P3M3 v2.

0 Self Assessment

Instructions and questionnaire

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Contents

Contents Page
Introduction 4
User Guidance 6
P3M3 Self-Assessment Guidance 10
P3M3 Model Answers 28
Next Steps 32
 Introduction

4 Self-Assessment
P3M3™ (Portfolio, Programme and Project Management Maturity Model) is an
overarching model containing three individual models:

J Portfolio Management Maturity Model (PfM3)

J Programme Management Maturity Model (PgM3)
J Project Management Maturity Model (PjM3)

Each model uses a five level process capability framework which may be used to gauge
the overall organizational maturity. The descriptions and characteristics of the five
Maturity Levels apply equally to each of the three sub-models.

P3M3 recognizes that organizations may be excellent at project management without

embracing programme management concepts or indeed vice versa. Similarly, an
organization may be accomplished at portfolio management while not being mature at
programme management.

P3M3 focuses on seven Process Perspectives, which exist in all three models and can
be assessed against five levels of capability. The flexibility of P3M3 allows organizations
to review all seven Process Perspectives across all three models – portfolio, programme
and project management – but they can also review just one (or several) of the Process
Perspectives, whether across all three models or across only one or two of them. This can
be useful to gain a better understanding of an organization’s overall effectiveness in, for
example, risk management or resource management.

An organization may choose to view how mature it is against any or all of the sub-models,
or may wish to gauge their process capability, e.g. at organizational governance across
portfolio, programme or project management.

This self-assessment tool should be read in conjunction with the P3M3 version 2 standard
itself and the OGC Glossary of terms. These can be found at:
Self assessment at www.p3m3-officialsite.com

Common Glossary at www.best-management-

practice.com/officialsite.asp?FO=1230366&action=confirmation&tdi=575004
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Use of the P3M3 Self-Assessment

The P3M3 Self-Assessment can be used in many ways, for example:

J to provide a basic introduction and overview of the scope of P3M3

J to gauge the current level of organizational maturity in respect of portfolio, programme
and/or project management
J to gain an understanding of the key practices in effective portfolio, programme and
project management processes
J to identify the key practices that need to be embedded within an organization for it to
improve process capability and achieve the next Maturity Level
J to understand and improve an organization’s capability to manage its portfolio,
programmes and projects more effectively.

The P3M3 self-assessment questionnaire is one of a number of alternative ways for an

organization to begin to explore the P3M3 model. It introduces some of the core concepts
such as the five Maturity Levels and seven process Perspectives that are the foundations
of the P3M3.

By completing the self-assessment questionnaire, a relatively quick evaluation of the

current organizational maturity and process capability with respect to portfolio, programme
and/or project management is obtained. Do remember though, that self-assessments tend
to introduce a degree of optimism bias that is often removed through a facilitated
assessment conducted by a competent third party.

The self-assessment questionnaire may be used as an introduction to the model and

individuals in completing the questionnaire are encouraged to explore the P3M3 further. It
may also be used as perhaps a pre-cursor to seeking further information, external
consultancy, training or assistance on using P3M3. Further information, including details
of formal reviews, can be found on the official P3M3 website.

It should of course be recognised that the actual P3M3 model and in particular the
Attributes - indicators of process and behavioural maturity, should be referenced in
drawing-up an improvement plan. The P3M3 model and knowledge of where the
organization needs or wants to be positioned in future, should underpin any subsequent
improvement initiatives and the P3M3 model and not simply the self-assessment
questionnaire should be the basis of continuous improvement initiatives.
 User Guidance
6
The self-assessment consists of nine questions and although the self-assessment is
based on a few questions, it remains a powerful tool addressing both process capability
and providing insight into an organization’s Maturity Levels in respect of portfolio,
programme and project management.

In completing the self-assessment, a decision needs to be taken on whether the scope will
be limited to a particular combination of portfolio, and/or programme and/or project
management. For example, an organization may wish to assess just project management,
or programme and project management. A second decision on scope is to determine the
boundary of the organization that is to be reviewed i.e. is it the whole organization or a
particular division or department alone?

The first question relates to the overall organizational maturity levels. The aim in
answering this question is to ascertain which of the five Maturity Level descriptions best
describes the portfolio, programme and/or project management processes within the
organization. In answering this question, users are encouraged not only to familiarize
themselves with the definitions of portfolio, programme and/or project management within
Chapters 3, 4, and 5 of the P3M3 respectively, but to familiarize themselves with the
characteristics which constitute best practice.

The questionnaire then contains seven questions, one for each of the Perspectives
contained within P3M3 covering:

J Management Control
J Benefits Management
J Financial Management
J Stakeholder Management
J Risk Management
J Organizational Governance
J Resource Management

In completing the self-assessment questionnaire, a user may elect to answer questions on

a subset of perspectives that are perhaps of particular interest to the organization or
reflect the particular user’s knowledge of the organization’s processes and practices.

