Projects, rather than repetitive tasks, are now the

basis for most

value-added in business
-Tom Peters
Background
Business organizations are embracing project management practices as a core
competence and achieving organizations strategic goal. The discipline of project
management is vast and focuses on the correlation between the organizations
capability (in managing, programs, portfolios and projects) and its effectiveness in
implementing strategy. It also provides organizations with knowledge, skills, tools
and techniques to plan, execute and control projects. Therefore, successful project
delivery is vital for the sustainability of the organization and achieving corporate
objectives.
In the last two decades, several project management initiatives have been
developed to manage projects effectively. However, challenges still exist in
developing capability to deliver projects successfully. Project management maturity
models are among the different initiatives which assess the maturity level of the
performing project organizations and create a realistic roadmap for improvement
and benchmarking.
Project management maturity Model (PMMM) is designed to provide a framework
that an organization needs to progress and develop capability. Measuring the
existing maturity level advances the organization in significant performance
benefits.
ESI International Project Framework and maturity model developed by the center for
Business Practices Despite some differences in terminology; each maturity model
has a clear pattern and is adopted from the generic model of progression toward
project management maturity.
The basics of maturity level starts with the assumption of project management
practices with in the firm are not planned and are not collectively employed. The
last stage of maturity assumes that project management techniques and
procedures are institutionalized and actively exploring continuous improvement and
seeking to move beyond these in innovative ways. Each maturity levels similar to
SEI maturity levels are described below.
Level 1: Initial Process
There is some recognition about the project management processes. Management
has little awareness of the need for project management. There are not established
practice and standards of project management. Documentation and other
supportive project management processes are loose and not well established within
the organization. Organizations are not able to repeat past successes consistently
mostly due to the fact that process description and lack of documentation. At level 1

maturity, organization can deliver projects successfully but these success factors
are linked to key individual contributions rather than enterprise-wide knowledge and
capability. [Pennypaker, 2001, p.25]
Key characteristics
Project are handled differently i.e informal approach
Projects are highly dependent on the project manager
Little management support for project management
No formal way to gather lessons learned and used to other projects
Project outcomes are unpredictable
Level 2: Structure, Process and Standard
At this level, basic project management processes and standards are established
and mainly used on large and visible projects. The standard is repeatable and is
applied to basic project management process. The standard is not considered at
organization level and mostly focus on projects. There exists proper documentation
to the basic processes. Management supports and encourages the implementation
of project management processes though there lacks consistency and involvement
to comply for all projects. Functional management get involved in key projects and
executed in a systematic approach. Some basic tools and techniques are applied for
example tracking project cost, estimates; schedules are based on expert knowledge
and generic tools. [Pennypaker, 2001, p.25]
Key characteristics
Managed support for project management
Repeatable processes are adopted to basic project management process
Use of common tools and techniques to key processes
Predictable project outcomes are predictable
Project management processes tools and techniques are applied
Level 3: organizational standard and institutionalized process
Project management processes are well established and exist at organizational
level. At this level, stake holders are actively involved and considered as integral
members of the project team. All processes and standards are institutionalized with
formal documentation. Management is involved in key project issues and decisions.
Each project is evaluated and managed in light of other projects. [Pennypaker,
2001, p.25]
Key characteristics
Management support for project management processes
Efficiently plan, organize, manage, integrate and control each projects
Project team members are well trained in project management
Consistent use of tools and techniques for project management process
Lessons learned and previous project experiences are well organized and utilized
for other projects
Level 4 Managed process:
Project management processes and standards are well established, matured and
quantitatively managed. It is also integrated with other corporate processes and
systems. All projects and changes are evaluated based on different efficiency and
effectiveness metrics from cost estimates, baselines estimates and earned value.
Projects are managed from past experience and future expectations. Project
information is available to optimize the business decisions and integrated with the

other corporate systems. At this level, there is holistic view and considering projects
as organization entity. [Pennypaker, 2001, p.25]
Project portfolio management is integrated into the organizational business strategy
Key characteristics
Active Management support for integration of business strategy and project
execution
Efficiently plan, organize, manage, integrate and control several projects
Database of previous project data is well maintained and utilized
Level 5 optimizing process:
Processes are well institutionalized approach to continuously improve the project
management processes and project performance. There is continuously examining
of lessons learned and this is used for improvement of project management
processes, standards and documentation. The intention of management and the
organization at this level is not only for managing projects effectively but also
focused on continuous improvement. [Pennypaker, 2001, p.25]
Key characteristics
Actively encouraged of project management improvement
Flexible, project-centered organization structure
Adopted career program for project managers
Project management training is key and crucial in staff development

