Cabinet Office Mandate for Change

Project Requirements for Portfolio, Programme and

Project Management Maturity Model (P3M3)
Revisions
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TableofContents

Background ................................................................................................................................................ 3
Reasonsforchange.................................................................................................................................... 5
CabinetOfficeRequirements..................................................................................................................... 5
AimsoftheProject..................................................................................................................................... 6
Scopeforthenextedition ......................................................................................................................... 6
Qualitycriteria ........................................................................................................................................... 8
Qualitymethod.......................................................................................................................................... 8
Nextsteps .................................................................................................................................................. 9
AppendixAMembersoftheChangeAdvisoryBoard(CAB).................................................................... 11
AppendixBGlossary .............................................................................................................................. 12
AppendixCFootnotes.............................................................................................................................. 13
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Background
P3M3isbuiltuponourearlierProjectManagementMaturityModel,whichinturnwasbased
ontheprocessmaturityframeworkthatevolvedintothe(nowsuperseded)Capability
MaturityModel(CMM),developedbytheSoftwareEngineeringInstitute(SEI)intheUnited
States.Thiswasadescriptivereferencemodeltoprovideorganizationswithmoreeffective
guidanceinestablishingprocessimprovementprogrammes.Itcouldalsobeusedasthe
foundationforsystematicallybuildingasetoftools,includingmaturityquestionnaires.
P3M3iscomprisedofthreesubmodels:
1. PortfolioManagementMaturityModel,
2. ProgrammeManagementMaturityModel,
3. ProjectManagementMaturityModel.
Itrecognises5maturitylevels
1. AwarenessProcessesarenotusuallydocumented.Thereareno,oronlyafew,
processdescriptions.
2. RepeatableTheorganizationwillbeabletodemonstrate,byreferencetoparticular
initiatives,thatbasicmanagementpracticeshavebeenestablishede.g.tracking
expenditureandschedulingresourcesandthatprocessesaredeveloping.
3. DefinedThemanagementandtechnicalprocessesnecessarytoachievethe
organizationalpurposewillbedocumented,standardizedandintegratedtosome
extentwithotherbusinessprocesses.
4. ManagedCharacterizedbymaturebehaviourandprocessesthatarequantitatively
managedi.e.controlledusingmetricsandquantitativetechniques.
5. OptimisedTheorganizationwillfocusonoptimizationofitsquantitativelymanaged
processestotakeintoaccountchangingbusinessneedsandexternalfactors.
Themodeliscomposedof7perspectives
1. ManagementControlThiscoverstheinternalcontrolsoftheinitiativeandhowits
directionoftravelismaintainedthroughoutitslifecycle,withappropriatebreak
pointstoenableittobestoppedorredirectedbyacontrollingbodyifnecessary.
2. BenefitsManagementBenefitsmanagementistheprocessthatensuresthatthe
desiredbusinesschangeoutcomeshavebeenclearlydefinedaremeasurableandare
ultimatelyrealizedthroughastructuredapproachandwithfullorganizational
ownership.
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3. FinancialManagementFinanceisanessentialresourcethatshouldbeakeyfocusfor
initiatingandcontrollinginitiatives.Financialmanagementensuresthatthelikelycosts
oftheinitiativearecapturedandevaluatedwithinaformalbusinesscaseandthat
costsarecategorizedandmanagedovertheinvestmentlifecycle.
4. StakeholderEngagementStakeholderengagementshouldbeseenasanongoing
processacrossallinitiativesandonethatisinherentlylinkedtotheinitiativeslife
cycleandgovernancecontrols.
5. RiskManagementThisviewsthewayinwhichtheorganizationmanagesthreatsto,
andopportunitiespresentedby,theinitiative.
6. OrganisationalGovernanceThislooksathowthedeliveryofinitiativesisalignedto
thestrategicdirectionoftheorganization.Itconsidershowstartupandclosure
controlsareappliedtoinitiativesandhowalignmentismaintainedduringan
initiativeslifecycle.Thisdiffersfrommanagementcontrol,whichviewshowcontrol
ofinitiativesismaintainedinternally.
7. ResourceManagementTheseincludehumanresources,buildings,equipment,
supplies,information,toolsandsupportingteams.Akeyelementofresource
managementistheprocessforacquiringresourcesandhowsupplychainsareutilized
tomaximizeeffectiveuseofresources.
P3M3makesaseriesofstatementsforeachsubjectarea(perspective)describingwhatan
organisationlookslikeateachmaturitylevelshowinghowanorganisationwouldappearto
anexternalobserver.ForexampleManagementcontrolatlevel1describesanorganisation
whereProjectmanagementterminologyisusedbysomemembersoftheorganizationbut
notconsistentlyandpossiblynotunderstoodbyallstakeholders.Projectswillbeconducted
andmanagedaccordingtoindividualpreferences.Thismeansthatnotallprojectsmight
haveadesignatedprojectmanager;theymaynotproperlydocumented,etc.
