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ENHANCING BUSINESS VALUE IN
ORGANIZATIONS
Using OPM3
AGENDA
 What is OPM3® ?
 Business Value
 OPM3® - the tool
 Applications
 What Next ?
2
WHAT IS OPM3 ?
3
4
Organization
Project
Management
Maturity
Model
OPM3 ELEMENTS
5
Knowledge
Assessment
Improvement
Understanding Org PM
Content of OPM3 Model &
How to Use it ?
What is our maturity in Org
PM ?
Where are we ?
Where do we want to go
?
Implement plans to
reach the goal
6
ORGANIZATIONAL PROJECT MANAGEMENT
Projects
Strategy
Programs
Portfolio
Gap
7
ORGPM PROCESSES
I P
C E
Cl
….. These process groups are
applicable in each domain
Project
Program
Portfolio
Initiating .. Planning.. Executing..
Controlling .. Closing
8
SMCI
Standardize
Measure
Control
Improve
S
M
C
IFollows PDCA cycle and
SEI representation
Plan
Do
Check
Act
Initial
Repeatable
Defined
Managed
Optimized
 Three Management Domains:
• Project
• Program
• Portfolio
 Five Process Groups
(I, P, E, C, C)
 Organizational Enablers
The Areas of OPM are -
9
TERMINOLOGY
10
Best Practice Optimal way currently recognized by industry to
achieve a stated goal or objective
Capability Specific competency that must exist
Outcome
KPI
Demonstration of existence of a capability
…. Key Performance Indicator -
Criterion or degree of existence of an
outcome
WHAT IS A BEST PRACTICE ?
 Optimal way currently recognized by industry to
achieve a stated goal or objective
 Best practices exist in all fields
 For Organizational Project Management BPs
includes the ability to deliver projects
successfully, consistently, and predictably
to implement organizational strategies
 Best Practices can change over time and are
dynamic
11
BEST PRACTICES - EXAMPLES
 Use Team work - Cross functional teams carry
out project activities
 Prioritize Projects - A project prioritization
process is used to directly link projects to the
organization’s goals
 Establish Risk Management - The organization
utilizes risk management techniques to take
measurements and assess the impact of risk
during execution
 Capture and share Lessons learned – The
organization collects and share lessons learned
from projects, programs and portfolios 12
CAPABILITIES AND BPS
13
…….Stepping stones
to reach a goal
BP 1410Manage Project Resource Pool
Cap 1410. 50
Capability – Competency that exists to
implement PM processes
Cap 1410.20Cap 1410. 40
Cap 1410. 30
Cap 1410. 20Cap 1410.10
EXAMPLE
14
Capability
1410.030.10
Outcome
Key Performance Indicators
Develop a Skills database
Skills of individuals
Skills Gap Analysis results
15
OPM3 CYCLE
Perform Assessment
SAM
Comprehensive
Prepare for Assessment
Plan for Improvement
Implement Improvements
Repeat the
process
… knowledge
foundation
Compare
OPM3 … LIKE A MAP
16
Example
Travelling to SFO
Route 1 Chennai –
Singapore – HK – SFO
Route 2 Chennai –
Frankfurt – New York –
SFO
Which route you will take depends on
cost , time , availability , convenience
OPM3 … info on possible routes but not on cost / benefits
What ‘route’ to take will be decided by user
BUSINESS VALUE
17
MEASURES
 Financial or economic
 ROI , NPV ,payback etc
 Cash flow
 Strategic
 Market growth ie sales
 Technical excellence
 Competency
18
ISSUES - CHALLENGES - PROBLEMS - PAIN
POINTS
 Quality improvement
 Talent shortage
 On time delivery
 Cost - over run
 Expediting approvals
 Stakeholder management
 Scope creep
 Constant changes
 Unclear requirements 19
OPM3® - TOOLS
20
Knowledge Foundation - Book
 Organizational Project Management
 How to use the model
 List of Best Practices
 Self Assessment Questions
Online Data Base
 http://opm3online.pmi.org
 Best Practices and Capabilities
 Dependencies
 Benchmarking facility
OPM3 - KNOW FDN & ONLINE DATABASE
21
22
SELF - ASSESSMENT
Use Self Assessment Model and Tool … involves answering
questions . The Tool provides answers in graphical form
33%
Organization’s relative Maturity
Program
Portfolio
Project
Spider graph as PPP
also in terms of
SMCI and IPECC
Project 60
Program 10
Portfolio 5
Assessment Tool
 Manage OPM3 assessment process
 Evaluate organizational status
 Report organizational maturity
 Establishes database for improvement
Improvement Tool
 Manage OPM3 improvement process
 Analyze organizational maturity
 Guide improvement planning
 Link maturity plan to business objectives
OPM3 PRODUCT SUITE
23
APPLICATIONS
24
1) Does your org follow project mgt processes -
based on PMBOK or equivalent standard ……
as a documented process ?
