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1 Management Maturity Model -- RMMM --

2 Wayne Caccamo Prasad Raje Management Maturity Model Webinar Agenda RMMM Business Drivers What is the RMMM? Objective Structure Benefits Development Process RMMM Overview RMMM at Glance RMMM Levels RMMM Dimensions Terminology RMMM Drill-Down Conclusions Next Steps & Q&A

3 Business Drivers So, why do we need another maturity model? Fills a void PPM maturity models exist at a higher level, but there is no guidance exclusively focused on Management. Large Audience Everybody s doing resource management at some level of complexity. Strong Value Proposition Getting resource management just right is critical to IT and business success. Help Needed RM initiative failures are largely the result of over- or underinvesting in process complexity and tools relative to resource info needs.

4 Business Drivers (cont.) In practical terms, the RMMM better positions the IT or PMO organization to be able to answer nagging questions like: What are these resources working on? Why is it so difficult to take on new projects? How come these resources are always overbooked, don t you control how work gets assigned to resources? Will we have enough available capacity in three months to take on these new important projects? Do we have the right mix of skills to meet project demand? What is the cost of this group of resources for this month on this set of projects? How do I de-prioritize the work already under way to make room for new work? Can you spare this one critical resource for this period?

5 What is the RMMM? OBJECTIVE Process Maturity Information Needs Optimized Deployment Technology The Management Maturity Model (RMMM) enables organizations to define and execute an effective resource management strategy. It accomplishes this by helping stakeholders in resource-constrained environments better align resource-related information needs with their level of PPM process and technology maturity.

6 What is the RMMM? (cont.) STRUCTURE The RMMM identifies a logical progression of resource and capacity management process sophistication which is enumerated as five levels of maturity. Each level of maturity is described along seven common dimensions.

7 Benefits to Practitioners TARGET BENEFITS Provide resource stakeholders with a framework and common language for communicating about resource management objectives, issues and outcomes. Deliver a roadmap and a guide to help characterize the optimal, aspirational level of maturity. Expose clearly the implications and consequences of operating at a particular level of resource management. Provide critical guidance in the PPM software solution selection process.

8 Maturity Model Development Process Version 1 is a hypothesis based on G5000 Enterprise Input Customers, Prospects, Others Sources Internal Expertise Deployment Managers, Consultants Industry Analyst Review Gartner Your input appreciated for Version 2

9 RMMM Levels Defined Level 1 Level 2 Level 3 Level 4 Level 5 WORK VISIBILITY CONTROLLED ASSIGNMENT GOVERNED CAPACITY SCHEDULE-DRIVEN AVAILABILITY GRANULAR MANAGEMENT Organizations have visibility to who is working on what. However, resources are assigned to work without any control or oversight. A formal resource assignment approval process is introduced. However, approvals are informed only by resource availability. The focus shifts to capacity management and the introduction of project priority considerations requiring more structured governance. The resource assignment approval and capacity management processes are driven by project schedules at the phase level. Full task-level project schedule details are used to drive the resource assignment and capacity management processes.

10 RMMM Dimensions Level 1 Level 2 Level 3 Level 4 Level 5 WORK VISIBILITY CONTROLLED ASSIGNMENT GOVERNED CAPACITY SCHEDULE-DRIVEN AVAILABILITY GRANULAR MANAGEMENT ASSIGNMENT GRANULARITY PROJECT ROLES RESOURCE COST RESOURCE APPROVAL Detail of work assignment and consideration of non-project work Treatment of potential project roles and associated attributes/properties Cost by project, phase, task; plan or actual, etc. Characteristics of assignment approval process (or lack thereof) CAPACITY PLANNING GOVERNANCE Process for addressing availability constraints and business priorities The body (if any) that oversees PPM/RM processes and decision-making BUSINESS VALUE Business benefit at this level of maturity

11 Assignment Granularity Dimension Utilization (%) Level 1/2 s are assigned a fixed/constant utilization percentage for the duration of the project Utilization (%) Level 3 utilization can vary within duration of a project Utilization (%) Level 4 utilization can vary by project phase (driven by project WBS) Utilization (%) Level 5 utilization can vary by individual project activity (driven by project WBS) S E

12 RMMM Summary Matrix

13 Survey Time! Which best describes your RM maturity level? 1: Work Visibility: We know only who is working on what 2: Controlled Assignment: approval based on availability only 3: Governed Capacity: Focus on capacity and business priorities 4: Schedule-Driven Assignment: Bottom-up, project phase-level info drives RM 0% 5: Granular Management: Project schedule details drive RM process 5% 11% 26% 58% Note: % responses are actual results from poll taken during live Webinar

14 Key Terminology capacity The total time for a given resource that is intended to be managed in hours or % of FTE (can exclude non-project work capacity) utilization The sum total of a resource s assignment to project work for a given duration in hours or % FTE. availability The difference between capacity and utilization for a given duration. demand The incremental potential work assignment for a given duration for a resource driven from proposed projects or incremental work requests associated with on-going projects. Activity The generic name for any level of project work identified in a project work breakdown schedule (WBS). Approval Workflow (RAW) The process by which a resource is assigned to work for a given duration (parameters, routing, decision criteria, etc.)

