6. andy murray - embedding governance (lessons from maturity models) gov011015

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19 June, 2014

© Outperform UK Limited

Embedding governance

Lessons from maturity models



19 June, 2014


Session Overview

• Overview of maturity models

• The five evolutionary phases to maturing governance

• Governance as a cornerstone of maturity

• Tips to increasing and sustaining maturity



19 June, 2014


History of Maturity Models

• Research by quality guru Phil Crosby demonstrated that the

quality of project outputs are directly related to the quality of the

processes used to create them

• First Maturity Model developed by Carnegie Mellon University in

1980’s used by US Government to assess quality of processes of

software suppliers to enable a prediction of output quality

• There are now hundreds of maturity models across numerous

management disciplines based on the core Carnegie Melon

University concept of 5 maturity levels

• The hierarchical nature of maturity models provides framework for

benchmarking capability, diagnosing root-causes, identifying

performance inhibitors and prioritizing improvement initiatives



19 June, 2014


The P3M3 Model

• “Portfolio, Programme and Project Management Maturity

Model”

• A maturity model developed and owned by the Cabinet

Office (a UK Government Department)

• Describes key attributes that organisations are expected to

exhibit at five increasing levels of maturity

• Breaks down the complexity of project, programme and

portfolio management to enable improvement plans to be

formulated



19 June, 2014


Maturity Levels

Level 1 – Aware

(Chaotic, Ad Hoc, Heroic)

The starting point for use of a new process

Level 2 – Repeatable

(Process discipline)

The process is used repeatedly

Level 3 – Consistent

(Embedded)

The process is defined/confirmed as a standard

Level 4 – Managed

(Quantified)

Process management and measurement takes place

Level 5 – Optimising

(Process Improvement)

Deliberate optimisation/ improvement



19 June, 2014


P3M3 has 7 perspectives

Perspective Description (for projects model)

Management

Control

Management Control covers how the direction of travel is maintained throughout the project’s

lifecycle, with appropriate break points to enable it to be stopped or redirected by a project

board (or equivalent) if necessary.

Benefits

Management

Benefits management is the process that ensures that the desired business change outcomes

have been clearly defined are measurable and are ultimately delivered through a structured

approach and with full organizational ownership.

Stakeholder

Management

Stakeholder management includes communications planning, the effective identification and

use of different communications channels, and techniques to enable the project’s objectives to

be achieved.

Risk

Management

Risk Management is the process to systematically identify and manage opportunities and

threats.

Finance

Management

Finance is an essential resource that should be a key focus for initiating and controlling

projects. Financial management ensures that the likely costs of the project are captured and

evaluated within a formal business case and that costs are categorised and managed over the

investment life cycle.

Resource

Management

Resource management covers management of all types of resources required for delivery.

These include human resources, buildings, equipment, supplies, information, tools and

supporting teams.

organizational

Governance

organizational Governance looks at how the delivery of projects is aligned to the strategic

direction of the organization. It considers how start-up and closure controls are applied to

projects and how alignment is maintained during a project’s lifecycle. This differs from

management control, which views how control of a project is maintained internally.



19 June, 2014


Each Perspective has 13 threads

Thread Description

Asset Management

Asset management is the set of practices that are applied to assets in order to provide the

required level of service in the most cost-effective manner. It includes the management of

design, construction, commissioning, operating, maintaining, repairing, modifying, replacing and

decommissioning/disposal of assets.

Assurance All the systematic actions necessary to provide confidence that the target (system, process,

organization, programme, project, outcome, benefit, capability, product output, deliverable) is

appropriate. Assurance will have a level of independence from that which is being assured.

Behaviours Behaviours covers the focus, motivation and prioritisation of work and individual commitment to

success

Commercial Commissioner The commercial management activities (e.g. procurement) of client who specifies work and

commissions others to deliver it

Commercial Deliverer The commercial management activities (e.g. bidding) of a supplier that delivers work for clients

Information and Knowledge

Management

How the organization captures, stores, organises and references information of any sort.

Infrastructure and Tools The tools and systems used to manage that perspectives, it could be as simple as a template or as

complex as a enterprise programme and project management system

Model Integration How the model integrates with other models (e.g. how programmes integrates with projects)

organization It is the structure, hierarchy and competencies of people in relation to that perspective

Planning Planning determines what is to be delivered, how much it will cost, when it will be delivered,

how it will be delivered, and who will carry it out in context of the perspective. E.g. in benefits

management it relates to the planning of benefits management activities.

Process A sequence of task used to achieve an output. In the context of the theme, it will be the common

approach that is used to manage that perspective

Standards A quality requiring conformance.

Techniques Approaches used to perform a process.



19 June, 2014


Attribute Statements - summary

Risk Management

Level 1 Level 2 Level 3 Level 4 Level 5

Asset Management Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Assurance Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Behaviours Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Commercial Commissioner Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Commercial Deliverer Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement


Management

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Infrastructure and Tools Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Model Integration Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

organization Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Planning Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Process Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Standards Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Techniques Certification

statement

Certification

statement

Certification

statement

Certification

statement

Certification

statement

Programmes consistently use

centrally defined approaches to

manage risk management

related information and

knowledge.



