OPM3 TM Organizational Project Management Maturity Model Kevin Chui Vice President, PM Hong Kong Chapter Translate strategy into success... Drive Business mprovement... Gain a Competitive Advantage!
Disclaimer This is not an official PM presentation. The interpretation and viewpoints on OPM3 expressed in this document come from the author. Any misinterpretation or misrepresentation of the OPM3 model or its concepts will be entirely the responsibility of the author.
Agenda 1. What is Organizational Project Management? 2. OPM3 Concepts 3. OPM3 Cycle 4. A Self-Assessment Example 5. What s ext?
What s Organization Project Management? The application of knowledge, skills, tools, and techniques to organizational and project activities to achieve the aims of an organization through projects The degree to which an organization practices this type of project management is referred to as organization project management maturity n OPM3, maturity is reflected by the combination of Best Practices achieved within the Project, Program, and Portfolio domains
Components of Project Success ndividual Project Management Competence Project Manager Competency PMCD Framework Organizational Project Management Maturity and Capability Organizational Maturity OPM3 Provides a basis for Provides a basis for Project Performance Organizational Project Performance Contingencies Project types and characteristics, project life cycles, project structures Moderator variables Has a major impact upon Has a major impact upon Project Success
PM Standards PMBOK managing individual projects Project management competency development (PMCD) framework for the project manager OPM3 Standard for applying project management principles at the organizational level
Do We eed Another Maturity Model? OPM3... Allows an organization to achieve strategic goals through project management principles and practices Provides the most comprehensive Body of Knowledge regarding what constitutes Best Practices in organizational project management Enables an organization to perform an assessment of its current state of organizational project management maturity Helps organizations identify a path for improvement, and provide guidance on prioritizing and planning
Do We eed Another Project Management Model? OPM3... Strengthens the link between strategic planning and execution, and correlate project outcomes with organizational success Allows project outcomes to be more predictable, reliable, and consistent s based on the PMBOK Guide, the de facto Standard for project management Provides a basis from which organizations can make improvements in project management maturity ncorporates the expertise of hundreds of project management practitioners and consultants from a wide spectrum of industries and geographic areas
OPM3 Concepts
OPM Domains OPM3 will help organizations utilize project management to accomplish their goals on time, within budget, and most importantly, to improve their overall effectiveness. Projects Portfolio Portfolio Programs
Portfolio, Program and Project (PPP) Project A temporary endeavor undertaken to create a unique product, service, or result. Program A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Portfolio A collection of projects and/or programs and other work that are grouped together to facilitate effective management to meet strategic business objectives.
OPM3 Stages (SMC) Four sequential stages of process improvement: Standardize Measure Control continuously mprove
OPM Maturity Portfolio BEST ncreasing Maturity Program PRACTCES Project Standardize Measure Control Continuously mprove
Dimensions of OPM Maturity First Dimension Four progressive Stages of Process mprovement (SMC) Standardization Measurement Control continuous mprovement Second Dimension Three Domains (PPP) Project Management Program Management Portfolio Management Zeroth Dimension Within the above two dimensions is the progression of incremental Capabilities leading to each Best Practice
A Fourth Dimension Project Management Process Groups (PECC) Fourth Dimension Capabilities are also categorized into the five project management process groups (PECC) nitiating Planning Executing Controlling Closing nitiating Processes Controlling Processes Planning Processes Closing Processes Executing Processes
Multi-dimensional Maturity ote that there is no overall system of levels of maturity. OPM3 is designed to be easy to understand and use. t is also scalable, flexible and customizable to accommodate the wide range of needs and objectives of organizations of varying types and sizes. Flexibility in applying the model to the unique needs of an organization
OPM3 Cycle
The Three nterlocking Elements of OPM3 Knowledge OPM3 foundational concepts Assessment Self assessment tool kit mprovement 600 organizational project management best practices and their constituent capabilities
The OPM3 Cycle 1. Prepare for the Assessment 5. Repeat the process 2. Perform the Assessment 4. mplement improvement 3. Plan for the improvement
The OPM3 Cycle 1. Prepare for the Assessment 5. Repeat the process 2. Perform the Assessment 4. mplement improvement 3. Plan for the improvement
OPM3 Construct BEST PRACTCES & CAPABLTES BEST PRACTCES & CAPABLTES Standardize Measure Control Continuously mprove Project Program Portfolio T A T G P L A G E X E C U T G C O T R O L L G C L O S G T A T G P L A G E X E C U T G C O T R O L L G C L O S G T A T G P L A G E X E C U T G C O T R O L L G C L O S G
Best Practice Basics Best Practice KP Capability Outcome KP Capability Outcome Outcome KP KP
Best Practice, Capabilities, Outcomes and KPs Best Practice An optimal way currently recognized by industry to achieve a stated goal or objective. Capability An incremental step on a way to one or more best practices. Outcome Tangible or intangible result of applying a capability. Key Performance ndicator (KP) A metric by which an organization can determine, if an outcome and to what degree on outcome exists.