ThecurrentversionofPortfolio,ProgrammeandProjectManagementMaturityModel
(P3M3)waspublishedin2008withsomeveryminoradjustmentstothedescriptionsofthe
attributesmadein2010.SincethentheinterestinusingP3M3hasgrowngreatlyandfor
manyorganisationsitisnowthedefaultmaturityassessmentmodel.Havingbeenaroundin
itscurrentguisefor4yearsmanyorganisationshavemovedfrominitialbaselineassessment
intorepeatassessmentsandthishasidentifiedissueswiththecurrentmodel.
Thematurityassessmentscanbecarriedoutinvariousways
1. UsingtheselfassessmentquestionsavailableontheP3M3officialwebsite
2. Usingaconsultantledassessment
3. Afullyvalidatedaccreditedconsultingorganisation(ACO)
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Thesebroadlyfallintothefollowingcategories:
1. SomeorganisationsfeltsomeLevel1wastoobroadandsomeoftheirdivisionswere
notevenatLevel1.
2. Thatsomeoftheattributedescriptionsweretoovagueandopentointerpretation
resultingininconsistentassessmentsespeciallywhendifferentpeoplewereinvolved
intherepeatassessment.
3. Thattheperspectivedidnotcoverthefullrangeofprocessnecessarytosuccessfully
deliverbusinesschangeandthatfurtherprocessperspectivesshouldbeadded.
4. SomeorganisationsfeltthatthealignmenttotheotherBestManagementPractice
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materialwasnotastightasitcouldbeandgiventheManagementofPortfolios
(MoP)didnotexistwhenP3M3waslastrevisedtheportfoliolevelmodelneedstobe
alignbetterwiththemorerecentthinkingthatwentintoMoP
5. Thatthereisimprovedguidancetosupporttheapplicationofthemodelandin
particularhowtouseittoconstructorganisationalimprovementplans.
GiventheabovetheCabinetOfficedecidedtoevaluatetheneedforandthenatureof
potential,revisionstoP3M3.
Reasonsforchange
ItisfouryearssincetheP3M3v2.0waspublished.Inthattimetherehavebeenadditionsto
theBestManagementPracticeportfolio(i.e.ManagementofPortfoliosandManagementof
Value)aswellaschangestoexistingproducts(e.g.PRINCE2).Soitwastimetoassessifthe
guidanceintheseotherBestManagementPracticeproductsreflectedwhatwasassessedin
P3M3,andviceversa,andtoaddressanyalignmentissues.
TheCabinetOfficethroughAPMGundertookasurveyoftheP3M3usersandreceived
feedbackfromavarietyofindustrysectorsandfromdifferentglobalregionsbut
predominantlyUKandEurope,individualsandorganisations,includingconsultantscarrying
outP3M3assessments.Thosecommentswereevaluatedandwhereappropriatehavebeen
incorporatedtoformthebasisofthismandateforchange.
CabinetOfficeRequirements
TheCabinetOfficerequiresanevolutionaryapproachtoupdatingthismodelsothat
thosealreadyusingitcanseetheirmigrationpathandarenotdisenfranchised.Hence,
thescopeofchangeisnottooextensive.
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P3M3shouldbeconsistentwiththeguidancecontainedintheotherBest
ManagementPracticeproducts.
OrganisationsinvestmentinP3M3todatemustbeprotectedandtherevisionmustbe
fullycompatiblewiththepreviousversions.
Additionallyarevisiontotheguidesneedstobeachievablebymid2013andgivereal
benefittothePPMcommunity.
Betteralignmentwith
o NAOfinancialmanagementmaturitymodel
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o IUKapproach
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AimsoftheProject
ToaddressissuesarisingfromdirectfeedbacktotheCabinetOffice.
Toevaluateandaddressissuesraisedbythecommunitye.g.throughtheonline
survey.
ToensurethatP3M3remainsvaluabletoorganisationsbyprovidingameansthrough
whichtheirbusinesschangeprocessescanbeimproved.
MaintainCrownCopyrightMaterialsothat
itreflectscurrentthinkingandpractice
itispartofacoherentsuiteofPPMguidance.
Scopeforthenextedition
Itisenvisagedthattheprojecthasseveraloutputs:
1. Apublishedversionoftherevisedmaturitymodel.
2. Improvedguidanceonhowtousethematuritymodelandassessment(s).
3. Guidanceonhowtostartimprovingorganisationmaturityfollowinganassessmentalongwith
appropriatehealthwarnings.
