1. Glen Knight, PMP, CSP President www.knight-associates.com How Mature Do You Think Your Are? The Project Management Maturity Model

3. Clients Nevada Department of Information Technology

4. Mission Statement “Knight Associates is dedicated to enabling organizations achieve a higher level of project management maturity through the development and evolution of a project management infrastructure.”

6. Without Effective PM Practices 31% Percent of projects cancelled. 88% Percent of projects over schedule, over budget or both. Average cost overrun: 189% Average time overrun: 222%

7. Project Management Maturity Model Level 1 Initial Ad Hoc PM Level 2 Planned & Repeatable Level 4 Integrated & Managed Level 3 Defined & Organized Level 5 Optimized & Sustained

8. Different PM Maturity Models CMMP3M3OPM3 Capability Maturity Model Program, Project and Portfolio Maturity Model Organizational Project Management Maturity Model Software Engineering Institute UK Office of Government Commerce PMI 19892003

9. Project Management Maturity Model Level 1 Initial Ad Hoc PM Level 2 Planned & Repeatable Level 4 Integrated & Managed Level 3 Defined & Organized Level 5 Optimized & Sustained

10. Level 1: Initial / Ad Hoc PM No Defined Process Discretionary Checklists vs. Plans Abandoned in Crisis Heroic Efforts No PM Tools Zero Governance Considered Overhead Unpredictable Results.

11. Level 2: Planned & Repeatable PM Training Basic PM Process Not Consistent Project Plans Resource Conflicts Simple PM Tools Project Sponsor Exec. Acceptance PM Results.

12. Level 3: Defined & Organized Formal PM Training Formal PM Process Monitors & Controls Managed Plans Standardized Tools Simple Exec. Govern. Exec. PM Support Simple Project Priority Project Results.

13. Level 4: Integrated & Managed Career Path Integrated Projects Programs Enterprise Resources Quantified Project: – Selection – Prioritization Enterprise PM Tools Predictable Results.

14. Level 5: Optimized & Sustained PM CQI Corporate Training: – Advanced PM Skills – Leadership Skills PM Core Process PM Strategic Plan Focus Business Value.

15. Project Management Maturity Model Level 1 Initial Ad Hoc PM Level 2 Planned & Repeatable Level 4 Integrated & Managed Level 3 Defined & Organized Level 5 Optimized & Sustained

16. CATEGORIES12345 Schedule Management Resource Management Financial Management Methodology Management Change Management Project Request Management Portfolio Management Project Management Maturity Levels

17. CATEGORIES12345 Schedule Management Single Project Task List Resource Management Project Team List Financial Management None Methodology Management None Change Management None Project Request Management Ad Hoc Portfolio Management Project List Project Management Maturity Levels

18. CATEGORIES12345 Schedule Management Single Project Task List Planned Project Schedule Resource Management Project Team List Project Resource Management Financial Management None Initial Project Estimates Methodology Management None Defined Procedures Change Management None Informal Change Management Project Request Management Ad Hoc Executive Steering Committee Portfolio Management Project List Portfolio Status Reports Project Management Maturity Levels

19. CATEGORIES12345 Schedule Management Single Project Task List Planned Project Schedule Managed Schedule Actual vs. Planned Resource Management Project Team List Project Resource Management Enterprise Resource List Financial Management None Initial Project Estimates Managed Budget: Actual vs. Planned Methodology Management None Defined Procedures Enforced Change Management None Informal Change Management Executive Participation Project Request Management Ad Hoc Executive Steering Committee Subjective Project Valuation & Prioritization Portfolio Management Project List Portfolio Status Reports Portfolio Modeling Project Management Maturity Levels

20. CATEGORIES12345 Schedule Management Single Project Task List Planned Project Schedule Managed Schedule Actual vs. Planned Multi-Project Scheduling Resource Management Project Team List Project Resource Management Enterprise Resource List Multi-Project Resource Leveling Financial Management None Initial Project Estimates Managed Budget: Actual vs. Planned Multi-Project Budget Management Methodology Management None Defined Procedures Enforced Project Templates Change Management None Informal Change Management Executive Participation Risk Assessment Project Request Management Ad Hoc Executive Steering Committee Subjective Project Valuation & Prioritization Quantitative Project Valuation & Prioritization Portfolio Management Project List Portfolio Status Reports Portfolio Modeling Real-time Portfolio Management Project Management Maturity Levels

21. CATEGORIES12345 Schedule Management Single Project Task List Planned Project Schedule Managed Schedule Actual vs. Planned Multi-Project Scheduling Enterprise Schedule Optimization Resource Management Project Team List Project Resource Management Enterprise Resource List Multi-Project Resource Leveling Enterprise Resource Optimization Financial Management None Initial Project Estimates Managed Budget: Actual vs. Planned Multi-Project Budget Management Enterprise Budget Optimization Methodology Management None Defined Procedures Enforced Project Templates Automated Procedures Change Management None Informal Change Management Executive Participation Risk Assessment Project Request Management Ad Hoc Executive Steering Committee Subjective Project Valuation & Prioritization Quantitative Project Valuation & Prioritization Strategic Business Plan Project Portfolio Integration Portfolio Management Project List Portfolio Status Reports Portfolio Modeling Real-time Portfolio Management Project Management Maturity Levels

22. SPI as a Function of PM Maturity Ahead of Schedule Behind Schedule

23. Schedule Performance Index Planned Duration SPI = Actual Duration Source: PMI PMBOK

24. SPI as a Function of PM Maturity Ahead of Schedule Behind Schedule

25. CPI as a Function of PM Maturity Under Budget Over Budget

26. Cost Performance Index Planned Budget CPI = Actual Cost Source: PMI PMBOK

27. CPI as a Function of PM Maturity Under Budget Over Budget

28. Business Case for Improving Maturity Performance CategoryL1 to L2L2 to L3L3 to L4 Reduced Defects12%40%85% Reduced Cycle Time10%38%63% Reduced Costs8%35%75% Schedule Variance145%24%15% Gartner sponsored research on improvements gained by Boeing.

29. PM Cost versus PM Maturity 12345 Project Management Maturity Project Management Investment Source: William Ibbs & Justin Reginato

31. Conclusion “Companies with more mature project management practices have better performance.” – William Ibbs

32. Conclusion “Project management maturity is strongly correlated with more predictable project management schedule and cost performance.” – William Ibbs

33. Conclusion “Good project management companies have lower direct costs than poor project management companies.” – William Ibbs

34. Conclusion “Price is what you pay. Values is what you get.” – Warren Buffett

35. Project Management Maturity Test

39. Final Exam! How mature do you think you are?

40. Glen Knight, PMP, CSP President www.knight-associates.com How Mature Do You Think Your Are? The Project Management Maturity Model