Project Management Maturity

Model (PMMM)
&
Project Portfolio Process
(PPP)
Project Management Maturity
Model (PMMM)
 Project management maturity refers to mastery of
skills required to manage project competently.
 The foundation for achieving excellence in project
management can best be described as the project
management maturity model (PMMM), which is
comprised of five levels, as shown in Figure.
 Each of the five levels represents a different
degree of maturity in project management.
5-levels of PMMM
● Level 1—Common Language:
In this level, the organization recognizes the importance of
project management and the need for a good
understanding of the basic knowledge on project
management, along with the accompanying language/
terminology.
● Level 2—Common Processes:
In this level, the organization recognizes that common
processes need to be defined and developed such that
successes on one project can be repeated on other
projects. Also included in this level is the recognition that
project management principles can be applied to and
support other methodologies employed by the company.
● Level 3—Singular Methodology:
In this level, the organization recognizes the synergistic effect
of combining all corporate methodologies into a singular
methodology, the center of which is project management. The
synergistic effects also make process control easier with a
single methodology than with multiple methodologies.
● Level 4—Benchmarking:
This level contains the recognition that process improvement
is necessary to maintain a competitive advantage.
Benchmarking must be performed on a continuous basis. The
company must decide whom to benchmark and what to
benchmark.
● Level 5—Continuous Improvement:
In this level, the organization evaluates the information
obtained through benchmarking and must then decide
whether or not this information will enhance the singular
methodology.
 Degrees of difficulty of the five levels of maturity
Level Description Degree of
Difficulty

1 Common Language Medium

2 Common Processes Medium
3 Singular Methodology High
4 Benchmarking Low
5 Continuous Low
Improvement
Project Portfolio Process (PPP)

 Linking projects directly to the goals and

strategy of the organization
 Means for monitoring and controlling projects
 Objectives:-
- Prioritize list of available projects
- Eliminate projects with excessive risk
- Avoid overloading of resources
- To balance short-, medium-, and long-term
returns
PPP Steps

1. Establish a project council

2. Identify project categories and criteria
3. Collect project data
4. Assess resource availability
5. Reduce the project and criteria set
6. Prioritize the projects within categories
7. Select projects to be funded and held in reserve
8. Implement the process
Step 1: Establish a Project Council

 The main purpose of the project council is to establish

and articulate a strategic direction for those projects
spanning internal or external boundaries of the
organization, such as cross-departmental or joint
venture.
 Thus, senior managers must play a major role in this
council.
 The council will also be responsible for allocating funds
to those projects that support the organization’s goals
and controlling the allocation of resources and skills to
the projects.
Members of the project council
are:

 Senior management;
 The project managers of major projects;
 The head of the Project Management Office, if one exists;

Particularly relevant general managers;

 Those who can identify key opportunities and risks facing
the organization.
Without the commitment of senior management, the
PPP will be incapable of achieving its main
objectives.
Step 2: Identify Project Categories and
Criteria

1. Derivative projects
2. Platform projects
3. Breakthrough projects
4. R&D projects
1. Derivative projects

 These are projects with objectives or

deliverables that are only incrementally
different (in both product and process) from
existing offerings.
 They are often meant to replace current
offerings or add an extension to current
offerings.
 E.g. lower priced version, upscale
version.
2. Platform projects
 The planned outputs of these projects represent
major departures from existing offerings in terms of
either the product/service itself or the process used to
make and deliver it, or both.
 As such, they become “platforms” for the next
generation of organizational offerings, such as a new
model of automobile or a new type of insurance plan.
 They thus form the basis for follow-on projects that
attempt to extend the platform in various dimensions.
3. Breakthrough projects

 Breakthrough projects typically involve a newer

technology than platform projects. It may be a
technology that is known to the industry or
something proprietary that the organization has
been developing over time.
 Examples here include the use of fibre-optic
cables for data transmission, cash-balance
pension plans, and hybrid gasoline-electric
automobiles.
4. R&D projects
 These projects are “blue-sky,” visionary
endeavors oriented toward using newly
developed technologies, or existing technologies
in a new manner. They may also be for acquiring
new knowledge, or developing new technologies
themselves.
Step 3: Collect Project Data

 Assemble the data

 Document assumptions
 Screen out weaker projects
 The fewer projects that need to be
compared and analyzed, the easier the
work
Step 4: Assess Resource Availability

 Assess both internal and external

resources
 Assess labor conservatively
 Timing is particularly important
Step 5: Reduce the Project and
Criteria Set

 In this step, multiple screens are employed to try to narrow

down the number of competing projects. As noted earlier,
the first screen is each project’s support of the
organization’s goals.
Other possible screens might be criteria such as:
 Whether the required competence exists in the
organization
 Whether there is a market for the offering
 How profitable the offering is likely to be
 How risky the project is
Step 5: Reduce the Project and
Criteria Set

 If there is a potential partner to help with the project

 If the right resources are available at the right times
 If the project is a good technological/knowledge fit with the
organization
 If the project uses the organization’s strengths, or depends on its
weaknesses
 If the project is synergistic with other important projects
 If the project is dominated by another existing or proposed project
 If the project has slipped in its desirability since the last evaluation
Step 6: Prioritize the Projects Within
Categories

 Apply the scores and criterion weights

 Consider in terms of benefits first,
resource costs second
 Summarize the returns from the
projects
Step 7: Select the Projects to be
Funded and Held in Reserve

 Determine the mix of projects across the

categories
 Leave some resources free for new opportunities
 ‘Out of plan’ projects:Document why late projects
were delayed and why some, if any, were
defunded. One special type of delayed project is
sometimes called an “out-plan” project.
 Allocate the categorized projects in rank order
Step 8: Implement the Process

 Make the results of the PPP widely

known, including the documented
reasons for project cancellations and
non-selection
 Communicate results
 Repeat regularly
 Improve process
Project Proposals

 The project proposal is essentially a project

bid
 Putting together a project proposal requires a
detailed analysis of the project
 Project proposals can take weeks or months
to complete
 A more detailed analysis may result in not
bidding on the project as it may take long time
Project Proposal Contents

 Cover letter
 Executive summary
 The technical approach
 The implementation plan
 The plan for logistic support and
administration
 Past experience
Risk

 “Risk” implies the potential for loss.

 Risks include…
– The timing of the project and its associated cash
flow
– Risk regarding the outcome of the project
– Risk about the side effects