4 An Introduction to the Project Management Maturity Model (PMMM) 41 INTRODUCTION All companies desire to achieve maturity and excellence in project management. Unfortunately, not all companies recognize that the timeframe can be shortened by performing strategic planning for project management. The simple use of pro- ject management, even for an extended period of time, does not necessarily lead to excellence. Instead, it can result in repetitive mistakes and, what’s worse, learn- ing from your own mistakes rather than from the mistakes of others. Companies such as Motorola, Nortel, Ericsson, and Compaq perform strate- gic planning for project management, and the results are self-explanatory. What Nortel and Ericsson have accomplished from 1992 to 1998, other companies have not achieved in 20 years of using project management. Strategic planning for project management is unlike other forms of strategic planning in that it is most often performed at the middle-management, rather than executive-management. Executive level management is still involved, mostly in a supporting role, and provides funding together with employee release time for the effort. Executive involvement will be necessary to make sure that whatever is rec- ommended by middle management will not result in unwanted changes to the corporate culture. Organizations tend to perform strategic planning for new products and ser- vices by laying out a well-thought-out plan and then executing the plan with the precision of a surgeon. Unfortunately, strategic planning for project management, if performed at all, is done on a trial-by-fire basis. However, there are models that can be used to assist corporations in performing strategic planning for project 9755.ch04 10/31/00 9:44 AM Page 41 management and achieving maturity and excellence in a reasonable period of time. THE FOUNDATION FOR EXCELLENCE The foundation for achieving excellence in project management can best be de- scribed as the project management maturity model (PMMM), which is comprised of five levels, as shown in Figure 4–1. Each of the five levels represents a differ- ent degree of maturity in project management. Each level is discussed in detail in the remaining chapters. The levels are: ● Level 1—Common language: In this level, the organization recognizes the importance of project management and the need for a good under- standing of the basic knowledge on project management and the accom- panying language/terminology. ● Level 2—Common processes: In this level, the organization recognizes that common processes need to be defined and developed such that suc- cesses on one project can be repeated on other projects. Also included in this level is the recognition of the application and support of the project management principles to other methodologies employed by the com- pany. 42 INTRODUCTION TO PROJECT MANAGEMENT MATURITY MODEL FIGURE 4–1. The five levels of project management maturity. Level 5 Continuous Improvement Common Language Level 1 Basic Knowledge Level 2 Common Processes Process Definition Level 3 Singular Methodology Process Control Level 4 Benchmarking Process Improvement 9755.ch04 10/31/00 9:44 AM Page 42 ● Level 3—Singular methodology: In this level, the organization recog- nizes the synergistic effect of combining all corporate methodologies into a singular methodology, the center of which is project management. The synergistic effects also make process control easier with a single method- ology than with multiple methodologies. ● Level 4—Benchmarking: This level contains the recognition that process improvement is necessary to maintain a competitive advantage. Benchmarking must be performed on a continuous basis. The company must decide whom to benchmark and what to benchmark. ● Level 5—Continuous improvement: In this level, the organization evalu- ates the information obtained through benchmarking and must then decide whether or not this information will enhance the singular methodology. When we talk about levels of maturity (and even life cycle phases), there ex- ists a common misbelief that all work must be accomplished sequentially (i.e., in series). This is not necessarily true. Certain levels can and do overlap. The mag- nitude of the overlap is based upon the amount of risk the organization is willing to tolerate. For example, a company can begin the development of project man- agement checklists to support the methodology while it is still providing project management training for the workforce. A company can create a center of excel- lence (COE) in project management before benchmarking is undertaken. OVERLAP OF LEVELS Although overlapping does occur, the order in which the phases are completed cannot change. For example, even though Level 1 and Level 2 can overlap, Level 1 must still be completed before Level 2 can be completed. Overlapping of sev- eral of the levels can take place, as shown in Figure 4–2. ● Overlap of Level 1 and Level 2: This overlap will occur because the or- ganization can begin the development of project management processes either while refinements are being made to the common language or dur- ing