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Organizational Project Management (OPM),

With a focus on OPM3

PMINEO Chapter meeting March 15, 2012

Presented by Bob Zoller, PMP Email: RLZoller@gmail.com

See notes in “Notes Page” view

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Agenda

1. Introduction to OPM

2. OPM3 framework from PMI®

3. OPM3 assessment exercise

4. Maturity Assessment Process

5. Alternative frameworks

CMMI, IVI IT-CMF, Kerzner KPM3

6. Summary of options

7. Benefits

8. References & More Information

9. Discussion

(Short questions during program, and discussion at the end)

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1. Introduction to OPM (not OPM3)

Gartner survey of 130 organizations:

“What is the top success criterion for your projects?”

Note that

alignment is

#1 at 29%.

Cost, budget,

scope (triple

constraint)

total to only

40%.

Reference (1) PMI standard presentation on OPM3

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1. Introduction to OPM.

OPM = Organizational Project Management:

OPM:The alignment and systematic

management of projects,

programs and portfolios to

achieve strategic organizational

goals

Reference (2) Ginger Levin general slides © Ginger Levin, 2011

Does your organization use OPM?

Or does the “squeaky wheel get

the grease” ?

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2. OPM3 framework from PMI®

PMI® recognized a need and created “Organizational

Project Management Maturity Model” (OPM3)

2003 First Edition of OPM3 standard

2008 Second Edition; alignment with other PMI®

standards

OPM3 acceptance level has been low, is being

addressed:

Newer versions of software are not buggy, as earlier ones were

OPM3 standard being rewritten in more business-friendly terms

PMI® is promoting OPM3 more heavily

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2. OPM3 framework from PMI®

Library of PMI® Global Standards

1. Foundational Standards

Project Management (PMBOK®)

Program Management

Portfolio Management

Organizational Project Management (OPM3)

2. Practice Standards and Frameworks

(7) exist, including: Risk; Scheduling; WBS

3. Foundational Extensions

(2) exist; PMBOK® for construction, government See: http://www.pmi.org/PMBOK-Guide-and-Standards/Standards-Library-of-PMI-Global-Standards.aspx

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2. OPM3 framework from PMI®

OPM3 Best Practice concepts, 488 total:

(A) Domain processes x 4 improvement stages

Project (42 processes) x 4 = 168 Best Practices

Program (47 processes) x 4 = 188 Best Practices

Portfolio (14 processes) x 4 = 56 Best Practices

(B) Organizational Enablers (76)

Total: 168 + 188 + 56 + 76 = 488 Best Practices

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2. OPM3 framework from PMI®

OPM3 Best Practice concepts, 488 total:

(A) Domain processes x 4 improvement stages

Four Process Improvement Stages, SMCI:

Standardize = Consistent, documented,

communicated

Measure = Identify & measure: inputs,

characteristics, results

Control = Control plan is developed and

implemented

Improve = Identify problems, implement sustainable

improvements

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2. OPM3 framework from PMI®

OPM3 Best Practice concepts, 488 total:

(A) Domain processes x 4 improvement stages

Example process: Develop Project Charter

Standardized ?

Measured ?

Controlled ?

Improve ?

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2. OPM3 framework from PMI® .

(B) OPM3 - Organizational Enablers

Facilitate implementation and sustainability

22 groups, with 76 total OE items. Examples:

PMIS and Knowledge Management

7365: Project Management Information System

7375: Intellectual Capital Reuse

5660: Manage Portfolio Value

Resource Allocation

5220: Provide Competent Organizational PM Resources

1590: Record Project Resource Assignments

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3. OPM3 Assessment Exercise

Group exercise:

Review lists of OPM3 BestPractices…

See separate documents with Best Practices lists,

and with survey of PMINEO chapter meeting

attendees on PMBOK practice standardization.

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4. Maturity Assessment Process

OPM3 assessment options

Self-assessment using online tools.

Simpler tool (Yes/No questions) for roughly $1,000

Benchmark against other companies

Hire certified assessor

Assessor uses more robust toolset

Low end: $15-20K, 2-3 weeks total, single site

Higher: multiple months, $100K, international scope

Can limit scope (ex: Portfolio, or “Standardize”)

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4. Maturity Assessment Process.

Common steps, with OPM3 or most frameworks:

1) Obtain organizational commitment; hold a kickoff meeting

2) Review organizational documents (ex: policies)

3) Review sample program and project documents

4) Distribute questionnaires

5) Conduct interviews

6) Analyze results

7) Report results and recommendations for improvement

8) Determine when to reassess

Reference (3) Ginger Levin, “Maturity Models”

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5. Alternative Frameworks

5.1) CMMI = Capability Maturity Model Integration

5.2) IT-CMF from IVI (Innovation Value Institute)

5.3) Kerzner Project Management Maturity Model

Local notes:

Rockwell Automation has been considering OPM3 as a standard

Progressive is considering a combination of OPM3

and IT-CMF from IVI

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5.1) CMMI

CMMI = Capability Maturity Model Integration

One of the best known maturity models

CMMI replaced CMM (developed from 1987 - 1997)

CMMI:

A Process Improvement Approach

Identify strengths and weaknesses

Assessment leads to overall maturity ranking of 1, 2, 3, 4, or 5

Plan process changes to address weaknesses

References: (4) CMMI site, (5) Wikipedia

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5.1) CMMI

Most organizations start in CMMI at level 1 or 2

Growth to level 3 (govmt contracts) can take a few years

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5.1) CMMI.

