Process Institutionalization

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1 Process Institutionalization

2 Process Institutionalization Institutionalization is an important concept in process improvement. As described in the CMMI Framework, institutionalization implies that the process is ingrained in the way the work is performed and there is commitment and consistency to performing the process. An institutionalized process is more likely to be retained during time of stress. When the requirements and objectives for the process change, however, the implementation of the process may also need to change to ensure that it remains effective. CMMI Framework establishes 5 degrees of institutionalization, as indicated below: Level Progression of Processes 1 Performed Process 2 Managed Process 3 Defined Process 4 Quantitatively Managed Process 5 Optimizing Process The progression of process institutionalization is characterized in the following descriptions of each process: Performed Process (Level 1) A performed process is a process that accomplishes the work necessary to produce work products. Although capability level 1 results in important improvements, those improvements can be lost over time if they are not institutionalized. The application of institutionalization helps to ensure that improvements are maintained. Managed Process (Level 2) A managed process is a performed process that is planned and executed in accordance with policy, employs skilled people who have adequate resources to produce controlled outputs, involve relevant stakeholders, is monitored, controlled and reviewed, and is evaluated for adherence to its process description. The process may be instantiated by a project, group, or organizational function. Management of the process is concerned with institutionalization and the achievement of other specific objectives established for the process, such as cost, schedule, and quality objectives. The control provided by a managed process helps to ensure that the established process is retained during times of stress.

3 Defined Process (Level 3) A defined process is a managed process that is tailored from the organization s set of standard processes according to the organization s tailoring guidelines, and contributes work products, measures, and other process improvement information to the organizational process assets. A critical distinction between a managed and a defined process, is the scope of standards, process descriptions, and procedures. In a managed process, the standards, process descriptions, and procedures may be quite different in each specific instance of the process (e.g. on a particular project). In a defined process, the standards, process descriptions, and procedures for a project are tailored from the organization s set of standard processes to suit a particular project or organizational and therefore are more consistent, except for the differences allowed by the tailoring guidelines. Another critical distinction is that in a defined process, processes are typically described more rigorously than in a managed process. A defined process clearly states the following: Purpose Inputs Entry Criteria Activities Roles Measures Verification Steps Outputs Exit Criteria In a defined process, processes are managed more proactively using an understanding of the interrelationships of the process activities and detailed measures of the process, its work products, and its services. Quantitatively Managed (Level 4) A quantitatively managed process is a defined process that is controlled using statistical and other quantitative techniques. Quantitative objectives for quality and process performance are established and used as criteria in managing the process. Quality and process performance is understood in statistical terms and is managed throughout the life of the process. Optimizing (Level 5) An optimizing process is a quantitatively managed process that is improved based on an understanding of the common causes of variation inherent in the process. The focus of an optimizing process is on continually improving the

4 range of process performance through both incremental and innovative improvements. ADVANCING THROUGH CAPABILITY LEVELS Reaching capability level 1 for a process area is equivalent to saying that the processes associated with that process area are performed processes. Reaching capability level 2 for a process area is equivalent to saying that there is a policy that indicates you will perform the process. There is a plan for performing it, resources are provided, responsibilities are assigned, training to perform it is provided, select work products related to performing the process are controlled, and so on. In other words, a defined process can be planned and monitored just like any project or support activity. Reaching capability level 3 for a process area assumes that an organizational standard process exists associated with that process area, which can be tailored to the needs of the project. The processes in the organization are now more consistently defined and applied because they are based on organizational standard processes. Reaching capability level 4 for a process area assumes that this process area is a key business driver that the organization wants to manage using quantitative and statistical techniques. This analysis gives the organization more visibility into the performance of selected subprocesses that will make it more competitive in the marketplace. Reaching capability level 5 for a process area assumes that you have stabilized the selected subprocesses and that you want to reduce the common causes of variation within that process. Remember that variation is a natural occurrence in any process, so although it is conceptually feasible to improve all processes, it would be not economical to improve all processes to level 5. Again, you would concentrate on those processes that would help you to meet your business objectives. IMPLEMENTING PROCESS INSTITUTIONALIZATION Once we have understood the importance of process institutionalization, as well as why so many process implementations fail because of neglecting them, it s natural to start thinking how to effectively implement it in a feasible way. Trying to implement it without support from specialized tools can be costly and inefficient. And this is another common cause of process implementation failure. Many companies pay attention only to selecting tools to automate process execution. But this relates only to one dimension of a process implementation. It is also necessary to have the right tools to automate the processes institutionalization.

5 The advantage in this case, is that the same tools can be used to support and automate the institutionalization of all of the company processes. It depends, of course, on the quality and completeness of the selected tools. The following figure illustrates the strong support SoftExpert ITMS Suite provides to automate the process institutionalization in each capability level of the CMMI Framework: CMMI - SE Suite Map PROCESS EXECUTION Capability Level Integrated SoftExpert Solutions (SE Suite) Process Areas Abbr ML CL1 CL2 CL3 CL4 CL5 Performance Risk Project Document Action Audit Competence/ Training Inspection BI Requirements Management REQM 2 M M Measurement and Analysis MA 2 S S Project Monitoring and Control PMC 2 Target S S Project Planning PP 2 Profile Process and Product Quality and Assurance PPQA 2 2 Supplier Agreement Management SAM 2 S S Configuration Management CM 2 M M M Decision Analysis and Resolution DAR 3 M M Product Integration PI 3 M M Requirements Development RD 3 M M Technical Solution TS 3 M Validation VAL 3 Verification VER 3 Target Organizational Process Definition+IPPD OPD 3 Profile Organizational Process Focus OPF 3 3 S S Integrated Project Management+IPPD IPM 3 S Risk Management RSKM 3 S S Organizational Training OT 3 S S Organizational Process Performance OPP 4 Target Quantitative Project Management QPM 4 Profile 4 S Organizational Innovation and Deployment OID 5 Target Causal Analysis and Resolution CAR 5 Profile 5 S S Compliance: M Medium (partially compliant) S Strong (totally or mostly compliant) Relevance: Main Support BPM The institutionalization dimension of the CMMI Capability Model has been largely used as a reference to implement process institutionalization, even by some other common standards like COSO, COBIT, ITIL and PMBOK. Actually, it s not so difficult to understand why, as most of us have already had some bad experiences with process implementation. Marco Aurélio Hintz, PMP, ITIL-FC Special Accounts Manager

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