2) Is the process communicated to all necessary
stakeholders ?
3) Is it consistently implemented and across the
organization in terms of its outputs ?
 If all 3 questions are answered completely ‘yes’
… you have a Standardized process ….
 You still have to Measure , Control and Improve
…
EXAMPLE 1 USING PMBOK / EQUIVALENT
25
 Applies to large enterprises organizations with
many divisions ,departments which are multi-
locational in different geographies
 Using OPM3 Product suite we can assess and
devise improvement plans to compare best
practices and capabilities of each division
/department
 Domains - PPP
 Knowledge area - Scope ,Time Cost
 Business results …project predictability , resource
optimization and Balanced Score card factors
EXAMPLE 2 - BEST PRACTICE ACROSS ORG
26
 What are driving factors for sales ?
 Lower product or operation cost
 New market sales
 Better product or process quality
…… and many others ….
 What solutions are recommended to make the
above happen ? These become initiatives or
projects
 These projects can be assessed in terms of PPP
, gap analysis done and an implementation plan
can be suggested
EXAMPLE 3- MARKET GROWTH OR SALES
27
WHAT NEXT ?
28
 Use OPM principles e.g are you following
portfolio management ?
 Connect ….expected business results
to …improvement projects
 Use OPM3 Tools for obtaining business value
 Do a PILOT business process improvement
project using OPM3.
HOW CAN YOU DO NEXT ?
29
www.xtraplus.co.in
rao.raju@gmail.com
Tel 0-9884188171
Thank You
GETTING IN TOUCH
30

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Enhancing business value in organizations using OPM3

  • 1. ENHANCING BUSINESS VALUE IN ORGANIZATIONS Using OPM3
  • 2. AGENDA  What is OPM3® ?  Business Value  OPM3® - the tool  Applications  What Next ? 2
  • 5. OPM3 ELEMENTS 5 Knowledge Assessment Improvement Understanding Org PM Content of OPM3 Model & How to Use it ? What is our maturity in Org PM ? Where are we ? Where do we want to go ? Implement plans to reach the goal
  • 7. 7 ORGPM PROCESSES I P C E Cl ….. These process groups are applicable in each domain Project Program Portfolio Initiating .. Planning.. Executing.. Controlling .. Closing
  • 8. 8 SMCI Standardize Measure Control Improve S M C IFollows PDCA cycle and SEI representation Plan Do Check Act Initial Repeatable Defined Managed Optimized
  • 9.  Three Management Domains: • Project • Program • Portfolio  Five Process Groups (I, P, E, C, C)  Organizational Enablers The Areas of OPM are - 9
  • 10. TERMINOLOGY 10 Best Practice Optimal way currently recognized by industry to achieve a stated goal or objective Capability Specific competency that must exist Outcome KPI Demonstration of existence of a capability …. Key Performance Indicator - Criterion or degree of existence of an outcome
  • 11. WHAT IS A BEST PRACTICE ?  Optimal way currently recognized by industry to achieve a stated goal or objective  Best practices exist in all fields  For Organizational Project Management BPs includes the ability to deliver projects successfully, consistently, and predictably to implement organizational strategies  Best Practices can change over time and are dynamic 11
  • 12. BEST PRACTICES - EXAMPLES  Use Team work - Cross functional teams carry out project activities  Prioritize Projects - A project prioritization process is used to directly link projects to the organization’s goals  Establish Risk Management - The organization utilizes risk management techniques to take measurements and assess the impact of risk during execution  Capture and share Lessons learned – The organization collects and share lessons learned from projects, programs and portfolios 12
