All companies desire excellence in project management. Unfortunately, not all companies recognize that the time frame can be shortened by performing strategic planning for proj- ect management. The simple use of project management, even for an extended period of time, does notlead to excellence. Instead, it can result in repetitive mistakes and, what’s worse, learning from your own mistakes rather than from the mistakes of others.
Companies such as Motorola, Nortel, Ericsson, and Compaq perform strategic plan- ning 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 twenty 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 level, rather than by execu- tive management. Executive management is still involved, mostly in a supporting role, and provides funding together with employee release time for the effort. Executive involve- ment will be necessary to make sure that whatever is recommended by middle manage- ment will not result in unwanted changes to the corporate culture.
Organizations tend to perform strategic planning for new products and services by lay- ing 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 per- forming strategic planning for project management and achieving maturity and excellence in a reasonable period of time.
The foundation for achieving excellence in project management can best be described as the project management maturity model (PMMM), which is comprised of five levels, as shown in Figure 19–1. Each of the five levels represents a different degree of maturity in project management.
● Level 1—Common Language:In this level, the organization recognizes the impor- tance of project management and the need for a good understanding of the basic knowledge on project management, along with the accompanying language/
terminology.
● Level 2—Common Processes:In this level, the organization recognizes that com- mon processes need to be defined and developed such that successes on one proj- ect can be repeated on other projects. Also included in this level is the recognition that project management principles can be applied to and support other method- ologies employed by the company.
● Level 3—Singular Methodology:In this level, the organization recognizes the syn- ergistic effect of combining all corporate methodologies into a singular methodol- ogy, the center of which is project management. The synergistic effects also make process control easier with a single methodology than with multiple methodologies.
● Level 4—Benchmarking:This level contains the recognition that process improve- ment 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 evaluates the in- formation 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 exists a com- mon misbelief that all work must be accomplished sequentially (i.e., in series). This is not necessarily true. Certain levels can and do overlap. The magnitude 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 management checklists to support the methodology while it is still providing project management training for the workforce. A company can create a center for excellence in project management before benchmarking is undertaken.
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 muststill be completed before Level 2 can be completed. Overlapping of several of the levels can take place, as shown in Figure 19–2.
● Overlap of Level 1 and Level 2:This overlap will occur because the organization can begin the development of project management processes either while refine- ments are being made to the common language or during training.
The Project Management Maturity Model (PMMM) 737
Basic Kno
wledge
Pr ocess Def inition
Pr ocess Contr ol
Pr ocess Impr
ov ement
Level 1
Level 2
Level 3
Level 4
Level 5
Common Language
Common Processes
Singular Methodology
Benchmarking
Continuous Improvement
FIGURE 19–1. The five levels of maturity.
● Overlap of Level 3 and Level 4:This overlap occurs because, while the organiza- tion 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 signif- icant overlap. The feedback from Level 5 back to Level 4 and Level 3, as shown in Figure 19–3, implies that these three levels form a continuous improvement cy- cle, and it may even be possible for all three of these levels to overlap.
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 methodologies generally terminates.
Also, companies can create a Center for Excellence in project management early in the life-cycle process, but will not receive the full benefits until later on.
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 associated with the impact on the corporate culture. The following definitions can be assigned to these three risks:
Level 1
Common Language
Level 2
Common Processes
Level 5
Continuous Improvement
Level 4
Benchmarking
Level 3
Singular Methodology
FIGURE 19–2. Overlapping levels.
● Low Risk:Virtually no impact upon 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. Multiple-boss reporting would be an exam- ple of a medium risk.
● High Risk:High risks occur when the organization recognizes that the changes re- sulting from the implementation of project management will cause a change in the corporate culture. Examples include the creation of project management method- ologies, policies, and procedures, as well as decentralization of authority and decision-making.
Level 3 has the highest risk and degree of difficulty for the organization. This is shown in Figure 19–4. 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 corporate culture.
These types of maturity models will become more common in the future, with generic models being customized for individual companies. These models will assist management in performing strategic planning for excellence in project management.
The Project Management Maturity Model (PMMM) 739
Basic Kno
wledge
Pr ocess Def inition
Pr ocess Contr ol
Pr ocess Impr
ov ement
Level 1
Level 2
Level 3
Level 4
Level 5
Common Language
Common Processes
Singular Methodology
Benchmarking
Continuous Improvement
Feedback
FIGURE 19–3. Feedback between the five levels of maturity.