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1 Management Institute ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3 ) Third Edition

2 Library of Congress Cataloging-in-Publication Data Organizational project management maturity model (OPM3) / Management Institute. -- Third edition. pages cm Includes bibliographical references and index. ISBN-13: (alk. paper) ISBN-10: (alk. paper) 1. management--standards. 2. management. I. Management Institute. HD69.P75O dc ISBN: Published by: Management Institute, Inc. 14 Campus Boulevard Newtown Square, Pennsylvania USA Phone: Fax: customercare@pmi.org Internet: Management Institute, Inc. All rights reserved. PMI, the PMI logo, PMP, the PMP logo, PMBOK, PgMP, Management Journal, PM Network, and the PMI Today logo are registered marks of Management Institute, Inc. The Quarter Globe Design is a trademark of the Management Institute, Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department. PMI Publications welcomes corrections and comments on its books. Please feel free to send comments on typographical, formatting, or other errors. Simply make a copy of the relevant page of the book, mark the error, and send it to: Book Editor, PMI Publications, 14 Campus Boulevard, Newtown Square, PA USA. To inquire about discounts for resale or educational purposes, please contact the PMI Book Service Center. PMI Book Service Center P.O. Box , Atlanta, GA USA Phone: (within the U.S. or Canada) or (globally) Fax: info@bookorders.pmi.org Printed in the United States of America. No part of this work may be reproduced or transmitted in any form or by any means, electronic, manual, photocopying, recording, or by any information storage and retrieval system, without prior written permission of the publisher. The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z )

3 NOTICE The Management Institute, Inc. (PMI) standards and guideline publications, of which the document contained herein is one, are developed through a voluntary consensus standards development process. This process brings together volunteers and/or seeks out the views of persons who have an interest in the topic covered by this publication. While PMI administers the process and establishes rules to promote fairness in the development of consensus, it does not write the document and it does not independently test, evaluate, or verify the accuracy or completeness of any information or the soundness of any judgments contained in its standards and guideline publications. PMI disclaims liability for any personal injury, property or other damages of any nature whatsoever, whether special, indirect, consequential or compensatory, directly or indirectly resulting from the publication, use of application, or reliance on this document. PMI disclaims and makes no guaranty or warranty, expressed or implied, as to the accuracy or completeness of any information published herein, and disclaims and makes no warranty that the information in this document will fulfill any particular purpose or need. PMI does not undertake to guarantee the performance of any individual manufacturer or seller s products or services by virtue of this standard or guide. In publishing and making this document available, PMI is not undertaking to render professional or other services for or on behalf of any person or entity, nor is PMI undertaking to perform any duty owed by any person or entity to someone else. Anyone using this document should rely on his or her own independent judgment or, as appropriate, seek the advice of a competent professional in determining the exercise of reasonable care in any given circumstances. Information and other standards on the topic covered by this publication may be available from other sources, which the user may wish to consult for additional views or information not covered by this publication. PMI has no power, nor does it undertake to police or enforce compliance with the contents of this document. PMI does not certify, test, or inspect products, designs, or installations for safety or health purposes. Any certification or other statement of compliance with any health or safety-related information in this document shall not be attributable to PMI and is solely the responsibility of the certifier or maker of the statement.

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5 TABLE OF CONTENTS TABLE OF CONTENTS 1. OVERVIEW Introduction Purpose of OPM What is OPM? Relationship of OPM and Organizational Strategy The Relationships Among s, s, and s What Is OPM3? Relationships Among Management, Management, Management, and Organizational Management Management Management s and Strategic Planning Management Office Based Organizations Organizational Issues and Management Business Value Stakeholders OPM3 Practitioner Knowledge and Skills FOUNDATIONAL CONCEPTS Organizational Management Described Investing in OPM Organizational Life Cycles Organizational Management Maturity Model What is the Organizational Management Maturity Model? How to Use OPM THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Introduction The OPM3 Construct Best Practice Capability Management Institute. The Standard for Management - Third Edition v

6 TABLE OF CONTENTS Outcome s ment Stages Organizational Enablers Categorization OPM3 Framework OPM3 Areas of Expertise OPM3 Cycle Elements OPM3 Application OPM3 Scoring Methods OPM3 Best Practices List ACQUIRE KNOWLEDGE Understand OPM Understand OPM: Inputs Understand OPM: Tools and Techniques Understand OPM: Outputs Understand Organization Understand Organization: Inputs Understand Organization: Tools and Techniques Understand Organization: Outputs Assess Change Readiness Assess Change Readiness: Inputs Assess Change Readiness: Tools and Techniques Assess Change Readiness: Outputs PERFORM ASSESSMENT Establish Plan Establish Plan: Inputs Establish Plan: Tools and Techniques Establish Plan: Outputs Define Scope Define Scope: Inputs Define Scope: Tools and Techniques Define Scope: Outputs vi 2013 Management Institute. The Standard for Management - Third Edition

7 TABLE OF CONTENTS 5.3 Conduct Assessment Conduct Assessment: Inputs Conduct Assessment: Tools and Techniques Conduct Assessment: Outputs Initiate Change Initiate Change: Inputs Initiate Change: Tools and Techniques Initiate Change: Outputs MANAGE IMPROVEMENT Create Recommendations Create Recommendations: Inputs Create Recommendations: Tools and Techniques Create Recommendations: Outputs Select Initiatives Select Initiatives: Inputs Select Initiatives: Tools and Techniques Select Initiatives: Outputs Implement ment Initiatives Implement ment Initiatives: Inputs Implement ment Initiatives: Tools and Techniques Implement ment Initiatives: Outputs Results Results: Inputs Results: Tools and Techniques Results: Outputs Manage Change Manage Change: Inputs Manage Change: Tools and Techniques Manage Change: Outputs REFERENCES ANNEX A1 OPM3 BEST PRACTICES LIST APPENDIX X1 THIRD EDITION CHANGES Management Institute. The Standard for Management - Third Edition vii

8 TABLE OF CONTENTS APPENDIX X2 CONTRIBUTORS AND REVIEWERS OF OPM APPENDIX X3 OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS APPENDIX X4 OPM3 CASE STUDIES GLOSSARY INDEX viii 2013 Management Institute. The Standard for Management - Third Edition

9 LIST OF TABLES AND FIGURES LIST OF TABLES AND FIGURES Figure 1-1. Organizational Management... 3 Figure 1-2. Relationship of OPM and Organizational Strategy... 4 Figure 1-3.,, and Management Interactions... 5 Figure 2-1. Organizational Management Figure 2-2. Organizational Life Cycle Figure 2-3. ment Steps Figure 2-4. OPM3 Cycle Figure 3-1. The OPM3 Context Figure 3-2. The OPM3 Construct Figure 3-3. The OPM3 Best Practice Figure 3-4. The OPM3 Construct Example Figure 3-5. The OPM3 s Figure 3-6. The OPM3 ment Stages Figure 3-7. The OPM3 Organizational Enablers (OEs) Figure 3-8. Capabilities and Outcomes of Best Practice Figure 3-9. The OPM3 Categorization Figure The OPM3 Framework Overview Figure The OPM3 Framework Figure The Organizational Management Maturity Model (OPM3) Figure OPM3 Variable s Scoring Method Figure 4-1. Acquire Knowledge Overview: Inputs, Tools and Techniques, and Outputs Figure 4-2. Understand OPM: Inputs, Tools and Techniques, and Outputs Figure 4-3. Understand Organization: Inputs, Tools and Techniques, and Outputs Management Institute. The Standard for Management - Third Edition ix

10 LIST OF TABLES AND FIGURES Figure 4-4. Sample Questionnaire and Survey Topics Figure 4-5. Assess Change Readiness: Inputs, Tools and Techniques, and Outputs Figure 5-1. Perform Assessment Overview Figure 5-2. Establish Plan: Inputs, Tools and Techniques, and Outputs Figure 5-3. Define Scope: Inputs, Tools and Techniques, and Outputs Figure 5-4. Conduct Assessment: Inputs, Tools and Techniques, and Outputs Figure 5-5. Initiate Change: Inputs, Tools and Techniques, and Outputs Figure 6-1. Manage ment Overview Figure 6-2. Create Recommendations: Inputs, Tools and Techniques, and Outputs Figure 6-3. Maturity Stages of an Organization Figure 6-4. High-Level Schema of Current versus Desired OPM Maturity Figure 6-5. Example of OPM3 Assessment Results Figure 6-6. Selection of Best Practice Based on the Desired Maturity Level Figure 6-7. Example of Implementation Status for Desired Maturity Level on Best Practice Level Figure 6-8. Select Initiatives: Inputs, Tools and Techniques, and Outputs Figure 6-9. Grouping of Best Practices to ment Initiatives Figure Diagram for Prioritization and Identification...95 Figure Prioritization of Selected Initiatives under Constraints of Limited Resources Figure Sample Maturity ment Path Figure Sample OPM ment Roadmap for Increasing OPM Figure Implement ment Initiatives: Inputs, Tools and Techniques, and Outputs Figure Structure of an OPM3 Initiative Figure Maturity Growth of the Organization Figure Results: Inputs, Tools and Techniques, and Outputs Figure Manage Change: Inputs, Tools and Techniques, and Outputs x 2013 Management Institute. The Standard for Management - Third Edition

11 LIST OF TABLES AND FIGURES Table 1-1. Comparative Overview of,, and Management... 7 Table 3-1. PMBOK Guide Develop Charter with SMCI Applied Table 3-2. Organizational Enabler Categories Table 3-3. The OPM3 es Table A1-1. OPM3 Best Practices List Table X1-1. Comparison of Structural Changes Table X1-2. Changes to Section Table X1-3. Changes to Section Table X1-4. Changes to Section Management Institute. The Standard for Management - Third Edition xi

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13 1 - OVERVIEW 1 1 OVERVIEW 1.1 Introduction The Organizational Management Maturity Model (OPM3 ) Third Edition provides guidelines for improving organizational project management within organizations. It defines the OPM3 model, which is comprised of the OPM3 Construct and OPM3 framework activities and processes. This edition of OPM3 expands, reinforces, and clarifies many of the concepts presented in the previous editions. This standard leverages the Management Institute s (PMI ) foundational standards, including A Guide to the Management Body of Knowledge (PMBOK Guide) Fifth Edition [1], 1 The Standard for Management Third Edition [2], The Standard for Management Third Edition [3], and PMI s Lexicon of Management Terms [4] as well as the Manager Competency Development Framework (PMCDF) Second Edition [5]. OPM3 is organized into six sections: Section 1 Overview This section provides an overview of the foundational concepts of organizational project management (OPM) and OPM3. This section outlines the relationship between portfolio, program, and project management, the role of stakeholders, and a summary of the remaining sections. Section 2 Foundational Concepts This section sets the stage for applying OPM3. It takes an in-depth look at the OPM3 model, domains, the organizational project management (portfolio, program, and project) processes, organizational life cycle and maturity, and continuous improvement. Section 3 The Organizational Management Maturity Model (OPM3) This section, considered the foundation of OPM3, describes two core components of the standard: the OPM3 Construct and the OPM3 framework. These are further elaborated in Sections 3.2 and 3.3. Section 4 Acquire Knowledge This section guides the discovery and preparation process prior to performing an assessment within a business environment. This section outlines the essential inputs, outputs, and tools and techniques. Section 5 Perform Assessment This section guides the plan and execution process before, during, and after performing an assessment. This section outlines the essential inputs, outputs, and tools and techniques. Section 6 Manage ment This section guides the evaluation, prioritization, and implementation processes after performing an assessment. This section outlines the essential inputs, outputs, and tools and techniques. 1 The numbers in brackets refer to the list of references at the end of this standard. 1

14 1 - OVERVIEW Appendices The appendices provide the history of the standard and present case studies on how OPM3 has been successfully applied. Glossary This section includes the basic terminology used within this standard. OPM3 is flexible and scalable, which benefits organizations of different types, sizes, complexity and geographic location. It supports most organizations most of the time, regardless of age, maturity, or other factors. OPM3 incorporates the collective expertise of the organizational project management community from a wide spectrum of industries and geographic areas. This standard identifies and organizes generally accepted and proven organizational project management practices. The OPM3 framework provides processes to assess an organization s practices against OPM3 Best Practices. The assessment findings, without being prescriptive, guide an organization to undertake relevant improvements. The findings enable an organization to make informed decisions regarding potential initiatives for change. Appendix X1 provides a summary of revisions from the previous version of OPM3. PMI continues to receive feedback as organizations apply OPM3 and uses the feedback to improve the standard. For achieving a certain level of performance and effectiveness or continuously increasing an organization s competitiveness and profitability, OPM3 helps to accomplish these goals. Key benefits from applying OPM3 include, but are not limited to: Greater market share, d competitive advantage, d customer satisfaction and retention, d time to market, Increased productivity, Operational effectiveness, Predictable delivery performance, Reduced cost and rework, and Stronger linkage between strategy and execution. 1.2 Purpose of OPM3 The increasing pace of change combined with the rising complexity of the economy and global competition requires executives to reexamine their strategy to fulfill stakeholder expectations and meet market needs. This refinement of strategy requires a new focus on product development, operational effectiveness improvements, and customer service enhancement. However, defining strategy by itself does not ensure success or meet market needs. Rather, executives need to focus on organizational agility and project management capability to ensure success. Organizations should seek ways to translate strategy into organizational success through a project-based approach. Successful organizations develop an environment for delivering individual projects and programs, while creating an organizational culture that treats temporary endeavors as projects. Such organizations manage projects and programs to support organizational goals. Their goal is to select the specific initiative needed to deliver organizational strategy, produce 2

15 1 - OVERVIEW better performance, better results, and a sustainable competitive advantage. To accomplish this, an organization needs to know what specific organizational project management-related practices, knowledge, skills, tools, and techniques have proven consistently to be useful. In addition, a method to compare the organization s current state of organizational project management against industry practices, through the identification of capabilities requiring improvement and the establishment of a roadmap for achieving improvements specific to its needs. 1 The Organizational Management Maturity Model (OPM3 ) Third Edition establishes the foundation for and linkage between strategy and portfolio, program, and project management. OPM3 describes the significant components of PMI s Organizational Management Maturity Model and provides an organizational view of portfolio, program, and project management to support achieving best practices. In addition, OPM3 illustrates how the application of the best practices helps to realize organizational improvements. Best practices are the methods currently recognized in a given industry to achieve a stated goal or objective. 1.3 What is OPM? Organizational project management (OPM) is a strategy execution framework that utilizes portfolio, program, and project management as well as organizational-enabling practices to consistently and predictably deliver organizational strategy to produce better performance, better results, and a sustainable competitive advantage. OPM addresses integration of the following: Knowledge (of the portfolio, program, and project processes), Organizational strategy (mission, vision, objectives, and goals), People (having competent resources), and es (the application of the stages of process improvement). The term organization does not necessarily refer to an entire company, agency, association, or society. It may refer to business units, functional groups, departments, or subagencies within the whole. While individual projects may be considered tactical, OPM is, by definition, strategic. Figure 1-1. Organizational Management 3

16 1 - OVERVIEW Driven from strategy, OPM ensures that the portfolio aligns the set of programs and/or projects that yield the appropriate value decisions and benefits for the organization. reviews occur on a regular basis, adjusted as market conditions or strategy change. An analysis of the business impacts on the portfolio guides the portfolio review and is adjusted as needed to deliver results or when other work makes it necessary to revise. These results directly link to business value realization. Feedback from value performance analysis influences the strategy of the organization Relationship of OPM and Organizational Strategy Organizational strategy is a result of the strategic planning cycle, where the vision and mission are translated into a strategic plan. The strategic plan is then subdivided into a set of initiatives influenced by market dynamics, customer and partner requests, shareholders, government regulations, resource capacity, and competitor plans and actions. These initiatives establish strategic and operational portfolios for execution in the planned period. The concept of OPM as depicted in Figure 1-2 correlates an organization s capabilities in portfolio, program, and project management and the organization s effectiveness in implementing strategy, vision, and mission. OPM purposefully links an organization s portfolio, program, and projects to its business strategy and supporting business objectives. Figure 1-2. Relationship of OPM and Organizational Strategy 4

17 1 - OVERVIEW The Relationships Among s, s, and s The relationship among portfolios, programs, and projects is such that a portfolio refers to a collection of projects, programs, subportfolios, and operations grouped together in order to facilitate the effective management of that work to meet strategic business objectives. s are grouped within a portfolio and are comprised of subprograms, projects, or operations that are managed in a coordinated fashion in support of the portfolio. Individual projects that are either within or outside of a program are still considered part of a portfolio. Although the projects or programs within the portfolio may not necessarily be interdependent or directly related, they link to the organization s strategic plan by means of the organization s portfolio. 1 As Figure 1-3 illustrates, organizational strategies and priorities are linked and have relationships between portfolios and programs, and between programs and individual projects. Organizational planning impacts projects by means of project prioritization based on risk, funding, and the organization s strategic plan. Organizational planning can direct the funding and support for the component projects on the basis of risk categories, specific lines of business, or general types of projects, such as infrastructure and process improvement. Figure 1-3.,, and Management Interactions 5

18 1 - OVERVIEW 1.4 What Is OPM3? OPM3 provides a way to deliver strategy through clearly linked portfolios, programs, and projects. OPM3 enhances effective use of human capital by developing portfolio, program, and project competencies (stakeholder engagement, estimating, scheduling, management, etc.). OPM3 transforms the portfolio, program, and project domain processes into high-quality delivery processes that are well understood, stable, repeatable, and predictable. OPM3 highlights opportunities for more flexible, adaptable, and improved management systems. OPM3 is flexible, scalable, and supports organizations of different types, sizes, complexity, and geographic location regardless of age or maturity. OPM3 benefits organizations, management, governance bodies, portfolio, program or project management offices (PMOs), OPM consultants, process improvement experts, change agents, department managers, and those engaged in project management activities. These benefits may include, but are not limited to: Greater market share, d competitive advantage, d customer satisfaction and retention, d time to market, Increased employee productivity, Operational effectiveness, Predictable delivery performance, Reduced cost and rework, and Stronger linkage between strategy and execution. 1.5 Relationships Among Management, Management, Management, and Organizational Management In order to understand portfolio, program, and project management, it is important to recognize the similarities and differences among these disciplines. It is also helpful to understand how they relate to organizational project management (OPM). OPM is a strategy execution framework utilizing portfolio, program, and project management as well as organization-enabling practices to consistently and predictably deliver organization strategy producing better performance, better results, and a sustainable advantage., program, and project management are aligned with or driven by organizational strategies. Conversely, portfolio, program, and project management differ in the way each contributes to the achievement of strategic goals. management aligns with organizational strategies by selecting the right programs or projects, prioritizing the work, and providing the needed resources, whereas program management harmonizes its project and program components and controls interdependencies in order to realize specified benefits. management develops and implements plans to achieve a specific scope that is driven by the objectives of the 6

19 1 - OVERVIEW program or portfolio it is subjected to and, ultimately, to organizational strategies. OPM advances organizational capability by linking portfolio, program, and project management principles and practices with organizational enablers (e.g., structural, cultural, technological, and human resource practices) to support strategic goals. An organization measures its capabilities, then plans and implements improvements towards the systematic achievement of best practices. 1 Table 1-1 shows the comparison of portfolio, program, and project views across several dimensions within the organization. An organization that implements OPM can improve its processes by adopting recognized best practices to achieve consistent portfolio, program, and project success in support of strategic goals. Table 1-1. Comparative Overview of,, and Management 7

20 1 - OVERVIEW Management A portfolio refers to projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. For example, an infrastructure firm that has the strategic objective of maximizing the return on its investments may put together a portfolio that includes a mix of projects in oil and gas, power, water, roads, rail, and airports. From this mix, the firm may choose to manage related projects as one program. All of the power projects may be grouped together as a power program. Similarly, all of the water projects may be grouped together as a water program. Thus, the power program and the water program become integral components of the enterprise portfolio of the infrastructure firm. management refers to the centralized management of one or more portfolios to achieve strategic objectives. management focuses on ensuring that projects and programs are reviewed to prioritize resource allocation, and that the management of the portfolio is consistent with and aligned to organizational strategies Management A program is defined as a group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually. s may include elements of related work outside the scope of the discrete projects in the program. A project may or may not be part of a program but a program will always have projects. management is the application of knowledge, skills, tools, and techniques to a program in order to meet the program requirements and to obtain benefits and control not available by managing projects individually. s within a program are related through the common outcome or collective capability. If the relationship between projects is only that of a shared client, seller, technology, or resource, the effort should be managed as a portfolio of projects rather than as a program. management focuses on the project interdependencies and helps to determine the optimal approach for managing them. Actions related to these interdependencies may include: Resolving resource constraints and/or conflicts that affect multiple projects within the program, Aligning organizational/strategic direction that affects project and program goals and objectives, and Resolving issues and change management within a shared governance structure. An example of a program is a new communications satellite system with projects for design of the satellite and the ground stations, the construction of each, the integration of the system, and the launch of the satellite s and Strategic Planning management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. management is accomplished through the appropriate application and integration of 8

21 1 - OVERVIEW the logically grouped project management processes comprising the following Groups: Initiating, Planning, Executing, Monitoring and ling, and Closing. Successful project management starts with selecting and prioritizing projects to support the organizational mission and strategy. This process results in a portfolio of projects that balance threats and opportunities and provides a better utilization of resources. 1 In customer-driven organizations, the mission statement defines the organization s purpose and serves as the guiding light for the organization and executives. Once formulated, the next step is to create goals, objectives, and strategies. Goals translate the mission into specific, measurable, and tangible terms. The future state of the organization is identified by these goals by setting targets for all levels of the organization. Each level of the organizational objectives supports the higher-level objectives in more detail. The development of strategies to meet these needs and goals should focus on specific implementation plans of how the organization will achieve their objectives and goals. This requires an extensive analysis of the internal and external environments through the identification of strengths and weaknesses, such as, management, facilities, core competencies, product quality, technology, and financial resources. The deliverable of this analysis is a set of strategies designed to best meet customers needs. Implementation of these strategies requires actions and completing tasks, and should focus on how to realize these strategies Management Office The portfolio, program, or project management office (PMO) is an organizational body assigned with various responsibilities related to the centralized and coordinated management of those projects under its domain. The PMO is the liaison between a company s portfolios, programs, and projects and the corporate measurement systems, such as, the balanced scorecard. A PMO may be delegated with the authority to act as an integral stakeholder and a key decision maker to make recommendations, to terminate projects, or to take other actions, as required, to keep projects and programs consistent with business objectives. Additionally, the PMO may be involved in the selection, management, and deployment of shared or dedicated project resources. A primary function of a PMO is to support project managers in a variety of ways, which may include, but are not limited to: Coaching, mentoring, training, and oversight; Coordinating communication across projects; Developing and managing project policies, procedures, templates, and other project documentation (organizational process assets); Identifying and developing project management methodology, best practices, and standards; Managing shared resources across all projects administered by the PMO; Monitoring compliance with project management standards, policies, procedures, and templates by means of project audits; and Providing centralized support for managing changes and tracking risks and issues. 9

22 1 - OVERVIEW There are various types of PMOs, each varying in the degree of control and influence they have on projects within the organization Based Organizations Organizational structure can influence the organization s ability to deliver successful projects, because the structure of an organization determines the communication requirements, responsibilities, and management reporting structure. There are three organizational structure models: functional, matrix, and projectized. -based organizations (PBO) are fast emerging as a recognized trend of a new form of organization to create a competitive edge. PBOs conduct the majority of their activities as projects rather than functional approaches. PBOs refer to either an entire organization or may be nested within subsidiaries or divisions of larger corporations. PBOs manage portfolios and resources differently than other types of organizations. PBOs provide many advantages, such as a high level of integration, improved communication, and increased project focus. While executives and organizational managers seek better strategy delivery results, organizations need to understand the various project-based organizational models that can accommodate various situations and address the issues of compartmentalization. The adoption of an integrated project approach, with horizontal structures that provide integration from business strategy through realization of operational benefits and vertical structures that provide integration between organizational strategy and prioritized portfolios of projects, including a governance-oriented PMO, will enable organizations to promote the implementation of organizational project management Organizational Issues and Management In traditional organizations, responsibility for determining and achieving the organizations goals is assigned to the operations function. Executives, with titles such as chief operations officer (COO), chief technology officer (CTO), chief information officer (CIO), chief financial officer (CFO), strategic planning consultant, etc., establish objectives and goals and develop strategies to achieve them. Executives expect to select from proposed and pending projects to create the mix of projects most likely to support achievement of the organization s goals within the preferred strategies, organizational risk tolerance, and organizational resource (people and funding) constraints. management requires deliberate planning and action to create the conditions for success. This entails implementing strategy, leadership, goals, process, skills, systems, issue resolution, and structure to direct and exploit the dynamic nature of project work. However, when strategy moves from the boardroom to back offices and the marketplace, the ability to deliver utilizing project management is often overlooked. Implementing efficient project management will enable organizations to meet their strategic and operational objectives. There are several conditions that are essential for project success. These conditions apply to all projects, whether related to top-level strategic business issues or operational ones. 10

23 1 - OVERVIEW Clearly Communicated Strategy Effective management organizations have a clear, well-communicated strategy and understand how each project supports it. Implementing effective project management includes putting in place a mechanism to evaluate every project for its fit with the strategy prior to implementation. An organization s strategy should provide the boundaries for projects goals and results should flow from an organization s future direction. Before deciding to embark on a new project and when communicating the goals of that project to the project team, senior management should provide clear answers to the following questions: What are the organization s products and services? Who are its customers and markets? What is its competitive advantage? How will this particular project support the achievement of its strategy? Goals Effective organizations know which operational goals make a difference in the business strategy and then implement methods for keeping these visible to all. At the beginning of a project, senior management communicates to the project team and provides answers to these important questions: What are the organization s long- and short-term operational goals and budgets? How does the project fit into or support these? Once the project is under way, progress against these goals needs to be evaluated and communicated on an ongoing basis Leadership In some organizations, selecting and overseeing the management of projects is directed by the senior management team, allowing them to keep a tight rein on the organization s project portfolio. In other organizations, some of this responsibility is delegated to a project management office, enabling senior management to focus on more strategic tasks and providing more authority to others. Each organization needs to decide how to strike the right balance between control and agility. Whichever method an organization chooses, it needs to be visible and consistent; otherwise it will undermine the system and the organization s goals Business es Within an organization, the systems used to gather, analyze, and disseminate information are required to support project-based work. This is true regardless of whether the projects are external or internal Human Capabilities Effective project management requires the right people with the right skills. A key skill needed by those who are implementing project management is the ability to identify, hire, and retain individuals who are best suited for project work. Some people simply are not suited to the challenges of project management; others enjoy the challenge of working toward a goal and being part of a project team. In addition, each project should enhance existing capabilities and provide new development opportunities in areas such as leadership, problem solving and decision making, human performance management, communication, and portfolio management. 11

24 1 - OVERVIEW Culture and Performance System An organization s culture consists of its norms, values, and beliefs. These may be explicitly expressed and often remain hidden to form part of the implicit context of organization life that can exercise a gravitational pull on decision making. Unless an organization demonstrates visible, unreserved commitment to sound project management practices, the chances are that project management will be viewed as just another activity. The successful implementation of project management depends on an organization s explicit belief that the manner in which projects are managed is just as important as what they achieve. management becomes the way we do business around here Information and Business Systems management software is a tool for organizing and representing project information; however, it is not a substitute for project management skills nor the judgment required to apply them. Like any project, new systems and procedures should be aligned and integrated into the business life of an organization to make them relevant to the way business is conducted and to prove value added, resources required, risk, and lessons learned Team Structure Implementing project management requires matching the team structure to the project and to the other needs of the organization. Several options exist for organizing people for project work; for example, developing a matrix where reporting responsibility is divided between project and functional managers and the central pool where resources are on call to meet demand. This structure affords the organization the greatest efficiency, provides the greatest range of development opportunities, and fits well with the use of temporary and contract resources. However, it also requires a strong scheduling function with the authority to stand up to demands for specific resources External Factors Implementing project management implies emphasis on the internal workings of the organization, but external factors are also at play. Vendors and suppliers need to be aligned to support project work. The right materials need to show up at the right moment. Contracts and procurement processes need to be aligned with project schedules, and rewards should follow both supplier and buyer performance. Also, certain customers and markets may demand that projects be conducted in a special way. External projects with a mission beyond organizational boundaries may require changes in the way the projects are sold, delivered, or reported. Senior management should keep in mind that superior project management skills and innovative practices, processes, and products can be an important competitive differentiator. The organization s skills should be continually benchmarked against those of the competition to make the necessary investment it needs to keep pace or lead the industry The Future No organization possesses all of the capabilities needed to face the challenges ahead. However, steps can be taken to prepare for the unpredictable, such as succession planning, continuous training, and the development of future project managers to ensure that the requisite talent will always be available for new projects. 12

25 1 - OVERVIEW 1.6 Business Value Business value is a concept that is unique to each organization. Business value is defined as the entire value of the business: the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, fixtures, stockholder equity, and utility. Examples of intangible elements include good will, brand recognition, public benefit, and trademarks. Depending on the organization, business value scope can be short-, medium-, or long-term. Value may be created through the effective management of ongoing operations. However, through the effective use of portfolio, program, and project management, organizations will possess the ability to employ reliable, established processes to meet strategic objectives and obtain greater business value from their project investments. While not all organizations are business driven, all organizations conduct business-related activities. Whether an organization is a government agency or a nonprofit organization, all organizations focus on attaining business value for their activities. 1 Successful business value realization begins with comprehensive strategic planning and management. Organizational strategy can be expressed through the organization s mission and vision, including orientation to markets, competition, and other environmental factors. Effective organizational strategy provides defined directions for development and growth, in addition to performance metrics for success. In order to bridge the gap between organizational strategy and successful business value realization, the use of portfolio, program, and project management techniques is essential. management aligns components (projects, programs, or operations) to the organizational strategy, organized into portfolios or subportfolios to optimize project or program objectives, dependencies, costs, timelines, benefits, resources, and risks. This allows organizations to have an overall view of how the strategic goals are reflected in the portfolio, institute appropriate governance management, and authorize human, financial, or material resources to be allocated based on expected performance and benefits. Using program management, organizations have the ability to align multiple projects for optimized or integrated costs, schedule, effort, and benefits. management focuses on project interdependencies and helps to determine the optimal approach for managing and realizing the desired benefits. With project management, organizations have the ability to apply knowledge, processes, skills, and tools and techniques that enhance the likelihood of success over a wide range of projects. management focuses on the successful delivery of products, services, or results. Within programs and portfolios, projects are a means of achieving organizational strategy and objectives. Organizations can further facilitate the alignment of these portfolio, program, and project management activities by strengthening organizational enablers such as structural, cultural, technological, and human resource practices. By continuously conducting portfolio strategic alignment and optimization, performing business impact analyses, and developing robust organizational enablers, organizations can achieve successful transitions within the portfolio, program, and project domains and attain effective investment management and business value realization. 13

26 1 - OVERVIEW 1.7 Stakeholders s often fail because the key decision makers have not been identified or have not been actively involved in determining the project strategy and direction. Stakeholders are individuals, groups, or organizations who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a portfolio, program, or project. Many stakeholders provide valuable input and play a critical role in the success of any project or program. They also have the ability to positively or adversely impact the project objectives depending on the benefits or threats they perceive. Therefore, it is essential that key stakeholders be identified and their positions, influence, and source of power be understood. Stakeholders may be internal or external to the organization. Within an organization, internal stakeholders cover all levels of the organization s hierarchy. Updates to the stakeholder list and influence factors should occur on a regular basis. Key stakeholders of an OPM3 initiative include, but are not limited to, the following: practitioner. The OPM3 practitioner is a subject matter expert in organizational project management maturity assessment and improvement who works with organizations to assess project management competency and develop an improvement plan focusing on the Best Practices that the organization should implement based on priorities, attainability, benefits, and cost. director. The individual with executive ownership of the program(s). manager. The individual responsible for managing the program. manager. The individual responsible for managing the individual projects. Sponsor. A person or group who provides resources and support for the project, program, or portfolio, and is accountable for overall success. Customer. The individual or organization who promotes the use of the new capabilities and supports the investment. Beneficiary. The individual or organization who benefits from the use of the new capabilities. Performing organization. The group that is performing the work. PMO. The organizational body assigned with various responsibilities related to the centralized and coordinated management of portfolios, programs, and projects as described in Section Governance board. The group responsible for ensuring that goals are achieved and providing support for addressing risks and issues. Supplier. The individual or organization who provides goods and services to the organization. Governmental regulatory agencies. Agencies imposing policies, laws, rules, or guidance with enforcement authority. Competitors and potential customers. Competitors and customers who have an interest in the organization s products, services, and performance. Groups. The groups representing consumer, environmental, or other interests. 14

27 1 - OVERVIEW OPM3 Practitioner Knowledge and Skills In order to be successful in the assessment or improvement of organizations, an OPM3 practitioner should have expertise in all of the following areas: Knowledge of the latest editions of PMI s portfolio, program and project standards. An OPM3 practitioner is required to have expertise in the use of portfolio, program, and project management methods and techniques that include both qualitative and quantitative measures. management and continuous process improvement. The OPM3 practitioner should be competent in process definition, development, maintenance, control and improvement with respect to the size and complexity of the organization. Strategic alignment. The OPM3 practitioner is required to understand the organization s strategic goals and priorities and how the portfolio, program, and project support them. Ability to conduct assessments. An effective OPM3 practitioner requires training on how to conduct assessments. Ability to draw conclusions and offer recommendations. An effective OPM3 practitioner is required to possess proper training on how to draw conclusions and offer recommendations on the assessments conducted. Ability to engage stakeholders. An effective OPM3 practitioner interacts at different levels to understand and influence expectations. Consulting experience. An OPM3 practitioner is required to possess business acumen. The OPM3 practitioner should have knowledge of relevant markets, the customer base, competition, trends, standards, legal and regulatory environments, and appropriate code of conduct. The OPM3 practitioner is required to be adept at working with executives, managers, project and program managers, and other internal and external stakeholders, as appropriate to the individual and role. Business skills. An effective OPM3 practitioner is required to possess skills related to governance, risk and compliance (see Section for greater detail), benefits management, scope management, resource management, and financial management as explained in the areas of expertise in Section The OPM3 practitioner is required to possess well-developed skills in communicating, team building, planning, conflict resolution, contract negotiating, meeting facilitating, decision making, and removing organizational barriers to success. This individual is required to be capable of adapting to divergent organizational decision-making models, ranging from autocratic to collegial. Risk management. An effective OPM3 practitioner should be well versed in opportunity and threat management. Organizational change management. An OPM3 practitioner should have an understanding of how an OPM3 initiative impacts an organization. 1 15

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29 2 - FOUNDATIONAL CONCEPTS 2 FOUNDATIONAL CONCEPTS Organizational Management Described Organizational project management (OPM) is a strategy execution framework utilizing portfolio, program, and project management as well as organizational-enabling practices to consistently and predictably deliver organizational strategy leading to better performance, better results, and a sustainable competitive advantage. OPM is the integration of people, knowledge, and processes, which are supported by tools across all domains based on the value strategy for the target market. Looking at the description more closely, the word integration is used because OPM is the appropriate balance of knowledge, processes, people, and supporting tools. Figure 2-1 depicts a systematic approach across all domains of organizational project management that encompasses the following: Strategy. Creating an organizational environment that supports the execution of the organization s strategy. : Value decisions. Decomposing the strategy into initiatives and aligning organizational resources to the initiatives to execute the organization s strategy through a disciplined business value decision process. s and projects: Results delivery. Developing initiatives into the intended business value through a predictable business results delivery system. Operations: Business value realization. Operationalizing the initiatives and measuring the business value through a business value realization process. Business impact analysis. Analyzing the impact and value from the business decision process and providing results data from the business. review and adjustments. Reviewing and adjusting the portfolio components based on business value realization and results data. Value performance analysis. Providing business value realization data from value business fulfillment back to the strategy of the organization. 17

