Organizational Project Management Maturity Model 3 (OPM3)
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1 Organizational Project Management Maturity Model 3 (OPM3) An Overview of PMI s 2 nd Edition Standard Joanne Greene-Blose, PMP
2 Questions to Answer Today What is OPM3? What are the Benefits? What are its Components? What is an Assessment Like? What do Assessment Results Look Like? 2
3 OPM3: What is it? The right project, done correctly, each time. Organizational Project Management Maturity Model Chartered in 1998 to create a global standard for organizational project management, released in other MMs looked at and none found that would describe a model the way the team would like; that is tied to the PMBOK, covers all relevant Best Practices, includes a self-assessment in addition to a 3 rd party assessment. A basis for self-examination, not prescriptive Identifies Best Practices of hundreds of public and private organizations Based on 4 th edition of PMBOK, 2 nd edition of Program Management Standard, and 2 nd edition of Portfolio Management Standard Currently 1500 companies world wide have had online assessments 3
4 OPM3: What is it? A framework made up of: Best Practices requires Capability (competency) to execute and derive strategic results Capabilities the degree of the competency Outcomes the result of the execution of the Best Practice after applying Capability. Outcomes are measured by KPIs, Key Performance Indicators Comprised of three basic steps: 1. Knowledge the contents of the standard 2. Assessment comparison to the standard 3. Improvement towards organizational change 4
5 Value of Project Management Maturity * Organizations with more developed organizational project management, experience better project performance (benefits) in areas of: Cost predictability (first time estimating 20% improvement) Project predictability (duration reduced by 50%) Resource allocation (effort reduced by 25%) Improved quality (Cost-Of-Quality improvement of 10%) Identification and selection of projects that align with the strategy *from pmi.org 5
6 OPM3: What are the Benefits? Provides organizations a means to assess and improve its ability to execute and achieve its organizational strategies Goal is not better process! Aid portfolio management through better identification and selection of projects to pursue How possible? Assure alignment between portfolio and organization s goal and strategies Minimize project risk Drive sustainable, repeatable, predictable results 6
7 Multi-Dimensional Maturity View Multi-dimensional Maturity Path Rather than attaining maturity in a step by step linear fashion, OPM3 allows you to pursue maturity on several planes of maturity. Flexible, holistic, robust. Continuums exist for: PPP Domain approach (Project, Program, Portfolio) Process Improvement approach (SMCI) PMBOK Process Group approach 7
8 OPM3: What are its Components? Best Practices SCMI Standardize, Measure, Control, and Improve; stages of process improvement OE Organizational Enablers (new in the 2 nd Edition) Structural, Cultural, Technological, Resource Are met through satisfaction of two or more associated Capabilities. ~600 BPs exist 8
9 Sample SCMI BPs Project Distribute Information Process standards are established. What type is this? Project Plan Risk Responses Process measures are established, analyzed, and assembled. Manage Program Issues Process problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 9
10 Organizational Enabler Categories OE s promote smooth transitions within the domain, stages, and process groups Benchmarking Competency Management Management Systems Organizational Structures Resource Allocation Strategic Alignment Sponsorship Project Management Metrics Project Management Training Project Success Criteria Organizational Project Management Methodology Organizational Project Management Policy and Vision Organizational Project Management Practices Organizational Project Management Techniques Knowledge Management and PMIS Individual Performance Appraisals Organizational Project Management Communities 10
11 Sample Org Enabler BPs The organization has a formal process for assigning resources to projects and recording assignments. Sponsors actively participate in supporting the project. The organization establishes and uses mathematical models for planning and replanning. 11
12 Categories of Best Practices Categories aid org in areas to focus Domain SMCI stage Organizational Enablers * Process Groups Knowledge Area (9 in the PMBOK) * Business Results * Project Predictability Resource Allocation - ability to id, deploy, and release Balanced Scorecard - uniform reports measured consistently * Business Outcome Outcome / Activity Business Requirement Category * New in version
13 13
14 Relationship of OPM3 Components Best Practices are comprised of >= 2 Capabilities, which are evidenced by Outcomes, which are measured by KPIs. An org must demonstrate ALL Capabilities associated with a BP in order to fulfill that BP. Outcomes are tangible or intangible result of applying a Capability KPIs can be binary, quantitative, qualitative, or monetary 14
15 Dependencies Among Capabilities May be serial within the same BP (Capability 1 must be in place before Capability 2 can be achieved) May be dependent on one or more Capabilities from another BP Should work on these BPs simultaneously in this instance 15
16 An Example Sample Best Practice: #1020 BP Name: Standardize Develop the Project Management Plan Process BP Description: Develop Project Management Plan Process standards are established. Capabilities: 4, one of which is: Process-oriented governing bodies have been established, and the appropriate people have been assigned to them. They meet on a regular schedule to discuss process management issues and suggestions for improvements. Outcome: Active process governing body KPI: Exists 16
17 The Three-Step OPM3 Cycle 1. Knowledge- why? Step One: Prepare for Assessment Knowledge Foundation Self-Assessment Method (SAM); online tool 2. Assessment Step Two: Perform High-Level Assessment; determine which BPs are currently demonstrated Perform Comprehensive Assessment; which Capabilities within each BP 3. Improvement Step Three: Plan Improvements Rank Capabilities and Outcomes needed for improvement; Review dependency map so that prerequisites are included Step Four: Implement Improvements ~90% of time spent here 4. Iterate to Assessment Step Five: Repeat the process 17
18 OPM3: What is an Assessment Like? OPM3 Maturity Assessment Indicates at a given point in time the degree that an organization can meet its objectives (not extent to which it follows a process!) Maturity can be assessed at multi-dimensions. Domain: project level, program level, and/or portfolio-level. Can be: Self-administered (OPM3 Online tool) 120 online questions $600 for a single user license ($700 if not a member) Certified Assessors (OPM3 Product Suite) 91 Certified Assessors (51 in the US, 1 in Rochester [Harris]) 18
19 Sample Assessment Result Dark areas show degree of Best Practices implemented, white show areas of improvement Organization determines priority for where/how to improve; can be horizontally or vertically 19
20 Online Assessment Questions 20
21 What do Assessment Results look like? PPP Progress Report 21
22 PPP/SMCI Report 22
23 SMCI/PPP Report 23
24 Best Practices Report 24
25 Summary OPM3 is a scalable, multi-dimensional organizational maturity model Aligned with PMI standards Can self-administer assessments Best practices designed to improve project execution and strategy fulfillment Provides organization with evidence of improvement Flexible enough to allow focus on areas of choice; domains, KA, Process stages, etc. 25
26 For More Info: OPM3.aspx Contact us at The Project Solvers (585)
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