A description is presented for each perspective covering five levels of process capability
for portfolio and/or programme and/or project management. The user needs to simply
decide which of the five descriptions most adequately reflects the organization’s current
capability.

In reading the descriptions, the user may conclude that the organization could be
positioned within perhaps two of the Levels. In such circumstances, the user should
review the specific Attributes associated with the Perspective Level descriptions within
P3M3. There are usually c.10 attributes associated with each Perspective Level and the
user should review each of the specific Attributes in turn for the two Levels and consider
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whether the specific attribute is true or false in respect to current practice within the
organization. By simply counting the number of affirmative specific Attributes within two
Levels, a decision can be taken based on the greater number of affirmative Attributes. In
the unlikely case that the count is the same between two levels, then the organization
should select the lower Perspective Level.

The final question, provides a cross-check on the structural components i.e. between the
individual perspectives and the overall process capability maturity level for portfolio,
programme and/ or project management.

It should be remembered that self-assessment has a tendency to result in some optimism

bias and that although by completing the questionnaire, one will have indicative values of
process capability and the overall organizational maturity in relation to portfolio, and/or
programme and/or project management, it cannot be relied upon to the same extent as a
detailed facilitated assessment carried out by a qualified, registered consultant.

Step-by-Step Guide
The following steps provide a simple guide to accomplishing a P3M3 self-assessment.

The first step, after familiarizing oneself with the general scope of P3M3, is to decide on
the intent of the self-assessment, the range of areas to be covered and the parts of the
overall organization to be included. For example, it may be the intent to limit the
assessment to programme and/or project management, or perhaps to look at (say)
organizational governance and risk management across portfolio, programme and project
management, or to limit the scope to one division alone.

The next step, having determined the scope of the assessment is to determine the most
appropriate individual(s) to complete the exercise. The self-assessment may be
undertaken by:

J an individual, with knowledge of the organization’s portfolio, programme and/or project

management processes and practices, as applicable.
J a group of people, either individually, or as a team to arrive at a consensus.
J an internal or external facilitator, to identify key individuals, e.g. Project Director,
Programme Managers, collating answers from key personnel either individually or in
groups and analysing the response(s).

Having decided upon the assessment scope, and determined the approach and who will
contribute to answering the questionnaire, the assessment can be completed, by referring
to the model answers supplied. The most appropriate response from the model answer
specification should be selected that reflects the current process / practices within the
organization. Where a group of individuals have provided their answers, the leader of the
review will need to determine and agree a process for combining the individual scores.
This might be the minimum score, or some form of averaging.
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The penultimate step is to analyze the results of the assessment in the context of the
organization’s goals or intent. For example, the self-assessment may have been
undertaken to provide a current baseline from which the efficacy of process improvement
can be judged; alternatively it may be used to help justify the case for investment in (say)
programme management methods training.

The final step, having analyzed the results of the self-assessment is to consider and plan
the next steps and perhaps continue to improve portfolio, programme and/or project
management within the organization leading to improved efficiency, quality and successful
delivery of the organization’s initiatives.
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Generic Approach to P3M3 Self-Assessment

Decide Assessment Scope

Decide Approach

Determine Suitable Assessors

Complete Assessment

Analyze Assessment Results

Consider Next Steps

 P3M3 Self-Assessment Questionnaire
10
P3M3 uses a five-level maturity framework and the five Maturity Levels are:
J Level 1 – awareness of process
J Level 2 – repeatable process
J Level 3 – defined process
J Level 4 – managed process
J Level 5 – optimized process

The descriptions and characteristics of the five Maturity Levels apply equally to each of
the three sub-models – Portfolio, Programme and Project Management. P3M3 recognizes
that organizations may excel at project management without having embraced programme
management, or indeed vice versa. Similarly, an organization may be accomplished in
portfolio management but immature in programme management. P3M3 therefore allows
an organization to asses its effectiveness against any one or more of the sub-models
independently. Although an overall P3M3 maturity rating cannot be given, since each
model is independent from the others, gauging the overall maturity of an organization is
still possible by undertaking assessments under all three sub-models.

The first question relates to the overall organizational maturity levels. The aim in
answering this question is to ascertain which of the five descriptions given below is the
most accurate reflection of the portfolio, programme and/or project management
processes.

Question: 1 Our organization can be best characterised as having:

Organization description Tick the most

appropriate
description

a Processes are not usually documented; there are no, or only a few, process
descriptions. Actual practice is determined by events or individual
preferences, and performance is variable.

Successful initiatives are often based on key individuals’ competencies

rather than organization-wide knowledge and capability and the
organization is unable to repeat past successes consistently. Such
“successes” are often achieved with budget and/or schedule overruns.