15 Level 1: Work Visibility Dimension Assignment Granularity Project Roles Definition Simple, complete project list; Constant (average) % utilization by resource Only project managers and all others as team members Cost Plan: Aggregate resource costs by project; Actual: Timesheets Approval No approval process Capacity Planning No capacity planning Governance No governance Business Value Who is working on what; over-use is visible

16 Level 1 Grab PM 1 -- Project 1 PM 2 -- Project 2 PM 3 -- Project 3 PM 4 -- Project 4 s

17 Assignment, Utilization (Level 1) Demand for A 100% s are assigned a fixed/constant utilization percentage for the duration of the project Utilization (%) 75% 50% 25% Project 1 Project 2 Project 3 S 1 S 2 E 1 S 3 E 2 E 3 time Aggregate % Utilization for A 100% At this level process maturity (assignment granularity) there is a risk of resource over-utilization. 75% Utilization (%) 50% 25% S 1 S 2 E 1 S 3 E 2 E 3 time

18 Level 1 to Level 2 When to make the transition: Need to proactively manage resource utilization Need better balanced utilization Avoid project resource risks Key Dimension change RAW process

19 Level 2 Introduces Approval Workflow PM 1 -- Project 1 PM 2 -- Project 2 PM 3 -- Project 3 PM 4 -- Project 4 R A W s

20 Level 2: Controlled Assignment Dimension Assignment Granularity Project Roles Definition Simple, complete project list; Constant (average) % utilization per resource Specific project roles; Roles define approvals; Cost rates; target % utilization Cost Approval Capacity Planning Governance Plan: aggregate resource costs by project and role; Actual: timesheets RAW process defined; Considers availability in approvals Individual and aggregate resource capacity is visible, managed, balanced No governance structure to resolve relative project priorities Business Value utilization is balanced; gaps vs. demand is clearly visible

21 Assignment, RAW, Utilization (Level 2) Demand for A 100% 75% Utilization (%) 50% 25% Project 1 Project 2 Project 3 S 1 S 2 E 1 S 3 E 2 E 3 time Aggregate % Utilization for A 100% At Level 2, the RM can disapprove the request of A for assignment to Project 3 to avoid the over-utilization scenario 75% Utilization (%) 50% 25% S 1 S 2 E 1 E 2 time

22 Level 2 to Level 3 When to make the transition: A need to focus on projects with greatest business impact Need to dynamically respond to changing business priorities Fulfill new demand by re-prioritizing existing projects instead of simply adding new resources Key Dimension change Governance

23 Level 3 introduces a Governance Structure Governance PM 1 -- Project 1 PM 2 -- Project 2 PM 3 -- Project 3 PM 4 -- Project 4 CANCEL R A W s

24 Prioritization drives Approval at Level 3 Demand for A 100% Utilization (%) 75% 50% 25% Project 1 Project 2 Project 3 Here we are at the original Level 1 / 2 granularity of resource demand S 1 S 2 E 1 S 3 E 2 E 3 time Aggregate % Utilization for A 100% This resulted in overutilization of A 75% Utilization (%) 50% 25% S 1 S 2 E 1 S 3 E 2 E 3 time

25 Prioritization drives Approval at Level 3 Demand for A 100% Utilization (%) 75% 50% 25% Project 1 Project 2 Project 3 Here we are at the At At Level Level 3 3 Governance Governance can original cancel Level Project 1 / can cancel Project 2 2 and and granularity Approve of Project resource Approve Project 3 3 demand S 1 S 2 E 1 S 3 E 2 E 3 time Aggregate % Utilization for A 100% 75% Utilization 50% (%) This action removed a utilization- related risk to Project 3 which governance has prioritized highest 25% S 1 S 2 E 1 S 3 E 2 E 3 time

26 Level 3: Governed Capacity Dimension Assignment Granularity Project Roles Cost Definition Allow non-constant allocations on projects Level 2 + RAW process considers roles, skills, pools Level 2 + plan vs. actual compared and managed Approval Level 2 + considers project priority in making approvals Capacity Planning Governance Business Value Capacity directed at higher priority projects; Ability to re-direct capacity as priorities change; What-if modeling under various scenarios Steering committee manages demand (intake) prioritization and makes in-flight decisions on project hold, slip, cancel Reduces strategy execution risk Dynamic ability to react to changing business conditions

27 Level 3: The RMMM Sweet Spot For many companies Level 3 offers the best alignment and balance of: Need for information detail and accuracy Process maturity Required technology sophistication Business benefit

28 Level 3 to Level 4 When to make the transition: utilization varies greatly by phase of project Extra detail is accurate and up-todate Governance decisions would be different with the extra information detail Key Dimension change Assignment Granularity

