Crawford s project management maturity model

PM Solutions Project Management Maturity Model Providing a Proven Path t o Project Management Excellence J Kent Crawford Project Management Solutions, Inc Havertown, Pennsylvania M A R C E L MARCEL DEKKER, INC D E K K E R NEWYORK BASEL ISBN: 0-8247-0754-0 This bookis printed on acid-free paper Headquarters Marcel Dekker, Inc 270 Madison Avenue, New York, NY 10016 tel: 21 2-696-9000; fax: 21 2-685-4540 Eastern Hemisphere Distribution Marcel Dekker AG Hutgasse 4, Postfach 812, CH-4001 Basel, Switzerland tel: 41-61-261-8482; fax: 41-61-261-8896 World Wide Web http://www.dekker.com The publisher offers discounts on this book when ordered in bulk quantities For more information, write to Special Saleflrofessional Marketing at the headquarters address above Copyright 2002 by Marcel Dekker, Inc All Rights Reserved Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, microfilming, and recording, or by any information storage and retrieval system, without permission in writing from the publisher Current printing(last digit): I PRINTED IN THE UNITED STATES OF AMERICA The organizational environment needed for project success is ultimately created by management The way that the managers define, structure, and act toward projects is critical to the success or failure of those projects, and consequently the success or failure of the organization An effective project management culture is essential for effective project management This Center for Business Practices series of books is designed to help you develop an effective project management culture in your organization.The seriespresents the best thinking of some of the world’s leading project management professionals, who identify a broad spectrum of best practices foryou to consider and then to implement in your own organizations.Written with the working practitioner in mind, the series provides ”must have” information on the knowledge, skills, tools, and techniques used in superior project management organizations A culture is a sharedset of beliefs, values, and expectations This culture is embodied in your organization’s policies, practices, procedures, and routines Effective cultural change occurs and will be sustained only by altering (or in some cases creating) these everyday policies, practices, procedures, and routines in order to impact the beliefs and values that guide employee actions We can affect the culture by changing the work climate, by establishing and implementing project management methodology, by training to that methodology, and by reinforcing and rewarding the changed behavior that results The Center for Business Practicesseries focuses on helping you accomplish that cultural change Project Management Maturity Model iv Having an effective project management culture involves more than implementing the science of project management, however - it involves the art of applying project management skill It also involves the organizational changes that truly integrate this management philosophy These changes are sometimes structural, but they always involve a new approachto managing a business: projects are a natural outgrowth of the organization’s mission They are the way in which the organization puts in place the processes that carry out the mission They are the way in which changes will be effected that enable the organization to effectively compete in the marketplace We hope this Center for Business Practicesseries will help you and your organizationexcel in today’s rapidly changing business world James S Pennypacker Director, Center for Business Practices Series Editor V PROJECT MANAGEMENT SOLUTIONS, INC.is a full-service consulting and training organization supporting project management initiatives at Global 1000 firms Since its founding in 1996, PM Solutions has distinguished itself by focusing on improving corporate project performance through project officedevelopment, streamlining processes, just-in-time training and mentoring programs, and corporate project management implementations.The company’s holistic approach integrates critical business elements with processes, enabling sound management decision-making A cornerstone product of I“ Solutions has been its Project Management Maturity Model This model has contributed to widespread success in assisting organizations in improving their project management processes The model has been used to baseline project management practices industry-wide (see Appendix B), becoming the industry standard in measuring project management maturity This book, the first publication of the complete I” Solutions Project Management Maturity Model, describesthe model in full and provides you with a comprehensive tool tohelp you improve your organization’s project management practices PM Solutions Project Management Maturity Model provides your organization with a conceptual framework within which specific project management processes can be optimized to efficientlyimprove the capability of your organization The ProjectManagement