30 2 - FOUNDATIONAL CONCEPTS Figure 2-1. Organizational Management The bulleted points mentioned previously describe the capabilities of organizational project management. Each organizational project management domain encompasses multiple processes that translate into specific capabilities that an organization should possess in order to improve its maturity and better succeed with its strategy execution. Additionally, the organization needs an environment with demonstrated capabilities to support this OPM approach in delivering its strategy. This approach is based on the organization s value strategy for the target market referring to customization and fit. Every organization has a unique vision, mission, and a set of strategies, which communicate the beliefs of the organization what the organization stands for and what the organization intends to accomplish for its customers and other stakeholders. These elements are the organization s guiding principles and all actions need to align with these principles in order for the organization to be successful. Because organizational project management describes many capabilities, each organization needs to determine which OPM capabilities are necessary for the organization to fulfill its value strategy within the industry in which it competes. For instance, a bank in one country is not going to need the exact same capabilities as a bank in a different country or as a software development organization in another country. OPM is an acknowledgment that performing portfolio, program, and project management is not enough to consistently achieve results or sustain competitive advantage. Having well prepared professionals like MBAs, 18

31 2 - FOUNDATIONAL CONCEPTS certified accountants, and PMP credential holders in an organization is not enough to ensure the achievement of better results. The implementation of enabling business practices that support a strategy development framework will not ensure the achievement of better results. Having process improvement in place by itself will not ensure the achievement of better results. Better results come from the execution of strategy with the right people, using the right process, and measuring and controlling the process in order to continuously improve. 2 To reiterate, organizational project management is a strategy execution framework utilizing portfolio, program, and project management as well as organizational enabling practices to consistently and predictably deliver organizational strategy producing better performance, better results, and a sustainable competitive advantage. 2.2 Investing in OPM Many times in the past, organizations invested in aspects of project management based on a crisis in the organization. A crisis sparks conversations about project management and leads to small tactical investments to avert the next crisis or to show improvements from the last crisis. These tactical investments include items such as: management competency development, management training, and Tool implementation. Although each of these tactical solutions provides some level of improvement, and generates some quick wins, most of the time these solutions do not address the real issues facing an organization. These tactical issues sometimes support individual project success versus project success in delivering the organization s strategy. Investment in project management requires careful consideration of the organization s strategic objectives and business drivers: Organizations seeking an operational efficiency strategy may want to gain control of delivery budgets. Organizations that follow a customer intimacy strategy may want to improve the alignment between the marketing and delivery teams. Organizations that follow a product innovation strategy may be most concerned with time to market, innovation, and creativity. Organizations that seek economic growth tie significantly to value realizations that include growth, increased reputation, market share, and customer retention. OPM seeks to change the investment approach from crisis investment to proactive investment targeted at value creation for the organization. Organizations need to be patient when making this challenging cultural fit. Organizations that shift to this investment approach reap the benefits of proactive alignment to strategy and better strategic execution than organizations that use traditional investment approaches. 19

32 2 - FOUNDATIONAL CONCEPTS 2.3 Organizational Life Cycles Organizations implement OPM regardless of where they are in their organizational life cycle, as further described below and depicted in Figure 2-2: Birth or startup. Organizations that have just formed or are starting new lines of business or services are said to be in a birth or startup phase of an organizational life cycle. These organizations utilize organizational project management as a strategy execution framework. They use the OPM3 Best Practices as a means for determining which domains, processes, and capabilities should be established for successful strategy execution in order to deliver the organizational strategies. Growth. A growth organization often needs to manage more projects, with more resources, in order to sustain its growth. These organizations use OPM3 to enhance the maturity of their project delivery systems by developing consistent practices, often led by a PMO. Mature operations. Organizations that have achieved organizational goals, for example capturing the market share, utilize organizational project management and OPM3 as a means to sustain their competitive advantage. These organizations are already using OPM3 and established capabilities to deliver their strategy. They continuously evaluate their capabilities when seeking to sustain this ability because they are often best in class. They use OPM3 to measure and validate their capabilities while seeking continuous improvement to sustain their competitive edge. Figure 2-2. Organizational Life Cycle 20

33 2 - FOUNDATIONAL CONCEPTS Decline or evolution. Organizations with declining business performance utilize OPM3 as a diagnostic tool to understand their implementation of organizational project management and how to reverse their downward performance trend. Using OPM3 as a diagnostic tool is important and should be undertaken as soon as data trends suggest that a decline is approaching Organizational Management Maturity Model What is the Organizational Management Maturity Model? OPM3 consists of many elements which are explained herein and explained in detail in Section 3 of this standard s Organizational project management consists of three domains: portfolio, program, and project. These domains are explained in detail in the following standards: The Standard for Management Third Edition. This standard describes the practices of portfolio management. In the context of OPM3, portfolio management describes the processes that establish a mechanism that decomposes an organization s strategy into endeavors that, through other business disciplines, deliver the sought-after business values. The Standard for Management Third Edition. This standard provides guidelines for the management of programs within organizations. It defines program management, performance domains, and related concepts; describes the program management life cycle; and outlines related activities and processes. A Guide to the Management Body of Knowledge (PMBOK Guide) Fifth Edition. The PMBOK Guide describes the processes required for a single component to successfully deliver the business values for which it was commissioned. These standards provide the good practices for each domain. OPM3 applies quality concepts to these good practices to create Best Practices Organizational Enablers (OE) The organizational environment should support the strategy execution framework of organizational project management. This support translates into a series of best practices that describe the capabilities that support OPM. Organizational-enabling best practices have been categorized into 18 groups. There are various types of OE best practices which include, but are not limited to: Structural. Organizations are structured in many different forms. Some are structured based on function, geography, product, or service line or a combination of these. These structures drive reporting relationships among employees, allocation of resources, and alignment to strategy. Structural enablers help organizations establish strategic alignment and resource allocation based on organizational structures that enable organizational project management. 21

34 2 - FOUNDATIONAL CONCEPTS Cultural. An organization s culture is understood to different degrees by the people within the organization. They understand how people work with each other to get things done. An organization s culture is engrained and takes substantial effort to make changes. In order for OPM to be successful within an organization, its culture needs to embrace portfolio, program, and project management. Executives can build this into the culture by establishing governance, policy, and vision; acting as sponsors rather than just administrators; and supporting communities where OPM best practices can be shared and leveraged. Technological. Technology helps organizations perform otherwise manual tasks better, faster, and cheaper. It also encourages the reuse of good practices and techniques, improves sharing of knowledge, and allows the organization to gather data for comparison to similar organizations. An organization underpins the success of its projects, programs, and overall portfolio by: Investing in management systems that support effective portfolio, program, and project management; Sharing practices and techniques across projects; Developing a methodology which becomes the way that projects and programs perform work; and Benchmarking portfolio, program, and project performance against comparable organizations. Human resource. Success in OPM depends on having the right people in place to execute these roles. Human resource enablers, such as competency management, individual performance appraisals, and training investments help ensure successful application of OPM, resulting in higher organizational performance. Organizational-enabling best practices are further explained in detail in Section 3 of this standard ment For years, businesses have applied process improvement techniques, for example, process reengineering, to operations to improve efficiency and effectiveness. These same techniques apply to OPM to improve efficiency and effectiveness of the entire OPM framework. The steps of process improvement (see Figure 2-3) include:. There are four key steps in standardizing a process: Governing body overview. Ensure a process governing body is in place one that has authority in the organization and can own the process. Documented process. Develop and document the process it may be purchased or written by someone within the organization. Communicate the process. Communicate the process to those responsible for executing the process. adherence. Apply the process consistently across the organization. Without all four steps, a standardized process is not in place nor is it sustainable. 22

35 2 - FOUNDATIONAL CONCEPTS 2 Figure 2-3. ment Steps. Once the processes are standardized, select those processes that can be measured to see how effective they are for the organization. The measure stage quantifies the quality of the processes and process inputs. There are five key activities involved in the measurement step: Identify critical process customer-focused measures. Identify critical process characteristics. critical process characteristics. Identify upstream measures. critical inputs.. Once a process is measured, the organization may gather trending data to determine if it is under control. In order to achieve control of Best Practices, the organization needs to: Create a process control plan with upper and lower control limits. Implement the process control plan. Observe the process operating within plan boundaries consistently over time.. Once a process has been standardized, measured, and controlled, organizations can continuously improve them. Continuous improvement is more than making an update to the process. It is based on three key concepts: Identify process root problems; determine the root cause as to why the process is not performing at the level it should be. 23

36 2 - FOUNDATIONAL CONCEPTS Have a focused effort on process improvement with potential solutions. Once a solution has been defined, integrate the process improvement into the way the organization does the work How to Use OPM3 The OPM3 Cycle, as depicted in Figure 2-4, is a step-by-step process to utilize this strategy execution framework. The steps are: Acquire Knowledge. Perform Assessment. Manage ments. Repeat the process. The OPM3 Cycle and its steps can be used as a comparative model, a design model, or improvement model. These steps provide easy access to relevant business issues. Comparative model. For organizations that have adopted some elements of organizational project management, the best approach is comparative. In this approach, organizations use the steps of the model to assess themselves against the model to determine their extent of implementation entering the model at step 1. They use the remaining steps of the model to determine what improvements to make and implement those improvements. Finally, they decide whether they should repeat the process. Design model. Organizations that are newly formed or are forming their approach to organizational project management use the Best Practices of the model to design their approach and implementation of organizational project management. They enter the cycle at the Manage ments step. ment model. Organizations lacking an institutionalized strategy execution framework use the Best Practices of the model to determine which Best Practices should be put into place. They enter the cycle at the Manage ments step. The OPM3 Cycle depicted in Figure 2-4 is described in more detail in Section Step One Acquire Knowledge: Prepare for Assessment In this formative step, the organization prepares for an organizational project management assessment. This is accomplished by: Understanding the organization, its mission, vision, and core values; Understanding the organization needs, pain points, objectives, and available results; and Understanding the OPM3 model and how assessments are performed. Refer to Section 4 for more details. 24

37 2 - FOUNDATIONAL CONCEPTS 2 Figure 2-4. OPM3 Cycle Step Two Perform Assessment During this step, the capabilities of the organization are compared to the capabilities of the OPM3 model. Refer to Section 5 for more details Step Three Manage ment: Plan for ments Once an organization has compared itself against the OPM3 model, the organization targets which capability improvements are desired. The organization determines these needs and then determines which relevant Best Practices and Capabilities should be implemented to fill those needs. Refer to Section 6 for further details. 25

38 2 - FOUNDATIONAL CONCEPTS Step Four Manage ment: Implement ments The organization implements the planned improvements utilizing project management and organizational change methods. Refer to Section 6 for additional details Step Five Manage ment: Repeat the Upon completion of the improvement cycle, the organization evaluates whether the improvement(s) selected resulted in an organizational capability now available that may impact business results. If more improvement is needed, the organization repeats the OPM3 Cycle periodically to achieve the desired result. 26

39 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) 3 THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Introduction This section explains the architecture of OPM3 in detail, specifically the Best Practices and their constituent components: Capabilities and Outcomes. Dependencies exist between Best Practices and Capabilities and are further explored in this section. Categorization refines the list of Best Practices for practical application. Furthermore, this section describes organizational enabler Best Practices and how they support an organization s improvement plan. This section introduces the OPM3 framework, OPM3 Cycle Elements and Areas of Expertise supported by the associated processes (see Section 3.3). The Cycle Elements include: Acquire Knowledge, Perform Assessment, and Manage ment while the Areas of Expertise include: Governance Risk and Compliance, Delivery and Benefits Management, and Change Management. In order to assist the organization to increase its maturity and consequently achieve better business results, the OPM3 practitioner needs to understand the entire OPM3 Context (as illustrated in Figure 3-1) in which the OPM3 Construct (explained in Section 3.2) represents all the elements that comprise OPM3. Knowing and understanding those elements is integral to the success of any OPM3 initiative. The OPM3 framework (explained in Section 3.3) represents a number of processes that form an approach that can be utilized to implement the OPM3 initiative. Both parts of the OPM3 context along with the skills, knowledge, competencies, and tools and techniques of the OPM3 practitioner provide the needed business results and enhanced capability for the organization. 3.2 The OPM3 Construct The OPM3 Construct (Figure 3-2) describes the OPM3 components and their relationships. These components include s, ment Stages, Best Practices, Capabilities, and Outcomes. Once these concepts are presented, categorization and maturity measurement are explored for customized application. The OPM3 Construct conveys progressively more detail as the reader moves from the higher components to the lower components. Best Practices are mapped to ment Stages only for Best Practices (Best Practices for,, and s). Section presents a full description of the ment Stages. 27

40 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Figure 3-1. The OPM3 Context Figure 3-2. The OPM3 Construct 28

41 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Best Practice OPM3 measures organizational project management maturity by assessing the existence of best practices. Best practices refer to the methods, currently recognized within a given industry or discipline, to achieve a stated goal or objective. Industry practitioners from around the globe collaborate periodically on the current trends and practices that make their organizations successful. For example, The PMBOK Guide update team collects project management information and refines it through these established processes. PMI publishes the approved PMBOK Guide processes for industry practitioners to share and apply. OPM3 brings these PMBOK Guide processes into the OPM3 framework and applies a quality model to generate Best Practices. This also applies to the portfolio and program standards. 3 An organization achieves a Best Practice when the organization demonstrates maturity evidenced by successful fulfillment of the Capabilities and Outcomes. For organizational project management, this includes the ability to deliver projects predictably, consistently, and successfully. OPM3 encourages a culture of improvement, leveraging achieved Best Practices and pursuing desired Best Practices to attain organizational goals. Figure 3-3 illustrates that each Best Practice contains a set of Capabilities and each Capability contains a set of Outcomes. An organization achieves a Best Practice when it consistently demonstrates all of the supporting Capabilities. An organization attains a Capability when the organization realizes one or more associated Outcomes, as supported by tangible and intangible evidence. Figure 3-3. The OPM3 Best Practice 29

42 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) If the organization demonstrates achievement of all the aggregated Capabilities except one, it cannot claim achievement of the Best Practice. Even when an organization does not completely achieve a Best Practice, the organization may still realize benefits that meet the organization s needs. Annex A1 provides a list of all Best Practices within each of the domains Capability A Capability represents the collection of people, process, and technology that enables an organization to deliver organizational project management (OPM). Capabilities are incremental steps leading to the attainment of one or more Best Practices. OPM3 does not prescribe a sequence for achieving the Capabilities, but all Capabilities are required to be fulfilled to achieve a Best Practice. A Capability from one Best Practice may be a predecessor for achieving another Best Practice. Dependencies may exist whereas certain Best Practices and Capabilities are required to be in place before other Best Practices can be realized. Breaking down each Best Practice into its constituent Capabilities and showing the dependencies among them provides a basis for decisions related to improvement Outcome An Outcome is a result (tangible or intangible) of an organization exhibiting a Capability. An example of a tangible Outcome is a policy for project management. An example of an intangible Outcome is a verbal acknowledgement of a project management policy. A Capability may have multiple outcomes, but a single outcome may be sufficient to satisfy a Capability. Figure 3-4 illustrates the various components of the OPM3 Construct s s represent the three process-based standards (see Figure 3-5): The Standard for Management Third Edition, representing the ; The Standard for Management Third Edition, representing the ; and the PMBOK Guide Fifth Edition, which represents the. -based standards serve as the foundation for Best Practices. When the processes are integrated into OPM3 to form the Best Practices, the associated details are brought in as well. This information includes: Groups and Knowledge Areas for the and s, and Performance s for the. 30

43 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) 3 Figure 3-4. The OPM3 Construct Example 31

44 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Figure 3-5. The OPM3 s The PMBOK Guide Fifth Edition identifies five Management Groups and ten Knowledge Areas. These five Groups, which are in line with the project life cycle, are independent of application areas or industry focus. Groups and their constituent processes are often repeated prior to completing the project; this is referred to as progressive elaboration. The five Groups are: Initiating. Defines and authorizes the project or project phase. Planning. Defines and refines objectives, and plans the course of action required to attain the objectives and scope. Executing. Integrates people and other resources to carry out the project management plan. Monitoring and ling. s and monitors progress to identify variances from the project management plan so that corrective action can be taken when necessary to meet project objectives. Closing. Formalizes acceptance of the product, service, or result and brings the project or a project phase to an orderly end. OPM3 provides a flexible approach that encourages organizations to focus on the domains, processes, and Groups where the adoption of Best Practices will best support the successful achievement of strategic 32

45 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) objectives. Understanding the Groups and the processes they support, as well as the organizational enabling Best Practices, helps the organization to determine where they should start the effort to improve their OPM practices The Standard for Management Third Edition coordinates the management of five interdependent Performance s: Strategy Alignment. Identifying opportunities and benefits that achieve the organization s strategic objectives through program implementation. Benefits Management. Defining, creating, maximizing, and sustaining the benefits provided by programs. Stakeholder Engagement. Capturing stakeholder needs and expectations, gaining and maintaining stakeholder support, and mitigating/channeling opposition. Governance. Establishing processes and procedures for maintaining proactive program management oversight and decision-making support for applicable policies and practices throughout the entire program life cycle. Life Cycle Management. Managing all of the program activities related to the program definition, program benefits delivery, and program closure. The program management supporting processes enable a synergistic approach for the purpose of delivering program benefits. These program supporting processes are: Communications Management, Financial Management, Integration Management, Procurement Management, Quality Management, Resource Management, Risk Management, Schedule Management, and Scope Management The Standard for Management Third Edition identifies three Management Groups with five Knowledge Areas. es within these Groups facilitate informed decision making, strategy translation, and portfolio balancing. These three Groups are independent of application area or industry focus. 33

46 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) The three Management Groups are: Defining Group. Determines how strategic objectives will be implemented in a portfolio; defines and authorizes a portfolio or subportfolio; and develops the portfolio management plan. Aligning Group. Determines how components will be categorized, evaluated, selected for inclusion, and managed in the portfolio. Authorizing and ling Group. Determines how to monitor strategic changes, tracks and reviews performance indicators for alignment, authorizes portfolio, and verifies values to the organization from the portfolio ment Stages OPM3 applies a quality component (See Figure 3-6) referred to as process improvement. The stages are: standardize, measure, control, and improve (SMCI.) , when applied to a process, yields a repeatable and consistent Best Practice. Characteristics of a standardized process include a governing body to manage the process and associated changes, a clearly documented process communicated to those exercising the process, and adherence which is evidenced by the artifacts produced. Figure 3-6. The OPM3 ment Stages 34

47 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) For example, standardize, when applied to the PMBOK Guide process, Create Charter, yields the OPM3 Best Practice, Create Charter , when applied to a process, yields a quantified Best Practice. Characteristics of a measured process include customer requirements incorporated in the measurements, identified critical characteristics, measured critical characteristics, inputs related to results, and measured critical parameters. These characteristics clarify the customer requirements and key inputs and outputs. 3 For example, measure, when applied to the PMBOK Guide process, Create Charter, yields the OPM3 Best Practice, Create Charter , when applied to a process, yields a managed Best Practice. Characteristics of a controlled process include control plan developed, control plan implemented, and stability achieved. The control process is the act of comparing actual performance with planned performance, analyzing variances, assessing trends to effect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed. In OPM3, the progression of Capabilities includes determining control limits, looking for root causes for processes that are outside the limits, and identifying improvements to bring the process within the control limits. When used in evaluating Capability maturities, the collective application of control activities constitutes the third stage of the OPM3 SMCI quality management model. For example, control, when applied to the PMBOK Guide process, Create Charter, yields the OPM3 Best Practice, Create Charter , when applied to a process, yields a continuously improving Best Practice. Characteristics of an improved process include problems identified, improvements implemented, and improvements sustained. For example, improve, when applied to the PMBOK Guide process, Create Charter, yields the OPM3 Best Practice, Create Charter, and when applied to Identify Stakeholders, yields the OPM3 Best Practice, Identify Stakeholders. Table 3-1 summarizes the complete set of Best Practices for the Develop Charter process from the PMBOK Guide. There are four uniquely identified Best Practices created for each process coming into the OPM3,, and s. 35

48 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Table 3-1. PMBOK Guide Develop Charter with SMCI Applied Organizational Enablers Organizational enablers (OE) are structural, cultural, technological, and human resource practices that can be leveraged to support and sustain the implementation of Best Practices in portfolios, programs, and projects. The OE Best Practices describe general management processes that should be developed in an organization to support organizational project management. Many systems and cultural factors influence an organization and its business environment. The OPM3 translates these factors into Best Practices around training, implementing methodologies, and techniques. The OE Best Practices address the foundational capabilities that an organization needs to support and sustain the process-based standards (see Figure 3-7). The absence of OEs decreases the maturity of process-based Best Practices within an organization. Figure 3-7. The OPM3 Organizational Enablers (OEs) 36

49 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Organizational enablers when translated into OPM3 yield an OE Best Practice. Characteristics of an OE vary according to their category. Organizational enablers are classified into 18 categories as shown in Table 3-2. Table 3-2. Organizational Enabler Categories 3 For example, Best Practice 5240, Establish Internal Management Communities, relates to OE Category 7, Organizational Management Communities. This Best Practice includes the following Capabilities: Facilitate Management Activities, Develop Awareness of Management Activities, and Sponsor Management Activities. Figure 3-8 shows the example of organizational enabler Best Practice 5240 Establish Internal Management Communities, its Capabilities, and its Outcomes Categorization Categorization segments the OPM3 Best Practices into manageable groupings (see Figure 3-9). 37

50 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Figure 3-8. Capabilities and Outcomes of Best Practice 5240 Figure 3-9. The OPM3 Categorization 38

51 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) There are nine Best Practices categorizations used by organizations:. This represents the three domains:,, and. Each process, based on SMCI Best Practice, maps to one or more of these domains. This provides an avenue for organizations to focus on single or multiple domains. improvement stage (SMCI). Each Best Practice maps to one of these process improvement stages. This provides organizations with a way to focus on a single process improvement stage. Organizational enabler (OE). Each organizational enabler maps to one of the 18 OE categories. This provides an organization with the option to clearly focus on a single group of OEs. Group. Each Best Practice from the and maps to a Group: Initiating, Planning, Executing, ling, and Closing for the ; and Defining, Aligning and Authorizing, and ling Groups for the. Performance. Each Best Practice from the maps to a Performance : Strategy Alignment, Benefits Management, Stakeholders Engagement, Governance, and Life Cycle Management. Knowledge Area. Each Best Practice from the and maps to a Knowledge Area. The Knowledge Areas include: Integration Management, Scope Management, Time Management, Cost Management, Quality Management, Human Resource Management, Communication Management, Risk Management, Procurement Management, and Stakeholder Management. The Knowledge Areas include: Strategic Management, Governance Management, Performance Management, Communications Management, and Risk Management. 3 39

52 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) These Knowledge Areas support the processes found in Section 3 of each of these standards by providing inputs, tools and techniques, and outputs. For example, the PMBOK Guide uses the Cost Management Knowledge Area to group processes and provide details for training. An organization that desires to decrease cost overruns elects to improve their processes leveraging Best Practices mapped to Cost Management. predictability. Each Best Practice that supports an organization s ability to forecast successful project delivery is mapped to project predictability. Organizations want to be aware of any approved work that may be at risk as early in the life cycle as possible. Resource optimization. Each Best Practice that provides the ability to identify, deploy, and release project resources that deliver customer value maps to resource optimization. Balanced scorecard. Each Best Practice that supports the development and execution of uniform reporting and tracking mechanisms. One aspect of the balanced scorecard could be that strategy execution is measured consistently and objectively. Categorization of Best Practices provides an avenue for organizations to assess, design, or improve areas of focus to achieve organizational goals OPM3 Framework The OPM3 framework serves as a guide for organizations that apply OPM3. The OPM3 framework contains Cycle Elements, Areas of Expertise, and OPM3 processes with inputs, tools and techniques, and outputs as depicted in Figure Figure The OPM3 Framework Overview 40

53 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Key actions required for successful application of the OPM3 framework include but are not limited to: Determine the change impact of implementing selected processes based upon organization needs and OPM3 practitioner expertise, Manage the OPM3 initiative as a project or a program, Obtain stakeholder buy-in, Secure the expertise and knowledge outlined in Section 1, Understand and select appropriate processes from the OPM3 framework, and Understand differences between Areas of Expertise and the Cycle Elements. Table 3-3 provides a summary of the twelve OPM3 processes for the OPM3 Cycle Elements and Areas of Expertise OPM3 Areas of Expertise The OPM3 Areas of Expertise represent the practical knowledge and applied skills required to undertake a successful OPM3 initiative. The three Areas of Expertise in the OPM3 framework are outlined below Governance, Risk, and Compliance (GRC) [6] Organizations achieve GRC by embracing activities such as corporate governance, enterprise risk management (ERM), and corporate compliance in accordance with applicable laws and regulations. Organizations embrace these areas to ensure proper oversight, manage risk, and address regulatory and corporate compliance. Table 3-3. The OPM3 es 41

54 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Within the OPM3 framework, organizations establish and enforce proper governance over the planning and fulfillment of portfolio, program, and project management. Establishing proper governance helps ensure successful results. This OPM3 framework area of expertise establishes a plan for, and manages the results of, an OPM3 assessment that focuses on the practices that affect governance, risk management, and compliance. GRC encompasses three processes: Understand OPM, Establish Plan, and Results Delivery and Benefits Management The Delivery and Benefits Management Area of Expertise addresses the execution of OPM3 throughout the life cycle. It focuses on what is needed to execute a successful OPM3 initiative. Delivery and Benefits Management encompasses six processes: Understand the Organization, Define the Scope, Conduct Assessment, Create Recommendations, Select Initiatives, and Implement ments Organizational Change The Organizational Change Area of Expertise focuses on the magnitude of change that accompanies an OPM3 initiative. To improve the probability of success in sustaining change, leadership should acknowledge and understand the organization s ability to adopt change. This adoption may include multiple variables, such as readiness, awareness, desire, capacity, and willingness. This Area of Expertise encompasses three processes: Assess Change Readiness, Initiate Change, and Manage Change. Organizations assess change readiness, initiate change, and manage change for initiatives that modify their environment, processes, and tools. Organizations achieve successful change initiatives with a clear understanding of the current state and desired state, coupled with effective management and leadership of the process and human factors OPM3 Cycle Elements The OPM3 Cycle Elements are groups of processes required to implement an OPM3 initiative. The OPM3 practitioner determines which processes fit the organization based upon the nature of the initiative. The OPM3 Cycle Elements are: Acquire Knowledge, Perform Assessment, and Manage ment. Sections 4, 5, and 6 provide additional Cycle Element details. The Cycle Elements depicted in Figure 3-11 create a cycle of continuous improvement. 42

55 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) 3 Figure The OPM3 Framework Acquire Knowledge Stakeholders gain knowledge of OPM3, the organization, the industry, and opportunities for OPM3 initiatives. Acquire Knowledge has three processes, which are summarized below. See Section 4 for further details. Understand OPM. Prior to starting an OPM3 initiative, the OPM3 practitioner and the organization acquire knowledge necessary to apply OPM3. This is a due diligence process to gather the following: People: This includes, but is not limited to: skilled OPM3 practitioners, OPM3 subject matter experts, stakeholders, leadership, general management, facilitators, and researchers. : This includes, but is not limited to: lean manufacturing process control, process design, organizational enablers, project management processes, program management processes, and portfolio management processes. Technology: This includes, but is not limited to: project management information systems and tools. 43

56 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) The Understand OPM process builds awareness of the applicability and value of OPM3. It is important to understand why organizations undertake an OPM3 initiative to improve business results. Understand the Organization. This process outlines the knowledge an OPM3 practitioner and the organization acquire to apply OPM3. This is a due diligence process to gather the following: Strategy: Vision, mission, product, service, desired profits, current performance, regulations, competitive advantage. People: Geographic location, skills, organizational structure, vendors, customers, organizational culture, understanding of process and tools, understanding of processes, process design, lean concepts, training, and motivation level. : Degree of automation, metrics, stability of process, documentation, communication, complexity of processes, process interaction, project management processes, program management processes, portfolio management processes, asset library. Technology: Automation tools, project management information system, templates. The Understand the Organization process combines the right skills, industry knowledge, culture, tools, and strategy for assessment preparation. It is important to understand why organizations undertake an OPM3 initiative to improve business results. Assess Change Readiness. The Assess Change Readiness process captures the organization s willingness to change and readiness for change. The OPM3 practitioner collects, assesses, and validates the organization s readiness for change based on a variety of factors (e.g., training, culture, equipment) Perform Assessment The assessment leader plans, executes, and manages the assessment; compiles and analyzes data and documents; and presents results. Perform Assessment has four processes, which are summarized below. Section 5 provides greater details. Establish Plan. The Establish Plan process produces a plan for conducting an OPM3 assessment. The OPM3 practitioner leverages the PMBOK Guide to create this plan and complete this process. The Establish Plan may include subsidiary plans that address the following: Methodology of implementation; Roles and responsibilities; Scope and work breakdown structure (WBS); High-level schedule and milestone list; Success metrics and success factors; Assumptions and constraints; Governance, risk, and compliance; 44

57 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Quality management; and Budget. The plan provides an overall view of scope, schedule, cost, and stakeholder buy-in. Define Scope. The Define Scope process creates an assessment statement of work which includes resources, business units, geographies, deliverables, and acceptance criteria. While conducting the OPM3 assessment, the OPM3 practitioner identifies the scope of the assessment in terms of categorization as outlined in Section The Define Scope process sets expectations for the assessment work undertaken. Conduct Assessment. The Conduct Assessment process is the execution of the OPM3 assessment plan based upon the statement of work. The OPM3 assessment team gathers, processes, and analyzes organizational information and documents findings in an assessment report. Initiate Change. The Initiate Change process launches the organizational change management activities that support adoption of the improvement initiatives. Organizations set up mechanisms to identify and evaluate behaviors, attitudes, and environment that may diminish results Manage ment The improvement leader identifies, selects, and implements improvement initiatives based upon assessment findings and desired organizational business results. Manage ments has five processes, which are summarized below. Section 6 provides greater details. Results. The Results process correlates realized business results with the improvement plans. This process acts as a feedback mechanism that relates the planned improvements to the business results. This reinforces a culture of measurements and effective reporting performance, and serves as the basis for improved estimating. Create Recommendations. The Create Recommendations process seeks to identify the gaps between the current state and future state of the organization s portfolio, program, and project Best Practices. Analysis of these gaps results in a set of recommendations based upon level of effort, complexity, investment, and organizational impact. The OPM3 assessment team presents the findings to the stakeholders for consideration. Select Initiatives. The Select Initiatives process provides the stakeholders with recommendations best suited for implementation, depending on their priority, cost/benefit, and strategic relevance. The recommendations include a sufficient level of detail for decision making. Stakeholders select the improvements from the recommendation list. Implement ment Initiatives. The Implement ment initiatives process transforms the selected initiatives into projects, programs, or portfolios. Utilizing the PMBOK Guide Fifth Edition, The Standard for Management Third Edition, or The Standard for Management Third Edition, organizations execute the improvement initiatives to realize business benefits. 45

58 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) Manage Change. The Manage Change process leverages the mechanisms put in place during the Initiate Change process to monitor and adjust as appropriate. The OPM3 assessment team takes into consideration enterprise structure, technology, culture, and process change impacts when organizations undertake an OPM3 initiative to improve business results. 3.4 OPM3 Application The OPM3 practitioner and the assessment team utilize the OPM3 Construct and the OPM3 framework (see Figure 3-12) to ascertain the maturity of an organization and chart a course for improving the desired business results. This continuous improvement cycle provides an organization with the ability to advance the portfolio, program, and project management capabilities through which organizations deliver strategy. Figure The Organizational Management Maturity Model (OPM3) 46

59 3 - THE ORGANIZATIONAL PROJECT MANAGEMENT MATURITY MODEL (OPM3) 3.5 OPM3 Scoring Methods The OPM3 practitioner applies a rigorous scoring method that ascertains whether (binary scoring) or how much/ how often (variable measures) each Outcome for a Capability of a Best Practice exists. Additional detail follows on both scoring methods: Binary scoring. The OPM3 practitioner awards a (1) for an Outcome that fully exists or a (0) for an Outcome that does not fully exist. The binary scoring method is somewhat simplistic and does not award partial credit. Variable measures. The OPM3 practitioner awards a score based on how much and how often the Outcome exists. The variable measures method is more complex and awards for partial credit. Figure 3-13 provides a variable measures scoring method: 3 Figure OPM3 Variable s Scoring Method 3.6 OPM3 Best Practices List Best Practices are optimal methods, currently recognized within a given industry or discipline, to achieve a goal or objective. The types of Best Practices are:.,, and with ment Stage:,,, and (SMCI). Organizational Enabler. Non--based processes, pertaining to environmental and cultural aspects of the organization. See Annex A1 for a complete list of Best Practices. 47

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61 4 - ACQUIRE KNOWLEDGE 4 ACQUIRE KNOWLEDGE Acquire Knowledge is a Cycle Element that includes the processes Understand OPM, Understand the Organization, and Assess Change Readiness. Although this Cycle Element discretely defines these three processes, all parties continuously acquire knowledge throughout an OPM3 initiative. OPM3 provides information for organizations to understand organizational project management (OPM). 4 Understanding OPM3 and how it relates to an organization is vital. Acquiring knowledge assists organizations in achieving business value through portfolio, program, and project management. This section will be of interest to anyone who wants to learn more about OPM and has a desire to improve the business results and/or OPM maturity of their organization. The Acquire Knowledge processes as depicted in Figure 4-1 include: 4.1 Understand OPM In this process, prior to starting an OPM3 initiative, the OPM3 practitioner and the organization acquire knowledge necessary to apply OPM Understand Organization This process outlines the knowledge an OPM3 practitioner and the organization acquire to apply OPM Assess Change Readiness This process captures the organization s willingness to change and readiness for change. These processes interact with each other and with the processes within the other Cycle Elements. Each process involves effort from individuals or groups depending on their initiative needs. Although the processes presented here are discrete activities with well-defined inputs and outputs, they may overlap and interact while following a different sequence than listed. 49

62 4 - ACQUIRE KNOWLEDGE Figure 4-1. Acquire Knowledge Overview: Inputs, Tools and Techniques, and Outputs 4.1 Understand OPM Prior to starting an OPM3 initiative, the OPM3 practitioner and the organization acquire knowledge necessary to apply OPM3. This is a due diligence process to gather the following: People. Skilled OPM3 practitioner, OPM3 subject matter experts, OPM3-aware stakeholders, leadership, general management, facilitation, and research.. Lean, statistical process control, process design, organizational enablers, project management processes, program management activities, and portfolio management processes. Technology. Templates and project management information systems. The Understand OPM process builds awareness of the applicability and value of OPM3. It is important to understand why organizations undertake an OPM3 initiative to improve business results. The OPM3 practitioner understands the OPM3 Construct, the OPM3 Cycle Elements, skills, and tools and techniques to apply OPM3. Other desirable skillsets for an OPM3 practitioner include: accounting, finance, change management, organizational development, information technology, project management, human resources, quality management, assessment methods, and process improvement. 50

63 4 - ACQUIRE KNOWLEDGE The OPM3 practitioner needs to understand the identified stakeholders or stakeholder groups. Success of an OPM3 initiative requires that an OPM3 practitioner engages the appropriate stakeholders during the OPM3 initiative. Frequent communication promotes stakeholder awareness through the following types of activities: Orientation for an OPM3 initiative, Workshops, Training sessions, Literature, and Personal coaching. The OPM3 practitioner needs to understand enterprise environmental factors during communication with stakeholders. 4 Understand OPM is the process of conveying strategic, financial, and operational information about the organization desiring to improve business results to the organization and OPM3 initiative team. See Figure 4-2 for a list of inputs, tools and techniques, and outputs. Figure 4-2. Understand OPM: Inputs, Tools and Techniques, and Outputs Understand OPM: Inputs Information Sources Information sources, such as case studies, seminars, training, white papers, and articles, are collected from various sources to aid with the understanding of the organization and OPM OPM Overview The OPM overview is conducted so that stakeholders have an opportunity to gain a high-level understanding of OPM and how it improves business results. This may include presentation material. 51