BP 3570 Manage Related Projects Best Practice: Processes, structures and practices allow interactions between projects to be coordinated Capability (3570.020): Establish Program Management The organization plans and manages related projects as a program. PPP Program SMC Standardize PECC Executing Outcome (3570.020.10): Stakeholder Requirements The organization considers stakeholder requirements across the program when assessing project results or changes. KP: Program-Level Change Management
OPM3 Directories Best practices directory Lists nearly 600 best practices Capabilities directory Provides data on all the capabilities, organized based on the best practices Each capability is associated with Domain Process improvement stage Process group (PMBOK) Key performance indicator (KP) mprovement planning directory Shows the dependencies between capabilities
The OPM3 Cycle 1. Prepare for the Assessment 5. Repeat the process 2. Perform the Assessment 4. mplement improvement 3. Plan for the improvement
A Self-Assessment Example
To Recap... The Framework Stage Domain Standardize Strategies Portfolio1 Portfolio2 Portfolio3 Measure Control Program1 Project1 Program2 nitiation Project Management Process Groups Best Practices Planning Continuously improve Executing Controlling Capability1 Capability2 Closing Project2 Each best practice or capability is associated with: A domain, stage and project management process group
To Recap... n a utshell Comprises three directories Best Practices directory (~600) Capabilities directory (Arranged by Best Practices) mprovement directory (Dependencies among Best Practices and Capabilities) Each of the best practice is identified as Standardize, Measure, Control, continuously mprove (SMC) Each of the Best Practice is made up of Capabilities For every best practice, there is a set of demonstrable Outcomes and Key Performance ndicators Each of the best practice is grouped under nitiating, Planning, Executing, Controlling and Closing process groups (PECC) Applicable for Projects, Programs and Portfolios (PPP)
Some of the Organizations Supporting the Development of OPM3 3M Atos-Origin Lloyds TSB Bank plc ational Defence Canada ortel etworks
Beta Test Organizations Canon Europe Ceridian The Dow Chemical Company Eastern Exterior Wall Systems (TDCC) EDS reland Solution Centre nfo-tech Research Group nstituto de nformatica e Estatistica da Solidariedade (ES) Lockheed Martin Aeronautics Public Works and Government Services Canada (PPD PMO) SSM Health Businesses nformation Center TELUS Wachovia Corporation
OPM3 vs. SO9000 SO9000 focuses on ensuring that a product is produced or service is delivered to the same quality criteria and that the production is continuously improved based on customer feedback. There is no link to the strategy of an organization. OPM3 focuses on delivering the organizations strategy through projects and defines the domain of organizational project management, supporting the above goal, hence creating value for an organization.
OPM3 vs. CMM SE s CMM is designed to improve the T organization exclusively. There are 5 defined levels of maturity, and you move from one level to the next through an audit. OPM3 focuses on the whole organization. OPM3 does not have pre-defined maturity levels. An organization defines relevant maturity levels based on their requirements.
What is ext? Seminar: OPM3 in Practice (Part 2) Date: Aug 26 (Thurs) Speaker: Ralf Friedrich Workshop: OPM3 Date: Aug 27-28 (Fri-Sat) nstructor: Ralf Friedrich
Corporate Activities Corporation seminars Pilot assessment
Thank You More information is available at: http://opm3.pmi.org/