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Every Organization Can Implement OPM3®!

Kathleen HuneycuttMarketing Manager OPM3 ProductSuite

Jamie Northrup, PMPCore Team Member OPM3 Second Edition

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Agenda

OPM3 OVERVIEW

ARCHITECTURE

GOVERNING BODIES

KEYS TO IMPLEMENTATION

PRODUCTSUITE

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# of PMPs

0

20000

40000

60000

80000

100000

120000

140000

160000

1999 2000 2001 2002 2003 2004 2005 2006 2007

# of PMPs

# of PMPs Project Failure Rate

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According to the Standish Group* only 29% of all projects are successful! The following are the top 10 reasons for failure -how many of them are process related?

• Inadequately trained or inexperienced project managers• Failure to set and manage expectations• Poor leadership at any and all levels• Failure to adequately identify, document and track requirements• Poor plans and planning processes• Poor effort estimation• Cultural and ethical misalignment• Misalignment between the project team and the business or otherorganization it serves• Inadequate or misused methods• Inadequate communication, including progress tracking and reporting

*2005 Standish Group, Chaos Report

OPM3 Overview

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OPM3 Overview

Many Organizations Pick Up the PMBOK, Program Standard, Portfolio Standard, Earned

Value Standard, PMCDF, etc. and say,

“Yes, these are exactly what we need in this organization!” “But where do we start?”

* Adapted from “Every Organization Can Implement OPM3”, Northrup, 2007

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Maturity Models

What is a Maturity Model?• A tool to assess an organization's current

process management capabilities

• A methodology for educating and training people involved in organization processes management

• A framework for institutionalizing process improvement in organizations and increasing process management capabilities.

OPM3 Overview

* Adapted from “Every Organization Can Implement OPM3”, Northrup, 2007

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OPM3 Overview

What is OPM3?A standard developed under the stewardship of PMI by approximately 800 PM professionals from around the globe. Researched over 27 maturity models.

OPM3 is modeled after the highly successful Capability Maturity Model Integration (CMMI) Model from the Software Engineering Institute at Carnegie-Mellon University. CMMI is used by Software Engineering Organizations and Department of Defense contractors.

A way for organizations to understand organizational project management and to measure their maturity against a broad set of best practices

A methodology based on the PMBOK, Program, and Portfolio standards for organizations to increase organizational project management maturity through best practice implementation

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� A Maturity Model

� Based on ~600 Organizational Project Management Best-Practices

� Best Practices are broken down into a series of steps called capabilities.

� Comes with on online self-assessment tool

� Can be used for any size and type of organization

� Can be used throughout the world

� Can be used effectively in almost any industry

OPM3 Overview

* Adapted from “Every Organization Can Implement OPM3”, Northrup, 2007

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OPM3® Bridges Project Success with the Achievement of Organizational Strategy

In a global survey of 750 project

management office (PMO)

leaders, 68% reported having no

systematic method to prioritize

projects or link them to corporate

strategy.

Source: Survey conducted by Business Improvement Architects. April 2006 issue PM Network magazine.

OPM3 Overview

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OPM is the systematic management of projects, programs, and portfolios in alignment with strategic business goals

� Entails an organizational view forallocation of critical resources

� Expands project management principles to organizational level

� Coordinates total organization with implementation of strategy

Organizational Project Management is -

OPM3 Overview

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Agenda

OPM3 OVERVIEW

ARCHITECTURE

GOVERNING BODIES

KEYS TO IMPLEMENTATION

PRODUCTSUITE

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� Three Management Domains:• Project • Program • Portfolio

� Five Process Groups (Initiate, Plan, Execute, Control, Close)

� Organizational Enablers (examples)

•Strategic Alignment•Executive Sponsorship•PM Metrics

The Areas of OPM are -

Architecture

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Standardize Portfolio Best Practices (85)

Standardize Program Best Practices (49)

Standardize Project Best Practices (69)

Standardize

Measure Portfolio Best Practices (50)

Measure Program Best Practices (40)

Measure Project Best Practices (52)

Measure

Control Portfolio Best Practices (39)

Control Program Best Practices (39)

Control Project Best Practices (39)

Control

Improve Portfolio Best Practices (43)

Improve Program Best Practices (39)

Improve Project Best Practices (43)

Improve

PortfolioProgramProjectBestPracticeMatrix

Architecture

* Adapted from “Every Organization Can Implement OPM3”, Kotter, 2007

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Architecture

* Adapted from “Every Organization Can Implement OPM3”, Kotter, 2007

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Example: Summary of Organization’s Relative Maturity

Architecture

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Architecture

* Adapted from “Every Organization Can Implement OPM3”, Kotter, 2007

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Agenda

OPM3 OVERVIEW

ARCHITECTURE

GOVERNING BODIES

KEYS TO IMPLEMENTATION

PRODUCTSUITE

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Governing Bodies

Why Governing Bodies?