64 4 - ACQUIRE KNOWLEDGE OPM3 Practitioner Expert Knowledge As outlined in Section 1.7.1, in order to be successful in the assessment or improvement of organizations, an OPM3 practitioner should have expertise in all of the following areas: Knowledge of the latest editions of PMI s portfolio, program, and project standards. An OPM3 practitioner is required to have expertise in the use of portfolio, program, and project management methods and techniques that include both qualitative and quantitative measures. management and continuous process improvement. The OPM3 practitioner should be competent in process definition, development, maintenance, control, and improvement with respect to the size and complexity of the organization. Strategic alignment. The OPM3 practitioner is required to understand the organization s strategic goals and priorities and how the portfolio, program, and project support them. Ability to conduct assessments. An effective OPM3 practitioner requires training on how to conduct assessments. Ability to draw conclusions and offer recommendations. An effective OPM3 practitioner is required to possess proper training on how to draw conclusions and offer recommendations on the assessments conducted. Ability to engage stakeholders. An effective OPM3 practitioner interacts at different levels to understand and influence expectations. Consulting experience. An OPM3 practitioner is required to possess business acumen. The OPM3 practitioner should have knowledge of relevant markets, the customer base, competition, trends, standards, legal and regulatory environments, and appropriate code of conduct. The OPM3 practitioner needs to be adept at working with executives, managers, project and program managers, and other internal and external stakeholders, as appropriate to the individual and role. Business skills. An effective OPM3 practitioner should possess skills related to governance, risk and compliance (see Section for greater detail), benefits management, scope management, resource management and financial management as explained in Section (Areas of Expertise). The OPM3 practitioner is required to possess well-developed skills in communicating, team building, planning, conflict resolution, contract negotiating, meeting facilitation, decision making, and removing organizational barriers to success. This individual is required to be capable of adapting to divergent organizational decision-making models, ranging from autocratic to collegial. Risk management. An effective OPM3 practitioner should be well versed in opportunity and threat management. Organizational change management. An OPM3 practitioner should have an understanding of how an OPM3 initiative impacts an organization. 52

65 4 - ACQUIRE KNOWLEDGE OPM3 Standard The OPM3 standard represents a best practice model applied to PMI process-based and activity-based standards plus organizational enablers that help establish and mature portfolio, program, and project management in an organization Organizational Assets The organizational process assets encompass policies, procedures, guidelines, templates, checklists, and methodologies. These assets include the organization s knowledge base such as lessons learned and historical process information as the organization improves PMBOK Guide As covered in Section 3, OPM3 contains the processes from the PMBOK Guide Management Standard The Standard for Management describes the processes of the centralized management of one or more portfolios to achieve specific strategic business objectives. As covered in Section 3, OPM3 contains the processes from The Standard for Management Management Standard The Standard for Management describes the activities of centralized and coordinated management of a group of related projects to achieve the organization s strategic objectives and benefits. As covered in Section 3, OPM3 contains the performance domains from The Standard for Management Understand OPM: Tools and Techniques Facilitated Workshops Facilitated workshops bring together key cross-functional stakeholders, experts, and both internal and external consultants to understand OPM. Workshops are a technique for eliciting information in order to understand OPM. Facilitated sessions build trust, foster relationships, and improve communication among the participants or increase stakeholder understanding. 53

66 4 - ACQUIRE KNOWLEDGE Meeting Management Meeting management includes planning, scheduling, conducting, documenting, and following up on meetings pertaining to OPM Researching Researching is the systematic investigation into new or existing knowledge. White papers, industry courses, articles, books, research papers and other materials are available to ascertain a broader knowledge of OPM Understand OPM: Outputs OPM and OPM3 Awareness OPM awareness grows through a variety of activities throughout the Understand OPM process. OPM is ever evolving which makes it challenging to synthesize the vast amount of available information. Gaining OPM3 knowledge is essential when an organization seeks to mature portfolio, program, and project management. Although the results of OPM and OPM3 awareness are not used as a discrete input to any of the following processes, the knowledge gained constitutes the basis for all the processes outlined in Sections 4 and Understand Organization This process outlines the knowledge that an OPM3 practitioner and the organization acquire to apply OPM3. This is a due diligence process to gather the following: Strategy. Vision, mission, product, service, desired profits, current performance, regulations, strategy metrics, measures, and key performance indicators (KPIs), department strategies (e.g., human resource strategy, marketing strategy, IT strategy, etc.), studies or assessments conducted on current weaknesses, threats, or areas of improvement. People. Geographic location; skills; tenure; organization structure; vendors; customers; organizational culture; understanding of process and tools; and understanding of processes, process design, lean concepts, and training.. Degree of automation, metrics, stability of process, documentation, communication, complexity of processes, process interaction, project management processes, program management processes, portfolio management processes, asset library. Technology. Automation tools, project management information system, templates. 54

67 4 - ACQUIRE KNOWLEDGE The Understand Organization process combines the right skills, industry knowledge, culture, tools, and strategy for assessment preparation. It is important to understand why organizations undertake an OPM3 initiative to improve business results. This process includes the OPM3 team conducting meetings with senior executives to understand the strategic direction of the organization. See Figure 4-3 for a list of inputs, tools and techniques, and outputs. 4 Figure 4-3. Understand Organization: Inputs, Tools and Techniques, and Outputs Understand Organization: Inputs Business Results Business results include the income statement, balance sheet, cash flow statements, government-required reports for publicly traded companies, annual reports, and other internally or externally published information. The OPM3 practitioner gathers operations data to support improving business results. Business results also include department budgets, department operational information, and department goals that assist with identifying measures pre- and post-improvement Enterprise Environmental Factors Enterprise environmental factors refer to both internal and external environmental factors that surround or influence an organization s business success. Enterprise environmental factors may enhance or constrain OPM3 initiative options. Enterprise environmental factors include, but are not limited to, the following: Cultural factors, Existing human resources, Market conditions, Organization s communications channels, Organizational processes, 55

68 4 - ACQUIRE KNOWLEDGE Personnel administration, Political climate, and management information systems Organizational Culture and Style Organizational culture and style play an important part in understanding the environment landscape in which the people, process, and tools described earlier reside. Different approaches and activities need to be employed for the Acquire Knowledge Cycle Element processes to be effective Organizational Assets Described in Section Organizational Strategy, Vision, and Mission The organizational strategy, vision, mission, values, and purpose help shape strategic objectives and include the mission, vision, values, and purpose. Mission and vision statements convey the organization s intent to shape the culture and inspire employees. The OPM3 practitioner should be sensitive to the organization s core values Organizational Structure and Policies Organizational structure and policies provide insight on the management style, reporting channel, and span of control. Policies impact how OPM is adopted and need to be considered for each individual organization Previous Assessment Results For follow-up assessments (second or later iterations), previous assessment results provide background on the prior state of the organization. These historical results provide awareness of what had previously been done, the reaction to prior assessments if applicable, and what potential opportunities exist Stakeholder List The stakeholder list includes key stakeholders that provide oversight and influence with a vested interest in improving business results. Stakeholders are individuals, groups, or organizations who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a portfolio, program, or project. Many stakeholders provide valuable input and play a critical role in the success of any project or program. 56

69 4 - ACQUIRE KNOWLEDGE Understand Organization: Tools and Techniques Facilitated Workshops Described in Section Gathering Knowledge This process involves gathering knowledge from key stakeholders. Four steps guide the gathering of this knowledge: Elicit organizational knowledge. Traditional elicitation techniques include interviews and workshops. Knowledge gathered may address organizational questions such as: What is the organization s business area? What is the organization s business need? What is the organization s business goal? Analyze organizational knowledge. Extract the real state of the organization by analyzing elicited knowledge. There may be a difference between stated and real state of the organization. Document organizational knowledge. Document elicited knowledge for stakeholder review, understanding, and confirmation. Validate documented organizational knowledge. By reviewing and inspecting the documented knowledge, confirm the documented knowledge is unambiguous and consistent throughout the document Interview Techniques An interview is a formal or informal approach to gather information from stakeholders. An OPM3 practitioner conducts interviews by asking prepared questions and recording the responses. Interview scenarios include: One interviewer one interviewee, One interviewer many interviewees, Many interviewers one interviewee, and Many interviewers many interviewees. The OPM3 practitioner establishes an atmosphere of trust, exchanges information, gives and receives feedback, and sometimes performs a follow-up interview. Interview preparation and planning include: Utilizing appropriate methods (face-to-face, telephone, , chat messaging, etc.), Incorporating critical thinking, and Identifying problems. 57

70 4 - ACQUIRE KNOWLEDGE Meeting Management Described in Section Observations Observations provide a direct way of viewing individuals in their organization and how they perform their jobs or tasks and execute processes. Observers witness how activities performed in an environment impact a process. Observers glean direct or indirect evidence resulting from work being performed. Observers draw conclusions regarding the environment and the state of people, processes, and tools within that environment Questionnaires and Surveys Questionnaires and surveys are written sets of questions designed to quickly accumulate information from a wide number of respondents. The OPM3 practitioner uses questionnaires and surveys to rapidly gather information. Figure 4-4 contains some sample questions for a questionnaire or survey. Figure 4-4. Sample Questionnaire and Survey Topics Understand Organization: Outputs Organizational Awareness Organizational awareness grows through a variety of activities throughout the Understand Organization process. Organizations continually evolve and can be complex to understand. Gaining organizational knowledge is essential as an organization seeks to mature portfolio, program, and project management. 58

71 4 - ACQUIRE KNOWLEDGE Although the results of organizational awareness are not used as a discrete input to any of the processes included in Sections 4 and 5, the knowledge obtained constitutes the basis for all of these processes. 4.3 Assess Change Readiness Assess Change Readiness is the process that establishes the organization s willingness or ability to change. If the organization has a very low propensity to change, resistance is likely to be experienced when undertaking an OPM3 initiative. Assess the change readiness of individuals and the overall organization. 4 Readiness reflects the individuals ability to change and that of the environment within which they operate. Extensive research and literature exist regarding this topic. The organization facilitates adoption and broad acceptance by the community when improvements are made to the enterprise structure, technology, and culture. change impact needs to consider readiness of the target population, change agents, and sponsors. See Figure 4-5 for a list of inputs, tools and techniques, and outputs. Figure 4-5. Assess Change Readiness: Inputs, Tools and Techniques, and Outputs Assess Change Readiness: Inputs Enterprise Environmental Factors Described in Section Job Description The job description outlines the job function performed by individuals in the organization. Job descriptions are classified as one of the organization s assets and serve as an input to the Assess Change Readiness process. By reviewing job descriptions, the organization determines whether skills required to change the organization exist Organizational Culture and Style Described in Section

72 4 - ACQUIRE KNOWLEDGE Organizational Structure and Policies Described in Section Assess Change Readiness: Tools and Techniques Change Readiness Review Change readiness review reveals preliminary findings based on insights gained from the Understanding OPM and Understanding Organization processes. This review serves as a general gauge of the organization s preparedness for change and potential obstacles Expert Judgment Expert judgment is a tool or technique demonstrated by knowledgeable parties associated with the organization. Qualified individuals demonstrate expert judgment by providing information and data used to solve problems or make decisions through specialized education, knowledge, skill, experience, or training Meeting Management Described in Section Assess Change Readiness: Outputs Change Readiness Results The change readiness results convey the organization s readiness for change in the following areas: Attitude and expectations of the key stakeholders are understood. Sponsor is defined to deploy resources to understand OPM and its fit for organizational culture and environment. Organization/department is assigned and accepts responsibility for improvement initiatives. OPM is understood among stakeholders. Organization s strategic plan is clear, understood, and accepted by the stakeholders. Organization s vision and mission are clear and understood among stakeholders. Organization s structure and policies are clear and understood among stakeholders. 60

73 5 - PERFORM ASSESSMENT 5 PERFORM ASSESSMENT This section describes the processes required to successfully plan, scope, and conduct an OPM3 assessment. It is structured such that Perform Assessment delivers a framework consistent with the OPM3 Areas of Expertise and Cycle Elements. Within the Perform Assessment Cycle Element, there are four processes that are discrete and not necessarily sequential. Practitioners often perform the four interwoven and possibly iterative processes concurrently. 5 The Perform Assessment Cycle Element is comprised of four processes as depicted in Figure 5-1: 5.1 Establish Plan An OPM3 practitioner and the organizational leaders work together to establish a plan prior to starting an OPM3 initiative. 5.2 Define Scope The Define Scope process identifies the breadth and depth of the planned assessment. Scoping includes skills, resources, funding, and other preparations that flow into the Establish Plan process. 5.3 Conduct Assessment The Conduct Assessment process is where the organization executes the assessment plan based upon the Define Scope process. 5.4 Initiate Change The Initiate Change process provides change management information to the team throughout the Perform Assessment Cycle Element. An OPM3 practitioner tailors the approach based on the organizational environment in which OPM is being assessed. In summary, these four processes interact to produce assessment findings. These findings quantitatively drive OPM initiatives that correlate to desired business results. 61

74 5 - PERFORM ASSESSMENT Figure 5-1. Perform Assessment Overview 62

75 5 - PERFORM ASSESSMENT 5.1 Establish Plan The Establish Plan process transforms goals, organizational performance, market position, and other information into an assessment plan. An OPM3 practitioner focuses on preparing for an assessment and how it relates to improving business performance. When available, the OPM3 practitioner leverages the organization s project management methodology to manage the initiative. An external OPM3 practitioner may employ other available methodologies. This process also yields cost estimates, risks, key stakeholders, and an assessment team. See Figure 5-2 for a list of inputs, tools and techniques, and outputs. 5 Figure 5-2. Establish Plan: Inputs, Tools and Techniques, and Outputs Establish Plan: Inputs Assembled Assessment Team The assembled assessment team addresses the skills, abilities, training, and industry knowledge needed for an OPM initiative. Assessment team roles include the OPM3 practitioner, organizational process owner, key stakeholders, industry subject matter experts (SMEs), and process SMEs Assessment Goals Assessment goals cover why an organization wants to undertake an OPM initiative. The OPM3 practitioner strives to align the assessment goals to improve business performance. Examples of goals include, but are not limited to, greater benefits realization, reduced project cycle time, better cost estimating, standardized processes across several departments, improved metrics, and faster improvements, etc. 63

76 5 - PERFORM ASSESSMENT Assessment Timeline and Logistics Assessment timeline and logistics provide the Establish Plan process with time frames acceptable to the organization. Logistical information includes, but is not limited to, the physical building locations, conference rooms, dates, time frames, equipment, and catering Assessment Type and Scope Assessment type and scope address the method of the assessment, whether it will be document-based or interview-based, or both, and includes portfolio, program, and project management. Organizational enablers are typically in scope for all assessments regardless of industry, size, or complexity. Types of assessments include, but are not limited to, the following: Evidence-based/interview-based, High-level/detailed, Remote/local, and Single user and multiusers. Scope options include, but are not limited to, the following: By business result, By Knowledge Area, By Group, By SMCI (standardize, measure, control, and improve), Complete assessment, -based (portfolio, program, and project), and Organizational enablers only Budget and Time Constraints Budget and time constraints bound the OPM initiative. Examples of constraints include, but are not limited to: the number of interviews, duration of the interviews, participant availability, geographic challenges, and associated costs Business Results Business results include the income statement, balance sheet, cash flow statements, government-required reports for publicly traded companies, annual reports, and other internally or externally published information. The OPM3 practitioner gathers operations data to support improving business results. Business results also include department budgets, department operational information, and department goals that assist with identifying measures pre- and post-improvement. 64

77 5 - PERFORM ASSESSMENT Change Readiness Results Change readiness results convey the organization s readiness for change in the following areas: Attitude and expectations of the key stakeholders are understood. Sponsor is defined to deploy resources to understand OPM and its fit for organizational culture and environment. Organization/department is assigned and accepts responsibility for improvement initiatives. OPM is understood among stakeholders. Organization s strategic plan is clear, understood, and accepted by the stakeholders. Organization s vision and mission are clear and understood among stakeholders. Organization s structure and policies are clear and understood among stakeholders Cost and Effort Estimates Cost and effort estimates capture the resources projected to be consumed by the OPM initiative. Examples of cost and effort include number of days, number of people, resource rates, travel costs, facility costs, etc Enterprise Environmental Factors Enterprise environmental factors refer to both internal and external environmental factors that surround or influence an organization s business success. Enterprise environmental factors may enhance or constrain OPM3 initiative options. Enterprise environmental factors include, but are not limited to, the following: Cultural factors, Existing human resources, Market conditions, Organization s communications channels Organizational processes, Personnel administration, Political climate, and management information systems Industry Standards It is beneficial to be cognizant of industry standards that govern or influence organizations. This domain knowledge helps guide the team during discussions, interviews, assessments, and improvements. 65

78 5 - PERFORM ASSESSMENT Organizational Strategy, Vision, and Mission The organizational strategy, vision, mission, values, and purpose help shape strategic objectives and include the mission, vision, values, and purpose. Mission and vision statements convey the organization s intent to shape the culture and inspire employees. The OPM3 practitioner should be sensitive to the organization s core values Organizational Structure and Policies Organizational structure and policies provide insight on the management style, reporting channel, and span of control. Policies impact how OPM is adopted and should be considered for each individual organization Previous Assessment Results For follow-up assessments (second or later iterations), previous results provide background on the prior state of the organization. These historical results provide awareness of what has previously been done, the reaction to prior assessments if applicable, and what potential opportunities exist Establish Plan: Tools and Techniques Expert Judgment Expert judgment is a tool or technique demonstrated by knowledgeable parties associated with the organization. Qualified individuals demonstrate expert judgment by providing information and data used to solve problems or make decisions through specialized education, knowledge, skill, experience, or training Meeting Management Meeting management includes planning, scheduling, conducting, documenting, and following-up on meetings pertaining to OPM OPM3 Expert Judgment OPM3 expert judgment is a tool or technique leveraging OPM knowledgeable parties associated with the organization. OPM3 expertise is provided by any group or person with specialized education, knowledge, skill experience, or training. Qualified individuals demonstrate OPM3 expert judgment by providing information and data from PMI standards (PMBOK Guide Fifth Edition, The Standard for Management Third Edition, The Standard for Management Third Edition, and Manager Competency Development Framework Second Edition) to solve problems or make decisions. 66

79 5 - PERFORM ASSESSMENT Management Methodology management methodology is a collection of methods and rules followed in the science or discipline of project management. Artifacts generated by a methodology include project charter, schedule, templates, procedures, training materials, etc Researching Researching is the systematic investigation into new or existing knowledge. White papers, industry courses, articles, books, research papers, and other materials are available to ascertain broader knowledge of OPM Risk Analysis Risk analysis is a technique applied to systematically assess potential barriers and opportunities to improve success. Steps for risk analysis include: Identifying risks to expose uncertainty, which requires an intimate knowledge of the industry, legal, social, political, and cultural environment; Evaluating risks and assigning classifications; Determining and managing impacts on the assessment project; and Developing a response plan Training Training is the acquisition of knowledge, skills, and competencies through instruction. The change readiness process identifies any party affiliated with the OPM initiative that needs training. The OPM3 practitioner creates training plans to address training needs. OPM3 practitioners attend training to develop mastery of translating organizational capability to OPM3 Best Practices Establish Plan: Outputs Assessment Plan The assessment plan output is a culmination of defining, preparing, integrating, and coordinating all aspects of planning. The assessment plan identifies: People responsible for the assessment process; Mission, goals, and outcomes of the initiative; 67

80 5 - PERFORM ASSESSMENT Outcome targets; and Performance measures Cost and Effort Estimates The cost and effort estimates output captures the revised amount of resources projected to be consumed by the OPM initiative. Examples of cost and effort include number of days, number of people, resource rates, travel costs, and facility costs, etc Risk Register The risk register documents all identified risks throughout the life cycle of an OPM initiative. It quantifies risk in terms of the likelihood of occurrence and impact, initial plan for responding to each high-level risk, and cost and responsibility of mitigation. Refer to the PMBOK Guide for details on the management of a risk register Stakeholder List The stakeholder list includes key stakeholders that provide oversight and influence with a vested interest in improving business results. Key stakeholders are individuals, groups, or organizations who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project, program, or portfolio. Many stakeholders provide valuable input and play a critical role in the success of any project or program Trained Resource Roster The trained resource roster output includes those individuals who acquire OPM knowledge, skills, and competencies through instruction. The OPM3 practitioner includes training plans as part of the assessment plan to address team member training needs. 5.2 Define Scope The Define Scope process outlines who, what, where, and how much boundary is needed for the OPM3 initiative. Defining the scope develops a common understanding of what is included in, and excluded from, the initiative. This scope provides the foundation for building the schedule, budget, and staffing plans. See Figure 5-3 for a list of inputs, tools and techniques, and outputs. 68

81 5 - PERFORM ASSESSMENT 5 Figure 5-3. Define Scope: Inputs, Tools and Techniques, and Outputs Define Scope: Inputs Assessment Goals Described in Section Assessment Plan Described in Section Assessment Timeline and Logistics Described in Section Cost and Effort Estimates Described in Section Organizational Structure and Policies Described in Section Trained Resource Roster Described in Section

82 PMI Member benefit licensed to: 5 Toufan - PERFORM Ramezani ASSESSMENT Not for distribution, sale, or reproduction Define Scope: Tools and Techniques Interview Selection The interview selection technique provides the OPM3 practitioner with a way to efficiently and effectively gather evidence from the organization through interviews. Practitioners seek important information from a number of resources within the organization to confirm Best Practices. The OPM3 practitioner selects a sample of roles across the organization to document findings and draw conclusions about the entire population. Valid conclusions require statistically significant sample size selection Meeting Management Described in Section OPM3 Expert Judgment Described in Section Question List Generation The question list generation technique is used by the OPM3 practitioner to compile an appropriate set of questions for the scoped initiative. Questions typically address each role selected for an interview Risk Analysis Described in Section Role Selection Chart The role selection chart technique provides the OPM3 practitioner with a way to quickly determine the roles that participate in an initiative. As the initiative scope varies, the OPM3 practitioner selects different roles for the interview process. High-quality assessment results include an appropriate range of roles from across the organization. The OPM3 practitioner considers these roles: Corporate leadership, Director of PMO, Functional leaders, Human resources leaders, manager (person or committee), owners, and program managers, 70

83 5 - PERFORM ASSESSMENT Subject matter experts (SMEs), and Team members Define Scope: Outputs Assembled Assessment Team Described in Section Assessment Plan 5 Described in Section Assessment Timeline and Logistics Described in Section Assessment Type and Scope Described in Section Interview List The interview list output documents the set of individuals selected for interview. The OPM3 practitioner schedules and adjusts interviews during the Conduct Assessment process using the interview list Question List The question list output documents the set of questions administered to the interviewees from the interview list. Questions are typically grouped by role and Knowledge Area Risk Register Described in Section Conduct Assessment The Conduct Assessment process is applicable when the assessment team evaluates the organization against the specified scope. This includes a kick-off meeting, document reviews, interviews, documenting findings, gathering evidence, analyzing data, and creating the final report. The OPM3 practitioner records evidence and is continually translating the collected evidence into the OPM3 Best Practice to determine the degree to which it exists. The OPM3 practitioner analyzes and validates results to report back to the organization. See Figure 5-4 for a list of inputs, tools and techniques, and outputs. 71

84 5 - PERFORM ASSESSMENT Figure 5-4. Conduct Assessment: Inputs, Tools and Techniques, and Outputs Conduct Assessment: Inputs Assembled Assessment Team Described in Section Assessment Plan Described in Section Assessment Timeline and Logistics Described in Section Assessment Type and Scope Described in Section Enterprise Environmental Factors Described in Section

85 5 - PERFORM ASSESSMENT Interview List Described in Section OPM3 Best Practices List The OPM3 Best Practices list, found in Annex A1, represents methods currently recognized within a given industry or discipline to achieve a goal or objective. An organization demonstrates achievement of an OPM3 Best Practice by consistently demonstrating all of the supporting capabilities and realizing the Outcomes associated with each Capability OPM3 Practitioner Expert Knowledge The OPM3 practitioner expert knowledge input addresses a broad spectrum of topics encompassing the OPM3 multidimensional model. Organizations seek external consulting services to translate the organization s business needs into the model when in-house OPM3 expertise is unavailable Organizational Artifacts Organizational process artifacts are outputs created by the execution of a process. These artifacts include things such as a project charter, schedule, meeting minutes, risk register, etc. Practitioners use these artifacts to evaluate the health of an organization s processes Organizational Assets The organizational process assets encompass policies, procedures, guidelines, templates, checklists, and methodologies. These assets include the organization s knowledge base such as lessons learned and historical process information as the organization improves Question List Described in Section Risk Register Described in Section Stakeholder List Described in Section

86 5 - PERFORM ASSESSMENT Trained Resource Roster Described in Section Conduct Assessment: Tools and Techniques Data Analyzing and Consolidation The data analyzing and consolidation technique enables the OPM3 practitioner to analyze information collected during the assessment process. The OPM3 practitioner gains greater insight by applying multivariate, bivariate, and univariate techniques to data from the interviews. Steps for analysis include the following: Aggregate and group similar information; Avoid drawing false conclusions; Be objective, accurate, and truthful; Corroborate process artifacts with interview findings; Separate fact from opinion; and Support findings with data. Data consolidation reveals patterns, common themes, trends, and highlights outliers Documenting Techniques Documenting techniques ensure a full, clear, and accurate account of the site, all field operations, and observation details. Capturing the assessment inputs with pen and paper encourages open communication during interviews. Depending on the culture and receptiveness of the organization, other documenting techniques may be appropriate. The OPM3 practitioner employs non-attribution in the collection of the assessment information. This means that all documented information is not associated with a specific project or person Drill-Down Approach The drill-down approach technique involves progressively drilling into more detail. The drill-down approach is an analytical method that compares and contrasts scenarios in relation to specific conditions and situations Evidence Gathering The evidence gathering technique assists the OPM3 practitioner with accumulating evidence to support assessment findings. The OPM3 practitioner collects evidence to validate the existence of Best Practices. There should be a balance between available evidence and sufficient evidence for the assessment to avoid analysis paralysis. The assessment team ensures that access to the systems or PMIS are available for gathering the evidence identified in the assessment plan. 74

87 5 - PERFORM ASSESSMENT Interview Techniques An interview is a formal or informal approach to discover information from stakeholders. An OPM3 practitioner conducts interviews by asking prepared questions and recording the responses. Interview scenarios include: One interviewer one interviewee, One interviewer many interviewees, Many interviewers one interviewee, and Many interviewers many interviewees. The OPM3 practitioner establishes an atmosphere of trust, exchanges information, gives and receives feedback, and sometimes performs a follow-up interview. Preparation and planning include: Identifying problems; Incorporating critical thinking, and Utilizing appropriate methods (face-to-face, telephone, , chat messaging, etc.) Kickoff Meeting The kickoff meeting technique outlines the purpose, sets the tone, clarifies expectations, plans for logistics, reinforces scope, discusses the timeline, describes the resource needs of the assessment, and describes how the assessment results will be handled. Allow time for answering questions and ensure that participants feel comfortable with the upcoming assessment interviews Meeting Management Described in Section OPM3 Expert Judgment Described in Section Risk Analysis Described in Section Scoring Techniques Scoring techniques assign a numeric value to findings and include: Ordinal scale, Conditional distribution (yes or no), and Dimensional matrix (low, mid, high). 75

88 5 - PERFORM ASSESSMENT Scoring techniques quantify the collected assessment data in a consistent and structured manner Conduct Assessment: Outputs Assessment Presentation The assessment presentation output is a culmination of the Conduct Assessment process. The OPM3 practitioner summarizes the primary findings of the assessment results and sets the baseline for the organization. The presentation balances the strengths and opportunities for improvement. To gain buy-in, the OPM3 practitioner socializes the presentation with sponsors and key stakeholders prior to delivery. It is important to be attentive to difficult team members and stakeholders who are typically vocal in public forums. Delivery of the assessment presentation and assessment results brings closure to the Cycle Element Perform Assessment Assessment Results The assessment results output is the written report summarizing the Conduct Assessment process. Elements to consider when structuring the assessment results include, but are not limited to, using executive language, graphics to pictorially convey messages, and a writing style to fit the organization Risk Register Described in Section Initiate Change The Initiate Change process begins with an analysis of the current state of affairs to identify where the organization is in need of change. This analysis gives team members and stakeholders a clear purpose in making the changes and what they hope to achieve. To increase the probability of success, a change management process turns intention into action to achieve benefits realization. The OPM3 practitioner analyzes inputs such as change readiness results to understand the organization s readiness for change. The Initiate Change process runs concurrently with the other processes in the Perform Assessment Cycle Element to evaluate the organization, culture, processes, tools, and technologies as an enterprise solution. The OPM3 practitioner makes adjustments as the Establish Plan and Define Scope processes ebb and flow. Throughout the Conduct Assessment process, the OPM3 practitioner makes periodic adjustments and leverages every opportunity to pace change at an acceptable rate for the organization. Pacing change at a rate higher than an organization can absorb has a negative impact on people and processes. See Figure 5-5 for a list of inputs, tools and techniques, and outputs. 76

89 5 - PERFORM ASSESSMENT 5 Figure 5-5. Initiate Change: Inputs, Tools and Techniques, and Outputs Initiate Change: Inputs Assessment Presentation Described in Section Assessment Results Described in Section Change Readiness Results Described in Section Enterprise Environmental Factors Described in Section Organizational Structure and Policies Described in Section Previous Assessment Results Described in Section Risk Register Described in Section

90 5 - PERFORM ASSESSMENT Initiate Change: Tools and Techniques Change Management Plan Development Change management plan development involves the management of organizational change activities related to the OPM3 initiative and desired business results. The change management plan development technique is used to gather information about the organizational environment, its training style, leadership style, agility, desire to change, and ability to change. The OPM3 practitioner applies different methods, depending on the complexity of the change initiatives. A special focus when developing the change management plan is to plan measures to handle possible concerns and resistance that could appear during the change process of the organization. Key components of creating a change management plan include but are not limited to: Evaluating the change management methodology to fit the culture, Reviewing the communications plan for effectiveness, Engaging managers and supervisors to support tactical measures, Considering proactive and reactive resistance to change measures, Establishing feedback and measure processes to promote change adoption, and Implementing reward systems Data Analyzing and Consolidation Described in Section Evaluation Tools Evaluation tools compare the organization s ability to change and desire to change against the scope defined for the assessment. The assessment team gains an understanding of the probability that the change will be accepted, adopted, and sustained Expert Judgment Described in Section Researching Described in Section

91 5 - PERFORM ASSESSMENT Risk Analysis Described in Section Initiate Change: Outputs Assessment Presentation Described in Section Assessment Results Described in Section

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93 6 - MANAGE IMPROVEMENT 6 MANAGE IMPROVEMENT This section describes the processes to transform the assessment results into an improvement plan within the context of the organization. The difficulty of selecting a single improvement path stems from understanding the complex organizational variables (e.g., strategy, process, technology, communication channels, change readiness, culture, and style). The OPM3 practitioner guides the selection of improvements by translating the art of the possible into the science of the practical. Once selection is complete, the organization executes the improvement plan by leveraging project and program management methodologies. Linking organizational metrics to the improvement activity improves the odds of success by engaging management and resources. The OPM3 practitioner anticipates organizational responses and fosters acceptance throughout the Manage ment Cycle Element. 6 Within the Manage ment Cycle Element, there are five processes that are discrete and not necessarily sequential. The Manage ment processes as depicted in Figure 6-1 are: 6.1 Create Recommendations. The process of identifying the linkage of the Best Practices and Capabilities to the desired business results of the organization. 6.2 Select Initiatives. The process of prioritizing the Best Practices and deciding which improvements to implement or defer, based on cost, timing, change readiness, and resource availability. 6.3 Implement ment Initiatives. The process of executing improvement plans to obtain better business results. 6.4 Results. The process of quantifying the impact of improvement activities against historical and target performance. 6.5 Manage Change. The process of synthesizing organizational information such as structure, processes, tools, skills, culture, and style that promote or hinder improvement. In summary, the Manage ment Cycle Element enables the organization to do the right things in the right order to realize improved business results. 81

94 6 - MANAGE IMPROVEMENT Figure 6-1. Manage ment Overview 82

95 6 - MANAGE IMPROVEMENT 6.1 Create Recommendations The Create Recommendations process produces cost and effort estimates and identifies areas of improvement for the organization. The OPM3 practitioner creates recommendations by leveraging results from the Perform Assessment Cycle Element and utilizing appropriate techniques. The OPM3 practitioner clarifies what to improve, why it should be improved, and how much investment the improvement needs. See Figure 6-2 for a list of inputs, tools and techniques, and outputs. 6 Figure 6-2. Create Recommendations: Inputs, Tools and Techniques, and Outputs Create Recommendations: Inputs Assessment Documentation The assessment documentation input describes assessment deliverables that the OPM3 practitioner synthesizes while creating improvement recommendations. These include: Assessment presentation. The assessment presentation output is a culmination of the Conduct Assessment process. The OPM3 practitioner summarizes the primary findings of the assessment results and sets the baseline for the organization. The presentation balances the strengths and opportunities for improvement. To gain buy-in, the OPM3 practitioner socializes the presentation with sponsors and key stakeholders prior to delivery. It is important to be attentive to difficult team members and stakeholders who are typically vocal in public forums. Delivery of the assessment presentation and assessment results brings closure to the Cycle Element Perform Assessment. Assessment results. The assessment results output is the written report summarizing the Conduct Assessment process. Elements to consider when structuring the assessment results include, but are not limited to, using executive language, graphics to pictorially convey messages, and a writing style to fit the organization. 83

96 6 - MANAGE IMPROVEMENT Business Results Business results include the income statement, balance sheet, cash flow statements, government-required reports for publicly traded companies, annual reports, and other internally or externally published information. The OPM3 practitioner gathers operations data to support improving business results. Business results also include department budgets, department operational information, and department goals that assist with identifying measures pre- and post-improvement Enterprise Environmental Factors Enterprise environmental factors refer to both internal and external environmental factors that surround or influence an organization s business success. Enterprise environmental factors may enhance or constrain OPM3 initiative options. Enterprise environmental factors include, but are not limited to, the following: Cultural factors, Existing human resources, Market conditions, Organization s communications channels, Organizational processes, Personnel administration, Political climate, and management information systems OPM3 Best Practices List The OPM3 Best Practices list, found in Annex A1, represents methods currently recognized within a given industry or discipline to achieve a goal or objective. An organization demonstrates achievement of an OPM3 Best Practice by consistently demonstrating all of the supporting capabilities and realizing the Outcomes associated with each Capability Organizational Assets The organizational process assets encompass policies, procedures, guidelines, templates, checklists, and methodologies. These assets include the organization s knowledge base such as lessons learned and historical process information as the organization improves. 84

97 6 - MANAGE IMPROVEMENT Create Recommendations: Tools and Techniques Elicitation The OPM3 practitioner uses elicitation to draw out improvement recommendations. These techniques include: Facilitated workshops. Facilitated workshops bring together key cross-functional stakeholders, experts, and both internal and external consultants to understand the OPM. Workshops are a technique for eliciting information in order to understand OPM. Facilitated sessions build trust, foster relationships, and improve communication among the participants or increase stakeholder understanding. Focus groups. Focus groups bring together key cross-functional stakeholders and subject matter experts to create recommendations for improvement. A trained moderator guides the group through an interactive discussion, designed to be more conversational than a one-on-one interview. Group creativity techniques. The OPM3 practitioner organizes group activities to identify improvement recommendations. Creativity techniques include, but are not limited to: Brainstorming A technique used to generate and collect multiple ideas related to recommendations. Nominal group technique This technique enhances brainstorming with a voting process used to rank the most useful ideas for further brainstorming or prioritization. Idea/mind mapping This technique consolidates ideas created through individual brainstorming sessions into a single map to reflect commonality and differences in understanding and stimulates new ideas. Affinity diagram This technique allows large numbers of ideas to be sorted into groups for review and analysis. Multicriteria decision analysis This technique utilizes a decision matrix to provide a systematic analytical approach for establishing criteria, such as risk levels, uncertainty, and valuation for evaluating and ranking many ideas. Group decision-making techniques. Group decision making is an assessment process of multiple alternatives with an expected outcome in the form of future actions resolution. These techniques generate, classify, and prioritize recommendations. There are multiple methods of reaching a group decision, for example: Unanimity Everyone in the group collaboratively agrees on a single course of action. Majority Support exists from more than 50% of the collaborating members of the group. Plurality The largest block in a collaborating group decides even when a majority is not achieved. Dictatorship One individual makes the decision for the group. 6 85

