES OPM3 WORKS?

There are There are threethree basic elements to basic elements to applying OPM3 in an organization:applying OPM3 in an organization:

KnowledgeKnowledge OPM3 is the first iteration of a OPM3 is the first iteration of a body of knowledge on the subject of body of knowledge on the subject of organizational project management organizational project management and a subset of the larger project and a subset of the larger project Management Management Body of Knowledge Body of Knowledge (PMBOK).(PMBOK). Because this standards Because this standards will form the basis of an will form the basis of an organization's maturity assessment, organization's maturity assessment, familiarity with the contents of the familiarity with the contents of the standard is essential.standard is essential.

Assessment.Assessment.

In Assessment, the organization In Assessment, the organization uses an assessment tool to uses an assessment tool to determine areas of strength and determine areas of strength and weakness in relation to weakness in relation to the body of the body of best practicesbest practices. This assessment . This assessment process will help the organization process will help the organization decide which Best Practices or decide which Best Practices or groups of Best Practices to groups of Best Practices to investigate further, either to investigate further, either to confirm competency in an area or to confirm competency in an area or to identify constituent Capabilities of identify constituent Capabilities of one or more Best Practices that one or more Best Practices that need attention. OPM3 outlines how need attention. OPM3 outlines how to conduct this detailed to conduct this detailed investigation in the most helpful investigation in the most helpful way for the organization, through way for the organization, through the use of the Directories.the use of the Directories.

.

ImprovementImprovement

The results of the Assessment will The results of the Assessment will include a list of capabilities not yet include a list of capabilities not yet fully developed in the organization. fully developed in the organization. OPM3 provides guidance in placing OPM3 provides guidance in placing these in order of importance, and these in order of importance, and this sequence forms the basis for this sequence forms the basis for any subsequent plans for any subsequent plans for improvement. The actual process of improvement. The actual process of implementing improvements in an implementing improvements in an organization, which may involve organization, which may involve organizational development, change organizational development, change management, restructuring, management, restructuring, retaining, and other initiatives, is retaining, and other initiatives, is beyond the scope of this standard.beyond the scope of this standard.

RequirementsRequirements

inputinput Scope StatementScope Statement

Product DescriptionProduct Description

Procurement Procurement ResourcesResources

Market ConditionMarket Condition

Purchasing PolicyPurchasing Policy

Tools & Tools & TechniquTechniqueses

Make or Buy Make or Buy AnalysisAnalysis

Expert JudgmentExpert Judgment

Contract Type Contract Type SelectionSelection

Chain SuppliersChain Suppliers

JITJIT

OutputOutput Procurement Procurement Management PlanManagement Plan

Procurement PlanningProcurement Planning

Quality PlanningQuality Planning RequirementsRequirements

Quality AssuranceQuality Assurance

RequirementsRequirementsQuality ControlQuality Control


inpuinputt

Quality PolicyQuality Policy

Scope StatementScope Statement


Standards and Standards and RegulationRegulation

Stakeholders InputStakeholders Input

Quality Management Quality Management PlanPlanQuality Control Quality Control MetricsMetricsOperational Operational DefinitionDefinition

Work ResultsWork ResultsQuality Quality Management PlanManagement PlanOperational Operational DefinitionDefinitionCheck listCheck list

ToolTools & s & TechTechniquniqueses

Benchmarking Benchmarking

FlowchartingFlowcharting

Cost of qualityCost of quality

Project ScheduleProject Schedule

Check listCheck list

Pareto DiagramPareto Diagram

CMMICMMI

Statistical ToolsStatistical Tools

AuditsAudits

TQMTQM

InspectionInspection

Control ChartControl Chart


Trend analysisTrend analysis

OutOutputput

Quality Quality Management PlanManagement Plan

Operational Operational DefinitionDefinition


Quality Assurance Quality Assurance PlanPlan

Quality Quality Improvements Improvements

Expected Quality Expected Quality Acceptance Acceptance decision Rework decision Rework orders orders

Process Process AdjustmentAdjustment

Quality PlanningQuality Planning

OPM3 OPM3 Implementation Implementation

ProcessProcess


inputinput RFIRFI

RFPRFP

Evaluation CriteriaEvaluation Criteria

Organizational Organizational PolicyPolicy


Contract Contract NegotiationNegotiation

AuditAudit

OutputOutput Contract FileContract File

Contract MISContract MIS

Source SelectionSource Selection


inputinput Scope StatementScope Statement


Procurement Procurement ResourcesResources

Market ConditionMarket Condition

Purchasing PolicyPurchasing Policy


Make or Buy Make or Buy AnalysisAnalysis

Expert JudgmentExpert Judgment

Contract Type Contract Type SelectionSelection

Chain SuppliersChain Suppliers

JITJIT

OutputOutput Procurement Procurement Management PlanManagement Plan

Procurement PlanningProcurement Planning

Quality PlanningQuality Planning RequirementsRequirements

Quality AssuranceQuality Assurance

RequirementsRequirementsQuality ControlQuality Control


inpuinputt

Quality PolicyQuality Policy

Scope StatementScope Statement


Standards and Standards and RegulationRegulation

Stakeholders InputStakeholders Input

Quality Management Quality Management PlanPlanQuality Control Quality Control MetricsMetricsOperational Operational DefinitionDefinition

Work ResultsWork ResultsQuality Quality Management PlanManagement PlanOperational Operational DefinitionDefinitionCheck listCheck list

ToolTools & s & TechTechniquniqueses

Benchmarking Benchmarking

FlowchartingFlowcharting

Cost of qualityCost of quality

Project ScheduleProject Schedule



CMMICMMI

Statistical ToolsStatistical Tools

AuditsAudits

TQMTQM

InspectionInspection

Control ChartControl Chart


Trend analysisTrend analysis

OutOutputput

Quality Quality Management PlanManagement Plan

Operational Operational DefinitionDefinition


Quality Assurance Quality Assurance PlanPlan

Quality Quality Improvements Improvements

Expected Quality Expected Quality Acceptance Acceptance decision Rework decision Rework orders orders

Process Process AdjustmentAdjustment

Quality PlanningQuality Planning

OPM3 BenefitsOPM3 Benefits

• Help organizations understand current Help organizations understand current project management, program project management, program management and portfolio management.management and portfolio management.

• Enable executives to assess their own Enable executives to assess their own organization or partner’s ability to achieve organization or partner’s ability to achieve strategic priorities through projects.strategic priorities through projects.

• Identify areas for improvement and ways to Identify areas for improvement and ways to make coordinated improvements by make coordinated improvements by increments.increments.

• Help all level of management understand Help all level of management understand how to create an environment for how to create an environment for successful project activity.successful project activity.

• Help those responsible for project Help those responsible for project management, identify drivers of project management, identify drivers of project results and set standards for excellence.results and set standards for excellence.

• Enable organizations to achieve Enable organizations to achieve consistent implementation of project consistent implementation of project management work methods through management work methods through standardization and institutionalization.standardization and institutionalization.

• Demonstrate relationships between Demonstrate relationships between executive functions and project executive functions and project management functions.management functions.

• Explain how to make project Explain how to make project management measurable within an management measurable within an organization.organization.

• Rally an organization or its partners to Rally an organization or its partners to focus on project management focus on project management improvements.improvements.

• Facilitate organizational change associated Facilitate organizational change associated with developing projects, program, and with developing projects, program, and portfolio management functions.portfolio management functions.

• Develop consistency and predictability in Develop consistency and predictability in project delivery.project delivery.

• Distinguish your own organization from Distinguish your own organization from competitors.competitors.

Organizational Project Management Maturity Model (OPM3)

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