4. Anonlineassessmentbasedonthematurityleveldescriptions,
a. Afreehighlevelassessmentessentiallythecurrentfreehighlevelselfassessment
b. Apaidfordetailedassessmentthatwillallowuserstocomparethemselvesto

1
NAONationalAuditOfficeseehttp://www.nao.org.uk/fordetails
2
IUKInfrastructureUKseehttp://www.hmtreasury.gov.uk/ppp_infrastructureuk.htmfordetails
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i. Theirpreviousassessment(nomorethan2assessmentsperyear)
ii. Similarorganisationstothemselvesbenchmarkingbyindustrysegment,size
regionetc.
ThisisaninterimrevisionNOTamajorrefreshthereforeitmustnotfundamentally
changethestructureofP3M3.
Severalareasofinconsistencyorambiguitywillbeaddressed,sothatdifferentiation
betweenlevelsismoredefined.
ToensurethatP3M3andanyrevisionsareconsistentwithdefinitionscontainedinthe
commonglossary.
Toimprovetheattributedefinitionsintheportfolioandprogrammesubmodelsso
thattheyaredeemedtobeasrobustastheyareintheprojectsubmodel.
Todevelopasrequirednewperspectivesthatcanbeincluded,asoptionalmodules,
intoP3M3,forexamplecommercial,contractual,HRaspects.
Toresolveareasofoverlapwhereattributesmightmoreappropriatelybe
incorporatedorcoveredinadifferentperspective.
Toimprovetheguidancesupportingthematuritymodelandinparticularhowitcan
informimprovementplans.
Toimprovethealignmentandcoverageoffinancialmanagementsothatitbetter
reflectstheNAOfinancialmodel.
ToensurethattherevisedP3M3alignsandtakesaccountoftheoutputfromIUK.
Inresponsetorequestsfollowingthepreviousrevisionthisversionwillalsoincludean
onlineselfassessmentwhichwillbebasedon,
o theexistingselfassessment,
o usingthematurityleveldescriptionsasthebasisforafulleronlineself
assessment,
o thedatabaseandaccessmachinerydevelopedfortheITILmaturitymodel.
Thedatabasewillbeabletosupport,
o Comparisonsagainstapreviousassessment(s)[baselining]
o Comparisonagainstasimilarorganisations[benchmarking]
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TSOwillestablishaChangeAdvisoryBoardtobringP3M3underthesamechange
controlmechanismastheotherBestManagementPracticeproducts.
Outofscope
Therehasbeenarequestforaprelevelonematurityassessment.Atthisstageasthisisfrom
onlyoneorganisationsucharequestisconsideredoutofscope.However,thisrevisionmust
beundertakensuchthatshouldtheneedarisethatthelevelonedefinitionscouldwithsome
additionsbesplitintoaprelevel1andlevel1maturitylevels.
Qualitycriteria
Qualitycriteriaforthisupdatedictatethatthecontentmust:
BewritteninplainEnglishandidiomfree.
BeconsistentwithothercoreBestManagementPracticeguidanceandthecommon
glossary.
Befreefrominternalinconsistencies.
Meettheaimsoftheprojectassetoutearlierinthismandate.
Protectstheinvestmentofthosewhohavealreadycarriedoutanassessment.Enablethemto
moveforwardwiththeirimprovementplansandbeabletomeasurethebenefitsfromtheir
investment.
Changerequests,identifiedbytheChangeAdvisoryBoardandBestManagement
Practiceasrequiringaction,havebeenaddressed.
Beconsistentwithlanguageandconceptsoftherecentupdatesandrevisionsto
PRINCE2,MSP,M_o_R,MoV,MoP,P3O.
Qualitymethod
QualityassurancewillbecarriedoutbytheReviewGroup.TheReviewGroupwillconsistof
membersoftheP3M3ReferenceGroup,practitionersandmembersoftheconsulting
community.Theseworkpackageswillbemanagedasaprojectwithseveralworkpackages
andwillbeprojectmanagedbyTSOonbehalfoftheCabinetOffice.
TheCabinetOffice,inconsultationwiththeP3M3ReferenceGroup,willsetthedetailed
scopefortheproductbasedonthismandate,agreethefullproductdescription/s,andmay
alsoprovideinputtothedesignoftherelevantworkpackage/sifrequired.TheReviewGroup
willmonitorprogressagainsttheseproductdescriptions.
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Anacceptancereviewmeetingwillbecarriedoutbyasmallnumberofreviewersdrawnfrom
theDesignReviewgroupandtheP3M3ReferenceGroup.Thiswillbethefinalreviewbefore
themanuscriptispassedovertoTSOpriortopublication.
Nextsteps
Thenextstepswillbetoderivemoredetailedworkinstructionswhichwillbecoveredintwo
stages:
1. DevelopadraftsetofworkinstructionsbasedonfeedbacktheCabinetOfficehas
received.
