Organizational Project Management Maturity Model (OPM3)

1 OrganizationalProject ManagementMaturity Model (OPM3) Knowledge FoundationOrganizationalProject ManagementMaturity Model (OPM3) Knowledge FoundationProject Management Institute, Square, Pennsylvania USAISBN: 1-930699-08-5 (Knowledge Foundation)ISBN: 1-930699-43-3 (The Standard-Single User Version)ISBN: 1-930699-07-7 (The Standard-Multiple User Version)Published by: Project Management Institute, Campus BoulevardNewtown Square, Pennsylvania 19073-3299 USAP hone: 610-356-4600 or Visit our website: : 2003 Project Management Institute, Inc. All rights reserved. PMI , the PMI logo and PMBOK are marks of the Project Management Institute, Inc.; PMP is a certification mark of theProject Management Institute, Inc. PMI books are available at special quantity discounts to use as premiums and sales promotions, or for use in corporatetraining programs as well as other educational programs.

2 For more information, please write to the PMI Publishing,Bookstore Administrator, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA, or e-mail contact your local in the United States of America. No part of this work may be reproduced or transmitted in any form or by anymeans, electronic, manual, photocopying, recording, or by any information storage and retrieval system, without priorwritten permission of the paper used in this book complies with the Permanent Paper Standard issued by the National Information StandardsOrganization ( 1984).10987654321 2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USAvContentsList of Figures ..viiForeword ..ixPreface ..xiExecutive Summary ..xiiiSECTION ONE: INTRODUCTION TO OPM3 ..1 Chapter 1 Foundational Concepts .. Purpose and Scope .. Strategy through Projects .. Project Management .

3 Maturity ..5 Chapter 2 User Overview .. the Standard is Organized .. , Assessment, and Improvement .. to OPM3 Steps ..8 SECTION TWO: UNDERSTANDING THE Model ..11 Chapter 3 Best Practices .. are Best Practices? .. Best Practices can be Used .. , Outcomes, and Key Performance Indicators .. among Best Practices and Capabilities .. of Best Practices and Capabilities within OPM3 ..19 Chapter 4 The Organizational Project Management Processes .. , Programs, and Portfolios .. Management Processes .. Management Processes .. Management Processes .. portfolio , Program, and Project Management Processes Constitutethe Organizational Project Management Process ..27 SECTION THREE: USING THE Model ..29 Chapter 5 The OPM3 Directories .. of the Directories .. Directory Pages ..33 Chapter 6 The OPM3 Cycle .. of the OPM3 Cycle .. of the OPM3 Cycle ..36 2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USAviSECTION FOUR: APPENDICES.

4 47 Appendix A: The Project Management Institute Standards-SettingProcess ..49 Appendix B: Evolution of the Organizational ProjectManagement Maturity Model ..53 Appendix C: Contributors and Reviewers of OPM3 ..63 Appendix D: OPM3 Self-Assessment ..75 Appendix E: Comprehensive Assessment: Detailed Sub-Steps ..87 Appendix F: Best Practices Directory ..89 Appendix G: Capabilities Directory ..123 Appendix H: Improvement Planning Directory ..125 Appendix I: Program and portfolio Management Process Models ..127 Glossary ..171 Index ..175 2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USAviiList of FiguresFigure ES-1: OPM3 bridges the gap between Organizational strategyand successful ES-2: Knowledge drives Assessment, which, in turn, drives 1-1: Projects and Programs are part of a Project portfolio ..4 Figure 1-2: Organizational Project Management Maturity increases along a 2-1: Elements of the OPM3 Standard: Knowledge, Assessment, 2-2: The OPM3 3-1: Best Practices are dependent upon Capabilities and theirassociated 3-2: Key Performance Indicators (KPIs) confirm the attainment of 3-3: Dependency may involve a series of 3-4: Dependency can also exist between Best 3-5: Sometimes there is joint dependency among Best Practices' Capabilities.

5 18 Figure 4-1: Projects and Programs are all part of an organization's Project 4-2: The 5 Project Management Process 4-3: Organizational Project Management Processes depend on Project Management , Program Management , and portfolio 4-4: OPM3 Process 5-1: Sample page of Best Practices 5-2: Sample page of Capabilities 5-3: Sample page of Improvement Planning 6-1: OPM3 6-2: Identifier 6-3: Graphical representation of an organization's overall position on a continuum of Organizational Project Management 6-4: Spider diagram showing the organization's Maturity in terms of each 6-5: Spider diagram showing the organization's Maturity in terms of each process improvement 6-6: Bar chart representation of the organization's Maturity by domain and process improvement ForewordIn 1983, PMI published its first standard, the Special Report on Ethics, Stan-dards, and Accreditation (ESA).