training. ● Overlap of Level 3 and Level 4: This overlap occurs because, while the organization is developing a singular methodology, plans are being made as to the process for improving the methodology. ● Overlap of Level 4 and Level 5: As the organization becomes more and more committed to benchmarking and continuous improvement, the speed by which the organization wants changes to be made can cause these two levels to have significant overlap. The feedback from Level 5 back to Level 4 and Level 3, as shown in Figure 4–3, implies that these three levels form a continuous improvement cycle, and it may even be possible for all three of these levels to overlap. Overlap of Levels 43 9755.ch04 10/31/00 9:44 AM Page 43 Level 5 Continuous Improvement Level 4 Benchmarking Common Language Level 1 Level 2 Common Processes Level 3 Singular Methodology FIGURE 4–2. Overlapping levels. Level 5 Continuous Improvement Common Language Level 1 Basic Knowledge Level 2 Common Processes Process Definition Level 3 Singular Methodology Process Control Level 4 Benchmarking Process Improvement FIGURE 4–3. Feedback among the five levels of project management maturity. 44 9755.ch04 10/31/00 9:44 AM Page 44 Level 2 and Level 3 generally do not overlap. It may be possible to begin some of the Level 3 work before Level 2 is completed, but this is highly unlikely. Once a company is committed to a singular methodology, work on other method- ologies generally terminates. Also, if a company is truly astute in project management, it may be possible to begin benchmarking efforts even as early as Level 1. This way the company may learn from the mistakes of others rather than from its own mistakes. It is pos- sible for Level 4 to overlap all of the first three levels. RISKS Risks can be assigned to each level of the PMMM. For simplicity’s sake, the risks can be labeled as low, medium, and high. The level of risk is most frequently as- sociated with the impact of having to change the corporate culture. The following definitions can be assigned to these three risks: ● Low risk: There will be virtually no impact on the corporate culture, or the corporate culture is dynamic and readily accepts change. ● Medium risk: The organization recognizes that change is necessary but may be unaware of the impact of the change. Instituting multiple-boss re- porting would be an example of a change carrying medium risk. ● High risk: High risks occur when the organization recognizes that the changes resulting from the implementation of project management will cause a change in the corporate culture. Examples include the creation of project management methodologies, policies, and procedures, as well as decentralization of authority and decision-making. Level 3 has the highest risks and degree of difficulty for the organization. This is shown in Figure 4–4. Once an organization is committed to Level 3, the time and effort needed to achieve the higher levels of maturity have a low degree of difficulty. Achieving Level 3, however, may require a major shift in the corpo- rate culture. The following chapters have detailed descriptions of each of the five levels of the PMMM. For each of the five levels of maturity, we discuss: ● The characteristics of the level ● What roadblocks exist that prevent us from reaching the next level ● What must be done to reach the next level Also included in each of the next five chapters is an assessment instrument to help you determine your organization’s degree of maturity at each level. No two companies implement project management the same way. Since maturity will Risks 45 9755.ch04 10/31/00 9:44 AM Page 45 TEAMFLY Team-Fly ® be different from company to company, the questions in these assessments can be modified to satisfy the needs of individual companies. Simply stated, using the principles contained in each chapter, you can customize the assessment instru- ments for each level. 46 INTRODUCTION TO PROJECT MANAGEMENT MATURITY MODEL Level 1 2 3 4 5 Common Language Common Processes Singular Methodology Benchmarking Continuous Improvement Medium Medium Description Degree of Difficulty High Low Low FIGURE 4–4. Degree of difficulty associated with each level of the PMMM. 9755.ch04 10/31/00 9:44 AM Page 46 5 Level 1: Common Language 47 INTRODUCTION Level 1 is the level in which the organization first recognizes the importance of project management. The organization may have a cursory knowledge of project management or simply no knowledge at all. There are certain characteristics of Level 1, as shown in Figure 5–1: ● If the organization is using project management at all, the use is sporadic. Both senior management and middle-level management provide mean- ingless or “lip service” support to the use of project management. Executive-level support is nonexistent. ● There may exist small “pockets” of interest in project management, with most of the interest existing in the project-driven areas of the firm. ● No attempt is made to recognize the benefits of project management. Managers are worried more about their own empires, power, and author- ity, and appear threatened by any new approach to management. ● Decision-making is based upon what is in the best interest of the deci- sion-maker, rather than the firm as a whole. ● There exists no investment or support for project management training and education for fear that this new knowledge may alter the status quo. In Level 1, project management is recognized, as in all companies but not fully supported. There is resistance to change and some companies never get be- yond this level. 