2. Refineandvalidatetheworkinstructionsthroughconsultationwithanexpert
referencegroup.
TheP3M3ReferenceGroupassessesthemodelandadvisesBestManagementPracticeadvice
ontheupdatebyconsidering:
Whatisthescopeofthechangerequiredtomaketheproductfitforpurposeagain
Refiningtheworkinstructionsandassurethatithasenoughdetailsothatthe
authoringteamcanclearlyunderstandscopeoftherevision
Makingrecommendationsofareasthatinhindsightthemodeloughttocontainbut
whichuptonowithasnotcovered.
Theauthor(s)willthenbringforwardanoutlineofthechangestobemadeandthiswillbe
subjecttoadesignreviewmeetingtoreviewtheauthor(s)productdescriptionproducedin
responsetothemandateandworkinstructions.Thedesignreviewerswillbedrawnfrom
membersof:
DesignAuthorityrepresentatives(apermanentgroupwithaspecificremittolookat
theimpactofchangesacrossthewholeofthePPMsuiteofproducts).
P3M3ReferenceGrouprepresentative(atemporarygroupwithaspecificremitto
adviseonchangestoasingleproduct).
ChangeAdvisoryBoardrepresentatives(apermanentgroupwithaspecificremitto
providedetailedadviceinresponsetochangerequestsloggedagainstspecific
products).

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AfteruserreviewstorefinetherevisedP3M3guidancearecompletedafinalqualityreview
meetingwillbeconvenedbyTSO.TSOwilladvisetheCabinetOfficeifthefinalauthorsdraft
matchestheexpectationsofthechangesenvisionedinthemandateandthatthefinalquality
oftheinformationinthemodelmeetstherequiredqualityforpublication.Themembersof
thefinalqualityreviewgroupwillinclude;
ChangeAdvisoryBoardrepresentatives,
P3M3ReferenceGrouprepresentatives,
TheCabinetOffice.
Inputtotherevision
Inputstothisrevisionwillincludethefollowing,thelistisnotintendedasanexhaustivelistofinputs.
Surveyfeedback
FeedbacktotheCabinetOffice
NAOfinancialmaturitymodel
WorkontheOperatingEnvironmentwiththeMajorProjectsAuthorityintheCabinetOffice
NAOPPMguidance
IUKsponsor,client,supplychainandassessmentmanagementassessments
LessonslearnedfromthedevelopmentanddeploymentoftheITILmaturitymodel.
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AppendixAMembersoftheChangeAdvisoryBoard(CAB)
ThefinalmembershipoftheCABisyettobeconfirmedbutwillincluderepresentativesfromthe
CabinetOffice,theofficialpublisherandtheofficialaccreditorwithuserrepresentativeyettobe
invitedandlikelytobeselectedfromthereferenceorreviewergroupastheprojectdevelops.
Name Company Representing
MikeAcaster CabinetOffice CabinetOffice
NeilGlover TSO TSO(TheOfficialPublisher)
AlanHarpham APMG APMG(TheOfficialAccreditor)
TBC Publicsectorusers
TBC Privatesectoruser
TBC
AccreditedConsulting
Organisations(ACO)
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AppendixBGlossary
Term Description
APMG TheAPMGrouptheaccreditationbodyforallBestManagement
Practicequalifications.
ACO AnAccreditedConsultingOrganisation,assessedbyAPMGroup(APMG)
toprovidetrainingconsultingserviceacrossthePPMBestManagement
Practiceproducts
CAB ChangeAdvisoryBoardthegroupresponsibleforreviewingand
prioritisingthecontentsoftheITILIssueLog.
ITIL TheITInfrastructureLibrary
IUK InfrastructureUKseehttp://www.hm
treasury.gov.uk/ppp_infrastructureuk.htmfordetails
M_o_R ManagementofRisk:GuidanceforPractitioners.
MSP ManagingSuccessfulProgrammes.
NAO NationalAuditOffice,seehttp://www.nao.org.uk/fordetails
P3O Portfolio,ProgrammeandProjectOffices.
P3M3 Portfolio,Programme,andProjectManagementMaturityModel
MoV ManagementofValue.
MoP ManagementofPortfolios.
PRINCE2 ProjectManagementmethodology.ProjectsinControlledEnvironments.
TSO TheStationeryOfficetheofficialpublisher.

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AppendixCFootnotes
1
BestManagementPracticeistheoverarchingbrandthatumbrellasmultipleCabinetOffice
bestpracticeproducts.Theinternationallyrenownedportfolioisadoptedasbestpractice
throughhighqualitytraining,publications,softwaretoolsandconsultancyforportfolio,
programme,project,risk,valueandservicemanagementdisciplines.