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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)
* 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