98 6 - MANAGE IMPROVEMENT Interview techniques. An interview is a formal or informal approach to discover information from stakeholders. An OPM3 practitioner conducts interviews by asking prepared questions and recording the responses. Interview scenarios include: One interviewer one interviewee, One interviewer many interviewees, Many interviewers one interviewee, and Many interviewers many interviewees. The OPM3 practitioner establishes an atmosphere of trust, exchanges information, gives and receives feedback, and sometimes performs a follow-up interview. Preparation and planning include: Identifying problems, Incorporating critical thinking, and Utilizing appropriate methods (face-to-face, telephone, , chat messaging, etc.) Estimating Techniques Estimating techniques quantify the magnitude of a recommendation for an organizational culture, process, skill set, or other applicable entity. When little information is available and decisions on general directions are made, estimation techniques are applied. There are a number of different techniques that can be applied for quantifying and classifying the possible influence of recommendations on the different dimensions and dependencies, including process improvement and costs, processes improvement and skill set, cost and skill set, etc. The OPM3 practitioner selects the appropriate estimation technique, including, but not limited to: Analogous estimating, Parametric estimating, Bottom-up estimating, Three-points estimates, Influence diagrams, SWOT (strengths, weaknesses, opportunities and threats) analysis, Cost of quality, and Vendor bid analysis Expert Judgment Expert judgment is a tool or technique demonstrated by knowledgeable parties associated with the organization. Qualified individuals demonstrate expert judgment by providing information and data used to solve problems or make decisions through specialized education, knowledge, skill, experience, or training. 86

99 6 - MANAGE IMPROVEMENT Gathering Knowledge This process involves gathering knowledge from key stakeholders. Four steps guide the gathering of this knowledge: Elicit organizational knowledge. Traditional elicitation techniques include interviews and workshops. Knowledge gathered may address organizational questions such as: What is the organization s business area? What is the organization s business need? What is the organization s business goal? Analyze organizational knowledge. Extract the real state of the organization by analyzing elicited knowledge. There may be a difference between the stated and real state of the organization. Document organizational knowledge. Document elicited knowledge for stakeholder review, understanding, and confirmation. Validate documented organizational knowledge. By reviewing and inspecting the documented knowledge, confirm the documented knowledge is unambiguous and consistent throughout the document ment Systems ment systems deliver concrete metrics to make decisions. These metrics are often called key performance indicators (KPI). The measurements systems are any IT or manual system used to track the status or health of a key performance indicator OPM3 Expert Judgment Based on the assessment results, the OPM3 practitioner decides which areas of improvement the organization should focus. In most cases, time or financial restrictions do not allow detailed analysis of the cost and benefits regarding the implementation of each Best Practice. On a high level, quick decisions are made to do the right things in the right order to reach strategic goals. OPM3 expert judgment is a tool or technique demonstrated by knowledgeable parties associated with the organization. Qualified individuals demonstrate expert judgment by providing information and data used to solve problems or make decisions through specialized education, knowledge, skill experience, or training. When analyzing candidate recommendations, current organizational capability (maturity) is a factor. Like the maturity of an organization, the OPM maturity of an organization also changes over time, as shown in Figure 6-3. The organization progresses through the different stages of maturity over time, with the maturity growing or declining. Organizations move from birth or startup to death. The OPM3 practitioner leverages OPM3 to identify the current maturity of the organization. Figure 6-4 depicts a current and future state of an organization. On each maturity level, different Best Practices are applied or implemented for the three domains portfolio, program, and project management, as well as for the organizational enablers. The OPM3 practitioner pursues implementation of the corresponding Best Practices, depending on the desired OPM3 maturity level. 87

100 6 - MANAGE IMPROVEMENT Figure 6-3. Maturity Stages of an Organization Figure 6-4. High-Level Schema of Current versus Desired OPM Maturity 88

101 6 - MANAGE IMPROVEMENT The focus of increasing maturity depends on the strategic and tactical targets of the organization. Organizations improve business results by increasing the maturity in: Certain domains; OE categories; groups of portfolio, program and project management; and Business processes. The OPM3 practitioner applies expert judgment to the assessment results shown in the example in Figure 6-5 by identifying gaps and relevant areas of improvement. Based on the identified high-level areas for improvement (see Figure 6-4) and the assessment results (see Figure 6-5), the related Best Practices can be identified. Depending on the desired OPM3 maturity level and the implementation status of single Best Practices, the OPM3 practitioner gets a recommendation which measures should be considered (see Figure 6-6). 6 Figure 6-5. Example of OPM3 Assessment Results 89

102 6 - MANAGE IMPROVEMENT Figure 6-6. Selection of Best Practice Based on the Desired Maturity Level The overview of the implementation status of each Best Practice and the Best Practices that need to be implemented to reach the desired OPM3 maturity level (see Figure 6-7) is the basis for the further evaluation process. For each Best Practice that is in focus for improvement, the OPM3 team and the relevant stakeholders decide whether the Best Practice should be implemented. The determination of the relative impact of each Best Practice can be assessed by using the elicitation techniques described in

103 6 - MANAGE IMPROVEMENT 6 Figure 6-7. Example of Implementation Status for Desired Maturity Level on Best Practice Level Create Recommendations: Outputs Cost and Effort Estimates The cost and effort estimates output captures the rough amount of resources projected to be consumed by the OPM3 initiative; for example, number of days, number of people, resource rates, travel costs, facility costs, etc Identified and Prioritized ment Areas The identified and prioritized improvement areas output captures the requirements of the organization s relevant stakeholders pertaining to the desired areas to improve. The OPM3 practitioner defines a list of OPM3 Best Practices aligning with the business results sought by stakeholders ment Objectives The improvement objectives output records the business result sought by the organization s stakeholders. The OPM3 practitioner translates this business result into an improvement objective associated with OPM3 Best Practices. 6.2 Select Initiatives The select initiatives process outlines a set of initiatives, grouping relevant Best Practices for implementation to meet the improvement objectives. The OPM3 practitioner leverages a variety of tools and techniques to document the initiatives. See Figure 6-8 for a list of inputs, tools and techniques, and outputs. 91

104 6 - MANAGE IMPROVEMENT Figure 6-8. Select Initiatives: Inputs, Tools and Techniques, and Outputs Select Initiatives: Inputs Cost and Effort Estimates Described in Section Enterprise Environmental Factors Described in Section Identified and Prioritized ment Areas Described in Section ment Objectives Described in Section Organizational Assets Described in Section Select Initiatives: Tools and Techniques Decision-Making Techniques Decision-making techniques are rational processes/systematic procedures for applying critical thinking to information, data, and experience in order to make a balanced decision when the choice between alternatives is unclear. These techniques provide organized ways of applying critical thinking skills developed around accumulating answers to questions about the problem. Steps include clarifying purpose, evaluating alternatives, assessing risks 92

105 6 - MANAGE IMPROVEMENT and benefits, and making a decision. These steps usually involve scoring criteria and alternatives. Scoring (a systematic method for handling and communicating information) provides a common language and approach that removes decision making from the realm of personal preference or idiosyncratic behavior. The decision-making techniques provide tools to gain consensus on complex topics. These techniques include: Pros and cons analysis. Pros and cons analysis is a qualitative comparison method in which good things (pros) and bad things (cons) are identified about each alternative. Lists of the pros and cons, based on the input of subject matter experts, are compared for each alternative. Kepner-Tregoe (K-T) decision analysis. K-T is a quantitative comparison method in which a team of experts numerically scores criteria and alternatives based on individual judgments/assessments. The size of the team needed tends to be inversely proportional to the quality of the data available the more intangible and qualitative the data, the greater the number of people that should be involved. Analytic hierarchy process (AHP). AHP is a quantitative comparison method used to select a preferred alternative by using pair-wise comparisons of the alternatives based on their relative performance against the criteria. The basis of this technique is that humans are more capable of making relative judgments than absolute judgments. Facilitated workshops. Facilitated workshops bring together key cross-functional stakeholders, experts, and external consultants to create recommendations. Workshops are a technique to elicit information to create these recommendations. Facilitated sessions build trust, foster relationships, and improve communication among the participants or increase stakeholder understanding. Group decision-making techniques. Group decision-making techniques involve multiple individuals analyzing a problem or situation. The group evaluates different options and identifies appropriate courses of action. The group employs structured and unstructured problem-solving activities Expert Judgment Described in Section Financial Management Techniques Financial management techniques assist the OPM3 practitioner with selecting the appropriate organizational improvement initiatives. These techniques include but are not limited to: Estimating technique. Described in Section Financial asset analysis. The financial asset analysis technique seeks to understand the organization s physical needs to support selecting the appropriate Best Practices. This technique considers types of assets (equipment, buildings, etc.) to identify constraints. The resulting analysis reveals the range of Best Practices an organization implements in a certain period. 93

106 6 - MANAGE IMPROVEMENT Cost-benefit analysis. The cost-benefit analysis technique is a systematic process for calculating and comparing benefits and costs of initiatives. This technique has two purposes: To determine if it is a sound investment/decision by applying methods such as return on investment (ROI), cost-benefit ratio, and payback; and To provide a basis for comparing projects by applying methods such as net present value (NPV), discounted cash flow (DCF), and internal rate of return (IRR). The analysis involves comparing the total expected cost of each option against the total expected benefits to see whether the benefits outweigh the costs, and if so, by how much. Financial capacity analysis. The improvement team conducts a financial resource capacity analysis to understand the capacity of the organization to finance the implementation of the selected Best Practices. The analysis utilizes the financial and/or budget process of the organization. The OPM3 practitioner measures internal financial capacity, coupled with external financial resource availability, to compile a broad financial landscape. The financial resource capacity constrains the number of Best Practices an organization undertakes in a given timeframe OPM3 Expert Judgment Based on the selected initiatives, the OPM3 practitioner selects which areas of improvement upon which the organization should focus. The OPM3 practitioner takes into account the current OPM3 maturity when analyzing candidate recommendations. The Best Practices, which were grouped into initiatives during the Create Recommendations process, provide the OPM3 practitioner with enough information to identify which initiatives require a business case (see Figure 6-9). The business case provides stakeholders with information to decide if the improvement initiative is worth the investment. Figure 6-9: Grouping of Best Practices to ment Initiatives 94

107 6 - MANAGE IMPROVEMENT 6 Figure Diagram for Prioritization and Identification A portfolio diagram, as Figure 6-10 illustrates, uses the dimensions complexity of implementation and benefit to rank each initiative in relation to the others. The main purpose of using the portfolio diagram is to reach a common understanding of the scope of initiatives (see Figure 6-9) and to get a common agreement on priorities. Under consideration of limited resources, the prioritization process results in a list of recommended Best Practices that should be implemented as a first step to meet the improvement objectives. As shown in Figure 6-11, most organizations allocate resources for daily operation and resources available for other projects such as, an OPM3 improvement project. Each selected improvement initiative reduces the available resources for projects. Realistic planning reveals that only a limited number of initiatives can be implemented within a certain period of time. Initiative selection, tempered by resource availability, yields candidate improvement objectives. The different options for an improvement maturity path (see Figure 6-12) convey to the relevant stakeholders the improvement initiatives to be implemented and their expected business value realization. Different maturity scores (for measuring OPM3 maturity, see Section 3.5 on OPM3 Scoring Methods) can be reached by implementing the different improvement options. The organization decides, on the basis of its strategic objectives and resource restrictions, which improvement option is the most appropriate. Transforming the selected improvement initiatives into a high-level timeline generates an improvement roadmap for the stakeholders (see Figure 6-13). 95

108 6 - MANAGE IMPROVEMENT Lastly, the OPM3 practitioner garners approval for the recommended improvement roadmap from relevant stakeholders. Upon final approval of projects and programs, stakeholders assign required resources. Figure Prioritization of Selected Initiatives under Constraints of Limited Resources 96

109 6 - MANAGE IMPROVEMENT 6 Figure Sample Maturity ment Path Figure Sample OPM ment Roadmap for Increasing OPM 97

110 6 - MANAGE IMPROVEMENT Management Methodology The portfolio management methodology assists with selecting, prioritizing, and resourcing the initiatives that best meet the improvement objectives. These techniques include, but are not limited to, the following: Evaluation tools. Evaluation tools compare the organization s ability to change and its desire to change against the scope defined for the assessment. The assessment team gains an understanding of the probability that the change will be accepted, adopted, and sustained. The OPM3 practitioner selects evaluation tools to support the selection of initiatives. Evaluation tools include, but are not limited to the following: Scoring model comprising weighted key criteria. Scoring models assign points to Best Practices according to potential improvement impact. This method evaluates and compares Best Practices. Graphical representations. Various graphical representations facilitate comparison among Best Practices under consideration. Graphical representations include histograms, pie charts, line charts, and bubble charts. Two-criterion grids are among the most utilized and most effective graphical tools for comparison. Prioritization tools. Prioritization tools provide a classification and ranking framework to evaluate Best Practices. The OPM3 practitioner compares the Best Practices, ensuring optimal alignment with the strategic plan and the expectations of the relevant stakeholders. Prioritization tools include weighted rankings and scoring techniques. Human resource capacity analysis. The improvement team conducts a human resource capacity analysis to understand the organization s capacity to source and implement the selected Best Practices. The improvement team performs an analysis of organizational skill sets to determine the resource skill set limitations. The OPM3 practitioner measures internal resource capacity, coupled with external resource availability, to compile a broad resource landscape. The human resource capacity constrains the number of Best Practices an organization undertakes in a given timeframe Select Initiatives: Outputs Business Cases Business cases provide the necessary information from a business standpoint to determine whether or not the initiative is worth the required investment. Business cases contain the business need and the cost-benefit analysis that justifies the initiatives Cost and Effort Estimates Described in Section

111 6 - MANAGE IMPROVEMENT ment Roadmap The improvement roadmap defines the timing and focus of the Best Practice improvement initiatives. The roadmap includes initiatives that represent a significant output for the maturity improvement project/program or are interdependent with other initiatives. The OPM3 practitioner refines the improvement roadmap schedule, based on collected feedback. 6.3 Implement ment Initiatives The Implement ment Initiatives process represents the execution aspect of Best Practice improvements. See Figure 6-14 for a list of inputs, tools and techniques, and outputs. 6 Organizations often spend 90% of their total effort in the improvement phase of an OPM3 Cycle. The OPM3 practitioner balances level-of-effort and complexity when executing improvement initiatives. The organization implements the initiative as a series of individual projects, a program, or a portfolio. Figure 6-15 depicts how the OPM3 practitioner considers grouping the projects. Figure Implement ment Initiatives: Inputs, Tools and Techniques, and Outputs Figure Structure of an OPM3 Initiative 99

112 6 - MANAGE IMPROVEMENT The OPM3 practitioner leverages the following standards to create a plan for the OPM3 initiative: Management. A Guide to the Management Body of Knowledge (PMBOK Guide) Fifth Edition. Management. The Standard for Management Third Edition. Management. The Standard for Management Third Edition Implement ment Initiatives: Inputs Business Cases Described in Section Cost and Effort Estimates Described in Section Enterprise Environmental Factors Described in Section ment Roadmap Described in Section Organizational Assets Described in Section Implement ment Initiatives: Tools and Techniques Management Methodology management methodology contains processes manage an improvement initiative according to defined improvement objectives Management Methodology management methodology is a collection of methods and rules followed in the science or discipline of project management. Artifacts generated by a methodology include project charter, schedule, templates, procedures, training materials, etc. 100

113 6 - MANAGE IMPROVEMENT Implement ment Initiatives: Outputs Business Results The business results output captures the business results originally targeted for post-improvement implementation. These results may be lagging type metrics that require thirty days, sixty days, and sometimes longer to realize. It is important to be cognizant of the stability of the business result being targeted and its associated cycle time ment Roadmap The improvement roadmap documents completed and revised work. Figure 6-16 shows the growth of organizational project management maturity and improved value realization achieved by implementing the clusters of Best Practices with the most benefit. 6 After completing an improvement activity, the OPM3 practitioner reassesses where the organization is on the continuum of organizational project management maturity. By repeating the assessment or tackling other Best Practices improvement initiatives, the organization gains greater insights where to apply resources for other Best Practice improvement initiatives. Figure Maturity Growth of the Organization 101

114 6 - MANAGE IMPROVEMENT Organizational Assets Described in Section Results The Results process addresses the overall status and progress monitoring and measuring associated with improvement objectives. The OPM3 practitioner collects and consolidates data for the respective initiatives. Monitoring requires interfacing with the governance structure of the OPM3 initiative to ensure the stakeholders have a clear picture of the current benefit delivery and expected future benefits. See Figure 6-17 for a list of inputs, tools and techniques, and outputs. Figure Results: Inputs, Tools and Techniques, and Outputs Effective management of results supports appropriate preventive and corrective actions at the top level of the OPM3 initiative, especially during the improvement phase of the OPM3 Cycle. An integrated change control process involves redirecting or modifying the OPM3 initiatives as needed, based on feedback from individual project work on implementing Best Practices. The process of measuring results includes: Monitor and control performance. Monitor and control performance of the activities in all OPM3 initiatives, ensuring that the execution of the OPM3 initiatives occurs according to the approved OPM3 roadmap. Monitor and control scope of the OPM3 Cycle. Monitor and control the overall scope as well as the major changes resulting from individual initiatives that impact the desired maturity status. Monitor and control OPM3 roadmap. Ensure the on-time delivery of all initiatives by tracking the actual start and finish of initiatives against the approved roadmap. Monitor and control financials. Analyze actual cost, compare actual costs against planned costs, and conduct trend analysis. Manage stakeholder expectations. Ensure that stakeholders expectations are identified and that stakeholders are kept informed about the status of OPM3 initiatives. Monitor and control risks. Track known risks, identify new risks, execute risk response plans, and evaluate effectiveness of risk response actions. 102

115 6 - MANAGE IMPROVEMENT Manage program benefits. Ensure there is a defined set of reports and metrics communicated to the stakeholders. OPM3 practitioners constantly monitor and report benefits to stakeholders, who can then assess the overall health of the OPM3 initiative, and take action as required ensuring successful benefit delivery Results: Inputs Business Cases Described in Section Business Results Described in Section ment Objectives Described in Section ment Roadmap Described in Section Results: Tools and Techniques Expert Judgment Described in Section OPM3 Expert Judgment Described in Section OPM3 Reassessment As the organization continues to implement improvement initiatives and monitor and control that work, the organization decides to conduct another OPM3 assessment to gauge the achievement of Best Practices that contribute to the improvement objectives. 103

116 6 - MANAGE IMPROVEMENT Management Methodology Described in Section Management Methodology Described in Section Results: Outputs Achieved ment Objectives The achieved improvement objectives output reflects historical performance compared to current performance post-improvements. One example is the reduction of project cycle time from 18 months to 15 months Business Results Described in Section Manage Change The ability to manage change, driven by external or internal demands, is important for organizations. Whenever people are involved, change does not only mean to implement tools and technology and define processes and policies, but also to involve individuals throughout the entire OPM3 improvement cycle. See Figure 6-18 for a list of inputs, tools and techniques, and outputs. Organizations can change only if the people affected by the change embrace it. No matter how large the endeavor, its success ultimately lies with changing how and what each individual does. Effective change management requires an understanding and appreciation of not only the as-is and to-be states, but also of how one person successfully makes a change. Figure Manage Change: Inputs, Tools and Techniques, and Outputs 104

117 6 - MANAGE IMPROVEMENT Leaders of change in an organization need to recognize the following: People don t like change, People resist what they don t like, and People respond differently to change. Achieving the goal of organizational transformation starts with a plan for initiating and managing change. Implementing change exposes aspects of organizations and systems that hinder the ability to achieve better results. Addressing these hindrances promotes positive transformation. People directly involved in change processes learn new skills and acquire experience. Transformation is not a goal but a sustainable capacity for change a continuing process of reassessment and renewal focused on measurable improvement. 6 In larger systems and organizations, sometimes change has to happen all at once. However, in many cases, introducing change on a smaller scale is less risky and success can come in smaller steps. Thus, it can be introduced to a portion of the organization such as a region, an agency, or some specific targeted part of a system or group; in the case of OPM3, it can be introduced in a set of related Best Practices and appropriate prerequisites Manage Change: Inputs Assessment Documentation Described in Section Business Results Described in Section Change Readiness Results The change readiness results input conveys the organization s readiness for change in the following areas: Attitude and expectations of the key stakeholders are understood. Sponsor is defined to deploy resources to understand OPM and its fit for organizational culture and environment. Organization/department is assigned and accepts responsibility for improvement initiatives. OPM is understood among stakeholders. Organization s strategic plan is clear, understood, and accepted by the stakeholders. Organization s vision and mission is clear and understood among stakeholders. Organization s structure and policies are clear and understood among stakeholders. 105

118 6 - MANAGE IMPROVEMENT Enterprise Environmental Factors Described in Section ment Roadmap Described in Section Manage Change: Tools and Techniques Change Management Plan Development Change management plan development involves the management of organizational change activities related to the OPM3 initiative and desired business results. The change management plan development technique is used to gather information about the organizational environment, its training style, leadership style, agility, desire to change, and ability to change. The OPM3 practitioner applies different methods, depending on the complexity of the change initiatives. A special focus when developing the change management plan is to plan measures to handle possible concerns and resistance that could appear during the change process of the organization. Key components of creating a change management plan includes but are not limited to: Evaluating the change management methodology to fit the culture, Reviewing the communications plan for effectiveness, Engaging managers and supervisors to support tactical measures, Considering proactive and reactive resistance to change measures, Establishing feedback and measure processes to promote change adoption, and Implementing reward systems Facilitated Workshops Facilitated workshops bring together key cross-functional stakeholders, experts, and external consultants to create recommendations. Workshops are a technique to elicit information to create these recommendations. Facilitated sessions build trust, foster relationships, and improve communication among the participants or increase stakeholder understanding. 106

119 6 - MANAGE IMPROVEMENT Interview Techniques An interview is a formal or informal approach to discover information from stakeholders. An OPM3 practitioner conducts interviews by asking prepared questions and recording the responses. Interview scenarios include: One interviewer one interviewee, One interviewer many interviewees, Many interviewers one interviewee, and Many interviewers many interviewees. The OPM3 practitioner establishes an atmosphere of trust, exchanges information, gives and receives feedback, and sometimes performs a follow-up interview. 6 Preparation and planning include: Identifying problems, Incorporating critical thinking, and Utilizing appropriate methods (face-to-face, telephone, , chat messaging, etc.) Manage Change: Outputs Change Management Plan The change management plan describes the initiatives for supporting the implementation of the OPM3 initiatives and the measures to handle the identified concerns and possible resistance from individuals or groups Communications Plan The communications plan describes the communication needs and expectations for the change initiative, how and in what format information will be communicated, when and where each communication will be made, and who is responsible for providing each type of communication Training and Coaching Needs Training and coaching needs is a document that describes which training and coaching initiatives will be executed in order to increase the acceptance of the change initiatives. 107

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121 REFERENCES REFERENCES [1] Management Institute. (2013). A Guide to the Management Body of Knowledge (PMBOK Guide) Fifth Edition. Newtown Square, PA: Author. [2] Management Institute. (2013). The Standard for Management Third Edition. Newtown Square, PA: Author. [3] Management Institute. (2013). The Standard for Management Third Edition. Newtown Square, PA: Author. [4] Management Institute. (2012). PMI s Lexicon of Management Terms. Newtown Square, PA: Author. [5] Management Institute. (2007). Manager Competency Development Framework (PMCDF) Second Edition. Newtown Square, PA: Author. [6] Tarantino, A. (2008). The Governance, Risk, and Compliance Handbook: Technology, Finance, Environmental, and International Guidance and Best Practices. Hoboken, NJ: Wiley Publishing. 109

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123 ANNEX A1 - OPM3 BEST PRACTICES LIST ANNEX A1 OPM3 BEST PRACTICES LIST Best practices are optimal methods, currently recognized within a given industry or discipline, to achieve a goal or objective. The types of best practices are:., program, and portfolio, with process improvement stage: standardize measure, control, and improve (SMCI). Organizational Enabler. Non-domain-based processes, pertaining to environmental and cultural aspects of the organization. Table A1-1 provides the name and a brief description of each Best Practice and maps each Best Practice to the appropriate OPM3 categories. This mapping allows the organization to focus on those Best Practices related to the categories important to them. Utilizing a scoring method previously described, an organization conducts an assessment based upon the OPM3 Framework and scores the following Best Practices as appropriate. Continuous improvement is a total quality management concept based on theories developed by Edward Deming and Walter Shewart. The Capabilities supporting an SMCI Best Practice aligned with key principles of continuous improvement. 111

124 ANNEX A1 - OPM3 BEST PRACTICES LIST Table A1-1. OPM3 Best Practices List Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 1000 Establish Organizational Management Policies The organization has policies describing the standardization, measurement, control, and continuous improvement of organizational project management processes. Organizational Management Policy and Vision 1005 Develop Charter Develop Charter standards are established Develop Management Plan Develop Management Plan standards are established Collect Requirements Collect Requirements standards are established Monitor and Work Monitor and Work standards are established Define Scope Define Scope standards are established Monitor and Work Monitor and Work measures are established, assembled, and analyzed Define Activities Define Activities standards are established Monitor and Work Monitor and Work controls are established and executed to control the stability of the process. 112

125 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 1060 Sequence Activities Sequence Activities standards are established Monitor and Work Monitor and Work problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Estimate Activity Durations Estimate Activity Durations standards are established Create WBS Create WBS standards are established Develop Schedule Develop Schedule standards are established Create WBS Create WBS measures are established, assembled, and analyzed Plan Human Resource Management Plan Human Resource Management standards are established Create WBS Create WBS controls are established and executed to control the stability of the process Estimate Costs Estimate Costs standards are established. 113

126 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 1105 Create WBS Create WBS problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Determine Budget Determine Budget standards are established Estimate Activity Resources Estimate Activity Resources standards are established Plan Risk Management Plan Risk Management standards are established Estimate Activity Resources Estimate Activity Resources measures are established, assembled, and analyzed Plan Quality Management Plan Quality Management standards are established Estimate Activity Resources Estimate Activity Resources controls are established and executed to control the stability of the process Estimate Activity Resources Estimate Activity Resources problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 114

127 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 1150 Acquire Team Acquire Team standards are established Manage Team Manage Team standards are established Plan Communications Management Plan Communications Management standards are established Manage Team Manage Team measures are established, assembled, and analyzed Identify Risks Identify Risks standards are established Manage Team Manage Team controls are established and executed to control the stability of the process Perform Qualitative Risk Analysis Perform Qualitative Risk Analysis standards are established Manage Team Manage Team problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Perform Quantitative Risk Analysis Perform Quantitative Risk Analysis standards are established Identify Stakeholders Identify Stakeholders standards are established Plan Risk Responses Plan Risk Responses standards are established. 115

128 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 1210 Plan Procurement Management Plan Procurement Management standards are established Direct and Manage Work Direct and Manage Work standards are established Perform Quality Assurance Perform Quality Assurance standards are established Develop Team Develop Team standards are established Manage Communications Manage Communications standards are established Conduct Procurements Conduct Procurements standards are established Procurements Procurements standards are established Communications Communications standards are established Perform Integrated Change Perform Integrated Change standards are established Validate Scope Validate Scope standards are established Scope Scope standards are established Schedule Schedule standards are established Costs Costs standards are established. 116

129 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 1360 Quality Quality standards are established Risks Risks standards are established Close Procurements Close Procurements standards are established Close or Phase Close or Phase standards are established Staff Organizational Management With Competent Resources The organization provides organizational project management with an adequate workforce with the right level of competence for each project-related role. Competency Management 1430 Establish Manager Competency es The organization establishes a process to ensure project managers have sufficient knowledge and experience. Competency Management 1450 Establish Strong Sponsorship Sponsors actively participate in supporting the project. Sponsorship 1460 Tailor Management es Flexibly The organization applies processes in a manner that is relevant to each project. Organizational Management Methodology 1530 Use Formal Individual Performance Assessment The organization integrates PM performance in their formal processes and procedures to assess performance. Individual Performance Appraisals 1540 Include Strategic Goals Into Objectives Objectives of projects include explicit strategic goals in addition to time, cost, and quality. Success Criteria 117

130 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 1590 Record Resource Assignments Best Practice Description The organization has a formal process for assigning resources to projects and recording assignments. Organizational Enabler Resource Allocation ment Stage 1670 Know Inter- Plan Managers know the goals and plans of all projects related to their own projects. This allows them to explore alternative ways to avoid conflicts while still satisfying goals. Organizational Management Practices 1700 Develop Charter Develop Charter measures are established, assembled, and analyzed Develop Management Plan Develop Management Plan measures are established, assembled, and analyzed Collect Requirements Collect Requirements measures are established, assembled, and analyzed Define Scope Define Scope measures are established, assembled, and analyzed Define Activities Define Activities measures are established, assembled, and analyzed Sequence Activities Sequence Activities measures are established, assembled, and analyzed. 118

131 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 1760 Estimate Activity Durations Estimate Activity Durations measures are established, assembled, and analyzed Develop Schedule Develop Schedule measures are established, assembled, and analyzed Plan Human Resource Management Plan Human Resource Management measures are established, assembled, and analyzed Estimate Costs Estimate Costs measures are established, assembled, and analyzed Determine Budget Determine Budget measures are established, assembled, and analyzed Plan Risk Management Plan Risk Management measures are established, assembled, and analyzed Plan Quality Management Plan Quality Management measures are established, assembled, and analyzed Acquire Team Acquire Team measures are established, assembled, and analyzed. 119

132 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 1850 Plan Communications Management Best Practice Description Plan Communications Management measures are established, assembled, and analyzed. Organizational Enabler ment Stage 1860 Identify Risks Identify Risks measures are established, assembled, and analyzed Perform Qualitative Risk Analysis Perform Qualitative Risk Analysis measures are established, assembled, and analyzed Perform Quantitative Risk Analysis Perform Quantitative Risk Analysis measures are established, assembled, and analyzed Plan Risk Responses Plan Risk Responses measures are established, assembled, and analyzed Plan Procurement Management Plan Procurement Management measures are established, assembled, and analyzed Direct and Manage Work Direct and Manage Work measures are established, assembled, and analyzed Perform Quality Assurance Perform Quality Assurance measures are established, assembled, and analyzed. 120

133 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 1940 Develop Team Best Practice Description Develop Team measures are established, assembled, and analyzed. Organizational Enabler ment Stage 1950 Manage Communications Manage Communications measures are established, assembled, and analyzed Conduct Procurements Conduct Procurements measures are established, assembled, and analyzed Procurements Procurements measures are established, assembled, and analyzed Communications Communications measures are established, assembled, and analyzed Perform Integrated Change Perform Integrated Change measures are established, assembled, and analyzed Identify Stakeholders Identify Stakeholders measures are established, assembled, and analyzed Validate Scope Validate Scope measures are established, assembled, and analyzed. 121

134 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2015 Identify Stakeholders Identify Stakeholders controls are established and executed to control the stability of the process Scope Scope measures are established, assembled, and analyzed Identify Stakeholders Identify Stakeholders problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Schedule Schedule measures are established, assembled, and analyzed Manage Stakeholder Engagement Manage Stakeholder Engagement standards are established Costs Costs measures are established, assembled, and analyzed Manage Stakeholder Engagement Manage Stakeholder Engagement measures are established, assembled, and analyzed Quality Quality measures are established, assembled, and analyzed. 122

135 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 2055 Manage Stakeholder Engagement Best Practice Description Manage Stakeholder Engagement controls are established and executed to control the stability of the process. Organizational Enabler ment Stage 2060 Risks Risks measures are established, assembled, and analyzed Manage Stakeholder Engagement Manage Stakeholder Engagement problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Close Procurements Close Procurements measures are established, assembled, and analyzed Close or Phase Close or Phase measures are established, assembled, and analyzed Adhere to Management Techniques The organization selects a core set of project management techniques to which it adapts and evolves over time. The organization also permits these techniques to be tailored based upon the specific needs of the project. Organizational Management Techniques 123

136 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2190 Benchmark Organizational Management Performance Against Industry Standards The organization identifies external standards against which they measure organizational project management performance. Benchmarking 2240 Develop Charter Develop Charter controls are established and executed to control the stability of the process Develop Management Plan Develop Management Plan controls are established and executed to control the stability of the process Collect Requirements Collect Requirements controls are established and executed to control the stability of the process Define Scope Define Scope controls are established and executed to control the stability of the process Define Activities Define Activities controls are established and executed to control the stability of the process Sequence Activities Sequence Activities controls are established and executed to control the stability of the process. 124

137 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2300 Estimate Activity Durations Estimate Activity Durations controls are established and executed to control the stability of the process Develop Schedule Develop Schedule controls are established and executed to control the stability of the process Plan Human Resource Management Plan Human Resource Management controls are established and executed to control the stability of the process Estimate Costs Estimate Costs controls are established and executed to control the stability of the process Determine Budget Determine Budget controls are established and executed to control the stability of the process Plan Risk Management Plan Risk Management controls are established and executed to control the stability of the process Plan Quality Management Plan Quality Management controls are established and executed to control the stability of the process. 125

138 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2380 Acquire Team Acquire Team controls are established and executed to control the stability of the process Plan Communications Management Plan Communications Management controls are established and executed to control the stability of the process Identify Risks Identify Risks controls are established and executed to control the stability of the process Perform Qualitative Risk Analysis Perform Qualitative Risk Analysis controls are established and executed to control the stability of the process Perform Quantitative Risk Analysis Perform Quantitative Risk Analysis controls are established and executed to control the stability of the process Plan Risk Responses Plan Risk Responses controls are established and executed to control the stability of the process Plan Procurement Management Plan Procurement Management controls are established and executed to control the stability of the process. 126

139 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2460 Direct and Manage Work Direct and Manage Work controls are established and executed to control the stability of the process Perform Quality Assurance Perform Quality Assurance controls are established and executed to control the stability of the process Develop Team Develop Team controls are established and executed to control the stability of the process Manage Communications Manage Communications controls are established and executed to control the stability of the process Conduct Procurements Conduct Procurements controls are established and executed to control the stability of the process Procurements Procurements controls are established and executed to control the stability of the process Communications Communications controls are established and executed to control the stability of the process. 127

140 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2540 Perform Integrated Change Perform Integrated Change controls are established and executed to control the stability of the process Validate Scope Validate Scope controls are established and executed to control the stability of the process Scope Scope controls are established and executed to control the stability of the process Schedule Schedule controls are established and executed to control the stability of the process Costs Costs controls are established and executed to control the stability of the process Quality Quality controls are established and executed to control the stability of the process Risks Risks controls are established and executed to control the stability of the process. 128

141 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2610 Close Procurements Close Procurements controls are established and executed to control the stability of the process Close or Phase Close or Phase controls are established and executed to control the stability of the process Develop Charter Develop Charter problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Develop Management Plan Develop Management Plan problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Collect Requirements Collect Requirements problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 129

142 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2660 Define Scope Define Scope problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Define Activities Define Activities problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Sequence Activities Sequence Activities problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Estimate Activity Durations Estimate Activity Durations problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Develop Schedule Develop Schedule problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 130

143 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 2710 Plan Human Resource Management Plan Human Resource Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Estimate Costs Estimate Costs problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Determine Budget Determine Budget problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Plan Risk Management Plan Risk Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Plan Quality Management Plan Quality Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 131

144 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 2770 Acquire Team Best Practice Description Acquire Team problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Organizational Enabler ment Stage 2780 Plan Communications Management Plan Communications Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Identify Risks Identify Risks problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Perform Qualitative Risk Analysis Perform Qualitative Risk Analysis problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Perform Quantitative Risk Analysis Perform Quantitative Risk Analysis problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 132

145 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 2820 Plan Risk Responses Best Practice Description Plan Risk Responses problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Organizational Enabler ment Stage 2830 Plan Procurement Management Plan Procurement Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Direct and Manage Work Direct and Manage Work problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Perform Quality Assurance Perform Quality Assurance problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Develop Team Develop Team problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 133

