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