The Model
A five-level maturity model adopted from Project Management solutions was used
as an assessment tool for measuring the project management capability. The model
is developed based on two-dimensional framework. The first dimension depicts the
knowledge area adopted from PMBOK guide and the second dimension represents
five-level maturity, developed from SEI-capability management maturity as shown
in the figure below.
Since the PMBOK guide is vast and knowledge requirement is very large within each
knowledge area, it was necessary to break down into key activities within each nine
knowledge areas and best practices. For instance, under scope management, four
key activities were identified i.e scope definition, Work breakdown structure, project
delivery plan and procedure for scope change control. Each component was
examined separately and determined the capability of defining and controlling the
project scope management. The same is followed to other knowledge areas and
other best practices. In addition, the specific components were used to develop an
action plan for improvement and reach the next level of maturity. A five level
scoring model was used to measure each key activity. See appendix for detail
explanation of the model and scoring used.

ESI internationals project framework

Level 1:
Level 2:
Level 3:
Ad hoc
Consistent
Integration

Level4:
Comprehensiv
e

Level 5:
Optimizing

Process are ill

defined because
they are applied
individually

Organization supports
a discipline approach

Processes are tailored

to enhance and
advance aspects in all
nine knowledge areas

Project
management fully
implemented
across the
organization

Continual effort to
improve and
innovate project
capability

Little organization
support

Policies are
establishes and
processes are
documented and
repeatable

Common
understanding and use
of established
methods throughout
the organization

Information is used
to evaluate process
effectiveness and
reduce variations

Common failures
are eliminated

Advanced
alternative
management tools
and techniques are
developed
Project support the
strategic plan

What is Maturity?
Definitions vary but mature processes are generally thought to be:

Well defined

Repeatable

Measured

Analyzed

Improved

And most importantly effective. Poor but mature processes are just as bad as no
maturity at all!
The CMM helps to solve the maturity problem by defining a set of practices and
providing a general framework for improving them. The CMM focus is on identifying
key process areas and the exemplary practices that may comprise a disciplined
software process.

Immature vs Mature Organization:

There are following characteristics of an immature organization:

Process improvised during project

Approved processes being ignored

Reactive, not proactive

Unrealistic budget and schedule

Quality sacrificed for schedule

No objective measure of quality

There are following characteristics of a mature organization:

Inter-group communication and coordination

Work accomplished according to plan

Practices consistent with processes

Processes updated as necessary

Well defined roles/responsibilities

Management formally commits

The 5 PM Maturity Levels of Project Framework

ESI International has been conducting Organizational and Maturity
Assessments in the domain of Project Management. The cornerstone of this
assessment capability has been ESIs (PMI-aligned) Project Management
Maturity Model Project Framework, and that capability has been enhanced
to encompass OPM3.
Outlined below you will see the 5 Project Management Maturity Levels of
Project Framework .

Compare ESI model with OPM3:

Depending on the CMMI areas of interest (acquisition, services, and development)
used, the process areas it contains will vary. Process areas are the areas that will be
covered by the organization's processes.

DIFFERENCES
S no
1

ESI

OPM3

ESI focus is operational

implementation of processes

ESI has 3 constellations:

1) Development
2) Acquisition
3) Services

ESI is designed for software or

related use

OPM3 emphasis is linking project /

program /
portfolio to organization strategic
objectives
OPM3 defines a matrixes based 3
dimensional
maturity progression
Organizational domains:
Project
Program
Portfolio
OPM3 is generic, can be applied to any
industry

SIMILARITIES
S no
1
2
3

ESI

OPM3

(generic)goal based

Opm3best practice based

Required lot of documentation

Document based assessment

Improvement based model

Project process improvement

Maturit
y levels
5
4
3
2
1

ESI

OPM3

Optimizing

Continuously improve

Quantitatively managed

Control

Defined

Measure

managed

standardized

Initial

none

Product based similarities

equivalence
ESI
Optimal way to
objective
Specific competency
Tangible intangible
results
Quantitative
/qualitative criterion

OPM3

Goals

Best practices

Specific /generic practice

Sub practices/ work
products
Practice implementation
indicators

Capabilities
outcomes

Company analysis

Key performance indicators

K electric

Background
Business organizations are embracing project management practices as a core
competence and achieving organizations strategic goal. The discipline of project
management is vast and focuses on the correlation between the organizations
capability (in managing, programs, portfolios and projects) and its effectiveness in
implementing strategy. It also provides organizations with knowledge, skills, tools
and techniques to plan, execute and control projects. Therefore, successful project
delivery is vital for the sustainability of the organization and achieving corporate
objectives.

