Cabinet Office Mandate for Change Project Requirements for Portfolio, Programme and Project Management Maturity Model (P3M3 ) Revisions

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1 Cabinet Office Mandate for Change Project Requirements for Portfolio, Programme and Project Management Maturity Model (P3M3 ) Revisions UNCLASSIFIED

2 Table of Contents Background...3 Reasons for change...5 Cabinet Office Requirements...5 Aims of the Project...6 Scope for the next edition...6 Quality criteria...8 Quality method...8 Next steps...9 Appendix A Members of the Change Advisory Board (CAB)...11 Appendix B Glossary...12 Appendix C Footnotes...13

3 Background P3M3 is built upon our earlier Project Management Maturity Model, which in turn was based on the process maturity framework that evolved into the (now superseded) Capability Maturity Model (CMM), developed by the Software Engineering Institute (SEI) in the United States. This was a descriptive reference model to provide organizations with more effective guidance in establishing process improvement programmes. It could also be used as the foundation for systematically building a set of tools, including maturity questionnaires. P3M3 is comprised of three sub models: 1. Portfolio Management Maturity Model, 2. Programme Management Maturity Model, 3. Project Management Maturity Model. It recognises 5 maturity levels 1. Awareness Processes are not usually documented. There are no, or only a few, process descriptions. 2. Repeatable The organization will be able to demonstrate, by reference to particular initiatives, that basic management practices have been established e.g. tracking expenditure and scheduling resources and that processes are developing. 3. Defined The management and technical processes necessary to achieve the organizational purpose will be documented, standardized and integrated to some extent with other business processes. 4. Managed Characterized by mature behaviour and processes that are quantitatively managed i.e. controlled using metrics and quantitative techniques. 5. Optimised The organization will focus on optimization of its quantitatively managed processes to take into account changing business needs and external factors. The model is composed of 7 perspectives 1. Management Control This covers the internal controls of the initiative and how its direction of travel is maintained throughout its life cycle, with appropriate break points to enable it to be stopped or redirected by a controlling body if necessary. 2. Benefits Management Benefits management is the process that ensures that the desired business change outcomes have been clearly defined are measurable and are ultimately realized through a structured approach and with full organizational ownership.

4 3. Financial Management Finance is an essential resource that should be a key focus for initiating and controlling initiatives. Financial management ensures that the likely costs of the initiative are captured and evaluated within a formal business case and that costs are categorized and managed over the investment life cycle. 4. Stakeholder Engagement Stakeholder engagement should be seen as an ongoing process across all initiatives and one that is inherently linked to the initiative s life cycle and governance controls. 5. Risk Management This views the way in which the organization manages threats to, and opportunities presented by, the initiative. 6. Organisational Governance This looks at how the delivery of initiatives is aligned to the strategic direction of the organization. It considers how start up and closure controls are applied to initiatives and how alignment is maintained during an initiative s life cycle. This differs from management control, which views how control of initiatives is maintained internally. 7. Resource Management These include human resources, buildings, equipment, supplies, information, tools and supporting teams. A key element of resource management is the process for acquiring resources and how supply chains are utilized to maximize effective use of resources. P3M3 makes a series of statements for each subject area (perspective) describing what an organisation looks like at each maturity level showing how an organisation would appear to an external observer. For example Management control at level 1 describes an organisation where Project management terminology is used by some members of the organization but not consistently and possibly not understood by all stakeholders. Projects will be conducted and managed according to individual preferences. This means that not all projects might have a designated project manager; they may not properly documented, etc. The current version of Portfolio, Programme and Project Management Maturity Model (P3M3 ) was published in 2008 with some very minor adjustments to the descriptions of the attributes made in Since then the interest in using P3M3 has grown greatly and for many organisations it is now the default maturity assessment model. Having been around in its current guise for 4 years many organisations have moved from initial baseline assessment into repeat assessments and this has identified issues with the current model. The maturity assessments can be carried out in various ways 1. Using the self assessment questions available on the P3M3 official website 2. Using a consultant led assessment 3. A fully validated accredited consulting organisation (ACO)