Maturity Model provides best practices to help you to: determine the maturity of your organization’s project management processes Project Management Maturity Model vi mapout a logical path to improve your organization’s processes set priorities for short-term process improvement actions discern the need for a project office, and assess where it fits in your organizational structure track progress against your project management improvement plan build a culture of project management excellence By focusing on specific processes, your organization can bestleverage the resources for their improvement activities while rallying the organization around specific goals A project management maturity model can bea roadmap showing an organization how it cansystematically move to more mature levels of performance and doit inmore effective and efficient ways After an objective assessment, your organization can set its goals for increasing the capability of its processes Theultimate goal of this book is to help you improve the capability of your organization’s project management processes How This Book is Organized Chapter 1describes project management maturity and offers a brief description of the PM Solutions Project Management Maturity Model The chapter also describes the process of assessing your organization using this model, and provides best practices forusing an assessment Chapters through 11are the heart of the Project Management Maturity Model Chapter defines the levels of project management maturity (from Level through Level 5) The following chapters are based on the nine project management knowledge areas specified in the Project Management Institute’s standard, A Guide to the Project Management Project Management Time Management Scope I ~ Scope Components Level Deflnitlons I I - ~ Time cost Management Management _ cost Components - Components L Figure Project management knowledge areas and components Body of Knowledge (PMBOKO Guide) In these chapters, each knowledge area is defined at each levelof maturity In order to provide as complete a definition as possible, these knowledge areas have been broken down intotheir specific components (along with the additional special-interest subcomponent areas mentioned earlier) Then progressive maturity is described, level by level, for each component (see Figure 1) So Chapters 3-11 are organized as follows: PMBOKO Guide Knowledge Area (chapter title) General description Components of maturity Maturity level characteristics (for Levels1-5) Description of component qualities in each level Notes: Definitions of component maturity are grouped by level within knowledge area Achievement of a given knowledge area level byan organization is cumulative-that is, for each succeeding PMMM level, the assumption is that all criteria Project Management Maturity Model viii for the preceding levels forthat knowledge area are being (or have been) fulfilled So Level 5, for example, assumes that Levels 1-4 are being fulfilled, plus Level Finally, the appendices provide a checklist for self-assessing your organization’s projectmanagement maturity, as well as summaryresults of an industry-wide benchmarking survey of project management maturity ACKNOWLEDGMENTS THISBOOK IS a great example of one of project management’s signal features: the creative team As with any product that distills the experience and knowledge of many people workcredit where ing together over time, ita little is hard to give all it is due I will my best to name names here, with the uncomfortable feeling that someone is bound to be inadvertently left out For any oversight, I apologize in advance The PM Solutions Project Management Maturity Model, while the product of the efforts of many PM Solutions associates over the past four years, were prepared for publication by David Yosua, PMP, Product Integration Manager Also involved in our project to create a maturity model were Dianne Bridges, PMP,Managing Consultant; Eric Foss, Managing Consultant; Dave Phillips, PMP, Eastern Region Manager; Patrick Sepate, Central Region Manager;and Karen White, PMP,Managing Consultant Jim Pennypacker, director of the Center for Business Practices, was invaluable as a source on project management research and also kept our relationship with Marcel Dekker seamless Thanks to Debbie Bigelow, PMP, Executive Vice-President, JimOswald, PMP, Vice-president of Professional Services, Bruce Miller, PMP, Vice-presidentof Business Development, and Lori Gipp, Vice-president of Marketing and Alliances, all of PM Solutions, and Jimmie West, Ph.D., PMP, of I‘M College, who so effectively managed the ongoing operations of these businesses during the writing of this book I also can’t forget the many current and former associates of PM Solutions and the PM College who by their work Project Management Maturity Model 196 ContractManagement/Closure The vendor is required to report progress against plan using the organization’s standard project management tools and techniques Weekly status reports are provided