19 June, 2014


Attribute Statements - detail

Risk Management


Asset Management Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Assurance Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Behaviours Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Commercial Commissioner Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Commercial Deliverer Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements


Management

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Infrastructure and Tools Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Model Integration Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

organization Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Planning Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Process Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Standards Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Techniques Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

Attribute

statements

• There are central storage

repositories consistently used by

programmes for risk information.

• There is a centralised approach

to tracking lessons learned

relating to risk management.

• There is centrally defined and

consistently deployed guidance

on how to manage risks in a

programme.

• Risk status reports are distributed

to a centrally defined approach.



19 June, 2014


Rating maturity by perspective

Project: Risk Management


Assurance Fully Fully Fully Never Never

Behaviours Fully Fully Partially Never Never

Information & Knowledge Management Fully Fully Never Never Never

Infrastructure & Tools Fully Fully Fully Never Never

organization Fully Fully Never Never Never

Model Integration Fully Partially Never Never Never

Planning Fully Partially Never Never Never

Process Fully Fully Fully Never Never

Standards Fully Fully Never Never Never

Techniques Fully Fully Fully Never Never

Asset Management (optional) Fully Fully Never Never Never

Commercial – Buy (optional) Fully Fully Partially Never Never

Commercial – Sell (optional) Fully Fully Fully Never Never



19 June, 2014


Rating maturity by model

Key:

Green = likely to gain certification

at that level

Amber = unlikely to gain

certification at that level

Red = will fail to gain certification

at that level

White = not assessed or rated Managem

ent

Contr

ol

Benefi

ts M

anagem

ent

Fin

ance M

anagem

ent

org

aniz

ati

onal G

overn

ance

Ris

k M

anagem

ent

Sta

kehold

er

Managem

ent

Reso

urc

e M

anagem

ent

Level 5 Not assessed

Level 4

Level 3

Level 2

Level 1



19 June, 2014


A Typical Journey With P3M3



19 June, 2014


So, how good are we?

13

0.00 0.50 1.00 1.50 2.00 2.50 3.00

Benefits Management

Finance Management

Management Control

Organisational Governance

Resource Management

Risk Management

Stakeholder Management

Portfolios

Programmes

Projects

Data correct at March 2015



19 June, 2014


So, what does good look like?

Summary attributes at Level 3

1. Projects use centrally defined approaches to assurance with recommended actions being reported

to project boards.

2. Project leaders align project objectives and approaches with centrally defined objectives and

policies.

3. There is a consistently deployed approach to manage information and knowledge relating to the

organisation’s planned and current projects and their approvals and delegation.

4. The organisation has tools that enable oversight of the status of all projects.

5. The organisation has a centrally defined approach to developing skills to meet defined

competencies and responsibilities for project governance, leadership and professionalism.

6. Projects use centrally defined approaches to incorporate project approval activities, stop/go decision

points and external dependencies into their project plans.

7. Projects use centrally defined processes for

• Starting projects

• Reviewing alignment

• Stopping projects

• Project decision-making

8. Projects use centrally defined standards for project governance, including categorisation of projects,

scaling of project management and incorporation of relevant regulatory standards.

9. The organisation has a set of centrally defined and consistently deployed business case and

options appraisal techniques to enable project governance effectiveness.



19 June, 2014


So, what can help?

Organisation Thread

• Training in project governance specific concepts, tools and techniques is

provided

• A central competency framework has been established that covers project

governance.

• Project boards are responsible for ensuring alignment to organisational strategy

based on a centrally defined approach.

• Centrally defined roles and responsibilities for project governance are deployed

consistently.

• The organisation ensures for each project there is a single organisational

executive identified who holds accountability for the successful delivery of each

projects

• There is a governance expert who provides guidance and support to project

teams

• There is an organisation-wide community of practice for project management

• There is an organisation leader responsible for the organisational development

and improvement of the project profession in the organisation.



19 June, 2014


Why does maturity matter?



19 June, 2014


Why does maturity matter?

Source: PMI Pulse, 2014



19 June, 2014


Discuss….



19 June, 2014


Workshop Topics

Top tips on how to….

• Influencing the board

• Resolving the assurance dilemma (advise, police)

• Creating the right behaviours

• Increase delegation



19 June, 2014


Speaker Profile – Andy Murray

• I am a Chartered Director and PPM Consultant, having worked

in the field of Projects and Programmes for over 20 years.

• Main area of focus is on raising corporate capability so that all

projects succeed. I’ve been using maturity models for this for

nearly 15 years: P2MM, PMMM, P3M3, BD-CMM, BM3, EM3 and

numerous bespoke models

• I was the co-author the P2MM Guide, the Lead Author for

PRINCE2 2009, joint lead author of P3M3 v3, contributing

author of APMBoK6, contributing author of APM’s Directing

Change and contributing author of HMT’s Infrastructure

Routemap.

• I’m a member of the APM and deputy Chair for the Governance

Special Interest Group committee

• I’m currently the sponsor for the update to APM’s Co-Directing

Change

This presentation was delivered

at an APM event

To find out more about

upcoming events please visit our

website www.apm.org.uk/events

http://www.apm.org.uk/events

6. andy murray - embedding governance (lessons from maturity models) gov011015

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