146 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 2880 Manage Communications Best Practice Description Manage Communications problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Organizational Enabler ment Stage 2890 Conduct Procurements Conduct Procurements problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Procurements Procurements problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Communications Communications problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Perform Integrated Change Perform Integrated Change problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 134

147 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 2940 Validate Scope Best Practice Description Validate Scope problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Organizational Enabler ment Stage 2950 Scope Scope problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Schedule Schedule problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Costs Costs problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Quality Quality problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 135

148 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 2990 Risks 3000 Close Procurements 3010 Close or Phase 3030 Capture and Share Lessons Learned Best Practice Description Risks problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Close Procurements problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Close or Phase problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. The organization collects and shares lessons learned from projects, programs, and portfolios Encourage Risk Taking The organization encourages project teams to take calculated risks that enhance project performance Initiation 3130 Management Plan Development Initiation standards are established. Management Plan Development standards are established. Organizational Enabler Knowledge Management and PMIS Organizational Management Techniques ment Stage 136

149 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 3140 Scope Planning Scope Planning standards are established Infrastructure Development Infrastructure Development standards are established Infrastructure Development Infrastructure Development measures are established, assembled, and analyzed Infrastructure Development Infrastructure Development controls are established and executed to control the stability of the process Infrastructure Development Infrastructure Development problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Schedule Planning Schedule Planning standards are established Cost Estimation Cost Estimation standards are established Performance Monitoring and Performance Monitoring and standards are established. 137

150 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 3220 Cost Budgeting Best Practice Description Cost Budgeting standards are established. Organizational Enabler ment Stage 3225 Performance Monitoring and Performance Monitoring and measures are established, assembled, and analyzed Risk Management Planning Risk Management Planning standards are established Performance Monitoring and Performance Monitoring and controls are established and executed to control the stability of the process Quality Planning Quality Planning standards are established Performance Monitoring and Performance Monitoring and problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Communications Planning Communications Planning standards are established Risk Identification Risk Identification standards are established Risk Response Planning Risk Response Planning standards are established. 138

151 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 3320 Procurement Planning Best Practice Description Procurement Planning standards are established. Organizational Enabler ment Stage 3340 Execution Management Execution Management standards are established Information Distribution Information Distribution standards are established Procurement Administration Procurement Administration standards are established Performance Reporting Performance Reporting standards are established Scope Scope standards are established Schedule Schedule standards are established Risk Monitoring and Risk Monitoring and standards are established Procurement Closure Procurement Closure standards are established Closure Closure standards are established Initiation Initiation measures are established, assembled, and analyzed. 139

152 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 3600 Management Plan Development Management Plan Development measures are established, assembled, and analyzed Risk Analysis Risk Analysis standards are established Scope Planning Scope Planning measures are established, assembled, and analyzed Risk Analysis Risk Analysis measures are established, assembled, and analyzed Risk Analysis Risk Analysis controls are established and executed to control the stability of the process Risk Analysis Risk Analysis problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Procurement Procurement standards are established Schedule Planning Schedule Planning measures are established, assembled, and analyzed. 140

153 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 3665 Procurement Best Practice Description Procurement measures are established, assembled, and analyzed. Organizational Enabler ment Stage 3675 Procurement Procurement controls are established and executed to control the stability of the process Cost Estimation Cost Estimation measures are established, assembled, and analyzed Procurement Procurement problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Cost Budgeting Cost Budgeting measures are established, assembled, and analyzed Risk Management Planning Risk Management Planning measures are established, assembled, and analyzed Financial Framework Establishment Financial Framework Establishment standards are established. 141

154 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 3710 Quality Planning Best Practice Description Quality Planning measures are established, assembled, and analyzed. Organizational Enabler ment Stage 3715 Financial Framework Establishment Financial Framework Establishment measures are established, assembled, and analyzed Financial Framework Establishment Financial Framework Establishment controls are established and executed to control the stability of the process Financial Framework Establishment Financial Framework Establishment problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Communications Planning Communications Planning measures are established, assembled, and analyzed Financial Management Plan Development Financial Management Plan Development standards are established. 142

155 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 3750 Risk Identification Best Practice Description Risk Identification measures are established, assembled, and analyzed. Organizational Enabler ment Stage 3755 Financial Management Plan Development Financial Management Plan Development measures are established, assembled, and analyzed Financial Management Plan Development Financial Management Plan Development controls are established and executed to control the stability of the process Financial Management Plan Development Financial Management Plan Development problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Risk Response Planning Risk Response Planning measures are established, assembled, and analyzed Procurement Planning Procurement Planning measures are established, assembled, and analyzed. 143

156 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 3805 Financial Monitoring and Best Practice Description Financial Monitoring and standards are established. Organizational Enabler ment Stage 3810 Execution Management Execution Management measures are established, assembled, and analyzed Financial Monitoring and Financial Monitoring and measures are established, assembled, and analyzed Financial Monitoring and Financial Monitoring and controls are established and executed to control the stability of the process Financial Monitoring and Financial Monitoring and problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Information Distribution Information Distribution measures are established, assembled, and analyzed Procurement Administration Procurement Administration measures are established, assembled, and analyzed. 144

157 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 3880 Performance Reporting Best Practice Description Performance Reporting measures are established, assembled, and analyzed. Organizational Enabler ment Stage 3910 Scope Scope measures are established, assembled, and analyzed Schedule Schedule measures are established, assembled, and analyzed Risk Monitoring and Risk Monitoring and measures are established, assembled, and analyzed Procurement Closure Procurement Closure measures are established, assembled, and analyzed Closure Closure measures are established, assembled, and analyzed Initiation Initiation controls are established and executed to control the stability of the process Management Plan Development Management Plan Development controls are established and executed to control the stability of the process. 145

158 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 4020 Scope Planning Scope Planning controls are established and executed to control the stability of the process Schedule Planning Schedule Planning controls are established and executed to control the stability of the process Cost Estimation Cost Estimation controls are established and executed to control the stability of the process Cost Budgeting Cost Budgeting controls are established and executed to control the stability of the process Risk Management Planning Risk Management Planning controls are established and executed to control the stability of the process Quality Planning Quality Planning controls are established and executed to control the stability of the process Communications Planning Communications Planning controls are established and executed to control the stability of the process. 146

159 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 4160 Risk Identification Risk Identification controls are established and executed to control the stability of the process Risk Response Planning Risk Response Planning controls are established and executed to control the stability of the process Procurement Planning Procurement Planning controls are established and executed to control the stability of the process Execution Management Execution Management controls are established and executed to control the stability of the process Information Distribution Information Distribution controls are established and executed to control the stability of the process Procurement Administration Procurement Administration controls are established and executed to control the stability of the process Performance Reporting Performance Reporting controls are established and executed to control the stability of the process. 147

160 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 4320 Scope Scope controls are established and executed to control the stability of the process Schedule Schedule controls are established and executed to control the stability of the process Transition and Benefits Sustainment Transition and Benefits Sustainment standards are established Risk Monitoring and Risk Monitoring and controls are established and executed to control the stability of the process Transition and Benefits Sustainment Transition and Benefits Sustainment measures are established, assembled, and analyzed Procurement Closure Procurement Closure controls are established and executed to control the stability of the process Transition and Benefits Sustainment Transition and Benefits Sustainment controls are established and executed to control the stability of the process. 148

161 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 4380 Closure Closure controls are established and executed to control the stability of the process Transition and Benefits Sustainment Transition and Benefits Sustainment problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Initiation Initiation problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Management Plan Development Management Plan Development problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Scope Planning Scope Planning problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 149

162 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 4460 Schedule Planning Best Practice Description Schedule Planning problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Organizational Enabler ment Stage 4480 Cost Estimation Cost Estimation problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Cost Budgeting Cost Budgeting problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Risk Management Planning Risk Management Planning problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Quality Planning Quality Planning problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 150

163 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 4540 Communications Planning Communications Planning problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Risk Identification Risk Identification problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Risk Response Planning Risk Response Planning problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Procurement Planning Procurement Planning problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Execution Management Execution Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 151

164 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 4640 Information Distribution Best Practice Description Information Distribution problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Organizational Enabler ment Stage 4670 Procurement Administration Procurement Administration problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Performance Reporting Performance Reporting problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Scope Scope problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Schedule Schedule problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 152

165 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 4750 Risk Monitoring and Risk Monitoring and problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Procurement Closure Procurement Closure problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Closure Closure problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Define Define standards are established Define Define measures are established, assembled, and analyzed Define Define controls are established and executed to control the stability of the process. 153

166 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 4975 Define Best Practice Description Define problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Organizational Enabler ment Stage 4985 Optimize Optimize standards are established Optimize Optimize measures are established, assembled, and analyzed Optimize Optimize controls are established and executed to control the stability of the process Optimize Optimize problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Authorize Authorize standards are established Develop Communication Management Plan Develop Communication Management Plan standards are established Authorize Authorize measures are established, assembled, and analyzed Authorize Authorize controls are established and executed to control the stability of the process. 154

167 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 5055 Authorize 5070 Manage Information 5080 Manage Strategic Change 5140 Manage Risks 5170 Use Common Language Best Practice Description Authorize problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Manage Information standards are established. Manage Strategic Change standards are established. Manage Risks standards are established. The organization uses a common language to describe project activities and deliverables Educate Executives The organization educates its executives on the benefits of organizational project management Facilitate Manager Development 5200 Provide Management Training 5210 Provide Continuous Training The organization ensures project manager development. The organization provides project management training appropriate for all roles within the project hierarchy. The organization provides continuous training in the use of tools, methodology, and deployment of knowledge. Organizational Enabler Organizational Management Techniques Organizational Management Policy and Vision Competency Management Management Training Management Training ment Stage 155

168 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 5220 Provide Competent Organizational Management Resources Best Practice Description The organization s project management community provides sufficient competent resources to manage organizational project management. Organizational Enabler Resource Allocation ment Stage 5240 Establish Internal Management Communities The organization establishes an internal community that supports project management. Organizational Management Communities 5250 Interact With External Management Communities The organization encourages membership of external communities that support project management expertise. These can include professional associations or initiatives. Organizational Management Communities 5260 Customize Management Methodology The organization customizes a generally accepted project management methodology to meet organizational requirements. Organizational Management Methodology 5270 Integrate Management Methodology with Organizational es The organization integrates the project management methodology with strategic, operational, and tactical processes. Organizational Management Methodology 5280 Establish Common Management Framework The organization uses a project management framework for all phases of a project. Management Systems 5300 Establish Training and Development The organization establishes a training and development program to improve the skills of project personnel. Management Training 5320 Certify Quality Management System Independent bodies certify the quality management system. Management Systems 156

169 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 5340 Establish Executive Support 5490 Recognize Value of Management 5500 Define Management Values Best Practice Description The executives strongly support the project management process. The organization recognizes the value of project management. The organization defines and applies project management vision and values within the organization Collaborate on Goals People in different roles and functions throughout the organization collaborate to define and agree on common goals Establish Career Path for all Organizational Management Roles 5940 Develop Communication Management Plan 5980 Manage Information 5990 Manage Strategic Change The organization has progressive career paths for organizational project management related roles. Develop Communication Management Plan measures are established, assembled, and analyzed. Manage Information measures are established, assembled, and analyzed. Manage Strategic Change measures are established, assembled, and analyzed. Organizational Enabler Sponsorship Organizational Management Policy and Vision Organizational Management Policy and Vision Organizational Management Policy and Vision Competency Management ment Stage 157

170 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 6050 Manage Risks Manage Risks measures are established, assembled, and analyzed Develop Communication Management Plan Develop Communication Management Plan controls are established and executed to control the stability of the process Manage Information Manage Information controls are established and executed to control the stability of the process Manage Strategic Change Manage Strategic Change controls are established and executed to control the stability of the process Manage Risks Manage Risks controls are established and executed to control the stability of the process Develop Communication Management Plan Develop Communication Management Plan problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Manage Information Manage Information problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 158

171 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 6890 Manage Strategic Change 6950 Manage Risks 6980 Create an Organizational Maturity Development 7005 OPM Leadership 7015 Educate Stakeholders in OPM 7025 Cultural Diversity Awareness 7035 Organizational Business Change Management 7045 Establish Organizational Management Structure 7055 Adopt Organizational Management Structure Best Practice Description Manage Strategic Change problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. Manage Risks problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. The organization creates a program to achieve project management maturity. The organization has a leadership program for their OPM managers. The organization educates stakeholders in OPM. Educate employees on cultural diversity and empower them for working in a multicultural environment. The organization has a business change management program. The organization has determined the appropriate organizational structure to support organizational project management. Adopt organizational project management structure across the organization. Organizational Enabler Organizational Management Policy and Vision Organizational Management Policy and Vision Organizational Management Policy and Vision Organizational Management Policy and Vision Strategic Alignment Organizational Structures Organizational Structures ment Stage 159

172 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 7065 Institutionalize Organizational Management Structure Institutionalize the organizational project management structure across the organization. Organizational Structures 7075 Provide Organizational Management Support Office The organization has an organizational project management support office structure. Organizational Structures 7105 Manage the Holistic View of the The project managers understand stakeholder needs, project impacts to the overall organization environment, organizational structures both formal and informal, politics, and uses emotional intelligence to understand and explain others action and attitudes. Competency Management 7115 Manage the Environment managers effectively manage project environment. Competency Management 7125 The Organization Manages Self Development The organization provides project managers the ability to effectively manage and develop their competencies. Competency Management 7135 Demonstrate Competency in Initiating a The organization s project managers demonstrate their competencies in initiating a project. Competency Management 7145 Demonstrate Competency in Planning a The organization s project managers demonstrate their competencies in planning a project. Competency Management 7155 Demonstrate Competency in Executing a The organization s project managers demonstrate their competencies in executing a project. Competency Management 160

173 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 7165 Demonstrate Competency in Monitoring and ling a 7175 Demonstrate Competency in Closing a 7185 Demonstrate Communicating Competency 7195 Demonstrate Leading Competency 7205 Demonstrate Managing Competency 7215 Demonstrate Cognitive Ability Competency 7225 Demonstrate Effectiveness Competency 7235 Demonstrate Professionalism Competency 7305 Estimating Template/ Tools Established for Use Across Organization Best Practice Description managers are able to demonstrate their competencies in monitoring and controlling a project. managers are able to demonstrate their competencies in closing a project. managers are able to demonstrate their communicating competency. managers are able to demonstrate their leading competency. managers are able to demonstrate their managing competency. managers are able to demonstrate their cognitive ability competency. managers are able to demonstrate their effectiveness competency. managers are able to demonstrate their professionalism competency. estimating so that there is consistency in the percentage applied to similar activities, consistent risk factors applied. This also provides a foundation for similar meaning for metrics collected during and after project execution. Organizational Enabler Competency Management Competency Management Competency Management Competency Management Competency Management Competency Management Competency Management Competency Management Organizational Management Techniques ment Stage 161

174 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 7315 Define OPM Success Metrics The organization defines how it will measure the success and value of portfolio, program, and project management. Management Metrics 7325 Collect OPM Success Metrics The organization uses and maintains a formal performance system to collect OPM success metrics. Management Metrics 7335 Use OPM Success Metrics The organization uses the OPM success metrics to improve the performance of portfolio, program, and project management against plans, and improve realization of benefit to the organization. Management Metrics 7345 Verify OPM Success Metric Accuracy The organization ensures that OPM and benefit to the organization data is valid and accurate. Management Metrics 7355 Analyze and OPM Success Metrics The organization continuously improves its OPM data collection and use processes. Management Metrics 7365 Management Information System The organization has a mechanism for the storage, retrieval, dissemination, and reporting of organizational project management information. Knowledge Management and PMIS 7375 Intellectual Capital Reuse Intellectual capital is stored and reused. Knowledge Management and PMIS 7405 Achieve Strategic Goals and Objectives Through the Use of Organizational Management Organizations adopt organizational project management as the means of achieving organization s goals and objectives. Strategic Alignment 162

175 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 7500 Plan Scope Management Plan Scope Management standards are established Plan Schedule Management Plan Schedule Management standards are established Plan Cost Management Plan Cost Management standards are established Plan Stakeholder Management Plan Stakeholder Management standards are established Stakeholder Engagement Stakeholder Engagement standards are established Plan Scope Management Plan Scope Management measures are established, assembled, and analyzed Plan Schedule Management Plan Schedule Management measures are established, assembled, and analyzed Plan Cost Management Plan Cost Management measures are established, assembled, and analyzed Plan Stakeholder Management Plan Stakeholder Management measures are established, assembled, and analyzed Stakeholder Engagement Stakeholder Engagement measures are established, assembled, and analyzed. 163

176 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 7600 Plan Scope Management Plan Scope Management controls are established and executed to control the stability of the process Plan Schedule Management Plan Schedule Management controls are established and executed to control the stability of the process Plan Cost Management Plan Cost Management controls are established and executed to control the stability of the process Plan Stakeholder Management Plan Stakeholder Management controls are established and executed to control the stability of the process Stakeholder Engagement Stakeholder Engagement controls are established and executed to control the stability of the process Plan Scope Management Plan Scope Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Plan Schedule Management Plan Schedule Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 164

177 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 7670 Plan Cost Management Plan Cost Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Plan Stakeholder Management Plan Stakeholder Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Stakeholder Engagement Stakeholder Engagement problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Component Cost Estimation Component Cost Estimation standards are established Financial Closure Financial Closure standards are established Quality Assurance Quality Assurance standards are established Quality Quality standards are established Resource Planning Resource Planning standards are established. 165

178 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 7810 Resource Prioritization Resource Prioritization standards are established Resource Interdependency Management Resource Interdependency Management standards are established Component Cost Estimation Component Cost Estimation measures are established, assembled, and analyzed Financial Closure Financial Closure measures are established, assembled, and analyzed Quality Assurance Quality Assurance measures are established, assembled, and analyzed Quality Quality measures are established, assembled, and analyzed Resource Planning Resource Planning measures are established, assembled, and analyzed Resource Prioritization Resource Prioritization measures are established, assembled, and analyzed Resource Interdependency Management Resource Interdependency Management measures are established, assembled, and analyzed. 166

179 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8050 Component Cost Estimation Component Cost Estimation controls are established and executed to control the stability of the process Financial Closure Financial Closure controls are established and executed to control the stability of the process Quality Assurance Quality Assurance controls are established and executed to control the stability of the process Quality Quality controls are established and executed to control the stability of the process Resource Planning Resource Planning controls are established and executed to control the stability of the process Resource Prioritization Resource Prioritization controls are established and executed to control the stability of the process Resource Interdependency Management Resource Interdependency Management controls are established and executed to control the stability of the process. 167

180 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8220 Component Cost Estimation Component Cost Estimation problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Financial Closure Financial Closure problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Quality Assurance Quality Assurance problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Quality Quality problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Resource Planning Resource Planning problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 168

181 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8320 Resource Prioritization Resource Prioritization problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Resource Interdependency Management Resource Interdependency Management problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Develop Strategic Plan Develop Strategic Plan standards are established Develop Charter Develop Charter standards are established Define Roadmap Define Roadmap standards are established Provide Oversight Provide Oversight standards are established Develop Performance Management Plan Develop Performance Management Plan standards are established Manage Supply and Demand Manage Supply and Demand standards are established. 169

182 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8490 Manage Value Manage Value standards are established Develop Risk Management Plan Develop Risk Management Plan standards are established Develop Strategic Plan Develop Strategic Plan measures are established, assembled, and analyzed Develop Charter Develop Charter measures are established, assembled, and analyzed Define Roadmap Define Roadmap measures are established, assembled, and analyzed Develop Management Plan Develop Management Plan standards are established Develop Management Plan Develop Management Plan measures are established, assembled, and analyzed Provide Oversight Provide Oversight measures are established, assembled, and analyzed Develop Performance Management Plan Develop Performance Management Plan measures are established, assembled, and analyzed. 170

183 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8590 Manage Supply and Demand Manage Supply and Demand measures are established, assembled, and analyzed Manage Value Manage Value measures are established, assembled, and analyzed Develop Risk Management Plan Develop Risk Management Plan measures are established, assembled, and analyzed Develop Strategic Plan Develop Strategic Plan controls are established and executed to control the stability of the process Develop Charter Develop Charter controls are established and executed to control the stability of the process Define Roadmap Define Roadmap controls are established and executed to control the stability of the process Develop Management Plan Develop Management Plan controls are established and executed to control the stability of the process Provide Oversight Provide Oversight controls are established and executed to control the stability of the process. 171

184 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8690 Develop Performance Management Plan Develop Performance Management Plan controls are established and executed to control the stability of the process Manage Supply and Demand Manage Supply and Demand controls are established and executed to control the stability of the process Manage Value Manage Value controls are established and executed to control the stability of the process Develop Risk Management Plan Develop Risk Management Plan controls are established and executed to control the stability of the process Develop Strategic Plan Develop Strategic Plan problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Develop Charter Develop Charter problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 172

185 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8750 Define Roadmap Define Roadmap problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Develop Management Plan Develop Management Plan problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Provide Oversight Provide Oversight problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Develop Performance Management Plan Develop Performance Management Plan problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented. 173

186 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8810 Manage Supply and Demand Manage Supply and Demand problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Manage Value Manage Value problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Develop Risk Management Plan Develop Risk Management Plan problem areas are assessed, root causes are identified, process improvement recommendations are collected, and process improvements are implemented Accommodate organization s approved frameworks and governance structures Design and adopt flexible project management processes to accommodate and comply with frameworks and governance structures approved by the organization, such as CMMI, ITIL, COBIT. Organizational Management Methodology 8910 Analyze Value Performance The organization performs value performance analysis against the performance of its endeavors and refines the strategy appropriately. Strategic Alignment 174

187 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 8920 Assess the Realization of Proposed Benefits 8930 Benchmark PMO Practices and Results 8940 Create a Risk-Aware Culture 8950 Define Key Leading Indicators 8960 Developing Management Templates 8970 Document Management Case Studies 8980 Encourage Adherence to Management Code of Ethics Best Practice Description The organization establishes a formal process to assess and account the realization of proposed benefits of their portfolio, programs, and projects. The PMO is using benchmark data to compare its achieving and current state to other PMOs. The organization has created a risk-aware culture, advocating that the portfolio, programs, and projects are less risky when more risks are being identified. The project team defines key leading indicators critical to the success of the project. Develop templates for organizations adopted project management Knowledge Areas to standardize project management practices. Organization documents case studies for all projects completed to ensure all successes and challenges are recorded. The organization promotes the adherence to the Management Code of Ethics and Professional Conduct to improve project quality, deliverables and quality. Organizational Enabler Strategic Alignment Benchmarking Organizational Management Policy and Vision Management Metrics Organizational Management Methodology Knowledge Management and PMIS Organizational Management Practices ment Stage 175

188 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 8990 Establish Competent Sponsors sponsors are competent in project sponsorship. Sponsorship 9000 Establish Enterprise Risk Management Methodology The organization captures enterprise risk (market, financial, business and environment) and their impact on strategy and portfolio, programs, and projects. Strategic Alignment 9010 Establish Executive Summary Dashboards Organization has dashboards for executives that summarize project progress with clear indicators of project status. Knowledge Management and PMIS 9020 Establish Governance Policies Across the Organization The organization establishes governance policies across the organization. Governance 9030 Establish Organizational Management Reporting Standards Organization has created consistent organizational project management reporting standards to ensure repeatable quality reporting of projects, programs, and portfolios for all stakeholders. Knowledge Management and PMIS 9040 Establish Delivery Tips and Techniques Special Interest Group Organization establishes special interest groups for the project management community to share project delivery tips and techniques with respective colleagues. The organization will invite speakers to present relevant topics to the project management community. Organizational Management Communities 176

189 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 9050 Establish Management Template Tailoring Guidelines 9060 Establish Resource Allocation and Optimization es 9070 Establish Scarce Resource Allocation Criteria 9080 Establish Strategic Alignment Framework 9090 Incorporate Performance Benchmarks into Balanced Scorecard System 9100 Management Case Studies Included in Induction 9110 Management Training is Mapped to Career Development Path Best Practice Description Organization provides tailoring guidelines for the project management templates to allow controlled customization of templates amended based on project approach. The organization utilizes resources in an optimized manner matching available resources with project and program needs. The organization allocates its scarce resources to its highest priority initiatives. The organization reviews the strategy, current conditions and results and adjusts the portfolio components accordingly. Augment traditional financial measures with benchmarks for performance in relationship with customers, key internal processes, and learning and growth using balanced scorecard system. Organization includes the project management case studies in the project management induction program to ensure success and key learning s are made available. Career development of staff needs to be supported by trainings. Organizational Enabler Organizational Management Methodology Resource Allocation Resource Allocation Strategic Alignment Benchmarking Management Training Management Training ment Stage 177

190 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 9120 Provide Mentoring to Managers 9130 Report OPM Performance to Strategy 9140 Report Strategic Performance 9150 Specialists are Shared Between s 9160 Consistent Orientation 9170 Consistent,, and Governance Across the Enterprise Best Practice Description Provide continuous mentoring to project managers on organizations project management processes. The OPM system delivers feedback from the completion of projects and the realization of benefits back to the strategy of the organization. Review and report strategic benefits of project and program metrics and their importance to portfolio performance. The organization provides adequate staffing with specialized resources, sharing them between the projects. The organization has a standardized project orientation process to help prepare new team members to perform their work according to the project defined process and plan. The organization establishes a governance board over all the portfolio, program, and project processes across the enterprise to optimize business value. Organizational Enabler Competency Management Strategic Alignment Strategic Alignment Resource Allocation Organizational Management Practices Governance ment Stage 178

191 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Best Practice Name Practice ID 9180 Use Mathematically Sound Methods for Prioritization 9190 Use an Optimizer to Select the 9200 Use Formal Performance Assessment 9210 Manage Resources 9220 Manage Issues 9230 Manage Component Interfaces 9240 Plan Stakeholder Management Best Practice Description The result of this prioritization along with the objectives prioritization produces ratio-scale relative benefit for each project candidate so they can be compared meaningfully. Select the optimal portfolio rather than ranking and choosing until budget runs out. Formally assess the performance of project(s) or phase(s) in relation to business case used during initiation. The program manager allows for the adjustment and reallocation of resources required to meet the needs of the program. The program team identifies, tracks, and closes issues effectively to ensure stakeholder expectations are aligned with program activities and deliverables. The program team maintains the adherence of program delivery and its constituent parts and manages relationships between the program components. The program manager covers planning how stakeholders will be identified, analyzed, engaged, and managed throughout the life of the program. Organizational Enabler Organizational Management Techniques Organizational Management Techniques Strategic Alignment Organizational Management Techniques Organizational Management Techniques Organizational Management Techniques Organizational Management Techniques ment Stage 179

192 ANNEX A1 - OPM3 BEST PRACTICES LIST Best Practice ID Best Practice Name Best Practice Description Organizational Enabler ment Stage 9250 Identify Stakeholders The program team addresses the systematic identification and analysis of program stakeholders and creates the stakeholder register. Organizational Management Techniques 9260 Engage Stakeholder The program team ensures that stakeholders are involved in the program. Organizational Management Techniques 9270 Manage Stakeholder Expectations The program team manages communications to satisfy the requirements of and resolves issues with program stakeholders. Organizational Management Techniques 9280 Plan and Establish Governance Structure The program team identifies governance goals and defines the governance structure, roles, and responsibilities. Governance 9290 Plan for Audits The program team prepares for both external and internal audits of program finances, processes and documents and demonstrates compliance with approved organizational program management processes. Organizational Management Techniques 9300 Provide Governance Oversight The program team provides governance and audit ability throughout the course of the program. Governance 9310 Strategic Alignment of s The organization establishes and maintains the alignment of programs with the organization strategy. Strategic Alignment 180

193 APPENDIX X1 - THIRD EDITION CHANGES APPENDIX X1 THIRD EDITION CHANGES X1.1 General Changes The purpose of this appendix is to provide explanations of the changes made to the Organizational Management Maturity Model (OPM3 ) Third Edition. The team, as chartered, simplified the messaging with a business focus, harmonized with PMI standards, harmonized with the Lexicon of Management Terms, addressed deferred comments, and conducted working sessions to understand evolving practices. Major changes not detailed under Section X1.2 on Structural Changes in this appendix include: X1.1.1 Harmonization with Other Revised PMI Standards The third edition of OPM3 maintains and expands on its alignment with the PMBOK Guide Fifth Edition, and the third editions of The Standard for Management and The Standard for Management standards in addition to the Lexicon by ensuring that all fundamental concepts, are described in the same manner. The augmented third edition of OPM3 delivers revised and updated Best Practices, reflecting the changes made to these other PMI standards. X1.1.2 Update of Self-Assessment Method (SAM) This edition of OPM3 contains an update of the Self-Assessment Method (SAM) in alignment with The Standard for Management Third Edition, The Standard for Management Third Edition, the PMBOK Guide Fifth Edition, and organizational enablers. An evaluation at the Best Practice level while utilizing the SAM requires that the user determine the Capabilities needed to establish the Best Practice. The composition of Best Practices is described in Sections 2 and 3. X1.1.3 Consolidation and Alignment of Chapters OPM3 is now structured to better communicate the business value of using the Organizational Management Maturity Model, as the standard by which an organization can measure itself against and thus increase project management capability in the appropriate areas to more effectively and efficiently transpose the organization s strategy into business results with the target audience. 181

194 APPENDIX X1 - THIRD EDITION CHANGES X1.2 Structural Changes The most pronounced restructuring of this edition of OPM3 is the transition of content to harmonize with the structure of other PMI standards, including inputs, tools and techniques, and outputs. The model is described, constructed from its individual components, and discussed in Section 3 rather than spread among Sections 2 through 6. Sections 4 on Acquire Knowledge, 5 on Perform Assessment, and 6 on Manage ment provide greater depth of the OPM3 Cycle Elements for practical application and training. Table X1-1 describes and displays a side-by-side comparison of the changes in each section. Table X1-1. Comparison of Structural Changes Second Edition Preface Executive summary view of OPM3 Section 1 Introduction to OPM3 Chapter 1 Introduction Chapter 2 Foundational Concepts Section 2 Understanding the Model Chapter 3 The OPM3 Cycle Chapter 4 The Organizational Management es Section 3 Using the Model Chapter 5 The OPM3 Construct Chapter 6 The OPM3 Best Practices Section 4 Appendices Appendix A Second Edition Changes Appendix B Evolution of the OPM3 Maturity Model Appendix C Contributors and Reviewers of OPM3 Second Edition Appendix D Self Assessment Method Appendix E Online Tools Appendix F OPM3 Case Study Appendix G Implementing the Model Third Edition Preface This section communicates to Executives and Practitioners what is contained in this book Section 1 Introduction Section 2 Foundational Concepts Section 3 The Organizational Management Maturity Model (OPM3) Section 4 Acquire Knowledge Section 5 Perform Assessment Section 6 Manage ment Annex A1 OPM3 Best Practices List Appendix X1 Third Edition Changes Appendix X2 Development of the Standard Appendix X3 Contributors and Reviewers of OPM3 Third Edition Appendix X4 The Self-Assessment Method (SAM) Appendix X5 Case Studies and Success Stories Glossary Index 182

195 APPENDIX X1 - THIRD EDITION CHANGES X1.2.1 Changes to Section 1 of Second Edition Introduction to OPM3 Section 1 of the third edition outlines the distinction between OPM3 and OPM and the relationships among portfolio management, program management, project management, and organizational project management. It also outlines the business value of OPM3 and the key stakeholders engaged in OPM3 initiatives. Section 2 of the third edition outlines OPM foundational concepts while focusing on the business value that OPM3 conveys by helping organizations translate strategy into business value realization in an efficient and effective manner. Table X1-2. Changes to Section 1 Second Edition Chapter 1 Introduction 1.1 OPM3 Organizational Perspective 1.6 Overcoming the ment Dilemma Chapter 2 Foundational Concepts 1.2 Strategy Execution 2.2 Organizational Management 2.3 Organizational Management Maturity 2.1 OPM3 Purpose and Scope Third Edition Section 1 Overview 1.1 Introduction 1.2 Purpose of OPM3 1.3 What is OPM3 1.4 What is OPM 1.5 Relationship among Management, Management, Management, and Organizational Management 1.6 Business Value 1.7 Stakeholders (Roles) Section 2 Foundational Concepts 2.1 Organizational Management Described 2.2 Organizational Life Cycles 2.3 Organizational Management Maturity Model 183

196 APPENDIX X1 - THIRD EDITION CHANGES X1.2.2 Changes to Section 2 Second Edition Understanding the Model All Chapters from Section 2 of the second edition have been relocated in their entirety to Section 3 on The Organizational Management Maturity Model with a detailed look at the construct, framework, application, and scoring methods. Some materials from other second edition chapters are also relocated to Section 3 of the third edition creating comprehensive detail on how the model is built and how to apply it. This change brings the structure of the third edition in line with the framework of other PMI standards. Table X1-3. Changes to Section 2 Second Edition 1.3 OPM3 Components 1.5 Organizational ment Plan 1.4 Maturity Assessment 2.4 OPM s Organizational Enablers Multi-Dimensional View of Maturity Chapter 3 The OPM3 Cycle 3.1 Knowledge, Assessment, and ment 3.2 Introduction to the OPM3 ment Cycle 4.1 Introduction 4.2 Management es 4.3 Management es 4.4 Management es 4.5 Attributes of,, and Management es Chapter 5 The OPM3 Construct 5.2 SMCI and Organizational Enablers 5.3 Dependencies Among Best Practices and Capabilities Third Edition Chapter 3 The Organizational Management Maturity Model (OPM3) 3.1 Introduction 3.2 The OPM3 Construct 3.3 OPM3 Framework 3.4 OPM3 Application 3.5 OPM3 Scoring Methods 184

197 APPENDIX X1 - THIRD EDITION CHANGES X1.2.3 Changes to Section 3 Using the Model Section 3 of the second edition is now replaced by Sections 4, 5 and 6 of the third edition. These sections are structured in the same manner as the Knowledge Areas found in the PMBOK Guide with inputs, tool and techniques, and outputs (ITTO). These changes are a result of the standardization of the PMI standards and are intended to equip the OPM3 practitioner with a depth of knowledge needed to (a) carry out an assessment covering the key areas of acquiring the knowledge needed to perform the assessment, (b) carry out the assessment itself, and (c) manage relative organizational project management improvements within that particular organization. Table X1-4. Changes to Section 3 Chapter 6 OPM3 Best Practices 5.1 Best Practices Second Edition Second Edition Chapter 4 Acquire Knowledge 4.1 Understanding OPM 4.2 Understanding Organization 4.3 Assess Change Readiness Chapter 5 Perform Assessment 5.1 Establish Plan 5.2 Define Scope 5.3 Conduct Assessment 5.4 Initiate Change Chapter 6 Manage ment 6.1 Create Recommendations 6.2 Select Initiatives 6.3 Implement ment Initiative 6.4 Results 6.5 Manage Change Annex A1 Best Practices List 185

198 APPENDIX X1 - THIRD EDITION CHANGES X1.2.4 Changes to Section 4 Appendices Changes to the Appendices include: Appendix X1 Third Edition Changes Appendix X2 Evolution of the Organizational Management Maturity Model now includes subsection Appendix X3 Contributors and Reviewers of OPM3 third edition Appendix X4 The Self-Assessment Method Appendix X5 OPM3 Case Study, illustrating a real example of how OPM3 was used in an organization and the outcomes of that process are replaced with case studies Glossary Index 186