CMMI currently addresses three areas of interest:

1. Product and service Development (CMMI-DEV),

2. Service establishment, management, and delivery — (CMMI-SVC)

3. Product and service acquisition — (CMMI-ACQ).

The CMMI model mostly deals with what processes should be implemented, and not so much with how they can be implemented.

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5.2) IT-CMF from IVI

IVI = Innovation Value Institute

A global consortium of industry, government, non-profit, and academic organizations, established in 2006

Goal: define standard for managing IT for business value

Includes Intel, Ernst & Young, Google, Microsoft, SAP

IT-CMF = IT Capability Maturity Framework

An assessment framework for total IT business value

Portfolio/Program/Project are components of total scope

Reference: (7) Managing IT for Business Value

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5.2) IT-CMF from IVI

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5.2) IT-CMF from IVI

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5.2) IT-CMF from IVI.

Levels of membership exist, for education, assessment,

mentoring

Full adoption journey covers 12-24 months, including

education, assessment, review, new practices

Options include self-help with online tools, IVI staff,

consulting organizations

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5.3) Kerzner PM3

Perform self-assessment using an online tool:

Each participant answers 183 multiple choice questions

Generate a score for your organization & Project Managers

Benchmark your scores against your industry and overall

Create a list of actionable recommendations

Focus is on Project Management and PMBOK

List price is $95 per person, with volume discounts

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5.3) Kerzner PM3

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5.3) Kerzner PM3.

Level 1: common language.

“Definition of Scope Management is...”

Level 2: common processes.

“Our executives have demonstrated a willingness to change….“

Level 3: singular methodology.

“My company actively uses the following processes….”

Level 4: benchmarking.

“Benchmarking has found companies with tighter cost controls…“

Level 5: continuous improvement.

“Methodology improvements have pushed us closer to customers….“

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6. Summary of Options.

Option Notes

OPM3 • Scope: Portfolio/Program/Project management, for IT or other • Uses Best Practices; does not provide summary score

CMMI • Scope: Development, Service, Acquisition processes • Uses 5 levels of progressive maturity • Summary level scores well-known (ex: “3” for govmt contracts)

IT-CMF of IVI

• Scope: IT, overall, including projects and operations • Addresses 32 process areas, in four groupings • Note that IVI is seeking to collaborate with CMMI

KPM3 • Scope: Project Management and PMBOK • Uses 5 generally progressive levels of maturity • Can be done on self-help basis, at low cost, w optional consulting

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7. Benefits.

CMMI site has published results of projects

Costs: Siemens reduced cost of quality from 45% to 30% in 3 years

Schedule: GM improved percent of milestones met from 50% to 85%

Productivity: Warner Robbins reduced effort to deliver test program sets by 25%

Quality: Siemens reduced defect density an average of 71% in 3 technical areas

Customer Satisfaction: Northrup Grumman received 98% of customer award fees

ROI: Accenture experienced 5 to 1 ROI for quality activities

Reference: (4), CMMI site, page http://www.sei.cmu.edu/cmmi/why/benefits/. See published appraisal results.

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8. References & More Information

References

(1) OPM3 standard presentation slides from PMI

(2) Ginger Levin, certified OPM3 consultant; engagement slides

Gin;evin@AOL.com, http://www.linkedin.com/in/gingerlevin

(3) Ginger Levin, “Maturity Models” chapter for book by Dr. Rodney Turner

(4) CMMI website (http://www.sei.cmu.edu/cmmi/)

(5) CMMI on Wikipedia (http://en.wikipedia.org/wiki/CMMI)

(6) “Managing IT for Business Value” the Boston Consulting Group, for IVI and IT-CMF

(7) Claudia Baca, OPM3 committee, certified consultant

cmbaca@att.net , http://www.linkedin.com/pub/claudia-baca/5/105/455

(8) Kerzner PM3 from www.iil.com/kpm3

(9) “Capability Immaturity Model”, Schorsch, Nexus, 1996

(10) OPM3 standard from PMI 2nd Edition, 2008

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8. References & More Information.

More Information

a) PMI “Community of Practice” for OPM

Free membership; newsletters; webinars

See: http://opm.vc.pmi.org/

b) IVI, Innovation Value Institute

See: http://ivi.nuim.ie/

See also Boston Consulting Group at: http://www.bcg.com/

c) ESI International

Training, assessment, support, for Portfolio//ProgramProject Mgmt.

See: http://www.esi-intl.com/

d) OPM3 and other standards publications are available for on-line viewing for PMI members, on PMI.org

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9. Discussion

1. Standing Ovation

2. Discussion

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