  • 13. CAPABILITIES AND BPS 13 …….Stepping stones to reach a goal BP 1410Manage Project Resource Pool Cap 1410. 50 Capability – Competency that exists to implement PM processes Cap 1410.20Cap 1410. 40 Cap 1410. 30 Cap 1410. 20Cap 1410.10
  • 14. EXAMPLE 14 Capability 1410.030.10 Outcome Key Performance Indicators Develop a Skills database Skills of individuals Skills Gap Analysis results
  • 15. 15 OPM3 CYCLE Perform Assessment SAM Comprehensive Prepare for Assessment Plan for Improvement Implement Improvements Repeat the process … knowledge foundation Compare
  • 16. OPM3 … LIKE A MAP 16 Example Travelling to SFO Route 1 Chennai – Singapore – HK – SFO Route 2 Chennai – Frankfurt – New York – SFO Which route you will take depends on cost , time , availability , convenience OPM3 … info on possible routes but not on cost / benefits What ‘route’ to take will be decided by user
  • 18. MEASURES  Financial or economic  ROI , NPV ,payback etc  Cash flow  Strategic  Market growth ie sales  Technical excellence  Competency 18
  • 19. ISSUES - CHALLENGES - PROBLEMS - PAIN POINTS  Quality improvement  Talent shortage  On time delivery  Cost - over run  Expediting approvals  Stakeholder management  Scope creep  Constant changes  Unclear requirements 19
  • 21. Knowledge Foundation - Book  Organizational Project Management  How to use the model  List of Best Practices  Self Assessment Questions Online Data Base  http://opm3online.pmi.org  Best Practices and Capabilities  Dependencies  Benchmarking facility OPM3 - KNOW FDN & ONLINE DATABASE 21
  • 22. 22 SELF - ASSESSMENT Use Self Assessment Model and Tool … involves answering questions . The Tool provides answers in graphical form 33% Organization’s relative Maturity Program Portfolio Project Spider graph as PPP also in terms of SMCI and IPECC Project 60 Program 10 Portfolio 5
  • 23. Assessment Tool  Manage OPM3 assessment process  Evaluate organizational status  Report organizational maturity  Establishes database for improvement Improvement Tool  Manage OPM3 improvement process  Analyze organizational maturity  Guide improvement planning  Link maturity plan to business objectives OPM3 PRODUCT SUITE 23
  • 25. 1) Does your org follow project mgt processes - based on PMBOK or equivalent standard …… as a documented process ? 2) Is the process communicated to all necessary stakeholders ? 3) Is it consistently implemented and across the organization in terms of its outputs ?  If all 3 questions are answered completely ‘yes’ … you have a Standardized process ….  You still have to Measure , Control and Improve … EXAMPLE 1 USING PMBOK / EQUIVALENT 25
  • 26.  Applies to large enterprises organizations with many divisions ,departments which are multi- locational in different geographies  Using OPM3 Product suite we can assess and devise improvement plans to compare best practices and capabilities of each division /department  Domains - PPP  Knowledge area - Scope ,Time Cost  Business results …project predictability , resource optimization and Balanced Score card factors EXAMPLE 2 - BEST PRACTICE ACROSS ORG 26
  • 27.  What are driving factors for sales ?  Lower product or operation cost  New market sales  Better product or process quality …… and many others ….  What solutions are recommended to make the above happen ? These become initiatives or projects  These projects can be assessed in terms of PPP , gap analysis done and an implementation plan can be suggested EXAMPLE 3- MARKET GROWTH OR SALES 27
  • 29.  Use OPM principles e.g are you following portfolio management ?  Connect ….expected business results to …improvement projects  Use OPM3 Tools for obtaining business value  Do a PILOT business process improvement project using OPM3. HOW CAN YOU DO NEXT ? 29