29 Level 4 introduces Phase Level Demand Governance PM 1 -- Project 1 PM 2 -- Project 2 PM 3 -- Project 3 PM 4 -- Project 4 R A W s

30 Level 4 Granularity Concepts Demand for A 100% Utilization (%) 75% 50% 25% Project 1 Project 2 Project 3 Here we are at Level 1,2 granularity of demand info with Level 3 capability to cancel or shift projects S 1 S 2 E 1 S 3 E 2 E 3 time Aggregate % Utilization for A 100% and this is what the resulting aggregate utilization looked like for A 75% Utilization (%) 50% 25% S 1 S 2 E 1 S 3 E 2 E 3 time

31 Level 4 Granularity Concepts Demand for A 75% Utilization (%) 25% 100% 75% 50% Project Project % Phase-Level Detail Project 2 Project 2 Project 3 Project 3 At Level 4, Phase level detail Here we are at Level 1,2 granularity allows us to of fit demand demand info into with Level 3 A s capability schedule to cancel w/out canceling or shift projects project S 1 S 1 S 2 S 2 E 1 E 1 S 3 S 3 E 2 E 3 E 3 E 2 time time Aggregate % Utilization for A 100% At Level 4, Phase level detail allows us to fit demand into A s schedule w/out canceling project 75% Utilization (%) 25% 75% 50% 25% S S 1 S S 2 E E 1 S S 3 E 2 E E E 3 time time

32 Level 4: Schedule Driven Availability Dimension Assignment Granularity Project Roles Cost Approval Capacity Planning Governance Business Value Definition s utilization measured from phase-level assignments (phase dates MUST be accurate, up-to-date; NOTE data explosion) Level 3 Level 3 + phase level resource costs Level 3 + phase-level approvals Level 3 + project phases held/slipped to manage capacity Level 3 + steering committee decisions may be different based on phaselevel information. Potential for improper decisions based on unreliable data. Finer control over resources, may enable more projects to be taken on by eliminating false-positives on resource over-utilization

33 Level 5: Granular Management Dimension Assignment Granularity Project Roles Cost Approval Capacity Planning Governance Business Value Definition s utilization measured from task-level assignments (task dates MUST be accurate, up-to-date; NOTE data explosion) Level 4 + RACI Level 4 + task level resource costs Level 4 + task-level resource approvals Level 4 + project tasks held/slipped to manage capacity Level 4 + Steering Committee decisions may be different based on task-level information. Potential for improper decisions based on unreliable data. Finer control over resources, may enable more projects to be taken on by eliminating false-positives on resource over-utilization

34 WBS-driven RM Complexity Level 4/5 WBS-driven RM puts the burden on project managers to accurately: (1) Maintain and update project phase dates (2) Assign individual resources to the relevant phases; and (3) Provide utilization requirements by phase. Example Portfolio Size: 100 Projects Average # of Phases per Project: 5 Average # of s per Phase: 5 Required # of data values be kept up-to-date: 7,500! (100x5x5x3) RISK If the organization does not possess adequate process maturity, the dependent capacity planning and governance processes will be driven from a mass of unreliable underlying information.

35 Interpreting and Using the Model In general, it is recommended that all dimensions of maturity are achieved before progressing to the next level Maturity levels represent recommended best practices; what companies actually or should do depends on corporate culture, industry context, technology sophistication, etc. The key is understanding whether variances from the model are based on conscious/valid organizational decisions and context or symptomatic of dysfunction that should be addressed. RMMM does not necessarily apply to time/budget-driven RM processes; it specifically targets resource-constrained environments Remember, higher levels of maturity are not necessarily better

36 Key Model Premises and Take-Aways The level Assignment Granularity detail is the key model driver. The level of granularity an organization chooses to plan and track effort largely drives where it should be along other maturity model dimensions. There is a chasm between maturity levels 3 and 4. Many organizations pre-maturely rush to Level 4 -- which includes activity-level effort roll ups -- and fail. For most organizations, Level 3 is the sweet spot to strive for providing just right process sophistication given the level of information needed by the business to make effective resource-related decisions. Systems should be configured to align with the level of process maturity and not encourage IT organizations to bite off more functionality than they can chew.

37 Next Steps 1. Assess your own company s level of existing process maturity and see where it fits in the Maturity Model. 2. Examine the business benefits at your company s maturity level. 3. If the additional process maturity business benefits are important, perform a gap analysis and identify what critical dimensions need to progress at your level of maturity. 4. Communicate the findings to others in your company and get buy-in to fix the gaps. 5. Lay out a roadmap of how your company should get to the next level and work towards getting there.

38 More Information Download the RMMM White Paper from Review the RMMM Webinar Recording Join the Discussion on Linked-In (by Joining the Enterprise PPM Community group) Follow Instantis on Twitter for Updates (twitter.com/instantis) Comment on RMMM posts on the Instantis Blog (info.instantis.com)