199 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD APPENDIX X2 CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD X2.1 Contributors and Reviewers of the OPM3 Third Edition X2.1.1 OPM3 Third Edition Core Committee The following individuals were members of the project Core Committee responsible for drafting the revision of the standard, including review and adjudication of reviewer recommendations. Timothy A. MacFadyen, MBA, PMP, Committee Chair David Christopher Miles, CEng, OPM3 Certified Professional, Committee Vice Chair Nada Abandah, PgMP, OPM3 Certified Professional Claudia M. Baca PMP, OPM3 Certified Professional Folake Dosunmu, PgMP, OPM3 Certified Professional Stephan Ernst, Dipl-Ing oec, PMP Ivo Gerber, PMI-SP, OPM3 Certified Professional Greg Hart Kenji Hiraishi, PMP Felicia E. Hong, MBA, PMP Burkhard Meier, MBA, PMP Lambert Ofoegbu, MSc, OPM3 Certified Professional Valerie van der Klis, PMP, OPM3 Certified Professional Karl Best, CAPM, CStd, Standards Specialist X2.1.2 OPM3 Third Edition Best Practices Review Team The following individuals were members of the Best Practices Review team responsible for review and further development of the Annex A1 Best Practices list. Claudia M. Baca, PMP, OPM3 Certified Professional, Review Team Chair Imad Alsadeq, MSP, OPM3 Certified Professional Shrikant Arya, ME, PMP Mardav Bakshi Shanmugaraj Balasubramanian, PMP, PMI-ACP Randy Bennett Jane Betterton, PMP, OPM3 Certified Professional 187

200 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Martin Bittner, PMP Susan S. Bivins, MSPM, PMP Ravi Shanker Rao Bodkai, BTech, PMP Peggy J. Brady Giovanni Chin-A-Sen Jorge Cogno, PhD, PMP Sanjay Kumar Das, PMP, ITIL Hao Deng, MPM, OPM3 Certified Professional John F. Filicetti, PMP, MBA Anil Garg Carl M. Gilbert, PMP, OPM3 Certified Professional Sanjeev Gupta Suhail Iqbal, PgMP, PMP Ashok Jain, PMP, ITIL Chandrashekhar S. Joshi, PMP, Chartered Engineer Paulo F. W. Keglevich de Buzin, MSc, PMP Gabriel Kam-sun Lau, PMP, PMI-RMP Anand Lokhande, PMP Charles A. McLaughlin, MSPM, PMP Vladimir Antonio Mininel, PMP M. Aslam Mirza, MBA, PMP Kannan Sami Nadar, PMP Ony Nwankpa Krupakar Reddy, PMP, PRINCE2 Practitioner Fabio Salazar, PE, PMP Paul Szwed Gerhard Tekes, PMP, OPM3 Certified Professional Chitra Venkatramani, MBA, PMP Matthew J. Weaver, PMP X2.1.3 OPM3 Third Edition Subject Matter Expert Reviewers The following individuals were invited subject matter experts who reviewed the draft and provided recommendations through the SME Review. Farhad Abdollahyan, MSc, OPM3 Certified Professional Hamidreza Afshari, PMP, OPM3 Certified Professional Rania Al-Maghraby, PMP, OPM3 Certified Professional Susan S. Bivins, MSPM, PMP Larry Bull Giovanni Chin-A-Sen 188

201 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Jorge Cogno, PhD, PMP Carlos Colon, PMP, OPM3 Certified Professional Brenda L. Comfort, MSc, PMP Hao Deng, MPM, OPM3 Certified Professional Maggie S.Y. Hsu, OPM3 Certified Instructor, PMI-ACP Suhail Iqbal, PgMP, PMP Ashok Jain, PMP, CSM Chandrashekhar S. Joshi, PMP, Chartered Engineer Paulo F. W. Keglevich de Buzin, MSc, PMP Tom Keuten, PMP, OPM3 Certified Professional Giovani Lage de Castro, OPM3 Certified Professional, PgMP Vladimir Antonio Mininel, PMP M. Aslam Mirza, MBA, PMP Sara Núñez, PMP, OPM3 Certified Professional Onyinye Nwankpa, MBA Fabio Salazar, PE, PMP X2.1.4 OPM3 Third Edition Public Exposure Draft Reviewers The following individuals were volunteers who reviewed the draft and provided recommendations through the Public Exposure Draft Review. Farhad Abdollahyan, PMI-RMP, OPM3 Certified Professional Yaser T. A. Afaneh, PMP José Rafael Alcalá Gómez, MBA, PMP Bill Allbee, MPM, PMP Rania Al-Maghraby, PMP, OPM3 Certified Professional Haluk Altunel, PhD, PMP Tony Appleby, PMP, OPM3 Certified Professional Zaher Asfari, MBA, PMI-ACP Bakul Banerjee, PhD, PMP Manuel F. Baquero V., MSc, PMP Eduardo Bazo Wayne F. Best Pieter Botman Rodolphe Boudet, PMP Farid F. Bouges, MSc, PMP Lynda Bourne DPM, PMP Yuri Braz, PMP, CCNA Joseph Calinski Giovani Castro Brenda Comfort Sergio Concha, MTIG, PMP Mike Cooley, PMP Kevin L. Cooper, MBA, PMP William J. Cottun, PMP Ana Cronin P. H. Manjula Deepal De Silva, BSc, PMP Marc DeBord, MS-MOT, PMP George Diakonikolaou 189

202 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Victor Espinosa, MBA, PMP Fam Woon Fong, PMP, PMI-RMP Anna Maria Felici, PMP Ali Forouzesh, PMP, OPM3 Certified Professional Gerardo A. Garavito F., PMP, PMI-ACP Ahmad Khairiri Abdul Ghani Carl M. Gilbert, PMP, OPM3 Certified Professional Theofanis C. Giotis, PMP, PMI-ACP Greg Githens, PMP Mustafa Hafizoglu, PMP Akram Hassan, PhD, OPM3 Certified Professional Timothy Hix, CAPM, CSCP Knut Vidar Hoholm Keith D. Hornbacher, MBA Gheorghe Hriscu, PMP, CGEIT Shuichi Ikeda, PMP Takafumi Isogawa, PMP Rajesh Jadhav, PgMP, PMI-RMP Ashok Jain, PMP, CSM Etiénne Joubert, MDipTech, PMP Shinobu Komai Abhilash Kuzhikat, PMP, CISA Arun Lal, PMP David Lavery Craig Letavec, PMP, PgMP Ginger Levin, PMP, PgMP Arden C. Lockwood, MBA, MCS Konstantinos Maliakas, MSc, PMP Anuj Malik, GMITE Anthony Mampilly, MS, PMP Sangu Maharajan Mangkuppa, IFRS, MSME Ammar W. Mango, CSSBB, PgMP Orlando Marone, PMP Thomas F. McCabe, PMP, CSSMBB Yan Bello Méndez, PMP Werner Meyer, MSc, OPM3 Certified Professional Arash Momeni, MBA, PMP Alaa Mostafa, PMP, PgMP Nathan M. Mourfield, MHA, PMP Adriano José da Silva Neves, MSc, PMP Darci Oltman, PMP Michelle Pallas, PMP, CIRM Jason Papadopoulos, MBCS, CITP Scott Patton, PMP, OPM3 Certified Professional Jose Angelo Pinto, PMP, OPM3 Certified Trainer Raju N. Rao, SCPM, OPM3 Certified Professional Michael Reed, PMP Jorge F. Rojas-Meluk, MIS, PMP Rafael Fernando Ronces Rosas, PMP, ITIL Koroush Sanaeimovahed Luis Sanchez John Schlichter, MBA, OPM3 Certified Professional G. Lakshmi Sekhar, BE, PMP Sandra Shadchehr PMP, LEED Green Associate Korinna Shaw, MBA, PMP Jen L. Skrabak, PMP, MBA Joseph A. Sopko, PMP, OPM3 Certified Professional Thierry Soulard, PMP, OPM3 Certified Professional Chuck Stakston, MBA, PE Shoji Tajima, PMP, ITC Gerhard Tekes, PMP, OPM3 Certified Professional Suzanne M. Testerman, MBA, PMP Edward John Thomas, MPM, PMP Mangi Vishnoi, MAIPM, PMP Poonam Vishnoi, PMGTI, ProgGTI Kevin R. Wegryn, MA, PMP Moataz Yousif, MEng, OPM3 Certified Professional Bin Zhang, PhD, OPM3 Certified Professional Kelly A. Zrubek, PMP Alan Zucker, PMP 190

203 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD X2.1.5 PMI Standards Member Advisory Group (MAG) The following individuals are members of the PMI Standards Member Advisory Group, who provided direction to and final approval for the OPM3 Third Edition draft. Monique Aubry, PhD, MPM Margareth Fabiola dos Santos Carneiro, MSc, PMP Larry Goldsmith, MBA, PMP Cynthia Snyder, MBA, PMP Chris Stevens, PhD Dave Violette, MPM, PMP X2.1.6 PMI Consensus Body The following individuals are members of the PMI Standards Consensus Body, who gave final approval for the OPM3 Third Edition draft. Monique Aubry, PhD, MPM Robert E. Baker, PMP Nigel Blampied, PE, PMP Nathalie A. Bohbot, PMP Dennis L. Bolles, PMP Peggy J. Brady Chris Cartwright, MPM, PMP Terry Cooke-Davies, PhD Sergio Coronada, PhD Andrea G. Demaria, PMP John Dettbarn, DSc, PE Charles T. Follin, PMP Larry Goldsmith, MBA, PMP Dana J. Goulston, PMP Dorothy Kangas, PMP Thomas M. Kurihara Mike Musial, PMP, CBM Eric S. Norman, PMP, PgMP Debbie O Bray, CIM (Hons) Nanette Patton, MSBA, PMP 191

204 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Crispin ( Kik ) Piney, BSc, PgMP Michael Reed, PMP Chris Richards, PMP David W. Ross, PgMP, PMP Paul Shaltry, PMP Jen L. Skrabak, MBA, PMP Carol Steuer, PMP Geree Streun, PMP, PMI-ACP Matthew Tomlinson, PgMP, PMP Dave Violette, MPM, PMP Quynh Woodward, MBA, PMP John Zlockie, MBA, PMP X2.1.7 PMI Standards Harmonization Team The following individuals are members of the PMI Standards Harmonization Team, who reviewed and provided direction on the harmonization of content between the PMBOK Guide Firth Edition, The Standard for Management Third Edition, The Standard for Management Third Edition, and the OPM3 Third Edition. Karl F. Best, CAPM, CStd Steve Butler, MBA, PMP Folake Dosunmu, PgMP, OPM3 Randy Holt, MBS, PMP, Chair Dorothy L. Kangas, PMP Joseph W. Kestel, PMP M. Elaine Lazar, AStd, MA Timothy MacFadyen Vanina Mangano David Christopher Miles CEng, OPM3-CC Eric S. Norman, PgMP, PMP Michael Reed, PMP Chris Richards, PMP Jen L. Skrabak, MBA, PMP Carol Steuer, PMP Bobbye S. Underwood, PMP, PMI-ACP Dave Violette, MPM, PMP Kristin Vitello, CAPM Quynh Woodward, MBA, PMP John Zlockie, MBA, PMP 192

205 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD X2.1.8 PMI Production Staff Donn Greenberg, Manager, Publications Roberta Storer, Product Editor Barbara Walsh, Publications Production Supervisor X2.2 Contributors and Reviewers of the OPM3 Second Edition X2.2.1 OPM3 Second Edition Core Team Members Karl Andy Anderson, OPM3-CC, PMP, Research Team Lead Claudia M. Baca, PMP, OPM3-CC, Development Team Lead Bernard Hill, PhD, PMP, Knowledge Foundation Development Team Lead Rashed Iqbal, PMP, PhD, Marketing Team Lead Timothy A. MacFadyen, MBA, OPM3 CC, Manager J. Alan Northrup, PMP, Self-Assessment Development Method Team Lead Auristela Oxman, Filter Team Lead Raju N. Rao, PMP, SCPM, Baseline Network Development Team Lead Jim Sloane, OPM3-CC, PMP, Harmonization Team Lead, Deputy Manager Dennis E. Stevens, Deputy Manager Earnest C. Valle, MBA, PMP, Architecture Team Lead Valerie van der Klis, PMP, Benchmarking Team Lead, Support Team Lead, Quality Team Lead Nancy E. Wilkinson, MBA, PMP, Standards Specialist X2.2.2 Other Contributors Farhad Abdollahyan, MSc, PMP Raul M. Abril, PhD, PMP Suresh Adina, PMP Yasser Afaneh, PMP Maria Affan Pankaj Agrawal, PMP, OPM3-CC Sheikh Nisar Ahmed (MSc) Zubair Ahmed, PMP Ali Akl, CISM, CISSP Hussain Ali Al-Ansari, Eur Ing, CEng Fernando Albuquerque, MBA Mohammed Mansoor Ali, PMP Selim Alkaner, PhD, PMP Mohammed Abdulla Al-Kuwari, Eur Ing, PMP Imad Muhammad al-sadeq, PMP, PMOC Alexandre Alves Michael Andersen Rajeev Andharia, PMP, ITIL Manager Marc C. Andiel, PMP, MBA Jagathnarayanan Angyan, FIE, CE Kapil Shripad Apshankar, PMP Rahayu Setyawati Arifin Parag Y. Arjunwadkar, MBA, PMP Julie Arnold, PMP Shrikant Arya, PMP David V. Auman Naing Moe Aung, PMP Darwyn Azzinaro, PMP Subrata Baguli, PMP Sivakumar Balasubramaniam, PMP Michael Balay, PMP 193

206 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Krishnaprasad Bhat Bannanje, PMP David Barcklow, PMP A. Lee Barco, PE, PMP Vikas Basantani, PMP Sujoy K. Basu, PMP, MBA Mohammed Safi Batley, MIM Gregory M. Becker, PMP Julia M. Bednar, PMP Jeanne Belin, PMP Vincent L. BenAvram, PMP Gary Ben-Israel, PMP Randy Bennett, PMP P. Ionut Bibac Christie Biehl, PhD, PMP David Bissessar, PMP Karen Board, MBA, PMP Theodore R. Boccuzzi, PMP Ravi Shanker Rao Bodkai, PMP Stephen F. Bonk, PE, PMP Lynda Bourne DPM, PMP Mila Bozic, MScEE, PMP Christie D. Bradley, PMP Christophe N. Bredillet, PhD, DSc, MBA Greg Brown, PMP Iris S. Burrell, PMP Sergio de Oliveira Caballero Andrea Caccamese, PMP, PRINCE2 Charles L. Campbell, PMP Esteban Villeda Carmona, PMP Chris Cartwright, MPM, PMP Stephan J. Cassidy, MBA, PMP Marzon Castilho, PMP Sherry Ceallaigh, MPM, PMP Akkaraju Sailesh Chandra Subramanian Chandramouli BhanuSmitha Chanduri Porfirio Chen Chang, PMP Chan Cheah, PhD, MsBS Xiao Cheng, PMP Giovanni Chin-A-Sen Darrel S. F. Chong Christos A. Christou, MBA, PMP Kevin Chui, MBA, PMP Sebastian Chung, PMP Rachel Ciliberti, PMP Manuel Cisneros, MBA, PMP Douglas Clark Robert D. Clark, MBA, PMP Barbara J. Clark, MSM Steven Bradley Clark, PMP Sergio Concha, PMP, MTIG Terry Cooke-Davies, PhD, FCMI Aline L. Costa, PMP Jorge S. Miranda Cruz Wanda Curlee, PgMP, DM Steve Dale, PMP Damyan Damyanov Thomas Daniel Sanjay Kumar Das, PMP Dipanker Das, PMP, MTech Rafat Dasan, PMP Trilochan Dave, PMP Johnnie Davis, PE, PMP Paulo Keglevich de Buzin, MSc, PMP Nicolas De Dobbeleer, MSc, PMP Paulo R. C. de Espindola, PMP Carmen De Leon, PMP Sudipta De, PMP Muhammad Din, PMP Vivek Dixit Qingyun (Peter) Dou, PMP, CLO Alan B. Downs, PMP Zhen Du, PMP Giancarlo Duranti, PMP Usman Khan Durrani, PMP Kiran Kumar Dusi, BTech, PMP Anoop Dwivedi, PMP Valecia Dyett, PMP Thomas Eberhard, PMP Scott Eddy, PMP Marcel Ekkel, Ing, PMP Hesham El Bialy El Sayed, MSc, PMP Mohamed Mahmoud Elgamal, PMP Bill Engel, PMP Defne Erogul Steven L. Fahrenkrog, PMP Anna Maria Felici, PMP, CMC Katherine Felix Jose Guilherme Filho, PMP John Filicetti, MBA, PMP Augusto Jaramillo Forcada Charles S. Fraley, PMP Melinda Francis, PMP Larry Franklin, PMP Kristina Frazier-Henry, PMP Amanda Freitick Ralf Friedrich, PMP, ACC Chandrasekhar Ganduri, PMP Anil Garg, PMP Stanisław Gasik Santosh Lawoo Gawande Peggy Gemert, PMP Alexandre Sörensen Ghisolfi MBA PMP Theofanis C. Giotis, MSc, PMP Leo A. Giulianetti, PMP Dan Goldfischer Balasubramaniam Hari Gopal, FCA, PMP Larry Gordon, PMP, ITSM Manager 194

207 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Radha Goverdhan, PMP Donn Greenberg Brenda L. Grime, PMP Stephen Gristock, PMP Tom Grzesiak, PMP Ruth Anne Guerrero, MBA, PMP Sumit Gupta, CSQA Yuli Gutmanas, PMP William Haeck, PMP Chris Hagenbuch, PMP Frank L. Harper, Jr., PhD, PMP Sheriff Hashem, PhD, PMP Charles Hawk, PMP T. Heather, MBA Carlos Heble, MPA Mohamed S. Hefny, MSc, PMP Michael Heiberg, PMP John Hermarij, PMP Bernard Hill, PhD, PMP Kenji Hiraishi, MS, PMP M. S. Hiremath. PMP, FIE Tsan Fai Ho, PMP Gregory Hoffnagle, MSTM, PMP Kathryn Hoke, PMP Carol Holliday, MA, PMP Randall Holt, PMP Felicia E. Hong, PMP, MBA Tim Hornett, PMP, MIET Tampi Houman, MBA, BSc Zulfiqar Hussain, PE, PMP Isao Indo PMP, PE, JP Suhail Iqbal, PMP, PE Brian Irwin, MSM, PMP Ayodeji Ishmael, PMP Lisa Marie Jacobsen, CAPM Patti Jansen, PMP Christie Jean-Baptiste, PMP Remington Ji, PMP Tony Johnson, PMP, PgMP Yannick Jolliet, PMP Michele J. Jones, PMP Pramoth Kumar Joseph, PMP Thomas R. Joseph, PMP George Thomas Kalacherry Dongsu Kang, PMP Govindaswamy Kannappan, PMP Satya Sai Ram Kantheti, MBA-Fin, PMP Bharat Kapoor, PMP Waffa Karkukly, PMP, MIT Satish Karnam, PMP Ramakrishna Kavirayani, PMP David J. Kell Harold Kerzner, PhD Rameshchandra B Ketharaju, CSQA Thomas C. Keuten, PMP, OPM3-CC Atique Khan, PMP Dhananjay P. Khanzode, PMP, PE Julie Kihneman-Wooten, MPM, PMP Sun Kim, MBA, PMP Marcia Klingensmith, MBA, PMP Edmund Kosenski, PMP Purathatil Krishnan, PMP Elena B. Krumova, MBA Deepak Kulkarni, PMP Ajith Kumar P. N., PMP Prasanth Kumar, PMP Deepak Kumar, PMP Amitava Kundu, PMP Phelia M. L. Kung, MScIT Thomas M. Kurihara William T. W. Kwan, PMP, CSQA Rogerio T. O. Lacerda, PMP Luc R. Lang, PMP Pascal Le Deley, PMP Mike Lemmon, PMP Ade Lewandowski John D. Lewis, PMP Grace Li, MA, PMP Farhan Liaquat, MBA Chin Yen Lim, PMP Maria Lindell, PMP Jose G. Linhares, Jr., PMP Herb Lloyd, PMP Anand Lokhande, PMP Igor Luhan, PMP Michael Lyzaniwski, PMP Prakasha MS, PMP Fengmin Ma, PMP Andy Macklin, PMP Saji Madapat, PMP, CSSMBB Sandhya Mahadevan Himanshu S. Mahanta, PMP Vinuttha Mallikarjunaiah, PMP George Manya, PMP Marisol Marion-Landais, PMP Chris Markopoulos, MPM Donald F. Martin, PE, PMP Greg Martin, PhD, PMP Jojy Mathew, PE Patrick McGonigle, PMP Graham McHardy Jasmijn Medina, PMP Aamir Mehmood, PMP Frank Meier, PMP, CSSBB Yan Bello Méndez, PMP Concepcion Merino Diane D. Miller, PMP Ted Mills, PMP Vladimir Antonio Mininel, PMP Barbara J. Minions, PMP M. Aslam Mirza, MBA, PMP Vivienne Mitchell, PMP Alf Mittelstaedt, PMP 195

208 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Prasanjit Mohapatra, PMP Tebogo Molefe Amrit R. Moola, PMP Carlos Morais, PMP Aziz Moujib, PMP Valdery F. Moura, Jr., PMP Balaram Muddapu, PMP, MBB Sandip Mukhopadhyay, MBA, PMP Luis G. Ortiz Muller, PMP, OPM3-CC Angelo Muscaridola, MBA, PMP Kannan Sami Nadar, PMP, COP Jayarajan Nanoo PhD, PMP Krish Narayan, MS, PMP Latha Narayan, PMP Kumar Narayanan, PMP Kalyanraman Narayanswamy, PMP Muthukumar Natesan, BE, MBA Paulo Farah Navajas, MsC Ifakat Nayki, PMP Fozia Naz Renee J. Nelson, PMP Karen Jane Nimmons, PMP Tom Nodar, PMP Lori Ann Nollet, PMP Sara Nunez, PMP, OPM3 CA Onyinye Nwankpa Deborah O Bray, CIM (Hons) Amruta Oak, PMP Solomon Oluwaseyi, MArch, MSc Rodger Oren, MBA, PMP Juan Alberto Otero, PMP Ramesh (Jude) Pachamuthu, MSc, PMP Frank R. Parth, MBA, PMP George Pasieka, PMP, OPM3 CA Deepika Patni-Hopf, PMP, CISA Steven Paul, PMP Martin Pazderka, PMP Marcela J. Peñaloza-Baez, PMP Livio G. Perla Greg Philliban, PMP Fabiano Ciglio Pinto, PMP Søren Porskrog, PMP, OPM3 CC Fernando Portes, MBA, PMP Veronika Pribusz, PMP Mitchell Provost, PE, PMP Abrachan Pudusserry, PMP, CSM Ajay Purohit, PMP M. George Puziak, PMP Moisés Quezada, PMP Vladimir Quiñones, PMP Nathaniel J. Quintana, PMP, OPM3 CC Omer Qureshi, PMP Sueli dos Santos Rabaca, PMP Alison T. Rabelo, PMP Yves Racine, PMP Chandramukhi Radhakrishnan, PMP Anil R. Rahate, MTech Waseem Raja, PMP Manjula Rajaram, MBA, PMP Uma Ramakrishnan, PMP S. Ramani, PMP, PgMP Krishnan Ramaskrishnan, PMP E. A. Ramirez, PMP Claudia Elisa Ramírez, PMP Ashok Ranade, PMP Pranay Ranajn, PMP Prem Ranganath, PMP Geoffrey J. Rankins, MApplSci, MPD Ed Rao, PE, PMP Sadhu Srinivas Rao, PMP Yoshit Rastogi, MBA, PMP Carol Rauh, PhD, PMP Krupakar Reddy, PMP, PRINCE2 Juliano Reis, MBA, PMP Michael Ribeiro, MBA, PMP Arthur Richard, CEng, PMP Cara Richardson, PMP Carlos Colón Riollano, PMP, OPM3-CC Brenda Roberts, PMP Andy Robinson MBA, PMP Charles C. Roder, Jr., PMP Ted Rohm, PMP Asbjørn Rolstadås, PhD, Ing David W. Ross, PMP, PgMP Scott T. Rowe, MS, PMP Milind S. Rumade, PMP Diana Russo, PMP Lotfy Sabry, OPM3-CC, PMP John F. Sage, PMP Alcides Santopietro Jr., PMP Richard Sargeant, PMP Kulasekaran C. Satagopan, PMP, CQM Vinaya Sathyanarayana, PMP John Schlichter, MBA, OPM3-CC Andrew Schuster, PMP, FIBC Mark N. Scott Edmund Seddon, PMP Paul W. Seljeseth, PMP Gurkan Aydin Sen, Sr., PMP Vaddy Venkata Naga Seshu, PMP Hatem Hamed Shabaan, Eng, PMP Viresh C. Shah, PhD, PMP Paul E. Shaltry, PMP Archana Sharma, MS, BE, PMP Vijaysarathi Sharma, PMP 196

209 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Ian D. Shaw, PMP Sayeed Ahmed Sheikh, PMP Anuya Sheorey, PMP Mei-Jing Subrina Shih, PMP, CPIM Kazuo Shimizu, PMP Don Shively, PMP Veeresh Shringari, PMP Alexandre A. Silva Kalpana Singh Mayank Singh, MBA, PMP Shiv Pratap Singh, PMP Selva Sivahami, PMP Raji Sivaraman, MS, PMP Tina Slankus, PMP Jim Sloane, PMP, OPM3-CC Susan Y. Snider, MBA, PMP Joseph A. Sopko, PMP, OPM3 CC Mauro Sotille, PMP Thierry Soulard, PMP, OPM3-CC Nammi Sriharan Cynthia (Snyder) Stackpole, MBA, PMP Joyce Statz, PhD, PMP Marie Sterling, PMP Curtis D. Stevenson, PMP Ian Stewart John Stinnett Roberta Storer Aneita Strauss, PMP Nico Stroebel, PMP Jürgen Sturany, PMP G. V. B. Subrahmanyam, PhD, PMP Raymond Sun, PMP Shyam Sundhararajan, PMP Venkat Mangudi Swaminathan, PMP Sarah Swinglehurst Habeeb I. Syed, MBA, PMP Adam Sykes, PMP Masanori Takahashi, MA, PMP Martin D. Talbott, PMP, CSSBB Gerhard Tekes, PMP Thomas. P. Thomas, MBA, PMP Jamal Tiari, MSc Donghui Oliver Tong, PMP Massimo Torre, PhD, PMP Luciano Cerqueira Torres, PMP Richard N. Tretheway, PMP, PE Ricardo Triana, PMP Sandra Dunny Troutman, EdM, PMP Srinkath U. S. Muhammad Usman, PMP Vijai Vadlamuri, PMP Nageswaran Vaidyanathan, MBA, PMP Sharon M. Valencia, PMP Carmen M. Valle, PMP, CBCP Dennis K. Van Gemert, MS, PMP Fred van Staden, PMP Laxman Vasan Robert Victor Alika L. Victor, PMP, Prince2 Jaywanth Vijayapuri, PMP David Violette, MPM, PMP Kristin L. Vitello Abhijeet Wadkar Barbara Walsh, CAPM Min Wang, PhD Brian Watson, PMP Patrick Weaver, PMP Kevin R. Wegryn, PMP, CPM Simone Weilacher Rajendra Welankar, PMP Ken Whiting, PMP James Wilson, PMP Simmone Wishart Lawrence R. Witham MBA, PMP Hannah J. Wolf, PMP Nan Wolfslayer, AStd James M. Wood, PhD, PMP Walter J. Wright, PMP Yan Xiaojing, PMP Anna Yarashus, PMP Naumann Yousef, PMP Syed Arslan Sabah Zaidi, PMP Karla Zanker, PMP Wei Zhan, PhD John Zlockie, PMP 197

210 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD X2.3 Contributors and Reviewers of the OPM3 First Edition X2.3.1 OPM3 First Edition Core Team Members Ralf Friedrich, MSc, PMP, OPM3 Manager William Haeck, MBA, PMP, OPM3 Deputy Manager Fred Abrams, PMP, CPL Claudia M. Baca, PMP Mila Bozic, PMP Peggy Brady, PMP Glenn Carleton, PMP Ajit Ghai, MSc, PMP Santosh Guha, MBA, PMP Craig Hardy, PMP Thomas Keuten, PMP, CMC Lisa Marie Kruszewski Ade Lewandowski, Rabbani Lutfur, MBA, PMP Narasimha Naru Nayak, PMP, PGDIE Jim Sloane, PMP, CM Martin Talbott, PMP Micheal Tipman, PEng, PMP Clarese Walker, PMP David Whelbourn, MBA X2.3.2 Other Contributors John J. Abbott, PhD Farhad Abdollahyan, MBA, PMP Bernard E. Abey, PE, PMP Matthew Abraham Fred Abrams, PMP, CPL Rajendra Achanta Ravi Advani, MBA Areeb Afsah, PMP Kevin J. Aguanno, MAPM, PMP Sheikh Nisar Ahmed, MS, MCSP Emine Aydin Akkaya, BSA Randall Alberts, CPM, PMP Italo Albidone Jon K. Aldridge, PMP Petya Alexandrova, PMP Madinah S. Ali Tobías Aliaga, MBA, PMP Sheila Alvey Andrew A. Anderson Harmon Anderson Karl Andy Anderson, PMP Terry R. Anderson, PMP Jose Aniceto Deborah L. Anthony Victor E. Anyosa, PMP Joan Allen B. Arch, PMP Alexey Arefiev O. Arivazhagan Scott E. Artmann Lisset Avery, MEd Assolari Mohammad Aziz James Ballew, DM, MBA Michael Barr Jorge Barros Mike Bartmanovich, PMP Richard Barton Stacy Baskin Pierre H. Batheret, PMP Leslie Bayer 198

211 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Michel Bazinet, PMP Norm Beal Roger D. Beatty, PhD, PMP Chris Beautement, PMP Patrick Beauvillard Nabil E. Bedewi, DSc, PMP Arley R. Bedillion Julia M. Bednar, PMP Jeff Begeman, MSPM, PMP Jim Beierschmitt George C. Belev, CPM, CPCM Michael J. Bennett Randy Bennett, MS, PMP Deo Karan Bhalotia, MS, PMP Sapna Bhargava Atulkumar N. Bhatt, MBA, PMP Mark Bierbaum Marty Biggs Richard M. Bingman Jr., PMP G. Bittencourt, BSc, MBA Susan S. Bivins, PMP John A. Blakely, MS, PMP Nigel Blampied, PE, PMP Jim Blaylock Victoria Bondy, BSc, PMP Stephen F. Bonk, PE, PMP Herbert Borchardt Eugene O. Borden, MBA, PMP Robert J. Borotkanics David A. Boss, PMP Rejean Boucher, CD, PMP Eugene C. Bounds, PMP Lynda Bourne, PMP Stewart Bowman J. Chris Boyd, PMP Savo Bozic, BSc David Bradford, PMP Michael Branch Christophe N. Bredillet, DSc Brenda L. Breslin, PMP Steve Briggs, MBA, PMP John A. Briggs, PMP Damien Brignell Will Brimberry Timothy J. Briscoe, PMP, PMO CAQ Alberto S. Brito Timothy S. Brown Valerie Brown Robert I. R. Brown, APMP, ACIB Connie Brown, PMP Donald Bruck Vicki Bryant-Cano Kim Buchalski Nina M. Burgess, CCM, PMP John Buziak, PE, PMP Trony Yi Cai, MBA, PMP Laura Caldwell, PMP Eoin J. P. Callan, MBA, PMP Linda Campbell-Brooks Kim Caputo Norman H. Carter, MBA Bruce C. Chadbourne, PMP J. Brett Champlin, MBA, CSP/CCP Pradeep Chandra, PMP Ramesh Chandrasekaran, MBA, PMP Carolyn Chapman Catherine Joy Chapman Trevor Chappell, EurIng, PMP Hemchander Chari Gordon Chastain Monica Chauhan Guadalupe M. Chavez David C. Chen Clala Xiao Cheng, MBA, PMP Gary L. Chin, PMP Patrick Chouteau, MBA, PMP Ana Christina P. Joe Ciccione Curtis W. Clark, MBA, PMP Juana F. Clark, PMP Alan Coates, PMP Mary Pat Collins, MS, PMP Ronald E. Collins, PMP Edna Colon, MBA, MSIS Carlos Colon, MBA, PMP Marge Combe David L. Conrad, MBA Helen S. Cooke, PMP Laurie Cooke, RPh Terence J. Cooke-Davies, PhD, BA Nancy A. Corbett, PMP John E. Cormier Patti Corrigan, CPCU, PMP Daniel E. Crabtree Charles B. Craytor Douglas J. Cretsinger, MBA, PMP Colin H. Cropley, BE (Chem), PMP Jack Crowley Margery Cruise Patricia Louise Cunnington Wanda Curlee, DM, PMP Darren Dalcher, PhD, MAPM Mario Damiani, PMP David L. Davis David Davitian Fabricio P. de Farias, PMP Aline Lucas de Moura Costa, PMP Marcos Paulo de Oliveira Valadares de Oliveira Brian K. Dean, MBA, PMP 199

212 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Wendy Decker, PMP Zamir Deen Pasquale DeFilippis Jim Delrie, PE, PMP Berry C. Densman, PMP Meena Desai Ranjana Deshmukh John L. Dettbarn Jr., DSc, PE Chuck Detwiler Sheila L. Diduck, MBA, PMP Syed Ali Dilawer Jerry Dimos, PMP Peter Dimov, CBM, PMP Paul Dinsmore Julie Ditmore Peter H. Dittmar, MBA Vivek Dixit, CQA Miles Dixon, MA Serif Haluk Dogancay, MBA Dan Dorion, PMP Luis Augusto dos Santos Thomas James Douglas Magnus K. Drengwitz, PMP Philippe Dubernard Judith L. Dunlop Gloria J. Durham, MPM Stefano Durighello, PMP Mark Dushanko Mukesh Dutta, MBA, PMP Robert P. Eagan, MBA, PMP Jason Eddinger Nancy Edgar Tim Egan, PMP Marlies Egberding, PMP Ruth Eisenhauer Karen Ekrem John M. Elash, PMP Gary S. Elliott, MS Lenita Elon Patrick J. Engesser Tibor Eperjesi Patricia A. Erickson Michael P. Ervick, MBA, PMP Guy Euget, PhD, PMP David C. Evenson, PMP Steve Fahrenkrog, PMP Pamela Farmer, PMP Dax Faulstich Chris Fawcett Linda Fernandez, MBA Madhu Fernando, MEng Jack P. Ferraro, PMP John F. Filicetti, MBA, PMP Michael Fisher Daniel Forgues, MSc, PMP Robert J. Fortin Paul Fosland John M. Foster, MBA, PMP Kitty Francen, PMP Fran Stoss Frank, MSPM, PMP Ann Franklin William L. Franklin, PE, PMP Stephen L. Fritts, MBA, CMC Kenneth Fung, MBA, PMP Michael J. Funke Herman N. Gaines Jr., PMP Rajeev Garg, PMP Gail E. Garland, MSOD, PMP Peggy Gartner, Dipl-Inf Wiss, PMP Daniel J. Garvin T. K. (Ted) Gaughan Bruce A. Geanaros Robert M. Gerbrandt Vivian Gericke, MScEng, PMP Philip J. Gerson David W. Gibson Timothy A. Gikas Jeff Gold, MBA, CMC Peter B. Goldsbury, BE, DMS Herman Gonzalez, PMP Michael J. Goodman, PMP, MSEE Kimberly Gordon Joe Gorman Jackie Goss, PMP Alan E. Gould, PMP Robert Graham Mar Freire Grande Jackie Gray, PMP Don J. Green Leon S. Green, MSc, PMP Lianne Griffin, PMP David G. Grimmer, PMP Angie Groves, PMP Michael J. Guffey Karthika Rao Gupta, PMP Bulent E. Guzel Jacqueline Haddad Nathalie Haddad Warren J. Hall, BE, NZCE Aaron S. Hall, PMP Donna Hall, PMP Jody Hampshire Frederick S. Hansen Jeffrey R. Hansen Frank L. Harper Jr., PhD(c), PMP Peter Harpum Polly Harringon Sue Hasso, PMP Saket R. Havaldar Harlton G. Hawk, CISSP, PMP Michael R. Heiberg, JD, PMP Deborah H. Heintz, MBA, PMP Penny Hendrix Rosemary E. Henley, PMP Cynthia Hennig Bonnie J. Hereford, PMP James (Jim) A. Hessel, BEng, PMP 200

