If a company is operating within a well-established system and consistently making money for its investors, many managers are reluctant to change. And why should they? It’s a case of ‘if it works, don’t touch it’!
But this is unacceptable; in fact, such a situation can lead to irreversible degradation and the organisation will eventually be left behind before it has had time to adapt to the changing market.
This is why many companies launch various projects and market research. A project is a way of exploring new opportunities, looking for new technologies, testing new product features and so on. Change or die!
And some companies run projects like a river. Projects are their life.
What is the relationship between the maturity of a company and the conditions for standardising projects? This is the subject of our article.
What is organisational maturity in project management?
Every business grows and evolves like any other system, like any living organism. Every company has its own life cycle: creation, active growth, ‘plateau’, decline.
It is good if a company can set its priorities correctly and develop steadily, extending its life cycle to the maximum.
The development of a business is incremental, sequential. Each new stage has its own characteristics and other indicators, such as a change in strategy, mission, organisational structure, etc.
Naturally, the attitude towards project activities changes as the development progresses.
Organisational Project Management Maturity is an aggregate assessment that characterises an organisation’s ability to manage projects in a way that is most effective for it and its strategic objectives.
Project management maturity models
Because maturity is a complex assessment, you need a proven methodology to calculate it. There are several methodologies used in business. Here are some details about each.
The most widely known (read ‘popular’) models at the moment are:
- Organisational Project Management Maturity Model, usually referred to as OPM3 (M3 means there are 3 ‘M’s at the end).
- Portfolio, Programme and Project Management Maturity Model (also known as P3M3).
- Capability Maturity Model Integration (CMMI).
- 20 keys.
These were universal models. But there are also profile ones, designed for the IT industry:
- Capability Maturity Model (CMM).
- ISO 15504.
- ISO 33001.
When it comes to distinguishing different levels of maturity, the most popular approach — OPM3 — is usually meant.
This model was first described in 2003 in the PMI standard developed by the American Project Management Institute.
OPM3 provides a clear definition of what project management is, how to assess an organisation’s maturity level, what best management practices look like and how to improve project management to get to the next level.
In addition, best practices are formalised both offline (OPM3 ProductSuite) and online with a search engine (OPM3 Online Tool).
A specific questionnaire is used to assess the current level of maturity. As this is a self-assessment, it will have a low level of confidence. Please bear this in mind when analysing your company.
What are the different levels of organisational maturity?
Although we have mentioned several assessment models at once, in reality the maturity levels in many of them overlap. These are:
0. Absent level
Business processes within an organisation are unpredictable. There is no standardisation (it does not exist as a phenomenon) and there is no organised response to certain events. As a result, the outcome of such an organisation cannot be predicted. External and internal risks are maximised. There is no clear organisational structure, or positions and structural divisions are nominal (everyone does everything). Motivation is poorly understood.
- Initial maturity
Internal processes are still unpredictable, but weak control is already evident. In response to important events in the life of the company, certain processes can be set in motion. Results are somehow achieved. Risks are usually associated with exceeding budget, quality and deadlines. The nature of management here is usually situational and control is reduced to the execution of orders. The organisational model is hierarchical (with strict subordination to the leader). The leader is responsible for motivation.
2. Repeatable maturity level (aka manageable)
Processes are defined in advance for each project, but can also emerge in response to specific situations. There is a high probability that the result will be achieved on time, even if the budget is slightly exceeded or the quality deteriorates. Specific project management methodologies are used (top project management methodologies). Time management solutions and special software, such as a task scheduler, are used for control. A project team usually works on a project. The main motivation (what is encouraged) is to complete tasks faster.
3. Defined maturity level (also known as standardised)
This is when the processes for setting up new projects are actually already in place. Work rules are in place. When new people arrive, they can be quickly brought up to speed and involved in effective work. All business processes have already been strictly defined and tested. The result of the project fits the given conditions and has the required quality. Deviations are only possible within the budget. The management system is based on the processes and the quality system. The best rewards are given to those who perform tasks better than others (motivation system).
4. Measurable maturity level
The mention of measurability in the title is no coincidence. All processes in such companies have clear criteria for qualitative and quantitative assessment and are easy to control at every level of the hierarchy. The processes themselves are designed on the basis of the expectations of the end customers (consumers). The end result hits the target on all three fronts: quality, delivery time and budget. This depends largely on the quality of the planning. The risks of failure are minimal, mostly related to strategic miscalculations. The management system is usually based on objectives and control is based on indicators. Actions leading to maximum efficiency are encouraged.
5. Optimised maturity
It implies a continuous process of self-improvement of the organisation from within. The focus is on the long term, so risks are minimal even in the strategic plan. Management in such organisations is fundamentally different from other forms of management. It relies on knowledge, considers the possibility of change and prioritises innovation. The organisational structure of the company is usually networked.
Looking specifically at OPM3, the maturity levels here are very similar to the approach of other models:
- Ad hoc (unregulated ‘on demand’ level). Each new project has its own peculiarities, there is no single approach, the level of formalisation is low.
- Foundation. A level with clearly understood rules. There is already a consistent approach to projects. Results are highly predictable.
- Managed. Managed level. Effective planning and maintenance of projects. There is a common base of accumulated experience from previous projects, which is taken into account in new projects.
- Integrated. Integrated into the management system. The company knows how to manage a portfolio of projects.
- Optimised. Level of optimisation. Working with projects is continuously improved. It is a streamlined business process.
How to increase the level?
Increasing maturity is achieved by using the following tools:
- Developing new management techniques or implementing the most appropriate ones.
- Training in the use of these techniques (adoption rather than nominal implementation ‘for the sake of ticking boxes’).
- Appointing project managers.
- Collection, accumulation and systematisation of knowledge and experience from previous completed projects.
- Implementing project portfolio management systems (effective methodologies).
- Effective management of project resources and risks.
- Develop strategies (visionary plans).
- Development of corporate standards and regulatory frameworks.
- Management of subordinate staff skills.