from the vendor to the project manager, who integrates them into the organization’s standard statusreporting mechanisms In addition, vendors are more integrated into the project planning activities Project Procurement Management Level Optimizing Process An improvement procedure exists whereby the project management procurement processes and standardsare periodically reviewed and enhancements are incorporated The projectmanager and project teams identify and support improvements to the process At the conclusion of each project,lessons learned are captured, evaluated, and incorporated into the process to improve the process and documentation The procurement process is evaluated based upon efficiency and effectiveness metrics Management is activelyinvolved in obtaining strategic alliances with approvedvendors who havea reputation for delivering high-quality products or services in a timely manner and supportsimprovements to the process for justin-time delivery Procurement Planning Procurement planning is evaluated on a periodic basis, and enhancements to the process are continuously incorporated The make/buy decision is evaluated based upon efficiency and effectiveness metrics Historicaldata about projected make/buy costs are evaluated against actual costs to determine if the decisions were sound and should be repeated in the future Just-in-time procurement is incorporated to expedite the procurement planning process and reduce inventory carrying costs forthe organization 197 Project Management Maturity Model 198 Requisition The requisition process isevaluated on aperiodic basis and enhancements to the process are continuously incorporated The requisition process is automated and triggered by a project manager request The process isevaluated based upon efficiency and effectiveness metrics The organization has preferred contract vehiclesand a list of preferred vendors who can respond to the requisition process expeditiously Solicitation/Source Selection Solicitation/source selection is evaluated on a periodic basis and enhancements to the process are continuously incorporated Contractors are evaluated based upon effectiveness and efficiency metrics with regard to projectperformance The project manager and project team evaluate the vendors atthe end of the project in terms of effectiveness, efficiency,responsiveness, timeliness, and quality of product/service The results of these evaluations are fed backinto the process and measured against the preferred providers list Contract Management/Closure Contract management/closure is evaluated on a periodic basis and enhancements to the process are continuously incorporated The organization considers strategic alliances with preferred vendors Both organizations adhere to a high standard of project performance and quality in their products or services Captured on large and highly visible projects are lessons learned about the procurement process within the project with regard to Project Procurement Management effectiveness and efficiency (e.g., processing procurement documentation, having evaluation criteria to selecta source, and the length of time to process a change order) A performance database exists tocapture performance information on the vendors/contractors 199 This Page Intentionally Left Blank APPENDIX A Project ManagementMaturity Self-Assessment Survey T survey is designed to help you perform a simple, informal self-assessment of your organization's project management maturity More detailed information about assessments and how to use them is found inChapter 1.Follow the directions below toperform your self-assessment You may alsowant to compare your results to the industry survey results listed in Appendix B Remember that the primary purpose of a project management maturity assessment is toprovide a pathfor your organization to moveforward in improving its project management capabilities HIS SELF-ASSESSMENT To assess your organization's project management maturity: Review the description for each component in each of the nineknowledge areas (see Chapters2- 11, and assess your level of maturity Check the appropriate boxes in the survey Achievement of a given maturity level by an organization is cumuafiw-that is, for each succeedingPMMM Level, the assumption is that all criteria for the preceding levels for that component are being (or have been] fulfilled So for you toassess yourself at Level in Scope Definition, forexample, you must have in place all of the processes describedin Levels 1,2, and of Scope Definition.You may havesome of the processes in place in Level 4, but if you don't have allof those processesin place, you are at Level After you have completedyour assessment of the knowledge area components, determine your maturity level in each knowledge area To that review your assessments of theknowledge area components, and pick the lowest level that you've assessed yourself-that is your level of maturity Project Management MaturityModel Project Management Maturity Level Project Scope Management Requirements