Chapter 12 Flashcards
PM Maturity (Define)
“Maturity in project management is the development of systems and processes that are repetitive in nature and provide a high probability that each project will be a success.”
Project Management Maturity Models
-Maturity Models measure an organization’s project management maturity
- Models fall into three general categories
- Technical Delivery Process Models
- Project Management Process Models
- Total Organization Models
Driving Forces for Maturity
Capital projects Customer expectations Competitiveness Executive understanding and buy-in New product development Efficiency and effectiveness Survival
PM Maturity Levels
Level 1: Initial Process
Level 2: Structured Process and Standards
Level 3: Organizational Standards and Institutionalized Process
Level 4: Managed Process
Level 5: Optimizing Process
PM Maturity Level I
“Initial Process”
PM Process and Standards
-not established
Documentation
-loose and ad hoc
Metrics
-informal
Management
-sees need for PM
PM Maturity Level II
“Structured Process & Standards”
PM Process and Standards
-many exist
Documentation
-exists on basic processes
Metrics
-basic performance metrics
Management
-supports PM but no mandate
PM Maturity Level III
“Org. Standards and Institutionalized Processes”
PM Process and Standards
-standard
Documentation
-formal for all processes
Metrics
-performance evaluated among projects
Management
-involved
PM Maturity Level III
“Managed Process”
PM Process and Standards
-integrated with others
Documentation
-in place and supports decisions
Metrics
-many, used for decisions across projects
Management
-understands role and executes well
PM Maturity Level III
“Optimizing Process”
PM Process and Standards
-used to improve PM
Documentation
-improved through lessons learned
Metrics
-used for decisions for the future
Management
-focuses on continuous improvement
Learning Organization Defined
A learning organization is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.
Building Blocks for a Learning Organization
- Systematic Problem Solving
- Experimentation
- Learning from Past Experience
- Learning from Others
- Transferring Knowledge
Systematic Problem Solving
- Rely on the Scientific Method (Plan-Do-Check-Act)
- Insist on data, rather than assumptions (Manage by Fact)
- Use simple statistical tools to organize data and draw inferences.
Experimentation
- Experimentation involves the systematic searching for and testing of new knowledge
- Ongoing programs – designed to produce incremental gains in knowledge
- Demonstration projects – to develop new organizational capabilities
Learning from Past Experience
- Lessons Learned
- Post-Project Appraisals
- Case Studies
- Computerized Data Banks
Learning from Others
- Benchmarking
- Customer intimacy
- Direct observation
Transferring Knowledge
- Reports
- Site visits and tours
- Personnel rotation programs
- Education and training programs
- Standardization programs
Project Portfolio Management
- Organizations have limited resources to devote to projects
- Like an investment portfolio, resources should be assigned to projects that promise the greatest “return” or benefit
- Less important projects should not siphon resources away from more important projects
PMO role in Portfolio Management
- Assist Project Review Board (PRB)
- Provide overview information about projects in portfolio
- Assist with portfolio decisions:
- Project prioritization
- Approval
- Cancellation
PMO role in Portfolio Management
- Ensure each project meets requirements for each gate
- Track resource allocation for all projects vs. requirements for current projects
- Provide status reports to PRB about relative performance for all projects (use dashboard,” etc.)
Project Portfolio and Strategy I
- Common Problems in Project Portfolios
- No link between business strategy and project selection
- Poor quality portfolio (weak, mediocre projects)
Project Portfolio and Strategy II
- Common Problems in Project Portfolios (cont.)
- Lack of focus (weak projects get resources; best projects starved for resources)
- Project trivialization (projects selection based on “low hanging fruit” – modifications, extensions, updates; nothing breakthrough or innovative)
Project Portfolio Management: Benefits of Portfolio Management I
Project proposals are assessed for costs, risks, benefits, and contributions to objectives
Decisions are made to authorize some projects, retain some on the “back burner,” and dispose of others
Scarce resources are allocated effectively to insure that priority projects get adequate funding and support
Project Portfolio Management: Benefits of Portfolio Management II
Projects are “balanced” in terms of high vs. low risk, large vs. small size, long-term vs. short term focus, etc.
Projects are continually tracked, compared, and managed collectively
Framework for Project Selection, and Portfolio Management
“Phase I” Pre-screening stage: to “pass
Projects must be justified in terms of either organizational survival or growth.
Survival projects: necessary for health and viability of the organization
Growth projects: offer organization opportunity for prosperity and expansion
Projects might require:
- feasibility study
- champion and sponsor
- documented expected benefits
Sometimes, simple checklist is employed to rate each proposal as excellent, good, poor, etc.