5 These broadly fall into the following categories: 1. Some organisations felt some Level 1 was too broad and some of their divisions were not even at Level That some of the attribute descriptions were too vague and open to interpretation resulting in inconsistent assessments especially when different people were involved in the repeat assessment. 3. That the perspective did not cover the full range of process necessary to successfully deliver business change and that further process perspectives should be added. 4. Some organisations felt that the alignment to the other Best Management Practice 1 material was not as tight as it could be and given the Management of Portfolios (MoP) did not exist when P3M3 was last revised the portfolio level model needs to be align better with the more recent thinking that went into MoP 5. That there is improved guidance to support the application of the model and in particular how to use it to construct organisational improvement plans. Given the above the Cabinet Office decided to evaluate the need for and the nature of potential, revisions to P3M3. Reasons for change It is four years since the P3M3 v 2.0 was published. In that time there have been additions to the Best Management Practice portfolio (i.e. Management of Portfolio sand Management of Value) as well as changes to existing products (e.g. PRINCE2 ). So it was time to assess if the guidance in these other Best Management Practice products reflected what was assessed in P3M3, and vice versa, and to address any alignment issues. The Cabinet Office through APMG undertook a survey of the P3M3 users and received feedback from a variety of industry sectors and from different global regions but predominantly UK and Europe, individuals and organisations, including consultants carrying out P3M3 assessments. Those comments were evaluated and where appropriate have been incorporated to form the basis of this mandate for change. Cabinet Office Requirements The Cabinet Office requires an evolutionary approach to updating this model so that those already using it can see their migration path and are not disenfranchised. Hence, the scope of change is not too extensive.

6 P3M3 should be consistent with the guidance contained in the other Best Management Practice products. Organisations investment in P3M3 to date must be protected and the revision must be fully compatible with the previous versions. Additionally a revision to the guides needs to be achievable by mid 2013 and give real benefit to the PPM community. Better alignment with o NAO financial management maturity model 1 o IUK approach 2 Aims of the Project To address issues arising from direct feedback to the Cabinet Office. To evaluate and address issues raised by the community e.g. through the on line survey. To ensure that P3M3 remains valuable to organisations by providing a means through which their business change processes can be improved. Maintain Crown Copyright Material so that it reflects current thinking and practice it is part of a coherent suite of PPM guidance. Scope for the next edition It is envisaged that the project has several outputs: 1. A published version of the revised maturity model. 2. Improved guidance on how to use the maturity model and assessment(s). 3. Guidance on how to start improving organisation maturity following an assessment along with appropriate health warnings. 4. An on line assessment based on the maturity level descriptions, a. A free high level assessment essentially the current free high level self assessment b. A paid for detailed assessment that will allow users to compare themselves to 1 NAO National Audit Office see for details 2 IUK Infrastructure UK see treasury.gov.uk/ppp_infrastructureuk.htm for details

7 i. Their previous assessment (no more than 2 assessments per year) ii. Similar organisations to themselves benchmarking by industry segment, size region etc. This is an interim revision NOT a major refresh therefore it must not fundamentally change the structure of P3M3. Several areas of inconsistency or ambiguity will be addressed, so that differentiation between levels is more defined. To ensure that P3M3 and any revisions are consistent with definitions contained in the common glossary. To improve the attribute definitions in the portfolio and programme sub models so that they are deemed to be as robust as they are in the project sub model. To develop as required new perspectives that can be included, as optional modules, into P3M3, for example commercial, contractual, HR aspects. To resolve areas of overlap where attributes might more appropriately be incorporated or covered in a different perspective. To improve the guidance supporting the maturity model and in particular how it can inform improvement plans. To improve the alignment and coverage of financial management so that it better reflects the NAO financial model. To ensure that the revised P3M3 aligns and takes account of the output from IUK. In response to requests following the previous revision this version will also include an on line self assessment which will be based on, o the existing self assessment, o using the maturity level descriptions as the basis for a fuller on line selfassessment, o the database and access machinery developed for the ITIL maturity model. The database will be able to support, o Comparisons against a previous assessment(s) [base lining] o Comparison against a similar organisations [benchmarking]

