Organizational Project Maturity Model (OPM3)

Daniele Pinto

daniele.pinto@gmail.com

Objectives

2

Provide an overview to the audience about the Organizational Project Management Maturity Model, its implementation and the model to perform an organizational gap analysis useful for planning further improvements.

I encourage the reader to search additional information on the PMI standards (PMI copyright) that I have used to compile in this introduction to OPM3

Agenda

• Introduction to OPM

• OPM3 Components

• OPM3 implementation framework

• Gap Analysis and planning tool

3

INTRODUCTION TO OPMOPM3

PMI definitions

5

Project: ”a temporary endeavor undertaken to create a unique product, service or result”

Program: ”is a group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually”

Focus on Benefits provided by the outputs

Focus on outputs

Portfolio: ”is a component collection of programs, projects or operations managed as a group to achieve strategic objectives……the portfolio component are quantifiable, that is, they can be measured, ranked and prioritized ”

Focus on Performance

Organizational Strategy and OPM

6

Vision

Mission

Organizational Strategy and Objectives

Portfolios, Programs, and Projects

Strategy

OPM

“C-Level executives (CEO, CFO, CIO,…) establish objectives and goals and develop strategies to achieve them.”“They expect to select from pending or proposed projects the ones that most likely support the achievement of the organization's goals within the preferred strategy.”

“Project management require deliberate planning and action to create the conditions for success.”

Organizational Environment

7

Strategy PortfolioPrograms

&Projects

Operations

Business Impact Analysis

Portfolio Review and Adjustment

Value performance Analysis

Organizational EnvironmentIn order to aligns organizational strategy and goals with programs and projects initiatives this framework considers the full process from the selection of initiatives (the What?), to the realization (the How?) of the business benefits and to the monitoring of the generated value.

Assumptions: The company strategic goals and objectives are given (the Why?).

Integrated disciplines

8

OPM3 provides a way to deliver strategy through clearly lined portfolio, programs, and projects.

Project Management Office

ProjectsFocus on objectives

PortfoliosAlign with strategic business objectives

ProgramsBenefits from managing groups of

projects

OPM3 COMPONENTSOPM3

The referenced ANSI Standards

10

The Standard for Portfolio Management 3rd Ed.

The Standard for Program Management 3rd Ed.

The Standard for Project Management 5th Ed.

Components of the model

11

The OPM3 considers the following components necessary to build the model:• Domain Area (Portfolio, Program, Project)• Process Improvement/Maturity Stages (Standardize, Measure, Control,

Improve)• Best Practices (mapped against their process improvement stage)• Capabilities• Outcomes

The model considers also the Organizational Enablers that should be developed to support OPM.

OPM3 construct

12

Portfolio Domain

Knowledge Area

Process Group Process

Program Domain

Life Cycle Phase

Supporting ProcessSupporting Activity

Project Domain

Knowledge Area

Process Group Process

Best Practice

Organizational Enabler

Process Improvement

Stage

Capability

Outcome The Best Practices are listed in the Standards.

Each Process or supporting activity is associated to an improvement stage and provides outcomes.

Each organizational enabler provides outcomes but cannot be associated to improvement stages.

Portfolio Management life cycle and the Knowledge Areas

13

Knowledge Areas

1. Strategic Management2. Governance3. Performance4. Communication5. Risk

Defining

AligningAuthorizing

Portfolio Processes Matrix

14

Knowledge Areas Defining Process Group Aligning Process Group Authorizing Process Group