Processes are undeveloped or incomplete. There is little, if any, guidance or

supporting documentation, and even terminology may not be standardized
across the organization – e.g. business case, risk, issues, etc. may not be
interpreted in the same way by all managers and team members.
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Organization description Tick the most

appropriate
description

b The organization is able to demonstrate that basic management practices

have been established – e.g. tracking expenditure and scheduling
resources – and that processes are developing. There are key individuals
who have had suitable training and who can demonstrate a successful track
record and through them, the organization is capable of repeating earlier
successes in the future.

Initiatives are performed and managed according to their documented

plans; project status and delivery is visible to management at defined
points, such as on reaching major milestones.

The organization may still have inadequate measures of success; unclear

responsibilities for achievement; ambiguity and inconsistency in business
objectives; lack of fully integrated risk management; limited experience in
change management; and inadequacies in communications strategy.

c Management and technical processes are documented, standardized and

integrated to some extent with other business processes. There is likely to
be process ownership and an established process group with responsibility
for maintaining consistency and delivering process improvements across
the organization.

Senior management are engaged consistently and provide active and

informed support.

There is likely to be an established training programme to develop the skills

and knowledge of individuals so they can more readily perform their
designated roles. A key aspect of quality management will be the
widespread use of peer reviews of identified products, to better understand
how processes can be improved and thereby eliminate possible
weaknesses.

A key distinction between this and the previous level description is the
scope of standards, process descriptions and procedures. Processes will be
managed more proactively and the standard processes can be tailored to
suit specific circumstances, in accordance with explicit guidelines.
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Organization description Tick the most

appropriate
description

d The organization demonstrates mature behaviour through defined

processes that are quantitatively managed – i.e. controlled using metrics
and quantitative techniques. There is good evidence of quantitative
objectives for quality and process performance, and these are being used
as criteria in managing processes. The measurement data collected is
contributing towards the organization’s overall performance measurement
framework and facilitates portfolio analysis and ascertaining the current
capacity and capability constraints.

Top management are proactively seeking out innovative ways to achieve

goals.

Using metrics, management can effectively control processes and identify

ways to adjust and adapt them to particular initiatives without loss of quality.

e The organization is focused on optimization of its quantitatively managed

processes to take into account changing business needs and external
factors. It is able to anticipate future capacity demands and capability
requirements to meet delivery challenges – e.g. through portfolio analysis.

Top managers are seen as exemplars, reinforcing the need and potential for
capability and performance improvement.

The knowledge gained by the organization from its process and product
metrics will enable it to understand causes of variation and therefore
optimize its performance. The organization will be able to show that
continuous process improvement is being enabled by quantitative feedback
from its embedded processes and from validating innovative ideas and
technologies. The organization will be able to demonstrate strong
alignment of organizational objectives with business plans, and this will be
cascaded down through scoping, sponsorship, commitment, planning,
resource allocation, risk management and benefits realization.

P3M3 contains seven process perspectives that identify the key characteristics of mature
organizations using portfolio, programme and/or project management to successfully
achieve strategic objectives and priorities. The processes and practices that characterise
a particular level of process capability within each perspective are described.

The following set of questions is intended to examine the process capability associated
with each of the seven perspectives.
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Management Control

This covers the internal controls of the initiative and how its direction of travel is
maintained throughout its life cycle, with appropriate break points to enable it to be
stopped or redirected by a controlling body if necessary.

Best practice is characterized by clear evidence of leadership and direction, scope, stages,
tranches and review processes during the course of the initiative. There will be regular
checkpoints and clearly defined decision-making processes. There will be full and clear
objectives and descriptions of what the initiative will deliver. Initiatives should have clearly
described outputs, a programme may have a blueprint with defined outcomes, and a
portfolio may have an organizational target operating model.

Internal structures will be aligned to achieve these characteristics and the focus of control
will be on achieving them within the tolerance and boundaries set by the controlling body
and based on the broader organizational requirements. Issues will be identified and
evaluated, and decisions on how to deal with them will be made using a structured
process with appropriate impact assessments.

Question 2: Our management control is best described by:

Portfolio Management Programme Management Project Management

a The organization recognizes Programme management Project management

terminology may be used but terminology is used by some
the portfolio but has little or
not consistently. The general within the organization but not
nothing in terms of approach is focused on consistently and may not be
documented processes or projects rather than at the understood by all
standards for managing the programme level. stakeholders.
Projects are conducted and
portfolio.
managed dependent on
individual project managers’
preferences.

b There are some pockets of Some general understanding The concepts of project
portfolio discipline within exists of the concepts of management will have been
individual departments, but programme management and grasped by some within the
this is based on key its control mechanisms but organization, and indeed
individuals rather than as part adoption is localized. there may be local experts,
of a comprehensive and such as experienced project
consistent organization-wide managers working on key
approach. projects.
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Portfolio Management Programme Management Project Management

c Portfolio management There is a centrally defined There is a consistent

processes are centrally and documented approach to approach to project
defined, documented and a programme management management controls across
understood, as are roles and life cycle and controls, and it the organization, based on
responsibilities for is applied in all programmes standard processes and
governance and delivery. by capable staff who support methods.
programme teams.
The project life cycle not only
focuses on initiation and
development activities, but
equally on delivery, review,
verification, implementation
and handover.