9755.ch05 10/31/00 9:45 AM Page 47 The starting point to overcome the characteristics of Level 1 is a sound, ba- sic knowledge of the principles of project management. Education is the “name of the game” to complete Level 1. Educational programs on project management cover the principles of project management, advantages (and disadvantages) of project management methodologies, and the basic language of project manage- ment. Project management certification training courses are ideal to fulfill the or- ganizational needs to reach Level 1 of the project management maturity model (PMMM). Project management and total quality management (TQM) are alike in that both require an all-employee training program that begins at the senior lev- els of management. However, the magnitude of the training program and the ma- terial covered can vary, based upon the type of employees, skills needed, and the size and nature of the projects within the organization. Executives may require only an overview course of three to six hours, whereas employees who are more actively involved in the day-to-day activities of projects may require week-long training programs. ROADBLOCKS Training programs alone cannot overcome the fears and apprehensions that exist in the management ranks concerning the implementation of project management. Figure 5–2 illustrates the most common roadblocks that prevent an organization from completing Level 1. 48 LEVEL 1: COMMON LANGUAGE Common Language Common Language Lip Service to Project Management Virtually No Executive-Level Support Small “Pockets” of Interest No Attempt to Recognize the Benefits of Project Management Self-Interest Comes Before Company , s Best Interest No Investment in Project Management Training and Education FIGURE 5–1. Characteristics of Level 1. 9755.ch05 10/31/00 9:45 AM Page 48 Resistance to change is the result of management’s belief that the imple- mentation of project management will cause “culture shock,” where functional managers will have to surrender some or all of their authority to the project man- agers. As a result, numerous excuses will appear as to why project management is not needed or will not work. Typical comments include: “We don’t need it.” “It doesn’t apply to our business.” “Let’s leave well enough alone.” The implementation of project management does not have to be accompa- nied by shifts in the power and authority spectrum. However, there may be a shift in the reporting structure, inasmuch as project management is almost always ac- companied by multiple-boss reporting. All training programs on project manage- ment emphasize multiple-boss reporting. ADVANCEMENT CRITERIA There are five key actions required before the organization can advance to Level 2. They are: ● Arrange for initial training and education in project management. ● Encourage the training (or hiring) of certified project management pro- fessionals (PMPs). ● Encourage employees to begin communicating in common project man- agement language. Advancement Criteria 49 Common Language Level 1 Resistance to Change Leaving Well Enough Alone Not Invented Here It Does Not Apply to Us We Don’t Need It Basic Knowledge FIGURE 5–2. Roadblocks to completion of Level 1. 9755.ch05 10/31/00 9:45 AM Page 49 ● Recognize available project management tools. ● Develop an understanding of the principles of project management: the project management body of knowledge (PMBOK). The last item may prove the most difficult in non–project-driven organiza- tions where project management is not regarded as a profession. The successful completion of Level 1 usually occurs with a medium degree of difficulty. The time period to complete Level 1 could be measured in months or years, based upon such factors as: ● Type of company (project-driven versus non–project-driven) ● Size and nature of the projects ● Amount of executive support ● Visibility of executive support ● Strength of the existing corporate culture ● Previous experience, if any, with project management ● Corporate profitability ● Economic conditions (inflation, recession, etc.) ● The speed by which training can be accomplished RISK Level 1 carries a medium degree of risk. The organization might very well be re- sistant to change. Management may be fearful of a shift in the balance of power and authority. Another major problem at Level 1 is when the organization first recognizes the complexities of multiple-boss reporting, which is a necessity for project man- agement. Multiple-boss reporting can affect the wage and salary administration program and how employees are evaluated. Typical factors that cause Level 1 to present a medium level of risk include: ● Fear of organizational restructuring ● Fear of changes in roles and responsibilities ● Fear of changes in priorities ASSESSMENT INSTRUMENT FOR LEVEL 1 Completion of Level 1 is based upon gaining a knowledge of the fundamental principles of project management and its associated terminology. The require- ments for completing Level 1 can be fulfilled through a good understanding of the guide to the PMBOK™ prepared by the Project Management Institute (PMI). 