Portfolio Strategic management

• Develop Portfolio Strategic plan

• Develop Portfolio Charter• Define Portfolio

Roadmap

• Manage Strategic Changes

Portfolio Governance Management

• Develop PortfolioManagement Plan

• Define Portfolio

• Optimize Portfolio • Authorize Portfolio• Provide Portfolio

Oversight

Portfolio Performance Management

• Develop Portfolio Performance Management Plan

• Manage Supply and Demand

• Manage Portfolio Value

Portfolio Communication Management

• Develop Portfolio Communication Management Plan

• Manage Portfolio Information

Portfolio Risk Management • Develop Portfolio Risk Management Plan

• Manage Portfolio Risks

Program Management life cycle and the Supporting Processes

15

Supporting Processes

1. Integration2. Scope3. Schedule4. Financial5. Quality6. Human Resource7. Communication8. Risk9. Procurement

DefinitionBenefit Delivery

Closure

Program Process Support activity Matrix

16

Supporting Process Program Definition Program Benefit Delivery Program Closure

Program Communication Management • Communications Planning • Information Distribution• Program performance Reporting

Program Financial Management • Program Cost Estimation• Program Financial Framework

Establishment• Program Financial Management plan

Development

• Component Cost Estimation• Program Cost Budgeting• Program Financial Monitoring and

Control

• Program Financial Closure

Program Integration Management • Program Initiation• Program Management Plan

Development• Program Infrastructure Development

• Program Execution Management• Program Performance Monitoring and

Control

• Program Transition and Benefits Sustainment

• Program Closure

Program Procurement Management • Program Procurement Planning • Program Procurement• Program Procurement Administration

• Program Procurement Closure

Program Quality Management • Program Quality Planning • Program Quality Assurance• Program Quality Control

Program Resource Management • Resource Planning • Resource Prioritization• Resource interdependency

Management

Program Risk Management • Program Risk Management Planning • Program Risk Identification• Program Risk Analysis• Program Risk Response Planning• Program Risk monitoring and Control

Program Schedule Management • Program Schedule Planning • Program Schedule Control

Program Scope Management • Program Scope Planning • Program Scope Control

Project Management life cycle and the Knowledge Areas

17

Knowledge Areas

1. Integration2. Scope3. Time4. Cost5. Quality6. Human Resource7. Communication8. Risk9. Procurement10. Stakeholder

Initiating Planning Executing Closing

Monitoring and Controlling

Project Processes Matrix

18

Knowledge Area Initiation Planning Executing Monitoring and Controlling Closing

Project Integration Management • Develop project charter

• Develop project Management Plan • Direct and Manage Project Work • Monitor and Control Project Work• Perform integrated Change Control

• Close Project orPhase

Project Scope Management • Plan Scope Management• Collect Requirements• Define Scope• Create WBS

• Validate Scope• Control Scope

Project Time Management • Plan Schedule Management• Define Activities• Sequence Activities• Estimate Activity Resources• Estimate Activity Durations• Develop Schedule

• Control Schedule

Project Cost Management • Plan Cost Management• Estimate Costs• Determine Budget

• Control Costs

Project Quality Management • Plan Quality Management • Perform Quality Assurance • Control Quality

Project HR Management • Plan HR management • Acquire project Team• Develop Project Team• Manage Project Team

Project Communication Management • Plan Communication Management • Manage Communication • Control Communication

Project Risk Management • Plan Risk Management• Identify Risks• Perform Qualitative risk Analysis• Perform Quantitative Risk Analysis• Plan Risk Response

• Control Risks

Project Procurement Management • Plan Procurement management • Conduct Procurements • Control procurements • Close Procurements

Project Stakeholder Management • Identify Stakeholders

• Plan Stakeholder Management • Manage Stakeholder engagement • Control Stakeholder Engagement

Organizational Enablers

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1. Benchmarking2. Competency Management3. Governance4. Individual performance Management5. Knowledge Management and PMIS6. Management Systems7. Organizational Project Management Communities8. Organizational Project Management Methodologies9. Organizational Project Management Policy and Vision10. Organizational Project Management Practices11. Organizational Project Management Techniques12. Organizational Structures13. Project management Metrics14. Project Management Training15. Project success Criteria16. Resource Allocation17. Sponsorship18. Strategic Alignment

There are 4 organizational core-enables processes.