d Portfolio management Programme management is Project management is of

processes exist and are seen as a key tool for the sufficient strategic importance
proven. Portfolio delivery of strategic for it to be integrated with
management has established objectives. business and strategic
metrics against which Within the programme planning functions.
success can be measured. environment the focus is on There is an emphasis on
improvement of delivery quantitative management and
through measurement and performance measurement.
analysis of performance.

e Portfolio management has Management controls ensure Project management controls

well-defined controls and that the programme approach are being optimized to ensure
behaviours that enable it to delivers the strategic aims that they are effective and
deliver the strategic and objectives of the efficient from the
objectives of the organization organization. organizational perspective.
through a variety of Acceptance of programme They are regularly evaluated
processes and tools. management as the optimal to ensure that they remain
approach to strategic delivery aligned to the business
is organization-wide. imperatives, strategies and
plans.
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Benefits Management

Benefits management is the process that ensures that the desired business change
outcomes have been clearly defined are measurable and are ultimately delivered through
a structured approach and with full organizational ownership.

Best practice recommends that Benefits are assessed and approved by the organizational
areas that will deliver them. Benefit dependencies and other requirements are clearly
defined and understanding gained on how the outputs of the initiative will meet those
requirements. There should be evidence of suitable classification of benefits and a holistic
view of the implications being considered. All benefits should be owned, have realization
plans and be actively managed to ensure that they are achieved. There will be a focus on
operational transition, coupled with follow-up activities to ensure that benefits are being
owned and realized by the organization.

Question 3: Our benefits management is best described by:

Portfolio Management Programme Management Project Management

a Recognition that initiatives There is recognition of the There may be recognition that
may exist within the concepts of benefits that can the concept of benefits can
organizational and divisional be differentiated from project be differentiated from project
portfolio to enable the outputs. Benefits are being outputs.
achievement of benefits for developed at a project level
the organization. However, with minimal programme
there isn’t a defined benefits control.
realization process.

b Development of the Benefits are being recognized Benefits are recognized as an

investment cycle with as a key element and element within business
increasing awareness of the differentiating factor for cases. There may be some
importance of identifying programmes. The focus is documentation on who is
benefits and subsequently likely to be at the project level responsible for particular
tracking whether they have but there is initial evidence of benefits and their realization,
been achieved. However, the benefit tracking at a but this is unlikely to be
realization of benefits is still programme level in some followed through or
likely to be patchy, cases. consistent.
inconsistent and
unmonitored.

c There is a centrally managed There is a centrally managed There is a centrally managed

framework used for defining and consistent framework, framework for defining and
and tracking the delivery of with processes that are used tracking the delivery of
portfolio-level benefits across for defining and tracking the benefits from project outputs.
the business operations. delivery of benefits arising
from programme outcomes.
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Portfolio Management Programme Management Project Management

d The benefits realization and Benefits management is Benefits management is

management process is well embedded within the embedded within the project
established, measurable and programme management management approach and
is integrated into how the approach and underpins the there is a focus on delivery of
organization manages itself. justification for, and business performance from
management implementation project outputs.
of, each programme.
Programme performance
metrics are collected and
analyzed.

e Benefits realization is integral Benefits management is Benefits realization

to the development of embedded within the management is embedded
business strategy decision organizational approach to within the organizational
making. change and is assessed as approach to change and is
part of the development of assessed as part of the
organizational strategies. development of
organizational strategy.
Business performance
metrics are linked to, and
underpin, the recognition of
benefits realization.
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Financial Management

Finance is an essential resource that should be a key focus for initiating and controlling
initiatives. Financial management ensures that the likely costs of the initiative are captured
and evaluated within a formal business case and that costs are categorized and managed
over the investment life cycle.

There should be evidence of the appropriate involvement of the organization’s financial

functions, with approvals being embedded in the broader organizational hierarchy. Best
practice suggests that a business case, or equivalent, should define the value of the
initiative to the business and contain a financial appraisal of the possible options. The
business case will be at the core of decision making during the initiative’s life cycle, and
may be linked to formal review stages and evaluation of the cost and benefits associated
with alternative actions. Financial management will schedule the availability of funds to
support the investment decisions.