50 LEVEL 1: COMMON LANGUAGE 9755.ch05 10/31/00 9:45 AM Page 50 [...]... points for each correct answer and no points for an incorrect answer After you fill in the tables in Exhibit 1, continue on for an interpretation of your results ANSWER KEY 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 A A B A D A B D A E D A A A C C C A A C C E 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 B C E C B A D B C A A A B B D C A B D A B A 9755.ch05 10 /31 /00... Resources Management Procurement Management Quality Management 5 6 8 9 13 12 9755.ch05 10 /31 /00 9:45 AM Page 65 65 Explanation of Points for Level 1 15 23 22 19 34 36 28 40 43 46 49 54 52 59 62 55 67 68 57 69 74 66 77 78 TOTAL TOTAL TOTAL Risk Management Communication Management 3 14 11 25 20 29 30 AM FL Y 7 39 35 42 56 53 64 65 70 72 75 TOTAL Category 79 TE 76 TOTAL Points Scope Management: Time Management: ... 53 54 55 56 57 58 59 60 61 62 LEVEL 1: COMMON LANGUAGE C D D D B A B B C E A B B B A D C E 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 A B B C E B A A A D C E E B C D C E Exhibit 1 Put the points in the space provided by each question and then total each category Scope Management Time Management Cost Management 1 2 4 16 17 10 21 24 18 27 31 26 32 33 37 38 48 44 41 51 50 45 58 61 47 63 73. .. in a project life cycle are most of the project expenses incurred? A Concept phase B Development or design phase C Execution phase D Termination phase E None of the above 21 22 23 24 25 26 9755.ch05 10 /31 /00 9:45 AM Page 55 55 Questions 29 30 31 32 33 AM FL Y 28 Going from Level 3 to Level 4 in the work breakdown structure (WBS) will result in: A Less estimating accuracy B Better control of the project. .. the organization recognizes that project management can benefit the organization The embryonic phase includes: G G G G Recognizing the need for project management Recognizing the potential benefits of project management Recognizing the applications of project management to the various parts of the business Recognizing some of the changes necessary to implement project management ... Management: Time Management: Cost Management: Human Resource Management: Procurement Management: Quality Management: Risk Management: Communications Management: Total: EXPLANATION OF POINTS FOR LEVEL 1 If you received a score of 60 or more points in each of the eight categories, then you have a reasonable knowledge of the basic principles of project management Team-Fly® 9755.ch05 10 /31 /00 9:45 AM Page 66 66... Development of a Project Management Training Curriculum FIGURE 6–1 G G Characteristics of Level 2 Managing projects within scope and time is only part of the effort The projects must also be completed within cost, and this may mandate changes to the cost accounting system The final characteristic of Level 2 is the development of a project management curriculum rather than just a project management course... simplicity’s sake in this exercise, scope and integration management have been combined into one category The 80 questions consist of 10 questions in each of the following categories: G G G G G G G G Scope/Integration Management Time Management Cost Management Human Resource Management Procurement Management Quality Management Risk Management Communication Management Using the answer key, score yourself and... materials D Firm-fixed price with economic price adjustment E Fixed-price incentive firm target 35 36 37 38 39 40 9755.ch05 10 /31 /00 9:45 AM Page 57 Questions 57 41 A project can best be defined as: A A series of nonrelated activities designed to accomplish single or multiple objectives B A coordinated effort of related activities designed to accomplish a goal without a well-established end point C... 9755.ch06 10 /31 /00 9:49 AM Page 67 6 Level 2: Common Processes INTRODUCTION Learning the basics of project management, and even having several employees certified as Project Management Professionals (PMPs), does not guarantee that project management is being used in your organization Even if it is being used, it may not be used effectively Level 2 is the stage where an organization makes a concerted effort . using project management. Strategic planning for project management is unlike other forms of strategic planning in that it is most often performed at the middle -management, rather than executive -management. . on project management cover the principles of project management, advantages (and disadvantages) of project management methodologies, and the basic language of project manage- ment. Project management. surgeon. Unfortunately, strategic planning for project management, if performed at all, is done on a trial-by-fire basis. However, there are models that can be used to assist corporations in performing