Problem definition

Implementing a five years growth and transformation plan (GTP) which focus in
building infrastructures and extension of huge and ongoing developmental projects
such as capacity expansion operation development and reduced losses. At present,
KE is involved in generation and distribution.
KE is now handling several projects and still endeavoring project management
processes and best practices to ensure successful delivery of projects. Currently, KE
is implementing project management approaches and training programs for project
managers and team members. Several initiatives have been implemented such as
Quality Management System, Enterprise Resource Planning, Kaizen, Human
Resource and working manuals. The company is wishing to enhance the project
management capability as a starting point for their improvement initiative. As a
result, assessing the current practices using maturity models is considered as first
step for benchmarking the organization and allows the company to define
systematic roadmap for improving project management processes.

Purpose
The project management capability using a project management maturity model.
The model is used as assessment tool to compare project delivery capability with
that of established best practices
How projects are executed by the performing department?
What are the gaps?
Five level maturity models is used to assess the project management knowledge
areas and best practices

Result
To measure project management capability of the organization mainly to assess the
level of project management capability using project management maturity model.
The five-level maturity model was used on each project management knowledge
areas and best practices to assess the capability of the organization in handling
projects.
Level of contact Project department within the company
Industrial sector Engineering Company electricity
Structure of the organization project based company
International spread of the company company is based only in Pakistan
Type of project Core and familiar to the company
Average project budget above 15 million
Duration & size of projects ranges between 1-5 projects at a time with duration
of 9 -18 months
Number of project members core projects consists of 11-20 members
The result from is shown in the table below. The maturity level of each knowledge
areas and best practices within the project department of the company and
estimated based on the mean value of each knowledge area.

Table. Result of the assessment of each knowledge area and

corresponding maturity level
Maturity Levels
Knowledge
areas & Best
practices
Scope
Management
Time
Management
Cost
Management
Quality
Management
Human
Resource
Management
Risk
Management
Communication
s Management
Procurement
Management
Integration
Management
Roles and
Responsibilities
Governance
practices
Benefits
management
Alignment
Balancing
Project Portfolio
Monitoring &
Reporting

Actual

Managed (3)

Integrated (4)

Optimized
(5)

2.5

2.3

2.3

1.7

1.8

1.6

2.0

1.5

1.8

2.0

1.8

1.7

1.3
1.0
1.0

3
3
3

4
4
4

5
5
5

Conclusions
Knowledge transfer and utilization are prerequisites for changing position at the
project management maturity evolution path. A continuous improvement of the
practices in collecting and re-usage project knowledge is needed for organizations
to be at higher level of proficiency in project management which develops the
organizations competitive position in the market of future. Project management

performance is based on the knowledge of project team members. Naftanaila

(2010) states that other individuals, either internal or external to the project at
hand, can use that knowledge if and only if it is applied and transferred effectively.
Efficient knowledge transfer requires not only systems and procedures but also
climate for knowledge share. Knowledge transfer between projects enables
development of more effective and more sophisticated practices in project
management.
The results confirmed that knowledge is managed and utilized to a wider extent
among organizations which are more experienced in project management. The
immature organizations do not collect the project knowledge in a systematic way.
However, managing project knowledge and experiences are still very important
activities, no matter if organization is at the lowest or highest level of maturity.
As little attention has been paid to how effective project knowledge transfer can
help in achieving higher level of maturity in project management

Web references:

Sandra L. Cepeda (2005): http://www.sei.cmu.edu/library/assets/cepedacmmi.pdf

Center for Business Practice Reaseach News: www.cbponline.com March 12th,
2013
EFFORT website: http://www.effortgroup.org/mie/index.htm
Project Management Maturity:
http://www.pmsolutions.com/resources/category/project-managementmaturity/P8 March 15th, 2013
"cmmiquick.xls," [Online]. Available:
http://spurgeongeneral.com/quality/qlibrary/cmmiquick.xls.

M. Bloch, "Delvering large-scale IT projects on time, on budget, and on

value," October 2012. [Online]. Available:
http://www.mckinsey.com/insights/business_technology/delivering_largescale_it_projects_on_time_on_budget_and_on_value.

McSweeny, "PMI/OPM3 and CMMI Assessment".