Question 4: Our financial management is best described by:

Portfolio Management Programme Management Project Management

a Portfolio oversight of the Minimal or no financial There are little or no financial

financial aspects of initiatives controls, and those that exist controls at project level.
may be recognized but there are principally related to There is a lack of
is little or no organizational projects or individual accountability and monitoring
investment control. programmes. of project expenditure.

b There are some good Financial approvals and cost Business cases are produced
business cases being projections for programmes in various forms and the
produced and some, usually may not be in evidence. better and more formal cases
departmental, structures to There may be a focus on will present the rationale on
oversee investment project finance but the overall which to obtain organizational
decisions. However, business cost of the programme is not commitment to the project.
cases are often appraised fully accounted for.
independently of each other
and real organizational
priorities have not been
established.

c There are established Centrally managed and The organization has

standards for the investment standardized approach to established standards for the
management process and the financial management, with preparation of business cases
preparation of business cost assessments tracked and processes for their
cases. throughout the programme management throughout the
life cycle. project life cycle.
Project managers monitor
costs and expenditure in
accordance with
organizational guidelines and
procedures, with defined
interfaces with other financial
functions within the
organization.
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Portfolio Management Programme Management Project Management

d The organization has Programme life cycles are The organization is able to
effective and robust financial being flexed effectively to prioritize investment
control of its investment manage availability of funds. opportunities effectively in
decisions and the approval There is effective decision relation to the availability of
and monitoring of initiatives. making, with consideration of funds and other resources.
There is proactive, evidence- financial evidence. Business cases are evaluated
based management of the and investment decisions
portfolio. ratified by the business.
Project budgets are managed
effectively and project
performance against cost is
monitored and compared.
Cost models are used to
demonstrate the efficacy of
projects.

e Financial control of the Financial control is evident Project financial controls are
portfolio is an integral part of throughout the programme fully integrated with those of
the organization’s financial life cycle and a balanced view the organization. Cost
control regime. of financial risk taking estimation techniques are
underpins programme continually reviewed in terms
governance. of actual versus estimate
comparisons to improve
estimation throughout the
organization.
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Risk Management

This views the way in which the organization manages threats to, and opportunities
presented by, the initiative. Risk management maintains a balance of focus on threats and
opportunities, with appropriate management actions to reduce or eliminate the likelihood
of any identified risk occurring, and to minimize its impact if it does occur. It will look at a
variety of risk types that affect the initiative, both internal and external, and will focus on
tracking the triggers that create risks.

Mitigation of risk will be innovative and proactive, using a number of options to reduce
likelihood and impact. The review of risk will be embedded within the initiative’s life cycle
and have a supporting process and structures to ensure that the appropriate levels of
rigour are being applied, with evidence of interventions and changes made to manage
risks.

Question 5: Our risk management is best described by:

Portfolio Management Programme Management Project Management

a There may be a growing There is minimal evidence of There may be some evidence
recognition that risks need to risk management being used of risk management being
be managed and that, at least to any beneficial effect. deployed occasionally, but
for key business initiatives There may be evidence of a with minimal beneficial effect.
(e.g. cost saving or major site risk being documented but
developments), they can little evidence of active
threaten success. management.

b There is generally a top-down Risk management is partially Risk management is

approach to risk identification, recognized and used on recognized and used in some
focusing on major some programmes, but there projects, but there are
organizational initiatives, but are inconsistent approaches inconsistencies in approach,
some initiatives are within and between commitment and deployment.
increasingly carrying out programmes, which result in
bottom-up risk identification. different levels of commitment
However, these approaches and effectiveness.
are inconsistent, not
particularly interrelated and
often do not address the
actual management of risks.
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Portfolio Management Programme Management Project Management

c Portfolio risks are identified Risk management has a Project risk management is
and quantified, and mitigation clearly defined and centrally based on a centrally defined
plans are developed and managed process that is process that is cognizant of
funded. Risk management followed consistently by all the organization’s policy for
across the portfolio is based programmes. the management of risks.
on a common, centrally The framework is based on
managed process. industry standards and is
supported by a consistent
system used by all
programmes.

d The organization’s appetite Risk management works Risk management is working

for risk, and the balance of effectively, with active effectively, is embedded, and
risk and benefit across the management and mitigation the value of risk management
portfolio, are continually of risks evident through can be demonstrated from
reviewed and managed. embedded behaviour. the organizational
Senior managers own and There is evidence of perspective. Decision making
oversee risk management opportunity management and includes risk analysis.
across the portfolio. management of risk
aggregation.

e The process of portfolio risk Risk management is Risk management is

management is continually embedded in the culture of embedded in the
improved, based on the the organization and organizational culture and
analysis of evidence from underpins all decision making underpins all decision making
within the organization and within the programme. with respect to projects.
comparison with other There is evidence of continual
organizations. improvement and integration
with strategic direction.
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Stakeholder Management

Stakeholders are key to the success of any initiative. Best practice suggests that
stakeholders at different levels, both within and outside the organization, are analyzed and
engaged with effectively in order to achieve objectives in terms of support and
engagement. Stakeholder management includes communications planning, the effective
identification and use of different communications channels, and techniques to enable
objectives to be achieved. Stakeholder management should be seen as an ongoing
process across all initiatives and one that is inherently linked to the initiative’s life cycle
and governance controls.