213 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Claire Hevey, PMP Jason Highberger Jay R. Hilton, MBA, PMP Cindy Hochart Lisa R. Hodges, MCSM, PMP Jeffrey Hoffman Robert Hogzett Carol A. Holliday, PMP Valerie Hood-Moore Jacquelyn Hope Richard Horne April E. Horne, MBA, PMP Tim Hornett, PMP Andy Horsfall, PMP George M. Horsham John Howe, PMP Darrel G. Hubbard, PE Edmund N. Hudon, PMP Rose-Helene Humeau, PMP Chuck Hunt Harold S. Hunt, PMP, IT + Drew R. Hunter John Hunter Joan L. Hyland, CSQE, PMP Christine Hynes Subrahmanyam Ivatury Mitchell J. Iverson, PMP Stasia Iwanicki, PMP Angyan P. Jagathnarayanan, FIE, CE Michael K. Jakoby, CFP, PMP Cornelius Jansen Rob Jeges, MBA, PMP William D. Jenison Mike Jenkinson MSc, CEng Pamela D. Johnson Robert Johnson Scott A. Johnson Chandrashekar P. Jois, PhD, CQA Aadham Junaidallah, CISSP, CQA Deepak Kadam Nikitas J. Kalantjakos, PMP Katsayuki Kanaji Russ Kane, PMP Deborah Katz Omar Kayed, MBA Michel Kabanga Kayembe Karl Kaylor Kathy Keele Michael Kehoe, PMP Eleanor B. Kellett John C. Kelly John Kennedy Brian P. Kennemer Larry S. Kilmer David Kim Wendy J. King, PMP Naresh Kirpalani Ranko Klacar, HBSc William T. Knudsen, MBA, PMP Joan Knutson Kenneth Kock Theodore Koike, CPIM, PMP Erin J. Kolias, CGA, PMP Derek Konrad Mitja Kozman George E. Kramer, PMP Walther Krause, PMP John Krigbaum Karel Krikke, MA, PMF Robert V. Kulin, BSc, PMP Prasanna Kumar K. Bob Kunhardt Thomas Kurihara Donna Kurtz Janet Kuster, MBA, PMP Mark E. Kwandrans, MBA, PMP Shelli Lackey Guilherme Ponce de Leon Lago, PMP Winnie Lam, PMP Bruce Lambly J.C. Lamkin, CNA, PMP Scott Langton David J. Lanners, MBA, PMP Rodney D. Larson, PMP Mário Lavado Fernando Ledesma, MBA Gregory Lehn Richard Leight Ronald A. Lester Craig J. Letavec, MSPM, PMP Ralph J. Levene, PhD, FAPM Ginger Levin Andrew Levy Ade Lewandowski Robin Liang Beth Lillie Lori B. Lindbergh, MBA, PMP Tony Lindeman, PMP Gábor Lipi, PMP Jack Lippy Brett M. Locke, CQM, PMP Neil Love Ann L. Lovejoy, MBA Maureen Lovell Brenda Lown Bill Lowthian MEng, PEng Shay Lubianiker Padhraic Ludden, PMP Faye A. Lumsden, MBA, PMP Edwin C. Lutz Mike MacGregor Lawrence Mack Karen L. MacNeil Sajith Madapat, CPIM, PMP David W. Malas, PMP 201

214 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Larry A. Malcolm, PMP Jerry Manas, PMP Jim Mandas Venkat Mangudi Tony Maramara, BSME Andrew Marecek Joseph A. Marotta Jackie Marshall Ronald J. Martin Michael G. Martin, MBA, PMP Donald F. Martin, PE, PMP Richard Mathews Barbara J. Mauro Tim Mawhinney David A. Maynard John S. Mays Mike McAndrew, CQE, PMP Meg McCarthy Jeremy McClain John K. McCreery, PhD, PMP Russ McDowell, MEng, PMP Jeanine McGuire Jody McIlrath Bruce K. McLean, PMP Paul McMahon Richard McNeill, PMP Michael McPherson Ed Mechler, CCP, PMP Terri Melchior, PMP Luis D. Mendieta, BS Greg Miller Tina Miller Tony Miller Berne C. Miller, CPL, PMP Robert T. Milner R. Thomas Milner, PMP Wayne B. Miner Vladimir A. Mininel M. Aslam Mirza, MBA, CE Anil Kumar Mishra Nidhi Misra Megan Mitchell Subhash G. Modasia Robert Moeller Kerri F. Momorella, MBA, PMP Michael S. Monroe R. Lynn Montague, MBA, PMP Danielle Moore Donald J. Moore Karla M. Moore Suzzette Moore Bruce Morey, MSE(ME), PMP Barbara K. Most, PMP Carol A. Mould, BCom(Hons), PMP Douglas Muir Bruce R. Mulholland, PEng, MScCE Ralf Müller, PMP Electa W. Mulvanity, MBA, PMP Somasundaram Muralidharan Robert Murray Heather A. Murrell, MBA Rajan Krishna Murthy Robert J. Myers Judith M. Myerson Ravindra Nadkarni, PMP Subbaraya Mandaya Nagappa, BE Rohini C. Nagaraj Madhusudhan Nagarajan, MBA, PMP George Namour Jay Namputhiripad, MBA, PMP Anthony J. Naples Rajesh K. Narayanan, MBA, PMP Ifakat Nayki Mohammad Naziruddin Stephen R. Neuendorf, Esq Duy Nguyen, MPM, PEng Jose Ignacio Noguera, MBA, PMP Jamie A. Northrup Kimberly D. Norwood Robert Noteboom Katharina Nowotny-Boles, PMP Jose Adir Soibelman Nunes John Oberdiek, PMP Lawrence Oliva, MBA, PMP Linda Oman Perihan Ongeoglu Neil Osborne Else-Marie Östling Loras (Bob) Osweiler James G. Owens Ayo Oyewore Louis R. Pack Jr. Gregory C. Packard, PMP Stephen J. Page Lorna J. Palmer, PEng, PMP Arun K. Pandeya, MBA, PMP Ajay Parasrampuria David Parker William P. Parker Celia Parks Frank Parth Sharon L. Paugh Marcos Paulo Seenivasan Pavanasam Adam Pearson David A. Peck Pasi Penttilä Manuel Chaves Pereira, MSc, PMP Ashley A. Pereira, PEng, MBA Francisco Perez-Polo, PMP John Perotti Allison Perry Helen Peters, PMP Norbert Peterson Vasilj Petrovic, PEng, PMP Barbara C. Phillips, PMP 202

215 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Crispin Kik Piney, BSc, PMP Donald Poitras Joyce Poole, BS, PMP Gretchen Porkert Kevin E. Porter Dan Prather Gloria Presa Richard Prosser Robin Prosser Saurel Quettan, MBA, PMP Gloria Quintanilla-Osorio Srinivas Raghavan, PMP Sandra L. Rago, PMP Monwar Rahman, MBA, MSS Meera Ramachandran, FLMI, PMP S. K. Raman, CISA, PMP Linda W. Ramey, PMP Anneke Randall Suzanne Rankins Raju Narsing Rao, PMP Brett Rawlins, BE Mary-Lou Raybould, PMP, MBA Doug Redden Ravi Narayana Reddy Chandra Sekhar Reddy, BTech, PMP Tiffany Reilly Dax Reis Steve Resnick Wynn Gerald Richards III John V. Rickards, FCAM, PMP Stan Rifkin Tim Riley Donald G. Ritchie Andrew Robertson, PMP James R. Robinson, PMP Mark E. Robson, MPM, PMP Peter J. Rock Alexandre G. Rodrigues, PhD Everett Rodriguez Fabio Zaffalon Rodriguez Manual A. Rodriguez Andy Rodriguez, PMP Fernan Rodriguez, PMP John Roecker, PhD Peter W. Rogers, MMA, MS Asbjørn Rolstadås Dennis M. Rose Diana Russo Gunes Sahillioglu, MSc, MAPM Nirbhay S. Salar, PMP Venkat Sankaran Vinaya Sathyanarayana, BTech, PMP Antony Satyadas Wayne Richard Sauer, PMP David Wayne Sauls Joyce Scales Anne Marie Schanz Roberto Schiliro John Schlichter, MBA Claudia Schmid John Schmitt, PMP William Schneider Richard Schwartz Mark N. Scott Richard A. Scott, MSSM, PMP Pavanasam Seenivasan, MBA, PMP Paul W. Seljeseth, PMP Dhruba P. Sen, CSQA, PMP Amitava Sengupta Rafael Serrano Jr., PMP Azeem K. Shah, MBA, PMP Ajay Sharma Chetan Sharma Monica Sharma Colin A. Sharp Carol A. Sheehan Shoukat M. Sheikh, MBA, PMP Daniel M. Shellhammer, MSc, PMP Mohammed Sherif, MA, MBA W. J. Shiflett Larry Sieck Anji Siegel Mike Silhan, PMP Mike R. Simmons, PMP Jagannath Sivaramalingam Gregory Skulmoski Tina Slankas, PMP Ken Smith Tim L. Smith Paul Smith, CPA, PMP Sushmita K. Smith, PMP William Snyder Joseph A. Sopko, PMP Thierry M. Soulard, PMP Randall S. Spires Kristopher G. Sprague, MBA, PMP Meg Sprangler Michael E. Spruch, PMP G. H. Sridhar Srini B. Srinivasan, CISA, PMP Julie St. George Tim R. Stahl Edward A. Starr Malcolm Stayner, PMP Jeffery Stempien, PMP Dennis G. Stephenson, PMP Marie Sterling, BSc Chris Stevens, BSc(Hon), PhD Sharon B. Stewart Michael Stockwell, PMP Paulette Strain Lee A. Stubbert Thangavel Subbu, MBA, PMP 203

216 APPENDIX X2 - CONTRIBUTORS AND REVIEWERS OF THE OPM3 STANDARD Finn Svenning Brett R. Swartz, PMP Leon D. Swartz, PMP Edward P. Swirbalus, PMP Adam D. Sykes, MS, PMP Kelly M. Talsma, PMP Bond R. Tarr, PMP Christine E. Tauhert, PMP David E. Taylor, PMP Harrell Thomas, RCDD Tracie H. Thompson John M. Thorsen Sean P. Tillman Tobi Timko B. Ray Tinkler Jr. Sandra Titus Roberto Torres, PhD, PMP Lee A. Towe, MBA, PMP Joseph P. Townsend, MBA, PMP Robert C. Trafton, PMP Yves Trehin, PMP Theresa Trent Mario Trevino Lynne Tribble Leena V. Tripathi, PMP Zachary D. Tudor, CISSP, CCP Ian Turnbull Rufus A. Turpin, CSQE, CQA Bobbeye Underwood, PMP Akhil Uniyal, MBA Theodore J. Urbanowicz, PMP Attaback Vahid, PMP Robert van der Veur Noah van Loen, PMP Paul van Tongeren, BSc, PMP William D. (Bill) Varanese, CBCP, PMP Ricardo Viana Vargas, MSc, PMP Satish Varma Jan G. M. Veltman Deb Verlo Karen S. Vernon, PMP Roberto Viale, PMP Walter A. Viali, CSQA, PMP Marconi Fábio Vieira, MBA, PMP Edward M. Vigen, PMP Tobias Aliaga Vilchez Dave Violette, MPM, PMP Viola Visnjevac, PMP Cornelis (Kees) Vonk, PMP Ronald P. C. Waller, PMP, PMI Fellow Charlene Chuck Walrad Jennifer Walter, PMP Qiyu Wang, MBA, PMP Melissa A. Warchol Jonathan Ward Nick Warrillow, APMP, LLB Melissa Washington Richard A. Watts Linda Watts, PMP, CBA-IPI Lead Assessor Mohammad Waziruddi Dalton Weekley Joseph E. Weider David E. Weil Cynthia T. Weinmann Paul Wesman, MA Randy West John Wetter, PMP, MBA Michael J. Weymier, PMP Rosanne M. Wiesen Jean M. Wilhelm, MSHA, PMP Sherryl G. Wilkins, MBA, PMP David Williamson, MBA, PMP Marcy M. Wilson Patrick Wilson Lance E. Wilson, PMP Gregory Wilt Doug Winters, SSBB, PMP Kenneth C. Wiswall Jacek Wojcieszynski Peter W. A. Wood James Woods, PMO-CAQ, PMP David E. Worrell William R. Wright Robert K. Wysocki Lu Xiao, PMP Brian R. York, MBA, PMP Ralph Young Alan E. Yue, MCNE, PMP Brenda Zech Sameh Said Zeid Marc A. Zocher Marc Zubrzycki Ofer Zwikael 204

217 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS APPENDIX X3 OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS X3.1 OPM3 Self-Assessment Method The OPM3 Self-Assessment Method (SAM) is for use by an organization when looking to gain experience with model application at a high level. This does not replace a rigorous assessment performed by an OPM3 Certified Practitioner, but can help acquaint the organization with the model in general. The OPM3 SAM permits organizations to assess their current state of maturity in organizational project management in relation to the set of Best Practices that comprise the OPM3 standard. The results of the self-assessment indicate where the organization stands on a general continuum of organizational project management maturity, viewed overall in terms of maturity within the domains and process improvement stages. The results identify the list of Best Practices the organization currently demonstrates and a list of Best Practices the organization does not demonstrate, according to the responses given to the survey. This appendix includes a significant list of self-assessment questions. The SMCI SAM questions appear first, followed by the OE SAM questions. Best Practice ID SAM Question Yes No ment Stage 8400 Does your organization the Develop Strategic Plan process? 8510 Does your organization the Develop Strategic Plan process? 8620 Does your organization the Develop Strategic Plan process? 8730 Does your organization the Develop Strategic Plan process? 8410 Does your organization the Develop Charter process? 8520 Does your organization the Develop Charter process? 8630 Does your organization the Develop Charter process? 8740 Does your organization the Develop Charter process? 8420 Does your organization the Define Roadmap process? 8530 Does your organization the Define Roadmap process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 205

218 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 8640 Does your organization the Define Roadmap process? 8750 Does your organization the Define Roadmap process? 5080 Does your organization the Manage Strategic Change process? 5990 Does your organization the Manage Strategic Change process? 6500 Does your organization the Manage Strategic Change process? 6890 Does your organization the Manage Strategic Change process? 8540 Does your organization the Develop Management Plan process? 8550 Does your organization the Develop Management Plan process? 8650 Does your organization the Develop Management Plan process? 8760 Does your organization the Develop Management Plan process? 4945 Does your organization the Define process? 4955 Does your organization the Define process? 4965 Does your organization the Define process? 4975 Does your organization the Define process? 4985 Does your organization the Optimize process? 4995 Does your organization the Optimize process? 5005 Does your organization the Optimize process? 5015 Does your organization the Optimize process? 5025 Does your organization the Authorize process? 5035 Does your organization the Authorize process? 5045 Does your organization the Authorize process? 5055 Does your organization the Authorize process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

219 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 8460 Does your organization the Provide Oversight process? 8570 Does your organization the Provide Oversight process? 8680 Does your organization the Provide Oversight process? 8790 Does your organization the Provide Oversight process? 8470 Does your organization the Develop Performance Management Plan process? 8580 Does your organization the Develop Performance Management Plan process? 8690 Does your organization the Develop Performance Management Plan process? 8800 Does your organization the Develop Performance Management Plan process? 8480 Does your organization the Manage Supply and Demand process? 8590 Does your organization the Manage Supply and Demand process? 8700 Does your organization the Manage Supply and Demand process? 8810 Does your organization the Manage Supply and Demand process? 8490 Does your organization the Manage Value process? 8600 Does your organization the Manage Value process? 8710 Does your organization the Manage Value process? 8820 Does your organization the Manage Value process? 5030 Does your organization the Develop Communication Management Plan process? 5940 Does your organization the Develop Communication Management Plan process? 6450 Does your organization the Develop Communication Management Plan process? 6840 Does your organization the Develop Communication Management Plan process? 5070 Does your organization the Manage Information process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 207

220 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 5980 Does your organization the Manage Information process? 6490 Does your organization the Manage Information process? 6880 Does your organization the Manage Information process? 8500 Does your organization the Develop Risk Management Plan process? 8610 Does your organization the Develop Risk Management Plan process? 8720 Does your organization the Develop Risk Management Plan process? 8830 Does your organization the Develop Risk Management Plan process? 5140 Does your organization the Manage Risks process? 6050 Does your organization the Manage Risks process? 6560 Does your organization the Manage Risks process? 6950 Does your organization the Manage Risks process? 3270 Does your organization the Communications Planning process? 3740 Does your organization the Communications Planning process? 4150 Does your organization the Communications Planning process? 4540 Does your organization the Communications Planning process? 3370 Does your organization the Information Distribution process? 3840 Does your organization the Information Distribution process? 4250 Does your organization the Information Distribution process? 4640 Does your organization the Information Distribution process? 3410 Does your organization the Performance Reporting process? 3880 Does your organization the Performance Reporting process? 4290 Does your organization the Performance Reporting process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

221 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 4680 Does your organization the Performance Reporting process? 3210 Does your organization the Cost Estimation process? 3680 Does your organization the Cost Estimation process? 4090 Does your organization the Cost Estimation process? 4480 Does your organization the Cost Estimation process? 3715 Does your organization the Financial Framework Establishment process? 3725 Does your organization the Financial Framework Establishment process? 3735 Does your organization the Financial Framework Establishment process? 3705 Does your organization the Financial Framework Establishment process? 3755 Does your organization the Financial Management Plan Development process? 3765 Does your organization the Financial Management Plan Development process? 3775 Does your organization the Financial Management Plan Development process? 3745 Does your organization the Financial Management Plan Development process? 7710 Does your organization the Component Cost Estimation process? 7880 Does your organization the Component Cost Estimation process? 8050 Does your organization the Component Cost Estimation process? 8220 Does your organization the Component Cost Estimation process? 3220 Does your organization the Cost Budgeting process? 3690 Does your organization the Cost Budgeting process? 4100 Does your organization the Cost Budgeting process? 4490 Does your organization the Cost Budgeting process? 3825 Does your organization the Financial Monitoring and process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 209

222 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 3835 Does your organization the Financial Monitoring and process? 3805 Does your organization the Financial Monitoring and process? 3815 Does your organization the Financial Monitoring and process? 7720 Does your organization the Financial Closure process? 7890 Does your organization the Financial Closure process? 8060 Does your organization the Financial Closure process? 8230 Does your organization the Financial Closure process? 3120 Does your organization the Initiation process? 3590 Does your organization the Initiation process? 4000 Does your organization the Initiation process? 4390 Does your organization the Initiation process? 3130 Does your organization the Management Plan Development process? 3600 Does your organization the Management Plan Development process? 4010 Does your organization the Management Plan Development process? 4405 Does your organization the Management Plan Development process? 3155 Does your organization the Infrastructure Development process? 3165 Does your organization the Infrastructure Development process? 3175 Does your organization the Infrastructure Development process? 3185 Does your organization the Infrastructure Development process? 3340 Does your organization the Execution Management process? 3810 Does your organization the Execution Management process? 4220 Does your organization the Execution Management process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

223 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 4610 Does your organization the Execution Management process? 3215 Does your organization the Performance Monitoring and process? 3225 Does your organization the Performance Monitoring and process? 3235 Does your organization the Performance Monitoring and process? 3245 Does your organization the Performance Monitoring and process? 4385 Does your organization the Transition and Benefits Sustainment process? 4355 Does your organization the Transition and Benefits Sustainment process? 4365 Does your organization the Transition and Benefits Sustainment process? 4375 Does your organization the Transition and Benefits Sustainment process? 3500 Does your organization the Closure process? 3970 Does your organization the Closure process? 4380 Does your organization the Closure process? 4770 Does your organization the Closure process? 3320 Does your organization the Procurement Planning process? 3790 Does your organization the Procurement Planning process? 4200 Does your organization the Procurement Planning process? 4590 Does your organization the Procurement Planning process? 3665 Does your organization the Procurement process? 3675 Does your organization the Procurement process? 3685 Does your organization the Procurement process? 3655 Does your organization the Procurement process? 3400 Does your organization the Procurement Administration process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 211

224 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 3870 Does your organization the Procurement Administration process? 4280 Does your organization the Procurement Administration process? 4670 Does your organization the Procurement Administration process? 3490 Does your organization the Procurement Closure process? 3960 Does your organization the Procurement Closure process? 4370 Does your organization the Procurement Closure process? 4760 Does your organization the Procurement Closure process? 3240 Does your organization the Quality Planning process? 3710 Does your organization the Quality Planning process? 4120 Does your organization the Quality Planning process? 4510 Does your organization the Quality Planning process? 7780 Does your organization the Quality Assurance process? 7950 Does your organization the Quality Assurance process? 8120 Does your organization the Quality Assurance process? 8290 Does your organization the Quality Assurance process? 7790 Does your organization the Quality process? 7960 Does your organization the Quality process? 8130 Does your organization the Quality process? 8300 Does your organization the Quality process? 7800 Does your organization the Resource Planning process? 7970 Does your organization the Resource Planning process? 8140 Does your organization the Resource Planning process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

225 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 8310 Does your organization the Resource Planning process? 7810 Does your organization the Resource Prioritization process? 7980 Does your organization the Resource Prioritization process? 8150 Does your organization the Resource Prioritization process? 8320 Does your organization the Resource Prioritization process? 7820 Does your organization the Resource Interdependency Management process? 7990 Does your organization the Resource Interdependency Management process? 8160 Does your organization the Resource Interdependency Management process? 8330 Does your organization the Resource Interdependency Management process? 3230 Does your organization the Risk Management Planning process? 3700 Does your organization the Risk Management Planning process? 4110 Does your organization the Risk Management Planning process? 4500 Does your organization the Risk Management Planning process? 3280 Does your organization the Risk Identification process? 3750 Does your organization the Risk Identification process? 4160 Does your organization the Risk Identification process? 4550 Does your organization the Risk Identification process? 3615 Does your organization the Risk Analysis process? 3625 Does your organization the Risk Analysis process? 3635 Does your organization the Risk Analysis process? 3605 Does your organization the Risk Analysis process? 3310 Does your organization the Risk Response Planning process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 213

226 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 3780 Does your organization the Risk Response Planning process? 4190 Does your organization the Risk Response Planning process? 4580 Does your organization the Risk Response Planning process? 3480 Does your organization the Risk Monitoring and process? 3950 Does your organization the Risk Monitoring and process? 4360 Does your organization the Risk Monitoring and process? 4750 Does your organization the Risk Monitoring and process? 3190 Does your organization the Schedule Planning process? 3660 Does your organization the Schedule Planning process? 4070 Does your organization the Schedule Planning process? 4460 Does your organization the Schedule Planning process? 3450 Does your organization the Schedule process? 3920 Does your organization the Schedule process? 4330 Does your organization the Schedule process? 4720 Does your organization the Schedule process? 3140 Does your organization the Scope Planning process? 3610 Does your organization the Scope Planning process? 4020 Does your organization the Scope Planning process? 4410 Does your organization the Scope Planning process? 3440 Does your organization the Scope process? 3910 Does your organization the Scope process? 4320 Does your organization the Scope process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

227 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 4710 Does your organization the Scope process? 1005 Does your organization the Develop Charter process? 1700 Does your organization the Develop Charter process? 2240 Does your organization the Develop Charter process? 2630 Does your organization the Develop Charter process? 1020 Does your organization the Develop Management Plan process? 1710 Does your organization the Develop Management Plan process? 2250 Does your organization the Develop Management Plan process? 2640 Does your organization the Develop Management Plan process? 1230 Does your organization the Direct and Manage Work process? 1920 Does your organization the Direct and Manage Work process? 2460 Does your organization the Direct and Manage Work process? 2850 Does your organization the Direct and Manage Work process? 1035 Does your organization the Monitor and Work process? 1045 Does your organization the Monitor and Work process? 1055 Does your organization the Monitor and Work process? 1065 Does your organization the Monitor and Work process? 1310 Does your organization the Perform Integrated Change process? 2000 Does your organization the Perform Integrated Change process? 2540 Does your organization the Perform Integrated Change process? 2930 Does your organization the Perform Integrated Change process? 1390 Does your organization the Close or Phase process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 215

228 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 2080 Does your organization the Close or Phase process? 2620 Does your organization the Close or Phase process? 3010 Does your organization the Close or Phase process? 7500 Does your organization the Plan Scope Management process? 7550 Does your organization the Plan Scope Management process? 7600 Does your organization the Plan Scope Management process? 7650 Does your organization the Plan Scope Management process? 1030 Does your organization the Collect Requirements process? 1720 Does your organization the Collect Requirements process? 2260 Does your organization the Collect Requirements process? 2650 Does your organization the Collect Requirements process? 1040 Does your organization the Define Scope process? 1730 Does your organization the Define Scope process? 2270 Does your organization the Define Scope process? 2660 Does your organization the Define Scope process? 1075 Does your organization the Create WBS process? 1085 Does your organization the Create WBS process? 1095 Does your organization the Create WBS process? 1105 Does your organization the Create WBS process? 1320 Does your organization the Validate Scope process? 2010 Does your organization the Validate Scope process? 2550 Does your organization the Validate Scope process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

229 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No 2940 Does your organization the Validate Scope process? ment Stage 1330 Does your organization the Scope process? 2020 Does your organization the Scope process? 2560 Does your organization the Scope process? 2950 Does your organization the Scope process? 7510 Does your organization the Plan Schedule Management process? 7560 Does your organization the Plan Schedule Management process? 7610 Does your organization the Plan Schedule Management process? 7660 Does your organization the Plan Schedule Management process? 1050 Does your organization the Define Activities process? 1740 Does your organization the Define Activities process? 2280 Does your organization the Define Activities process? 2670 Does your organization the Define Activities process? 1060 Does your organization the Sequence Activities process? 1750 Does your organization the Sequence Activities process? 2290 Does your organization the Sequence Activities process? 2680 Does your organization the Sequence Activities process? 1115 Does your organization the Estimate Activity Resources process? 1125 Does your organization the Estimate Activity Resources process? 1135 Does your organization the Estimate Activity Resources process? 1145 Does your organization the Estimate Activity Resources process? 1070 Does your organization the Estimate Activity Durations process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 217

230 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 1760 Does your organization the Estimate Activity Durations process? 2300 Does your organization the Estimate Activity Durations process? 2690 Does your organization the Estimate Activity Durations process? 1080 Does your organization the Develop Schedule process? 1770 Does your organization the Develop Schedule process? 2310 Does your organization the Develop Schedule process? 2700 Does your organization the Develop Schedule process? 1340 Does your organization the Schedule process? 2030 Does your organization the Schedule process? 2570 Does your organization the Schedule process? 2960 Does your organization the Schedule process? 7520 Does your organization the Plan Cost Management process? 7570 Does your organization the Plan Cost Management process? 7620 Does your organization the Plan Cost Management process? 7670 Does your organization the Plan Cost Management process? 1100 Does your organization the Estimate Costs process? 1790 Does your organization the Estimate Costs process? 2330 Does your organization the Estimate Costs process? 2720 Does your organization the Estimate Costs process? 1110 Does your organization the Determine Budget process? 1800 Does your organization the Determine Budget process? 2340 Does your organization the Determine Budget process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

231 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 2730 Does your organization the Determine Budget process? 1350 Does your organization the Costs process? 2040 Does your organization the Costs process? 2580 Does your organization the Costs process? 2970 Does your organization the Costs process? 1130 Does your organization the Plan Quality Management process? 1820 Does your organization the Plan Quality Management process? 2360 Does your organization the Plan Quality Management process? 2750 Does your organization the Plan Quality Management process? 1240 Does your organization the Perform Quality Assurance process? 1930 Does your organization the Perform Quality Assurance process? 2470 Does your organization the Perform Quality Assurance process? 2860 Does your organization the Perform Quality Assurance process? 1360 Does your organization the Quality process? 2050 Does your organization the Quality process? 2590 Does your organization the Quality process? 2980 Does your organization the Quality process? 1090 Does your organization the Plan Human Resource Management process? 1780 Does your organization the Plan Human Resource Management process? 2320 Does your organization the Plan Human Resource Management process? 2710 Does your organization the Plan Human Resource Management process? 1150 Does your organization the Acquire Team process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 219

232 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 1840 Does your organization the Acquire Team process? 2380 Does your organization the Acquire Team process? 2770 Does your organization the Acquire Team process? 1250 Does your organization the Develop Team process? 1940 Does your organization the Develop Team process? 2480 Does your organization the Develop Team process? 2870 Does your organization the Develop Team process? 1155 Does your organization the Manage Team process? 1165 Does your organization the Manage Team process? 1175 Does your organization the Manage Team process? 1185 Does your organization the Manage Team process? 1160 Does your organization the Plan Communications Management process? 1850 Does your organization the Plan Communications Management process? 2390 Does your organization the Plan Communications Management process? 2780 Does your organization the Plan Communications Management process? 1260 Does your organization the Manage Communications process? 1950 Does your organization the Manage Communications process? 2490 Does your organization the Manage Communications process? 2880 Does your organization the Manage Communications process? 1300 Does your organization the Communications process? 1990 Does your organization the Communications process? 2530 Does your organization the Communications process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

233 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 2920 Does your organization the Communications process? 1120 Does your organization the Plan Risk Management process? 1810 Does your organization the Plan Risk Management process? 2350 Does your organization the Plan Risk Management process? 2740 Does your organization the Plan Risk Management process? 1170 Does your organization the Identify Risks process? 1860 Does your organization the Identify Risks process? 2400 Does your organization the Identify Risks process? 2790 Does your organization the Identify Risks process? 1180 Does your organization the Perform Qualitative Risk Analysis process? 1870 Does your organization the Perform Qualitative Risk Analysis process? 2410 Does your organization the Perform Qualitative Risk Analysis process? 2800 Does your organization the Perform Qualitative Risk Analysis process? 1190 Does your organization the Perform Quantitative Risk Analysis process? 1880 Does your organization the Perform Quantitative Risk Analysis process? 2420 Does your organization the Perform Quantitative Risk Analysis process? 2810 Does your organization the Perform Quantitative Risk Analysis process? 1200 Does your organization the Plan Risk Responses process? 1890 Does your organization the Plan Risk Responses process? 2430 Does your organization the Plan Risk Responses process? 2820 Does your organization the Plan Risk Responses process? 1370 Does your organization the Risks process? 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 221

234 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 2060 Does your organization the Risks process? 2600 Does your organization the Risks process? 2990 Does your organization the Risks process? 1210 Does your organization the Plan Procurement Management process? 1900 Does your organization the Plan Procurement Management process? 2440 Does your organization the Plan Procurement Management process? 2830 Does your organization the Plan Procurement Management process? 1270 Does your organization the Conduct Procurements process? 1960 Does your organization the Conduct Procurements process? 2500 Does your organization the Conduct Procurements process? 2890 Does your organization the Conduct Procurements process? 1290 Does your organization the Procurements process? 1980 Does your organization the Procurements process? 2520 Does your organization the Procurements process? 2910 Does your organization the Procurements process? 1380 Does your organization the Close Procurements process? 2070 Does your organization the Close Procurements process? 2610 Does your organization the Close Procurements process? 3000 Does your organization the Close Procurements process? 1195 Does your organization the Identify Stakeholders process? 2005 Does your organization the Identify Stakeholders process? 2015 Does your organization the Identify Stakeholders process? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

235 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No 2025 Does your organization the Identify Stakeholders process? 7530 Does your organization the Plan Stakeholder Management process? 7580 Does your organization the Plan Stakeholder Management process? 7630 Does your organization the Plan Stakeholder Management process? 7680 Does your organization the Plan Stakeholder Management process? 2035 Does your organization the Manage Stakeholder Engagement process? 2045 Does your organization the Manage Stakeholder Engagement process? 2055 Does your organization the Manage Stakeholder Engagement process? 2065 Does your organization the Manage Stakeholder Engagement process? 7540 Does your organization the Stakeholder Engagement process? 7590 Does your organization the Stakeholder Engagement process? 7640 Does your organization the Stakeholder Engagement process? 7690 Does your organization the Stakeholder Engagement process? 5490 Does your organization Recognize Value of Management? 1000 Does your organization Establish Organizational Management Policies? 1400 Does your organization Staff Organizational Management With Competent Resources? 1450 Does your organization Establish Strong Sponsorship? 1460 Does your organization Tailor Management es Flexibly? 1590 Does your organization Record Resource Assignments? 2190 Does your organization Benchmark Organizational Management Performance Against Industry Standards? 3030 Does your organization Capture and Share Lessons Learned? 5180 Does your organization Educate Executives? ment Stage 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 223

236 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No 5190 Does your organization Facilitate Manager Development? 5200 Does your organization Provide Management Training? 5210 Does your organization Provide Continuous Training? 5220 Does your organization Provide Competent Organizational Management Resources? 5240 Does your organization Establish Internal Management Communities? 5250 Does your organization Interact With External Management Communities? 5270 Does your organization Integrate Management Methodology with Organizational es? 5280 Does your organization Establish Common Management Framework? 5300 Does your organization Establish Training and Development? 5340 Does your organization Establish Executive Support? 5500 Does your organization Define Management Values? 5620 Does your organization Establish Career Path for all Organizational Management Roles? 7005 Does your organization have an OPM Leadership? 7015 Does your organization Educate Stakeholders in OPM? 7025 Does your organization have a Cultural Diversity Awareness? 7045 Does your organization Establish Organizational Management Structure? 7055 Does your organization Adopt Organizational Management Structure? 7065 Does your organization Institutionalize Organizational Management Structure? 7105 Does your organization Manage the Holistic View of the? 7115 Does your organization Manage the Environment? 7185 Does your organization Demonstrate Communicating Competency? 7325 Does your organization Collect OPM Success Metrics? ment Stage Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

237 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No 7335 Does your organization Use OPM Success Metrics? 7345 Does your organization Verify OPM Success Metric Accuracy? 7355 Does your organization Analyze and OPM Success Metrics? 7365 Does your organization have a Management Information System? 7405 Does your organization Achieve Strategic Goals and Objectives Through the Use of Organizational Management? 8900 Does your organization Accommodate Organization s Approved Frameworks and Governance Structures? 8910 Does your organization Analyze Value Performance? 8920 Does your organization Assess the Realization of Proposed Benefits? 8930 Does your organization Benchmark PMO Practices and Results? 8940 Does your organization Create a Risk-Aware Culture? 8960 Does your organization address Developing Management Templates? 9000 Does your organization Establish Enterprise Risk Management Methodology? 9010 Does your organization Establish Executive Summary Dashboards? 9020 Does your organization Establish Governance Policies Across the Organization? 9030 Does your organization Establish Organizational Management Reporting Standards? 9040 Does your organization Establish Delivery Tips and Techniques Special Interest Group? 9060 Does your organization Establish Resource Allocation and Optimization es? 9080 Does your organization Establish Strategic Alignment Framework? 9090 Does your organization Incorporate Performance Benchmarks into Balanced Scorecard System? 9130 Does your organization Report OPM Performance to Strategy? 9140 Does your organization Report Strategic Performance? ment Stage 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 225

238 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No 9150 Does your organization ensure that Specialists are Shared Between s? 9170 Does your organization have a Consistent,, and Governance Across the Enterprise? 9180 Does your organization Use Mathematically Sound Methods for Prioritization? 9200 Does your organization Use Formal Performance Assessment? 7075 Does your organization Provide Organizational Management Support Office? 1530 Does your organization Use Formal Individual Performance Assessment? 5170 Does your organization Use Common Language? 5320 Does your organization Certify Quality Management System? 6980 Does your organization Create an Organizational Maturity Development? 7035 Does your organization have an Organizational Business Change Management? 7315 Does your organization Define OPM Success Metrics? 7375 Does your organization have Intellectual Capital Reuse? 9070 Does your organization Establish Scarce Resource Allocation Criteria? 9190 Does your organization Use an Optimizer to Select the? 7125 Does The Organization Manages Self Development? 7305 Does your organization have Estimating Template/ Tools Established for Use Across Organization? 9210 Does your organization Manage Resources? 9220 Does your organization Manage Issues? 9230 Does your organization Manage Component Interfaces? 9240 Does your organization Plan Stakeholder Management? 9250 Does your organization Identify Stakeholders? 9260 Does your organization Engage Stakeholder? ment Stage Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