IMPLEMENTATION FRAMEWORKOPM3

OPM3 Framework

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Area of Expertise Acquire Knowledge Perform Assessment Manage Improvement

Governance, Risks, and Compliance

Understand OPM Establish Plan Measure Results

Delivery and Benefits Management

Understand the Organization

Define Scope Select Initiatives

Conduct Assessment Implement Improvements

Organizational Change Assess Change Readiness

Initiate Change Manage Change

Cycle ElementPrepare For Assessment

Perform Assessment

Plan For Improvements

Implement Improvments

Repeat the Process

Manage Improvements

Acquire Knowledge

Assess Change Readiness

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1. Determine the management commitment to the critical success factors: sustained leadership (i.e. support for the planning changes), continuous improvement, and organizational change management

2. Determine feasibility: share OPM information (i.e. framework, benefits), assess current status, obtain buy in for the program vision.

3. Propose the business case for the executive approval

From the Discovery phase to the Implementation

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• The assessment provides the gap analysis (i.e. existing best practices) and the list of initiatives

• The improvements will be planned in a roadmap• In order to reduce the risk, conduct a pilot (for example on a reduced

number of project managers)• After the pilot, deploy the initiative to the full organization• Review the lesson learned

GAP ANALYSIS AND PLANNING TOOL

OPM3

Example of assessment sheet

25

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1000

Estabish Organizational

Project Management Polices x x x x

1005 Standardize Project Charter x

1020

Standardize Develop Project

Management Plan Process x

1030

Standardize Project Collect

Requirements Process x

1035

Standardize Monitor and

Control Project Work x

1040

Standardize Project Define

Scope Process x

1045

Measure Monitor and Control

Project Work x

1050

Standardize Project Define

Activities Process x

1055

Control Monitor and Control

Project Work Process x

Domains Organizational Enablers

Best Practice

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Knowledge Area Initiation Planning Executing Monitoring and Controlling Closing

Project Integration Management • Develop project charter

• Develop project Management Plan • Direct and Manage Project Work • Monitor and Control Project Work• Perform integrated Change Control

• Close Project orPhase

Project Scope Management • Plan Scope Management• Collect Requirements• Define Scope• Create WBS

• Validate Scope• Control Scope

Project Time Management • Plan Schedule Management• Define Activities• Sequence Activities• Estimate Activity Resources• Estimate Activity Durations• Develop Schedule

• Control Schedule

Project Cost Management • Plan Cost Management• Estimate Costs• Determine Budget

• Control Costs

Project Quality Management • Plan Quality Management • Perform Quality Assurance • Control Quality

Project HR Management • Plan HR management • Acquire project Team• Develop Project Team• Manage Project Team

Project Communication Management • Plan Communication Management • Manage Communication • Control Communication

Project Risk Management • Plan Risk Management• Identify Risks• Perform Qualitative risk Analysis• Perform Quantitative Risk Analysis• Plan Risk Response

• Control Risks

Project Procurement Management • Plan Procurement management • Conduct Procurements • Control procurements • Close Procurements

Project Stakeholder Management • Identify Stakeholders

• Plan Stakeholder Management • Manage Stakeholder engagement • Control Stakeholder Engagement

Process maturity stage

Process maturity stage cont’d

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1075

Standardize Project Create

WBS Process x

1085

Measure Project Create WBS

Process x

1095

Control Project Create WBS

Process x

1105

Improve Project Create WBS

Process x

Domains Organizational Enablers

4 MaturityStages for

Project Create WBS

Process

Enablers for a selected area

28

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Benchmark Organizational

Project Maangement

Performance Against

Industry Standards x x x x

8930

Benchmark PMO Practices

and Results x x x x

9090

Incorporate Performance

Benchmarks into Balanced

Scorecard System x x x x

Domains Organizational Enablers

THANKS FOR YOUR ATTENTION!OPM3