Question 6: Our approach to stakeholder management is best described by:

Portfolio Management Programme Project Management

Management

a Stakeholder management Stakeholder management Stakeholder management

and communication is rarely and communication is rarely and communication is rarely
used by portfolios as an used by programmes as an used by projects as an
element of the delivery element of the delivery element of the delivery
toolkit. toolkit. toolkit.

b Some portfolios will be Some programmes will be Some projects will be

communicating effectively, communicating effectively, communicating effectively,
but this is linked more to but this is linked more to but this is linked more to
personal initiative of portfolio personal initiative of personal initiative of
managers than a structured programme managers than a programme and/or project
approach deployed by the structured approach being managers than a structured
organization. deployed by the organization. approach being deployed by
the organization.

c There is a centrally managed There is a centrally managed There is a centrally managed

and consistent approach to and consistent approach to and consistent approach to
stakeholder management stakeholder management stakeholder management
and communications, used and communications, used and communications, used
by all portfolios. by all programmes. by all projects.

d Sophisticated techniques are Sophisticated techniques are Sophisticated techniques are

used to analyze and engage used to analyze and engage used to analyze and engage
the stakeholder environment the stakeholder environment the stakeholder environment
effectively, and quantitative effectively, and quantitative effectively, and quantitative
information is used to information is used to information is used to
underpin the assessment of underpin the assessment of underpin the assessment of
effectiveness. effectiveness. effectiveness.
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Portfolio Management Programme Project Management

Management

e Communications is being Communications is being Communications is being

optimized from extensive optimized from extensive optimized from extensive
knowledge of the stakeholder knowledge of the stakeholder knowledge of the stakeholder
environment, to enable the environment, to enable the environment, to enable the
portfolios to achieve their programmes to achieve their projects to achieve their
objectives. objectives. objectives.
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Organizational Governance

This looks at how the delivery of initiatives is aligned to the strategic direction of the
organization. It considers how start-up and closure controls are applied to initiatives and
how alignment is maintained during an initiative’s life cycle. This differs from management
control, which views how control of initiatives is maintained internally, as this perspective
looks at how external factors that impact on initiatives are controlled (where possible, or
mitigated if not) and used to maximize the final result. Effective sponsorship should enable
this.

Organizational governance also looks at how a range of other organizational controls are
deployed and standards achieved, including legislative and regulatory frameworks. It also
considers the levels of analysis of stakeholder engagement and how their requirements
are factored into the design and delivery of outputs and outcomes.

Question 7: We deliver organizational governance by:

Portfolio Management Programme Management Project Management

a The organization has some Some informal governance of Informal governance of

inconsistent and informal programmes may exist but projects exists but has
attempts to align individual with undefined links to undefined links to broader
initiatives to organizational projects and/or broader organizational controls. Roles
objectives, and there is an ad organizational controls. Roles are likely to be notional.
hoc, inconsistent and will not be formally defined.
ineffective oversight of
initiatives.

b There are some attempts to Programme management is Project management from an

recognize the portfolio of beginning to take shape but organizational perspective is
initiatives, but there is still with ad hoc controls, and beginning to take shape but
little overall leadership and there is no clear strategic with ad hoc controls and no
direction for the process. control. Roles and clear strategic control.
Initiatives may be initiated responsibilities will be
and run without full regard to inconsistent, as will reporting
the organizational goals, lines.
priorities and targets.

c The principles of portfolio Centrally defined Strategic governance controls

management are widely organizational controls are are applied consistently, with
understood, practised to a applied consistently to decision-making structures in
consistent standard, and programmes, with decision- place to enable and control
underpin the governance making structures in place the delivery of projects and
framework. and linked to organizational alignment with business
governance. needs.
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Portfolio Management Programme Management Project Management

d All initiatives are integrated There are clearly aligned Decision-making processes
into an achievable and decision-making processes associated with project
governed portfolio, which is that adopt and integrate with performance are adopted and
aligned to strategic objectives broader organizational integrated into broader
and priorities. The portfolio governance and are organizational performance
contains relevant information transparent to those involved. management, reporting and
on initiatives (e.g. Programme management governance arrangements.
performance measures, responsibilities are embedded
quality attributes and asset within broader role
management data) to support descriptions.
Executive Board decisions.

e The portfolio is managed to Programme management is The governance

ensure that it remains aligned embedded at Executive arrangements for projects are
to support the organization’s Board level, with clear a core aspect of
strategic objectives. The ownership and control organizational control, with
portfolio management responsibilities embedded demonstrable reporting lines
process is optimized to within individual directors’ to Executive Board level and
ensure that it is sufficiently terms of reference. with clear ownership and
dynamic and agile to cater for control responsibilities
changes in business direction embedded within the
and priorities. organization.
 25
Resource Management

Resource management covers management of all types of resources required for delivery.
These include human resources, buildings, equipment, supplies, information, tools and
supporting teams. A key element of resource management is the process for acquiring
resources and how supply chains are utilized to maximize effective use of resources.
There will be evidence of capacity planning and prioritization to enable effective resource
management. This will also include performance management and exploitation of
opportunities for greater utilization. Resource capacity considerations will be extended to
the capacity of the operational groups to resource the implications of change.