Definition (Business) ol/ 0 Requirements Definition (Technical) 0 Nf Cl Deliverables Identification o Scope Definition 0 Work Breakdown Structure 0 Scope Change Control 0 d o d c l d o d o Figure A Sample self-assessmentfor project scope management This organization is at Level maturity in scope management in that knowledge area For example,if your component self-assessment is as shown in Figure A.1, then your maturity level in project scope management is Level (becauseyou are at Level maturity in business requirements definition) To assess your overall OrganizationalMaturity Level, follow a similar method Review your maturity assessment of each of the nine knowledge areas Pickthe lowest level that you’ve assessed yourself-that is your Organizational Maturity Level For example,if your knowledge area selfassessment is as shown in Figure A.2, then your overall Organizational Maturity Level is Level I Project Management Maturity Level Knowledge Area MaturityLevel Project Scope Management o o Project Risk Management cl d Q Project Procurement Management d Q Q Project Integration Management d c l o d o Figure A.2 This organization is at Organizational Maturity Level (because it is at Level in risk management) o Project Management Maturity Self-Assessment Slrrvey PMMM Self-Assessment Survey Checklist Project Management Maturity Levels Project Integration Management Project Plan Development Project Plan Execution Change Control Information Project System Project Office O c I O C l C l C I O c I c I C I c I c I c I c c I C l c I C I C l o O c l c I c l C I Project Scope Management Requirements Definition (Business) C I c I c I C l c I Requirements Definition [Technical) Deliverables Identification Scope Definition C Work Breakdown Structure Change Scope Control l c I O C l C I C I C l C I C l C l Q c I c I c I c I C l c I C I c I o C I c I c I C I C l Project Time Management Activity Definition Activity Sequencing Development Schedule Schedule Control Integration Schedule anning C I C l c I c I C l C I c I c I c I c I c I D c I C O c I c I C l l C I c I c I o c I c I Project Cost Management Resource Planning Cost Estimating Cost Budgeting Performance Measurement Cost Control Project Ouality Management Quality Quality Assurance Quality Control Oversight Management C I c C l Q I C c I I c c I I c Q I C l c I O c I C l C I c I c I c I c I Project Management Maturity Model - Project Management Maturity Levels 204 Project Human Resource Management C Planning Organizational Staff Acquisition Team Development Professional Development I a C Q O Q I O ~ D o Q Q a Q Q Q C a I a a Project Communications Management Planning Distribution Information Performance Reporting Issues Tracking Management and ~ a o a o Q Q O ~ Q Q C I Q Q Q O C I Q C Q I Q C I Project Risk Management Risk Identification Risk Quantification Risk Response Development Risk Control Risk Documentation Project Procurement Management Planning Procurement Requisition Solicitation/Source Control Management/Closure Contract ~~ ~~~ D C Q I Q O Q C O I a D a u o O O Q O O Q CI Q CI Q ~~~ KNOWLEDGE AREA MATURITY LEVEL Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management Project Procurement Management ORGANIZATIONAL MATURITYLEVEL APPENDIX B Project ManagementMaturity Benchmark Survey Excerpt RGANIZATIONS ARE AT the bottom rungs of the project management maturity ladder, andthey have particularly immature risk management processes These conclusions are among the results of a survey of 126 seniorlevel projectmanagement practitioners by the Center for Business Practices,the research arm of the consulting and training organization PM Solutions, Inc The Project Management Maturity Benchmark survey asked organizations to self-assess their projectmanagement maturity using a model developed to enable them to measure their maturity in project management processes generally accepted as crucial to successful project completion The CBP surveyed senior practitioners with knowledge of their organizations’ project management practices and their organizations’ business results The survey used PM Solutions’ ProjectManagement Maturity Model in the assessment The model describes how organizations mature as they improve their project management processes As such, it is a useful framework for organizations wishing to improve their project management processes Survey results document the maturity level of organizations in the knowledge areas, as well as 42 specific components that make up those knowledge areas Project Management MaturityModel 206 The results present a baseline of project management maturity in organizations The report documents the project management maturity model in a way that organizations can use to perform a self-assessment and compare their maturity to the baseline survey The survey sample was segmented according to company size, including small businesses with annual revenue under $100 million, midsize organizations with revenue between $100 million and $999 million, and large companies with annual revenue of $1billion ormore The study sample was also segmented according to several industries (information;professional, scientific,and technical services; financeand insurance; and manufacturing) Data fromrespondents reporting on the maturity of their IT division only (28%) was segmented as well Below are some of the results attained in the survey Project Management Maturity Benchmark S w v e y Excerpf ~~ 207 Project ManagementMaturity Benchmark Survey Summary Results RESPONDENT PROFILE Annual Sales Revenue Under $99 million $ 100 million to $999 million $ billion or higher Primary Industry 5% 17% 12% 1% 5% Manufacturing Information Finance & Insurance Professional, Scientific, and Technical Services Other PROJECT MANAGEMENT MATURITYASSESSMENT (Percentage of organizations assesseda t level) Project Management Maturity Levels KNOWLEDGE AREA MATURITY integration Management 50.0% 34.9% 4.8% 0.8% Scope Management 54.8% 28.6% 11.1% 2.4% 3.2% Time Management 57.9% 28.6% 7.9% 4.8% 0.8% Cost Management 65.1 Yo 24.6% 3.2% 4.8% 2.4% Quality Management 50.8% 30.2% 1.9% 4.0% 3.2% Human Resource Management 53.2% 35.7% 7.1% 3.2% 0.8% Communications Management 50.0% 36.5% 7.9% 4.8% 0.8% Risk Management 1.O% 5.6% 1.6% 6% Procurement Management 57.9% 24.6% 10.3% 3.2% 4.0% 10.3% 9.5% ORGANIZATIONAL MATURITY Overall PM Maturity 88.9% 6.3% 3.2% 0.8% 0.8% This Page Intentionally Left Blank 209 Index A E Acquisition 136 Activity definition 71,74,77,83,87, 90 Activity sequencing 71,74,78,83,87, 90 Assessment 3,12,14,16,19 Earned value 25,43,50,52,85,88,94 B Healthcheck 18 Human resource management 129 Benchmark 205 Business requirements definition C Capability Maturity Model 2,5, 11 Change control 28,31,35,40,44,49 CMM (see Capability Maturity Model) Communications management 153 Communications planning 153,155, 157,160,162,164 Components 7, Consulting/mentoring29,32,36, 41, 45,50 Contract management/closure 184, 186,190,194,196,198 Corporate process maturity 18 Cost budgeting 94,96,99,102, 105, 107 Cost control 94,96,100,103,105,108 Cost estimating 93,95,98,102,104, 107 Cost management 93 Culture change 14,15 D Definitions of maturity levels 23 Deliverables identification 9, 54, 55, 58, 61,64,67 F Facilitated assessment 18 H I Improvement goals 17 Independent assessment 18 Information distribution 153,155, 158,160,162,164 Integration management 27 Invitation to bid 189 Issues tracking and management 154,155,159,161,163,165 M Management oversight 10,110,111, 115,120,123,126 Maturity Organizational planning 129,132, 135,141,145,149 P Performance measurement 94,96, 99, 103,105, 107 Performance reporting 153,155, 158, 160, 162,165 PMBOK Guide 4,6,7, 11 PMMM Assessment 18 Processes/standards 29,32,36, 41, 46,50 Project Management Matllrity Model 210 Procurementmanagement183 Procurement planning 183,185,187, 192,195,197 Professional development 10, 130, 133,138,142,146,151 Project information system 28,32, 35,40,44,49 Project management 51 Project Management Institute Project management software tools 30,33,37,42,47,52 Project office 10, 15, 13, 28,32,36,40, 45,49 Project plan development 27,31, 34, 38,43,48 Project plan execution 27, 31,34,39, 44,48 Project support 32,36,41,45,50 Q Quality assurance 110, 111, 114, 119, 122, 125 Quality control 110, 111,114, 119, 123,125 Quality management 109 Quality planning 109,111, 113, 118, 122,125 R Requirements definition (business) 53,55,57,60,63,66 Requirements definition (technical) 53,55,57,61,64,67 Requisition 184, 185, 188, 192, 195, 198 Resource planning 93,95,97,101, 104,106 Risk control 168,170,173,176,179, 181 Risk documentation 168,170,174, 177,179,182 Risk identification 167, 169, 171, 175, 178,180 Risk management 167 Risk quantification 167, 169, 172, 176,178,180 Risk response development 168, 170,172,176,179,181 S Schedule control 72, 75,80, 85, 88, 91 Schedule development 72,75,79,84, 88,90 Schedule integration 73, 76, 80, 85, 89,91 Scope change control 9,54,56,59, 62,65,68 Scope definition 9,54,55,58, 62, 64,68 Scope management 53 SEI (see Software Engineering Institute) Self-assessment 1, 201 Software Engineering Institute 2,5, 11 Solicitation/source selection 184, 185,189,193,198 Special interest components Staff acquisition 129, 132, 136, 141, 145,150 Structured assessment 19 T Team development 129, 133,137,141,146,150 Technical requirements definition Time management 71 Training 29,33,36,42,46,51 w Work breakdown structure 9,54,56, 58,62,64, 68 ... processes Management awareness Level Structure Processand Standards Basic processes; not standard on all projects; used on large, highly visible projects Management supports andencourages use Mix... I“ Solutions has been its Project Management Maturity Model This model has contributed to widespread success in assisting organizations in improving their project management processes The model. .. chapter also describes the process of assessing your organization using this model, and provides best practices forusing an assessment Chapters through 11are the heart of the Project Management Maturity