8 TSO will establish a Change Advisory Board to bring P3M3 under the same change control mechanism as the other Best Management Practice products. Out of scope There has been a request for a pre level one maturity assessment. At this stage as this is from only one organisation such a request is considered out of scope. However, this revision must be undertaken such that should the need arise that the level one definitions could with some additions be split into a pre level 1 and level 1 maturity levels. Quality criteria Quality criteria for this update dictate that the content must: Be written in plain English and idiom free. Be consistent with other core Best Management Practice guidance and the common glossary. Be free from internal inconsistencies. Meet the aims of the project as set out earlier in this mandate. Protects the investment of those who have already carried out an assessment. Enable them to move forward with their improvement plans and be able to measure the benefits from their investment. Change requests, identified by the Change Advisory Board and Best Management Practice as requiring action, have been addressed. Be consistent with language and concepts of the recent updates and revisions to PRINCE2, MSP, M_o_R, MoV, MoP, P3O. Quality method Quality assurance will be carried out by the Review Group. The Review Group will consist of members of the P3M3 Reference Group, practitioners and members of the consulting community. These work packages will be managed as a project with several work packages and will be project managed by TSO on behalf of the Cabinet Office. The Cabinet Office, in consultation with the P3M3 Reference Group, will set the detailed scope for the product based on this mandate, agree the full product description/s, and may also provide input to the design of the relevant work package/s if required. The Review Group will monitor progress against these product descriptions.

9 An acceptance review meeting will be carried out by a small number of reviewers drawn from the Design Review group and the P3M3 Reference Group. This will be the final review before the manuscript is passed over to TSO prior to publication. Next steps The next steps will be to derive more detailed work instructions which will be covered in two stages: 1. Develop a draft set of work instructions based on feedback the Cabinet Office has received. 2. Refine and validate the work instructions through consultation with an expert reference group. The P3M3 Reference Group assesses the model and advises Best Management Practice advice on the update by considering: What is the scope of the change required to make the product fit for purpose again Refining the work instructions and assure that it has enough detail so that the authoring team can clearly understand scope of the revision Making recommendations of areas that in hindsight the model ought to contain but which up to now it has not covered. The author(s) will then bring forward an outline of the changes to be made and this will be subject to a design review meeting to review the author(s) product description produced in response to the mandate and work instructions. The design reviewers will be drawn from members of: Design Authority representatives (a permanent group with a specific remit to look at the impact of changes across the whole of the PPM suite of products). P3M3 Reference Group representative (a temporary group with a specific remit to advise on changes to a single product). Change Advisory Board representatives (a permanent group with a specific remit to provide detailed advice in response to change requests logged against specific products).

10 After user reviews to refine the revised P3M3 guidance are completed a final quality review meeting will be convened by TSO. TSO will advise the Cabinet Office if the final authors draft matches the expectations of the changes envisioned in the mandate and that the final quality of the information in the model meets the required quality for publication. The members of the final quality review group will include; Change Advisory Board representatives, P3M3 Reference Group representatives, The Cabinet Office. Input to the revision Inputs to this revision will include the following, the list is not intended as an exhaustive list of inputs. Survey feedback Feedback to the Cabinet Office NAO financial maturity model Work on the Operating Environment with the Major Projects Authority in the Cabinet Office NAO PPM guidance IUK sponsor, client, supply chain and assessment management assessments Lessons learned from the development and deployment of the ITIL maturity model.

11 Appendix A Members of the Change Advisory Board (CAB) The final membership of the CAB is yet to be confirmed but will include representatives from the Cabinet Office, the official publisher and the official accreditor with user representative yet to be invited and likely to be selected from the reference or reviewer group as the project develops. Name Company Representing Mike Acaster Cabinet Office Cabinet Office Neil Glover TSO TSO (The Official Publisher) Alan Harpham APMG APMG (The Official Accreditor) TBC TBC TBC Public sector users Private sector user Accredited Consulting Organisations (ACO)

12 Appendix B Glossary Term APMG ACO CAB ITIL IUK M_o_R MSP NAO P3O P3M3 MoV MoP PRINCE2 TSO Description The APM Group the accreditation body for all Best Management Practice qualifications. An Accredited Consulting Organisation, assessed by APM Group (APMG) to provide training consulting service across the PPM Best Management Practice products Change Advisory Board the group responsible for reviewing and prioritising the contents of the ITIL Issue Log. The IT Infrastructure Library Infrastructure UK see for details Management of Risk: Guidance for Practitioners. Managing Successful Programmes. National Audit Office, see for details Portfolio, Programme and Project Offices. Portfolio, Programme, and Project Management Maturity Model Management of Value. Management of Portfolios. Project Management methodology. Projects in Controlled Environments. The Stationery Office the official publisher.

13 Appendix C Footnotes 1 Best Management Practice is the overarching brand that umbrellas multiple Cabinet Office best practice products. The internationally renowned portfolio is adopted as best practice through high quality training, publications, software tools and consultancy for portfolio, programme, project, risk, value and service management disciplines.