6 Over the last twenty years, PMI has con-tinued to make significant contributions to the Project managementprofession through the development and publication of standards. In 1987, PMI published the PMBOK Standards, the precursor to the1996 version of A Guide to the Project Management Body of Knowledge(PMBOK Guide).The PMBOK Guide 2000 Edition reflects PMI's ongoingcommitment to refreshing the standards that it develops and sponsors. In 2002, PMI expanded the scope of its standards-setting activities bymoving into the practitioner arena, publishing the Project Manager Compe-tency Development Framework. The PMBOK Guideand the Project Manager Competency DevelopmentFrameworkhave contributed to the advancement of the Project manage-ment profession worldwide, by championing a common lexicon and dis-seminating generally accepted Project Management knowledge andpractices. Today, twenty years after the ESA report was published, PMI is proud toannounce the introduction of OPM3 - the Organizational Project Man-agement Maturity in 1998, OPM3 is designed to help orga-nizations translate strategy into successful outcomes, consistently Standard has three key elements:1) The Knowledge element describes Organizational Project managementand Organizational Project Management Maturity , explains why they areimportant, and how Project Management Maturity can be recognized.

7 2) The Assessment element presents methods, processes and proceduresthat an organization can use to self-assess its Maturity . 3) The Improvement element provides a process for moving from its cur-rent Maturity to increased Maturity . The Improvement element is whatclearly differentiates OPM3 from other products in the marketplace. With the introduction of its first standard for organizations, PMI com-pletes a triad of standards, one for organizations, another for people andanother for projects that connect together, providing a comprehensive andsynergistic approach to successful Project Management . OPM3 is yet another vital step in PMI's commitment to develop standardsthat will lead to worldwide excellence in the practice of Project L. O'Bray, CIM, PMI Chair 2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USAixKnowl-edgeAssessmentImprovementPref aceThe Organizational Project Management Maturity Model (OPM3) falls nat-urally within the sequence of Standards published by the Project Manage-ment Institute (PMI).

8 A Guide to the Project Management Body of Knowledge(PMBOK Guide) has become the de factoStandard for managing individualprojects and is the reference of choice for the Project Management profes-sion. The Project Management Competency Development Framework, pub-lished in 2002, sets a Standard for effectively training and developingproject managers or those aspiring to be Project managers. A logical next step was to develop a standard applying Project manage-ment principles at the Organizational level. OPM3 seeks to create a frame-work within which organizations can reexamine their pursuit of strategicobjectives via Best Practices in Organizational Project Management . ThisStandard is an initial statement on this subject identifying and organizinga substantial number of generally accepted and proven Project manage-ment practices, and providing a means to assess an organization s maturityagainst the Best Practices identified in this Standard.

9 Finally, with the resultsof such an assessment, an organization can decide whether to plan forimprovements and how to approach these improvements to increase itsmaturity by developing more of the Capabilities identified by the just described, OPM3 is comprised of three general elements: Knowl-edge, presenting the contents of the Standard; Assessment, providing amethod for comparison with the Standard; and Improvement, setting thestage for possible Organizational changes. As with other PMI Standards,OPM3 s intent is not to be prescriptive by telling the user what improve-ments to make or how to make them. Rather, the intent is simply to offerthe Standard as a basis for study and self-examination, and to enable anorganization to make its own informed decisions regarding potential ini-tiatives for change. Practitioners and consultants using OPM3 may have aninterest in exploring further possibilities for assessment and for managingorganizational changes that are implied by the assessment.

10 Their work willcontribute to the growing understanding of how Project Management cansupport effective achievement of Organizational is designed to provide a wide range of benefits to organizations,senior Management , and those engaged in Project Management is a partial list:OPM3 .. Strengthens the link between strategic planning and execution, soproject outcomes are predictable, reliable, and consistent, and correlatewith Organizational success 2003 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USAxi Identifies the Best Practices which support the implementation of orga-nizational strategy through successful projects Identifies the specific Capabilities which make up the Best Practices, andthe dependencies among these Capabilities and Best Practices Places Best Practices and Capabilities within the context of not onlyProject Management .