• Carrot & Stick Study • Develop Effective Processes• Process Entropy• Organizational Memory• Create a Culture of Quality• Maintain Business Tranquility

“The Carrot or the Stick: Rewards, Punishment, and Cooperation”. The American Economic Review, Volume 93, Number 3, 1 June 2003, pp. 893-902(10), James Andreoni, William Harbaugh, and Lise Vesterlunde

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Governing Bodies

Executive Branch

• Phase Gate Review Board

• Quality Auditing Group

Legislative Branch

• Process Action Teams

• Change Control Board

Judicial Branch

• Program Management Office* Adapted from “Every Organization Can Implement OPM3”, Northrup, 2007

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Agenda

OPM3 OVERVIEW

ARCHITECTURE

GOVERNING BODIES

KEYS TO IMPLEMENTATION

PRODUCTSUITE

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Keys to Implementation

Process Framework for each Domain

* Adapted from “Every Organization Can Implement OPM3”, Northrup, 2007

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Keys to Implementation

* Adapted from “Every Organization Can Implement OPM3”, Northrup, 2007

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The process is improved. Variation is decreased along with the upper and lower control limits

Improved

The process is controlled and variation outside the upper and lower control limits negligible

Controlled

The process is measured and variation is identified

Measured

The process is implemented and standardized in the organization

Standardized

Process Performance (Variation)

Process CharacteristicsStage of Improvement

Keys to Implementation

* Adapted from “Every Organization Can Implement OPM3”, Northrup, 2007

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Are BPs Lean or waste process steps?

Does Toyota use Best Practices when developing cars and trucks?

If you were going to build a house, would you grab a hammer, wood, bags of concrete and make it happen? Or would you get the best blue print that you could find and industry BPs and tools for house building?

Keys to Implementation

* Adapted from “Every Organization Can Implement OPM3”, Northrup, 2007

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Agenda

OPM3 OVERVIEW

ARCHITECTURE

GOVERNING BODIES

KEYS TO IMPLEMENTATION

PRODUCTSUITE

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ProductSuite

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� Uniform global use of OPM3

� More powerful assessment

� More effective improvement planning

� Data for performance improvement and benchmarking

®

®

ProductSuite

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OPM3® ProductSuite is -

� Built on the OPM3 Standard

� A set of products and services designed to enhance the use of OPM3

� For use by certified service providers

� To help organizations achieve better maturity and strategic business value

ProductSuite

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Tools and methods work together toprovide more powerful OPM3 assessment and improvement

Assessment � Manage OPM3 assessment process� Evaluate organizational status� Report organizational maturity� Create data for improvement

Improvement � Manage OPM3 improvement process� Analyze organizational maturity� Guide improvement planning� Link maturity to business goals

ProductSuite

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Certifications – Uniform global use of OPM3

� Assessor – 3-day course to becomePMI Certified OPM3 Assessor

� Consultant* – 2-day course to become PMI Certified OPM3Consultant

*Must first be a PMI Certified OPM3 Assessor

ProductSuite

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ProductSuite

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Services – additional features offer service providers and organizations greater support from OPM3

� Professional Registry – online list of PMI Certified OPM3 Assessors and Consultants

� Registered Consultancy – qualified companies providing certified OPM3assessment and consulting services

� Assessment Database – secure storage of organizationally controlled data

ProductSuite

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Benefits to Organizations and Consultants

� Organizational Marketing Material can sport OPM maturity level

� Powerful OPM3 Assessment and Improvement tools

� Online list of service providers for organizations seeking professional OPM3 services

� Increased promotion will open new markets

� Increased marketing opens doors to other project management services

ProductSuite

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Assessor Course 16 Apr 2007 – 18 Apr 2007 Orlando, FL

Consultant Course 19 Apr 2007 – 20 Apr 2007 Orlando, FL

Assessor Course 18 Jun 2007 – 20 Jun 2007 San Diego, CA

Consultant Course 21 Jun 2007 – 22 Jun 2007 San Diego, CA

Assessor Course 20 Aug 2007 – 22 Aug 2007 Washington, DC

Consultant Course 23 Aug 2007 – 24 Aug 2007 Washington, DC

Assessor Course 17 Sep 2007 – 19 Sep 2007 Chicago, IL

Consultant Course 20 Sep 2007 – 21 Sep 2007 Chicago, IL

Assessor Course 05 Nov 2007 – 07 Nov 2007 Dallas, TX

Consultant Course 08 Nov 2007 – 09 Nov 2007 Dallas, TX

ProductSuite