239 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No 9270 Does your organization Manage Stakeholder Expectations? 9280 Does your organization Plan and Establish Governance Structure? 9290 Does your organization Plan for Audits? 9300 Does your organization Provide Governance Oversight? 9310 Does your organization have Strategic Alignment of s? 1430 Does your organization Establish Manager Competency es? 1540 Does your organization Include Strategic Goals Into Objectives? 1670 Does your organization Know Inter- Plan? 2090 Does your organization Adhere to Management Techniques? 3070 Does your organization Encourage Risk Taking? 5260 Does your organization Customize Management Methodology? 5520 Does your organization Collaborate on Goals? 7135 Does your organization Demonstrate Competency in Initiating a? 7145 Does your organization Demonstrate Competency in Planning a? 7155 Does your organization Demonstrate Competency in Executing a? 7165 Does your organization Demonstrate Competency in Monitoring and ling a? 7175 Does your organization Demonstrate Competency in Closing a? 7195 Does your organization Demonstrate Leading Competency? 7205 Does your organization Demonstrate Managing Competency? 7215 Does your organization Demonstrate Cognitive Ability Competency? 7225 Does your organization Demonstrate Effectiveness Competency? 7235 Does your organization Demonstrate Professionalism Competency? 8950 Does your organization Define Key Leading Indicators? 8970 Does your organization Document Management Case Studies? ment Stage 2013 Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition 227

240 APPENDIX X3 - OPM3 SELF-ASSESSMENT METHOD (SAM) QUESTIONS Best Practice ID SAM Question Yes No ment Stage 8980 Does your organization Encourage Adherence to Management Code of Ethics? 8990 Does your organization Establish Competent Sponsors? 9050 Does your organization Establish Management Template Tailoring Guidelines? 9100 Does your organization have Management Case Studies Included in Induction? 9110 Does your organization ensure that Management Training is Mapped to Career Development Path? 9120 Does your organization Provide Mentoring to Managers? 9160 Does your organization have a Consistent Orientation? Management Institute. Organizational Management Maturity Model (OPM3 ) Third Edition

241 APPENDIX X4 - OPM3 CASE STUDIES APPENDIX X4 OPM3 CASE STUDIES The following case studies are illustrative of how OPM3 can be used to increase organizational capabilities and improve business results. These case studies were written by the OPM3 professionals involved in these specific cases. X4.1 Advanced Electronics Company (AEC), Kingdom of Saudi Arabia X4.1.1 Problem Statement Advanced Electronics Company (AEC) was established in 1989 in Riyadh, Saudi Arabia, as an economics offset company. The charter of AEC is focused around design, production, repair, and support of complex electronic products for military, industrial, and telecommunication end users. AEC has a solid reputation for quality and employment of some of the most skillful engineers in Saudi Arabia. AEC project management practices were originally based on military standards and, over the years, were updated and modified to be more compliant with up-to-date standards. However, as is the case with any growing company that takes on larger and more challenging projects, AEC management realized the need to realign its project, program, and portfolio management (P3M) practices to more up-to-date best practices. Under the sponsor of the CEO, a program management council (PMC) was formed with representation from AEC s main business units for the purposes of looking at the issues and overseeing a self-driven improvement initiative to realign AEC P3M practices to world-class best practices. The PMC quickly made the decision to benchmark the current organizational behaviors and practices in project management and chose a measurement framework that would encapsulate their plan for improvement. The CEO of AEC chose OPM3 because the company wanted to be measured not only against organizations in Saudi Arabia or the Middle East, but also against respected international companies. OPM3 provided AEC with a common scale to start from and the ability to be measured periodically on that scale as the company improved. X4.1.2 Solution Description A Certified OPM3 Assessor was selected to conduct the assessment and set about a structured method of gathering, analyzing, and interpreting the data over several waves, producing results which have been the bedrock of an integrated improvement program at AEC. In the first wave, the assessor interviewed key stakeholders and determined which processes and practices were currently in place and how well they were adhered to. Initial results confirmed that, although there was much good practice within AEC, many project management processes were not formally standardized or actively managed. 229

242 APPENDIX X4 - OPM3 CASE STUDIES The second wave of investigation saw more in-depth interviews with a broader range of stakeholders to determine the full range of OPM3 Capabilities and Best Practices achieved. This included focused investigations into support functions such as finance, procurement and human resources which were key to establishing a clear understanding of OPM3 s organizational enablers. The assessor used the OPM3 scoring methodology during interviews and workshops. These results were then fed into the OPM3 ProductSuite software which was used to prepare the final report. X4.1.3 Results The results of the assessment confirmed AEC s challenges and the direction they wanted to take. Though their project management performance was generally perceived among the best in Saudi Arabia, this was not due to the standardization, measurement, and control inherent in their project management processes. Moreover, when it came to program and portfolio management, there was a significant opportunity for improvement, though some tacit good practice was evident. The assessor noted that OPM3 s scoring criteria is stringent when assessed for the first time, and the results show that there is much work to be done to ensure that AEC s project management performance is consistent, repeatable, and sustainable; however, there were many good practices in place. Based on the results of the OPM3 assessment, AEC obtained a certified OPM3 consultant to set up a full P3M capability development program, including the creation of a Corporate Office (CPO) and individual P3Os in each business unit using the hub and spoke model. The main measure of success will be the improvement demonstrated in a second OPM3 assessment at the completion of the program when the majority of appropriate processes and frameworks will be in place. This framework will ensure that there is a seamless accountable chain from the development of organizational strategy through to its implementation by means of portfolios of program and projects. OPM3 ensures that the work AEC has been doing to improve is not happening in a vacuum. In commissioning an OPM3 assessor, AEC will be able to measure their efforts and successes by benchmarking improvement against a neutral standard, designed to measure the world s best organizations. The Senior Executive Management Board will have a tangible means of monitoring progress. OPM3 has been instrumental in providing insight, clarity, focus, and momentum for AEC. After 18 months, AEC has a new P3M framework that was developed to help with their goal of portfolio, program, and project excellence. X4.2 Ambithus, Lisboa, Portugal X4.2.1 Problem Statement The Ambithus project is underway in Portugal, representing one hundred organization assessments and improvement plans, based on PMI s maturity model OPM3. The project is supported by the European Union and the Portuguese state. 230

243 APPENDIX X4 - OPM3 CASE STUDIES The OPM3 Portugal is chartered based on the need that the organizing entities want to improve the way the Portuguese industry starts, chooses, manages, controls, and closes projects. This is an opportunity to take advantage of the System of Incentives for Research and Technological Development (R&D) projects to be supported by European Union funding, which is covered under the concept of leading to the creation of new products, processes, or systems or the introduction of significant improvements in products, processes, or systems. X4.2.2 Solution Description The OPM3 Portugal consists of a comprehensive analysis of the state of the Portuguese Industry with regard to the degree of maturity in the adoption of portfolio, program, and project management methodology using PMI s OPM3 maturity model. Throughout the research, this study will also produce impacts on the case studies the companies that are the subject of the project s study, since it will be built and validated with organizational improvement plans that can be adopted by the participating companies. X4.2.3 Results Overall, this assessment exercise was intended to create multiple benefits to country stakeholders. For organizations, the intent was to improve the relationship between strategic planning and execution, extending the results of projects, making them more predictable, reliable, and consistent. Other benefits included the identification of Best Practices to support organizational strategy for implementing successful projects and the identification of specific skills that the organization has and which can be best practices. For policymakers, a country level measure of maturity can assist with the design of future interventions. Sectors with a low level of maturity can receive additional support for executing projects and can be encouraged to form partnerships with more mature sectors. Several other benefits have been identified: Development of a specific methodology for intervention in companies with regard to the verification of organizational maturity level. Development of an information system to manage administration of OPM3 interventions at the country level. The data can be used to assess the effectiveness of improvement actions as well as be shared with countries seeking to perform a similar exercise. Lessons learned from the project for application in a similar manner to the information system discussed previously. Information system that integrates the methods of intervention and could be exploited commercially. 231

244 APPENDIX X4 - OPM3 CASE STUDIES X4.2.4 Additional Description X Planning and Organizing In this stage, all generic procedures and structured management and control of the project are defined, as well as more detailed planning activities and processes. A cross-functional team consisting of representatives from academia, OPM3 consultants, and company representatives was formed to manage project delivery. Particular attention will be paid to documenting lessons learned, identifying areas of good practice, and possible ways to improve future projects. The team also created specific information systems for this project. A management information system was created for company assessments, and a site was created for registration and online management of all research. This was necessary in order to be able to properly structure and organize research, increasing the efficiency of the more than 20 researchers directly involved. This system was designed by Ambithus researchers who will collaborate in drawing researchers and academics. X Company Assessment For the company assessments, PMI s OPM3 (Organizational Management Maturity Model) was selected. The advantage of OPM3 is its flexibility and comprehensiveness as it contains hundreds of organizational Best Practices, assesses current capabilities of the organization, and maps the steps needed to improve organizational performance. OPM3 also enables the generation of useful outputs to owners and managers at an early stage of research. As a maturity model, OPM3 provides a method for organizations to understand their processes and measure their skills as they prepare to improve internal procedures. It also enables organizations to develop a vision of the way forward to improve performance, whether in portfolio, program, or project management. These outputs from OPM3 can help to maintain the organizational commitment to the project and to support subsequent data collection by researchers. The study includes 100 organizations that were selected because they engaged in either a large number of projects or had to deliver products and services that were the output of complex projects. Another important condition of the study is that the company s top management is required to fully support the study. The process begins with the signing of a protocol of cooperation which is specified in the objectives and deliverables. This set of rules should specify the name of the internal promoter (project manager) within the company or organization involved, the entity name of organization from the Scientific and Technological System, a participating partner, and the name of the OPM3 consultant appointed by Ambithus. The objective is to address 100 organizations: 55 that are addressed by the scientific community and 45 that are addressed by Ambithus directly. The initial process of intervention is: Preliminary meeting between the managers and the project sponsor; Meeting with top management; Meeting with program manager (or person who defines strategy); Meeting with the portfolio manager (or person who makes decisions on resources); 232

245 APPENDIX X4 - OPM3 CASE STUDIES Meeting with the PMO manager (or person who appoints the project managers); Meeting with other organizational enablers, like commercial managers, financial managers, marketing managers, and others); Meetings with project managers, and Meeting with team members. This intervention process sequence is OPM3-complaint, and all the actions are coordinated by senior consultants. Consistent input and elimination of interviewer bias is guaranteed by the established quality control process, which will work preventively by assuring that all collected data is properly recorded in the information system. Following the fieldwork, a status report for the OPM3 maturity will be generated and presented to directors and top managers. The presentation of the report will be the working basis for the design of the improvement plan, which will be presented and delivered to the company management. Employees understand that management will participate in this process. Organizations will be selected from the following sectors: Government. These organizations provide services to the public and private sector. They are a key part of the enabling infrastructure of the Portuguese business environment. Multinational Firms. Due to its favorable location, Portugal has attracted a number of multinational firms. These organizations are significant employers and developers of talent in Portugal. Information Services. This is a fast-growing sector that is an export success story for Portugal. It is formed of new organizations and is seen as a source of future economic growth of the country. Construction. This sector, formerly dominant in Portugal is now struggling due to changes in the domestic economy and increasing competition. Knowledge Intensive Enterprises. These organizations create high-margin products with high technology content. They engage in complex R&D projects to develop new products and improve existing ones. Financial Institutions. These public and private sector organizations directly manage a number of companies that they have acquired in Portugal. Telecommunication Firms. These are relatively large firms in Portugal that have expanded to operate subsidiaries in multiple countries. X Sector Level Assessment Upon completion of the company assessment, workshops will be conducted to disseminate and discuss interim results by industry sector. This is done to ensure that both of the companies participating in the study and the overall market will have information on the overall development of the study. It will also serve to confirm research findings and identify additional organizations for study. 233

246 APPENDIX X4 - OPM3 CASE STUDIES Once company level assessments are completed, the findings will be summarized to create industry sector level measures of project management capability. Following the analysis and validation of the results achieved, an industry sector improvement plan will be presented and discussed during seven to nine thematic workshops. The integrated improvement plans will be validated in these events through discussion with sector stakeholders. X Conclusion The OPM3 Portugal project is an example of an opportunity to further develop the knowledge of how organizations use methodology, processes, people development, and established standards to improve the manner in which portfolios, programs, and projects are performed. The multisector and multidimensional approach permits new knowledge to be collected and presented and therefore, creates many opportunities to publicly recognize the project results. X4.3 Mapna Special s Construction, Iran X4.3.1 Problem Statement Mapna Special s Construction & Development Co (MD-3), affiliated to Mapna Group, is a project-based company that mostly operates in the field of oil, petrochemical, gas, utility, cogeneration, and thermal power plant construction industries. A strong matrix structure is being used for the management of different projects, because the project manager is solely responsible for the project integration regarding the client s contract and is also responsible for construction activities. Engineering, procurement, and planning deputies are functional departments providing matrix services for the project. There was a coordination conflict between the project managers and functional deputies, and there was no single methodology for project management because each project manager followed their own style. As a result, approximately 2½ years ago, the Planning Deputy of MD-3 initiated a plan to improve project management processes according to the PMBOK Guide. Four Knowledge Areas were selected for improvement in a 2-day brainstorming workshop with the MD-3 middle and senior management: Integration Management, Scope Management, Risk Management, and Procurement Management. The purpose of this project was to improve project management maturity in these Knowledge Areas in two 14-month phases. In addition, a rigorous plan was developed for project management training throughout the organization. MD-3 was able to almost all of the established objectives by the end of first phase. The plan was revised for the second phase to develop a project management methodology which had the most priority for the organization, and the parent company, Mapna Group, simultaneously conducted a project management assessment for some construction subsidiaries including MD-3 in order to evaluate their project management performance. 234

247 APPENDIX X4 - OPM3 CASE STUDIES X4.3.2 Solution Description X Selecting an I Certified Professional At the beginning, Mapna Group reviewed different approaches for the assessment. Three methods were discussed for this purpose: (1) use an external consultant as the team, (2) use an external consultant to work with the internal team, and (3) use an OPM3 Certified Professional. Finally it was decided to conduct an OPM3 assessment, rigorous type, by an OPM3 Certified Professional who had access to the OPM3 ProductSuite software. This decision coincided with the certification of one of the MD-3 employees as an OPM3 Certified Professional, the first one in Iran. Hence it was agreed to conduct an OPM3 assessment for MD-3 and other selected subsidiary companies by the internal OPM3 Certified Professional. X Plan for Assessment and Assessment The scope of the MD-3 assessment was determined as,,,, and. Selected people were interviewed and some other staff participated in an OPM3 introductory course delivered by the OPM3 Certified Professional in order to transfer basic knowledge of the model to the organization. The assessment took about 1 month and included collecting preliminary data, planning for interviews, opening the meeting, conducting interviews, finalizing data, preparing final report, and closing the meeting. More than 30 people, including project managers, middle managers, and project team members, were interviewed during the assessment. The final reports shows that MD-3 has better performance in Quality Management with regard to other Knowledge Areas, in the Executing Group as compared to other Groups, and project management training when compared to other organizational enabler categories. It also shows that MD-3 requires more attention in the Risk Management, Initiating Group, and benchmarking. Lastly, the final report elaborates on: (1) some project management strength points, such as developing a construction project success measurement model to calculate the success of completed projects based on defined targets; and (2) areas for improvement, such as not contributing to the performance of the matrix project team members by the project manager. X Plan for ment The new improvement plan for the second phase consisted of three sections. The first section includes improvement of some project management processes, which are the highest priority for the organization, such as Conduct Procurements, Close Procurements, and Plan Scope Management, and revision of the roles and responsibilities of the project managers and some other key individuals on the project. The second section, the most important one, includes development of a single project management methodology for MD-3. This methodology is intended to integrate all project management processes to facilitate project management activities by enhancing the communication and workflow. Finally, the last section includes the application of the methodology in a single pilot project so as to receive feedback and revise accordingly, if necessary. 235

248 APPENDIX X4 - OPM3 CASE STUDIES X4.3.3 Results While the second phase of the improvement project is still ongoing in the organization, it is briefly discussed here how the second phase plans to use the result of OPM3 assessment. The most significant contribution of the OPM3 assessment is to provide good information regarding project management maturity regarding the as-is status of MD-3 and back-up data regarding their strength points and areas for improvement. Initially, the assessment final report showed that MD-3 has a relative maturity in project management in which it endorsed MD-3 s initiation to develop a single methodology for its project management. For example, and organizational enabler scores (ProductSuite Score) were close, which implies that infrastructure Best Practices in different categories such as sponsorship, strategic alignment, organizational structure, and resource allocation are appropriately supportive for project management processes best practices. On the other hand, the final report shows that most of the project management processes are standardized. This valuable information will be applied as input data to develop a framework for the MD-3 project management methodology, the second section of the second phase. By knowing the project management maturity level, the project management methodology of MD-3 can be tailored to achieve its highest priorities in order to have a holistic view of the project management and clarify all boundaries and interfaces. This single methodology will be presented to MD-3 s potential clients in order to assure them that MD-3 is capable for executing their projects within the triple constraints, required quality, and client satisfaction. 236

249 GLOSSARY GLOSSARY 1. Inclusions and Exclusions This glossary for the Organizational Management Maturity Model (OPM3 ) Knowledge Foundation includes terms that are: Specific to OPM3 (e.g., Best Practices list) Not unique to OPM3, but used differently than in general everyday usage (e.g., Capabilities) This glossary does not necessarily include: Terms whose definitions are readily found in other PMI standards (e.g., A Guide to the Management Body of Knowledge (PMBOK Guide) Fifth Edition, The Standard for Management Third Edition, The Standard for Management Third Edition, Manager Competency Development Framework; Terms whose definitions are found in the PMI Lexicon of Management Terms; Application or industry-specific terms; and Terms whose usage in the OPM3 context does not differ materially from everyday use. 2. Common Acronyms BP GRC OE OPM OPM3 PPP SMCI SME Best Practice Governance, Risk, and Compliance Organizational Enabler Organizational Management (OPM) Organizational Management Maturity Model, program, and project, measure, control, and continuously improve Subject matter expert 237

250 GLOSSARY Area of Expertise. Practical knowledge and skills in a subject that are required to undertake a successful OPM3 initiative. Assessment. Evaluation of an organization s successful execution of processes and standards. For OPM3, various tools to assess organizational project management maturity exist in the marketplace with variations of granularity. Best Practice. In general, Best Practices refer to the methods, currently recognized within a given industry or discipline, to achieve a stated goal or objective. In the OPM3 context, Best Practices are achieved when an organization demonstrates consistent organizational project management processes evidenced by successful outcomes. Best Practices Directory. The Best Practices directory lists the Best Practices that form the foundation of the OPM3 content. This directory provides the name and a brief description of each Best Practice. By reviewing the Best Practices directory, the user can become generally familiar with the OPM3 content. An organization will also use this directory following the self-assessment method to identify Best Practices for any potential improvement effort. Capability. A Capability is a specific competency that must exist in an organization to execute project management processes and deliver project management services and products. Capabilities are incremental steps leading up to one or more Best Practices. Categorization. A grouping of components based on criteria. In OPM3, categorizations are groupings that provide a framework for the OPM3 model to clearly define the relationship between Best Practices and Capabilities. It also allows organizations to focus on alternative approaches to maturity. The categorizations in the OPM3 model are the domains of PPP (,, or ), SMCI (,,, or continuously ), the Groups for each of the domains, and Organizational Enablers (OEs). These categorizations can be used to approach OPM3 from a project management domain, an improvement process, or a Group area, respectively. See also domain, PPP, SMCI, Organizational Enablers, and Groups. Continuous ment. Continuous improvement is a total quality management concept based on theories developed by Edward Deming and Walter Shewart. The key principles of continuous improvement relate to four sequential steps in characterizing the performance of a Capability as a Best Practice. For a Capability to be considered as a Best Practice, it has to demonstrate industry-standard competencies in the process improvement stages (SMCI: standardize, measure, control and continuously improve).. Comparing actual performance with planned performance, analyzing variances, assessing trends to effect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed. In OPM3, the progression of Capabilities generally includes determining control limits, looking for root causes for processes that are outside the limits, and identifying improvements to bring the process within the control limits. 238

251 GLOSSARY When used in evaluating Capability maturities, the collective application of control activities constitutes the third stage of the OPM3 SMCI quality management model. Cycle Elements. Groups of processes required to implement OPM3 iteratively. Dependency. Dependencies are relationships in which a desired state is contingent upon the achievement of one or more prerequisites. In OPM3, one type of dependency is represented by the series of Capabilities that aggregate to a Best Practice. In general, each Capability builds upon preceding Capabilities. Another type of dependency occurs when the existence of one Best Practice depends in part on the existence of some other Best Practice. In this case, at least one of the Capabilities within the first Best Practice depends on the existence of one of the Capabilities within the other Best Practice. See also interdependencies. Dependency Relationship. See dependency.. A domain refers to the three distinct disciplines of portfolio management, program management, and project management (also referred to as PPP). Each domain is structured by Groups and processes. Framework. Holistically, the three PMI domain standards (portfolio management, program management, and the PMBOK Guide) plus the Management Competency Development Framework and OPM3 constitute the total framework of PMI organizational project management practice. Framework may be used to refer to specific components of these key organizational project management proficiencies, such as domains, processes, etc. Governing Body. The group responsible for guidance and monitoring of portfolio, program, and project management and development work within specific compliance boundaries. These compliance areas include formal corporate ethical, financial, and security considerations, among others, and may be imposed internally or externally.. ment is the process of making something better, developing new qualities and abilities. The progression of Capabilities generally includes documenting improvements demonstrated to be effective and incorporating them into the standardized process. When the Capability description or title includes phrases like improve, increase process value, process improvements, or process simplification, it is probably an improvement Capability of the process. When used in evaluating Capability maturities, the collective application of continuous improvement activities constitutes the fourth stage of the OPM3 SMCI quality management model. See also continuous improvement. Mapping. A relationship in which one element of a set can be associated with an element of another set. In OPM3, each Best Practice or Capability can be associated/mapped to a Category in each of the Management Groups, Management Groups, and life cycle phases of a program. Maturity. Within OPM3, maturity comprises not only the state of performance within portfolio, program, and project management, but also the organization s evolution toward that state as illustrated by SMCI. 239

252 GLOSSARY. The act of identifying what to measure as well as actually collecting the measures that would help an organization understand if the process is operating within acceptable limits. When the Capability description or title includes some derivative of the word measure or identify, then it is probably a measurement Capability of the process. The progression of Capabilities generally includes determining what to measure, measuring it, and analyzing the results. When used in evaluating Capability maturities, the collective application of measure activities constitutes the second stage of the OPM3 SMCI quality management model. OPM3. See organizational project management maturity model. OPM3 Cycle. An iterative improvement process designed to guide organizations through: 1. Acquiring knowledge about organizational project management, 2. Performing an assessment to evaluate current state, 3. Managing ment to gain capabilities identified as needed by the organization, and 4. Measuring the impacts of these changes in the short and long term to optimize business performance. OPM3 Construct. The process model that describes the dependencies and interrelationships of the OPM3 components. These components include the three domains of portfolio, program, and project management; the Groups or performance domains for each domain; and their four states of process improvement, as well as enablers that support organizational project management. The construct s components are further decomposed into Best Practices, Capabilities, and their respective outcomes to create process model. Organization. A group of people organized for some purpose or to perform some type of work within an established business. In the OPM3 context, this can be interpreted as any company, agency, association, society, business unit, functional group, department, or subagency intending to make use of OPM3. Organizational Enablers. Organizational enablers are structural, cultural, technological, and human-resource practices that can be leveraged to support the implementation of Best Practices in portfolios, programs, and projects in support of strategic goals. Organizational Management. Organizational project management (OPM) is a strategy execution framework that utilizes portfolio, program, and project management as well as organizational-enabling practices to consistently and predictably deliver organizational strategy to produce better performance, better results, and a sustainable competitive advantage. Organizational Management Maturity. The level of an organization s ability to deliver the desired strategic outcomes in a predictable, controllable, and reliable manner. Organizational Management Maturity Model (OPM3). A framework that defines knowledge, assessment, and improvement processes, based on Best Practices and Capabilities, to help organizations measure and mature their portfolio, program, and project management practices. Outcome. Outcome is the tangible or intangible result of performing a Capability. In the OPM3 framework, 240

253 GLOSSARY a Capability may have multiple Outcomes. The degree to which an Outcome is achieved is determined by the existence of deliverables that the process leaves behind when work is completed. PPP. One of the categorizations in OPM3 to provide structure for the Best Practices and Capabilities. It is used as a field in the OPM3 Best Practices list to indicate the three domains of portfolio, program, and project management. Group. A logical grouping of the portfolio and project management inputs, tools and techniques, and outputs. The Management Groups include Initiating processes, Planning processes, Executing processes, Monitoring and ling processes, and Closing processes. Management Groups are not project phases. The Management Groups include Defining processes, Aligning processes, Authorizing and ling processes. ment Stages. The four stages of process maturity, also known as SMCI. The four stages are standardize, measure, control, and continuously improve. A particular process is made capable through the prerequisite attainment of each stage. For instance, as general guidance, to achieve Best Practice in a process in the stage, the organization needs to first demonstrate Best Practice in the measure stage. See also standardize, measure, control, and improve. Management Maturity. management processes measured by the ability of an organization to successfully initiate, plan, execute, and monitor and control individual projects. management maturity is limited to individual project execution and doesn t address key processes, Capabilities, or Best Practices at the organizational, portfolio, or program level. The focus of project management maturity is doing projects right. SMCI. See process improvement stages.. To demonstrate a documented and communicated process whereby the applicable people are following a process within an organization. When the Capability description or title includes phrases such as have a process for, document a process, or standardize a process, it is probably a standardization Capability of the process. The progression of Capabilities generally includes assigning process ownership, obtaining or developing a process, and then demonstrating that the organization is adhering to the standard for that process. When used in evaluating Capability maturities, the collective application of standardization activities constitutes the first stage of the OPM3 SMCI quality management model. See also process improvement stages. Strategic Goals. The definition of an organization s intended achievements in terms of business results may be interpreted from various perspectives financial, customer, infrastructure, products and services, or by cultural outcomes that are measurable. Sustainability. A characteristic of a process or state that can be maintained indefinitely. Within the assessment process for measuring a Capability, sustainability must be achieved in order to reach the improve stage. Value Performance Analysis. Providing business value realization data from value business fulfillment back to the strategy of the organization. 241

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255 INDEX INDEX A Achieved improvement objectives, 104 Acquire Knowledge, 1, 24 25, 43 44, Understand OPM, 43 44, Understand Organization, 49 50, Assess Change Readiness, 44, 49 50, AHP. See Analytic hierarchy process Aligning Group, 5, 34, 39 Analytic hierarchy process (AHP), 93 Assembled assessment team, 62 63, Assess Change Readiness, 44, 49 50, Assessment documentation, 82 83, 105 Assessment goals, 62 63, 69 Assessment plan, 62, 67, 69, Assessment presentation, 75, 77, 79 Assessment results, 75, 77, 79 Assessment timeline and logistics, 62, 64, 69, Assessment type and scope, 62, 64, Authorizing and ling Group, 34, 39 B Beneficiary, 14 Benefits, 6, 33, 42, 92, 94, 103 Best Practices, 31, 73, 84 balanced scorecard, 40 capability in, categorization of, context in, control in, 35 domains in, 29 30, 32, 39 framework in, 27, 29 improve in, Knowledge Area in, manage improvement, maturity, measure in, 35 OE in, outcome in, portfolio in, Group, 39 process improvement stages in, 34, 39 program, 33 project, 32 33, 40 standardize in, types of, 47 Best Practices list, 73, Binary scoring, 47 Budget and time constraints, 62, 64 Business cases, 82, 98, 100, 103 Business impact analysis, Business processes, 11 Business results, 50, 55, 62, 64, 82, 84, 101, Business skills, 15, 52 Business system, 12 Business value, 13, C Categorization, Change, 7, 15, 42, 46, initiate, 45, 61 62, Change management plan, 107 Change management plan development, 78, 106 Change readiness results, 50, 60, 62, 65, 77, 105 Change readiness review, 50, 60 Coaching, 107 Communication, 11, 107 Communications plan, 107 Competitors,

256 INDEX Conduct Assessment, 45, 52, 61 62, Consulting experience, 15, 52, 23, 34 35, 39, 47, 64, 111 Cost and effort estimates, 62, 65, 68, 69, 82, 91 92, 98, 100 Cost-benefit analysis, 94 Create Recommendations, 45, Creativity, 85 Culture, 12, 22, 56 Customer, 14 D Data analyzing and consolidation, 74, 78 Decision-making techniques, 82, 85, Decisions, value, Define Scope, 45, 61 62, Defining Group, 34 Documentation, 74, 83 Documenting techniques, 74 s, 29 30, 32, 39, 47 Drill-down approach, 74 E Elicitation, 82, Enterprise environmental factors, 50, 55 56, 59, 62, 65, 72, 77, 82, 84, 92, 100, 106 Establish Plan, 44 45, Estimates, 65, 68, 86, 91 Estimating techniques, 82, 86 Evaluation tools, 78, 98 Evidence gathering, 74 Expertise, Expert judgment, 50, 60, 62, 66, 78, 82, 86, 93, 103 Expert knowledge, 52, 73 External factors, 12 F Facilitated workshops, 50, 53, 57, 85, 93, 106 Financial asset analysis, 93 Financial capacity analysis, 94 Financial management techniques, 82, Focus groups, 85 Foundational concepts, 1 G Gathering knowledge, 50, 57, 82, 87 Governance, 14, 33 Governance, risk, and compliance (GRC), Governmental regulatory agencies, 14 GRC. See Governance, risk, and compliance Group creativity techniques, 85 Group decision-making techniques, 85, 93 Groups, 14, 99 See also specific types of groups H Human capabilities, 11, 44, 54 Human resource, 22, 98 I Identified and prioritized improvement areas, 82, 91, 92 Implement ments Initiatives, 45, , 23, 34 35, 39, 47, 64, 111 ment objectives, 82, 91, 92, 103 ment roadmap, 82, , 103, 106 Industry standards, 65 Information sources, 51 Initiate Change, 45, 61 62, Interview list, 62, 71, 73 Interview selection, 62, 70 Interview techniques, 50, 57, 75, 107 Interviews, 57, 70 71, 75, 86, 107 J Job description, 50, 59 K Kepner-Tregoe (K-T) decision analysis, 93 Key performance indicators, 87 Kickoff meeting, 75 Knowledge, 40, 52, 57, 73, 87 See also Expert judgment K-T. See Kepner-Tregoe 244

257 INDEX L Leadership, 11 M Manage Change, 46, 81, Manage improvement, 1, 24 26, 45 46, Create Recommendations, 45, Select Initiatives, 45, 80 81, Implement ment Initiatives, 45, 80 81, Results, 45, 80 81, Manage Change, 46, 80 81, Maturity, 87 91, 97, 100 See also Organizational Management Maturity Model, 23, 34 35, 39, 45, 47, 64, 111 Results, 45, 81, ment systems, 82, 87 Meeting management, 50, 54, 58, 60, 62, 70, 75 Mission statement, 9, 56, 66 Monitoring, 7, 102 O Objectives, 8 9, 13, 19, 91, 104 Observations, 50, 58 OE. See Organizational enablers OPM. See Organizational project management OPM and OPM3 awareness, 50, 54 OPM overview, OPM3 Best Practices list, 82, 84 OPM3 expert judgment, 62, 66, 70, 75, 82, 87 91, 94 98, 103 OPM3 practitioner expert knowledge, OPM3 Reassessment, 103 OPM3 standard, 50, 53 OPM3 standard, 51, 53 Organizational awareness, 50, Organizational culture and style, 50, 56, 59 Organizational enablers (OE), 21 22, 36 39, 47 Organizational environment, 18 Organizational issues, Organizational life cycles, 20 21, 33 Organizational process artifacts, 73 Organizational process assets, 50, 53, 56, 73, 82, 84, 92, 100, 102 Organizational project management (OPM), 6 7, Organizational Management Maturity Model (OPM3), 1 4, 6, 26 27, 73 application of, 46 best practices, construct, 29 cycle, 24 25, 40 46, expert judgment, 66, 87 91, framework, OE in, practitioners, 14 15, 52 scoring methods of, 47 standard, 53 Organizational strategy, vision, and mission, 50, 56, 62, 66 Organizational structure and policies, 50, 56, 60, 62, 66, 69, 77 P PBOs. See -based organizations Performance domain, Perform Assessment, 1, 25, 44 45, Establish Plan, 44 45, Define Scope, Conduct Assessment, Initiate Change, Performing organization, 14 Planning, 4 5, 7 9, 25, 32, 78, 107 See also Establish plan PMBOK Guide, 50, 53 PMOs. See management offices, 3 5, 8, 17 18, 33 34, 95 domain, 32 management, 6 8, 13, 98 management methodology, 82, 98 management standard, 50, 53 Practitioner expert knowledge, 52, 73 Previous assessment results, 50, 56, 62, 66, 77 Prioritization tools, 98, 44, 54 groups, 33 34, 39 improvement, 15, 22 24, 34, 39, 52 management, 52, 5, 33 benefits management, 33 directors,

258 INDEX domain, 32 governance, 33 life cycle management, 33 management, 6 8, management standard, 50, 53 management methodology, 100, 104 managers, 14 stakeholder engagement, 33 strategy alignment, 33 -based organizations (PBOs), 10 domain, 32 management, 6 12 management methodology, 62, 67, 100, 104 management offices (PMOs), 6, 9, 14 managers, 14 s, 5, 8 9, 99 Best Practices, 32 33, 40 Q Question list generation, 62, 70 71, 73 Questionnaires and surveys, 50, 58 Scoring techniques, 47, Select initiatives, 45, Sponsors, 14 Stakeholders, 14, 33, 52, 56, 68, 102 Stakeholder list, 56, 62, 68, 73, 22 23, 34 35, 39, 47, 64, 111 Strategic alignment, 15, 52 Strategic planning, 4, 8 9 Strategy, 44, 54, 66 Success, 7 Suppliers, 14 Surveys, 58 T Team structure, 12, 63 Technology, 22, 44, 54 Timeline, 64, 97 Trained resource roster, 62, 68, 69, 74 Training, 62, 67, 107 Training and coaching needs, 107 R Reassessment, 103 Recommendations, 52 Researching, 50, 54, 62, 67, 78 Resources, 22, 40, 68, 96, 98 Results delivery, Risk, Risk analysis, 62, 67, 70, 75, 79, 102 Risk register, 62, 68, 71, 73, Role selection chart, 62, S Scope, 7, 45, 61 62, Scoring methods, 47 U Understand OPM, 43 44, Understand Organization, 49 50, V Value performance analysis, Value strategy, 18 Variable measures, 47 Vision, 66 W Workshops, facilitated, 53, 85,

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261 Organizational Management Maturity Model (OPM3 ) Third Edition Since its release in 2003, the Organizational Management Maturity Model (OPM3 ) has been used by organizations around the world to minimize risk, drive the right projects, and align investments to accelerate organizational success. Organizations turn to OPM3 because it helps them bridge the gap between strategy and individual projects, and provides a way to advance strategic interests through the application of project management principles and practices. Organizational Management Maturity Model (OPM3 ) Third Edition is the result of years of development and continues to build on the foundation formed by the input of hundreds of project management practitioners and consultants from countries around the world. This newest edition not only delivers the latest best practices, it also encompasses multiple expansions and changes, including: Increased Alignment with Standards The new edition significantly expands its alignment with the latest editions of the PMBOK Guide, The Standard for Management, The Standard for Management and with other maturity models such as Capability Maturity Model Integration (CMMI). d Communication of Business Value This edition better communicates the practical business value of using OPM3 as the standard by which an organization measures itself and transforms organizational strategy into business results. Optimized Model: The Using This Model section has been revised to better enable the OPM3 practitioner to acquire the knowledge needed to assess organizational capabilities and facilitate meaningful improvements. Organizational Management Maturity Model (OPM3 ) Third Edition is a must buy for anyone seeking to assess and improve organizational performance. ISBN: U.S. $95.95 GLOBALSTANDARD 14 Campus Blvd Newtown Square, PA USA PMI.org