Question 8: Our resource management is best described by:

Portfolio Management Programme Management Project Management

a Portfolio resource Focus is on project resources There is little recognition

requirements are recognized being deployed with minimal within the organization of the
but not systematically focus on programme need to manage resources
managed. Resource management resource effectively to enable
allocation is ad hoc, with little, requirements and little successful delivery of
if any, profiling of resources attempt to develop a projects.
to meet the resource programme approach.
requirements of specific
initiatives.

b The organization has started Resources are being Resources are being
to develop portfolio resource deployed across the deployed across the
management processes and organization but there is little organization but there is little
improve the identification and evidence of a consistent evidence of a consistent
allocation of resources to approach to resource approach to resource
specific initiatives. However, acquisition, planning or acquisition, planning or
this is likely to be reliant on management in support of management in support of
key individuals and does not programmes. projects.
assess the impact of resource
allocation against the
strategic objectives and
priorities.

c The portfolio resource Centrally managed and The organization has a

management process is consistent resource centrally defined and adopted
centrally defined within the management processes are set of procedures and
organization. Initiative in place across all management processes for
resource needs are programmes. managing resources.
evaluated, enabling the
organization to target and
increase the development of
resources to meet strategic
objectives and priorities.
26

Portfolio Management Programme Management Project Management

d The organization has There is measurement of Resource management for

established effective capacity resource utilization and projects is considered at a
and capability strategies and proactive management to strategic level within the
processes for obtaining, raise and broaden capability. organization.
allocating and adjusting There is evidence of There is evidence of resource
resource levels (including innovative use of resource capacity management,
people, funding, estate and options to optimize delivery through capacity planning, in
tools) in line with medium- achievement. order to meet project delivery
and long-term investment needs.
plans.

e Portfolio management drives Resources are deployed Resources are deployed

the planning, development optimally. There is clear optimally. There is clear
and allocation of initiatives to evidence of balancing internal evidence of load balancing
optimize the effective use of and external expertise, with and the effective use of both
resources in achieving the knowledge being embedded internal and external
strategic objectives and into the business by virtue of resources in accordance with
priorities. learning from previous a resource strategy.
deployments.
 27
Question 9: Does the organization:

Portfolio Management Programme Management Project Management

a Have an Executive Board that Recognize programmes and Recognize projects and run
recognizes programmes and run them differently from them differently from ongoing
projects and maintains an projects. (Programmes may business. (Projects may be
informal list of investments in be running informally with no running informally with no
programmes and projects, standard processes or standard processes or
without perhaps a formal tracking system). tracking system).
tracking mechanism and
documented process.

b Ensure that each programme Ensure that each programme Ensure that each project is
and/or project in its portfolio is is run with its own processes run with its own processes
run with its own processes and procedures to a minimum and procedures to a minimum
and procedures to a minimum specified standard. (There specified standard. (There
specified standard. (There may be limited consistency or may be limited consistency or
may be limited consistency or coordination between coordination between
coordination). programmes). projects).

c Have its own portfolio Have its own centrally Have its own centrally
management process and controlled programme controlled project processes
centrally controlled processes with individual with individual projects being
programme and project programmes being able to able to flex within these
processes with individual flex within these processes to processes to suit the
programmes and projects suit the particular programme. particular project.
being able to flex within these
processes to suit particular
programmes and/or projects.

d Obtain and retain specific Obtain and retain specific Obtain and retain specific
management metrics on its management metrics on its measurements on its project
whole portfolio of programme management management performance
programmes and projects as performance and run a quality and run a quality
a means of predicting future management organization to management organization to
performance. The better predict and control better predict and control
organization assesses its future performance. future performance.
capacity to manage
programmes and projects and
prioritize them accordingly.

e Undertake continuous Undertake continuous Undertake continuous

process improvement with process improvement with process improvement with
proactive problem and proactive problem and proactive problem and
technology management for technology management for technology management for
the portfolio in order to programmes in order to projects in order to improve
improve its ability to depict improve its ability to depict its ability to depict
performance over time and performance over time and performance over time and
optimize processes. optimize processes. optimize processes.
 P3M3 Model Answers
28
There are a number of possible answer permutations to the nine self-assessment
questions presented above; the answer profile being dependent upon the assessment
scope and approach being adopted by the organization.

The matrix presented below may facilitate in the collation of results for your self-
assessment.

