What are the key dimensions and criteria of a project portfolio maturity model?

💡 A PPMM is vital for enhancing project management and achieving strategic goals. It assesses PPM maturity, identifies improvement areas, and guides best practice implementation. 😎 Core processes PPMM covers portfolio management processes like selection, prioritization, risk, resources, and performance. 📊 Metrics and reports PPMM offers metrics and reports for tracking portfolio performance, aiding informed decisions. 🚀 Continuous improvement PPMM evolves. Regular reviews enhance PPM maturity and uncover new improvement opportunities. 📌 PPMM aids organizations in boosting project management capabilities and meeting strategic objectives. Understanding its dimensions and criteria enables a roadmap to success.

The Scaled Agile Framework (SAFe) also has a Lean Portfolio Management Competency Assessment that could be used to measure the current maturity of your portfolio and allow you to develop your target maturity.

A PPMM should be developed based upon an assessment of current state practices and lead to a maturity roadmap that plots your PMO journey on a standard 5 point maturity progression (from more tactical in nature to a more strategic model). It is ideal to bring in a certified third party to conduct the assessment as it limits bias and allows for honest, educated feedback. To prepare, it is critical to identify key influencers and decision makers (of all levels and across multiple impacted departments) to be interviewed. This could include participants from: ▹ IT ▹ Finance ▹ OCM ▹ Business Areas ▹ Product ▹ Compliance ▹ Etc. Any of the mentioned models will work, but OPM3 (while excellent) is not strongly supported by PMI at this time.

A PPMM, or Project Portfolio Management Maturity Model, serves as a valuable roadmap for organizations to assess, enhance, and align their PPM practices with business objectives. These frameworks, like PMI's OPM3 and P3M3, offer a structured approach to gauge PPM maturity, facilitating benchmarking and continuous improvement. By following a PPMM, organizations can systematically advance their project portfolio management capabilities, ultimately driving better decision-making and resource utilization.

To assess improved maturity it is critical to establish the foundational domains that you wish to assess year-over-year and attempt not to deviate. This will allow you to show progression. The above mentioned domains are excellent for organizing work-streams to establish a PMO. When assessing an organization for project management maturity, I would suggest covering the following project management domains: ▹ Communications Mgmt. ▹ Financial Mgmt. ▹ Resource Mgmt. ▹ Integration Mgmt. ▹ Performance Monitoring ▹ Portfolio Mgmt. ▹ Quality Mgmt. ▹ Value Mgmt. ▹ Scope Mgmt. ▹ Risk Mgmt. ▹ Schedule Mgmt. ▹ Stakeholder Mgmt. ▹ Overall Governance This will depend upon the model you select and the needs of your organization.

In addition to the mentioned dimensions, risk management and strategic alignment are crucial aspects of a PPMM. Risk management ensures that potential issues are identified and addressed, minimizing project portfolio disruptions. Strategic alignment ensures that the projects selected align with the organization's overarching goals and objectives, driving value and maximizing the return on investment. These dimensions collectively provide a comprehensive framework for effective Project Portfolio Management.

In addition, your maturity model should identify success factors and how to measure. Some example success factors for implementing your maturity model might include: ▹ Improved Time to Market ▹ Increased Employee Productivity ▹ Predictable Delivery Performance ▹ Repeatable Standard Practices and Processes ▹ Reduced Costs and Rework ▹ Stronger Link between Strategy and Execution ▹ Improved Customer Satisfaction ▹ Greater Market Share ▹ Improved Competitive Advantage ▹ Improved Transparency to all Stakeholders ▹ Delivered According to Planned Budget and Schedule ▹ Strategic Estimates Increase in Level of Confidence Your organization would need to establish a baseline measurement and then determine how you measure progression year over year.

In addition to these key criteria, it's crucial to emphasize the importance of continuous improvement and stakeholder engagement in a Project Portfolio Maturity Model (PPMM). A successful PPMM should encourage a culture of learning and adaptation, involving input from all relevant stakeholders to foster innovation and drive growth. This holistic approach ensures that the organization's project portfolio remains aligned with strategic goals and adapts to evolving challenges effectively.

I've found it helpful to use the CMM 5 point maturity model for assessing level of maturity across domains. You will need to tailor the model to your organization and to the specific domain you are assessing. I have used the following for generic assessments: ▹ Level 1 - Initial - Process unpredictable, poorly controlled, reactive ▹ Level 2 - Managed - Repeatable processes developed for project management yet still often reactive ▹ Level 3 - Defined - Processes, standards, tools developed for the organization & proactive ▹ Level 4 - Quantitatively Managed - Processes measured & controlled including quantifiable data to drive performance ▹ Level 5 - Optimizing - Focus on Process Improvement & ability to adapt to change

A PPMM is a valuable tool for enhancing an organization's project and portfolio management. It involves selecting an appropriate maturity model, conducting assessments to measure the current state, identifying gaps and strengths, and devising an action plan for improvement. Regular monitoring and reassessment are crucial for ongoing progress. This approach ensures that the organization's PPM practices align with its objectives and evolve to meet changing needs effectively.

When implementing a Project Portfolio Maturity Model, it is important to be aware of the following lessons learned: ▹ Strong C-Level & VP leadership is needed to promote all stages of implementing the maturity model ▹ Remember that Project & Portfolio Management is cross-functional in nature. You need input from others on how to mature, but... ▹ You need to balance participation - too many people involved in decision making will delay progress & create convoluted processes, but not enough cross department input can result in lack of buy-in ▹ Do not overburden teams with implementing too much at one time ▹ Allow new improvement to stabilize, then reassess and move forward ▹ Do not expect to advance to a level 4 or 5 immediately ▹ Have Fun!