Question Focus a b c d e Result

1 Our Maturity
organization
can be best
characterized
as having:

2 Our Portfolio
management
control is best Programme
described by:

Project

3 Our benefits Portfolio

management
is best Programme
described by:

Project

4 Our financial Portfolio

management
is best Programme
described by:

Project

5 Our risk Portfolio

management
is best Programme
described by:

Project

6 Our approach Portfolio

to stakeholder
management Programme
is best
described by:
Project
 29

7 We deliver Portfolio
organizational
governance Programme
by:

Project

8 Our resource Portfolio

management
is best Programme
described by:

Project

9 Does the Portfolio

organization:
Programme

Project

Self-evaluation tips
Question 1 is a general question relating to the level to which the processes have been
defined and established within the organization. Higher levels of process maturity being
demonstrated through the extent to which the processes are quantitatively managed and
whether such management information is used to optimize the processes.

If the overall judgement is that the model answer (a) best characterizes the current
process maturity, then the organization would appear to have immature processes and
only partial awareness of the three Ps. This means, in management terms, that the
organization may occasionally deliver individual initiatives that produce excellent results;
however, managers are likely to be working reactively, focusing on solving immediate
issues, rather than proactively. Schedules and budgets are likely to be exceeded because
of a lack of sound estimating techniques. If deadlines are imposed, the quality of
deliverables is likely to be compromised in order to meet the schedule. For example,
verification and validation activities, including reviews, may be skimped on, if an initiative
falls behind schedule.

If the overall judgement is that the model answer (b), (c), (d) or (e) best characterizes the
current process maturity, then this is indicative of maturing processes, as shown below:

(b) Level 2 - repeatable process

(c) Level 3 - defined process
(d) Level 4 - managed process
(e) Level 5 - optimized process

Levels 3 - 5 are representative of a mature organization that has an organization-wide

ability for managing initiatives based on standardized, defined management processes.
These processes can be tailored to meet specific organizational needs and are
30
increasingly likely to be updated whenever necessary with improvements developed and
implemented in accordance with a sound business case and development plan.
At the higher Levels of maturity (Levels 4 and 5), the organization will have the knowledge
and quantitative information against which to review performance and evaluate schedules
and budgets, ensuring that these are realistic and achievable.

Answers to Questions 2-8 can be collated on the matrix above. The number of answers
will depend upon the scope of the assessment i.e. whether portfolio and/or programme
and/or project management has been included, and also the number of perspectives that
are being considered.

It should be noted that the Level being attained for each Perspective and within each
model (PfM3, PgM3, and PjM3) may be different, as shown in the diagram, below.
Answers that are mainly (a) for a particular Perspective represent Level 1, through to
mainly (e) representing Level 5. Level 1 is the lowest level of process capability and this
basic awareness of the importance of a particular perspective is built upon in an
incremental fashion as depicted in the P3M3 model answer specification.

Example assessment of Process Perspectives for PjM3

The answer to Question 9, provides an overall organizational capability maturity

evaluation for Portfolio and/or Programme and/or Project Management. If all of the
Perspectives have been assessed within a particular model (PfM3, PgM3, PjM3) then the
capability maturity evaluation is likely to be a mean average of the process capability
across the seven perspectives. For example, the above assessment of Project
Management resulted in the following Level scores: 3,2,3,2,4,3,4. The mean average for
the series is 3 and therefore the overall project management capability maturity evaluation
would be Level 3.
 31
However, do remember that the self-assessment is subject to a degree of optimism bias
and that a facilitated assessment may result in a Level 2 evaluation, although should not
be any lower, if the self-assessment has been conducted properly.

A further cross-check is recommended with the result from Question 1. If question 1

results in a Level that is lower than Question 9, then it is likely that there is a high degree
of variation in the process capability for different Perspectives. Under these circumstances,
the overall capability maturity evaluation should reflect the lower Level score.
 Next steps
32
The self-assessment has enabled the organization to gain an overall view of its Maturity
Level for Portfolio and/or Programme and/or Project Management. Process capability
across seven perspectives applicable to all of the models (PfM3, PgM3, and PjM3) will
also have been obtained and can be used to profile the current strengths and weaknesses.

In interpreting the results, it is recommended that the detailed Attributes within the P3M3
model for a particular Level and Perspective are reviewed to verify the accuracy of the
self-assessment. If the organization wants to use the self-assessment results as the basis
of an improvement initiative, then the assessment provides a valuable snapshot of where
the organization stands currently.

The next step is to consider where the organization wishes to be positioned in future. It
should be recognized that the optimal level may not be Level 5 across all Perspectives or
all three models, and business needs in terms of the optimal level of performance, the
business case for any process improvement initiative and what the organization feels able
to achieve and sustain needs to be considered.

Should improvement in capability with regard to certain perspectives be deemed

necessary, then in planning an improvement initiative, the detailed Attributes for the next
level above the current assessed level should be reviewed and become an integral part of
the improvement plans.

If the organization requires further assistance or a formal review, additional information

can be found at www.p3m3-officialsite.com. Further information and assistance on using
P3M3, including details of formal reviews and consultancy services, can also be found via
the official P3M3 website.
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