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Using the Project Management Maturity Model: Strategic Planning for Project Management, 2nd Edition

ISBN: 978-0-471-69161-7
352 pages
March 2005
Using the Project Management Maturity Model: Strategic Planning for Project Management, 2nd Edition (0471691615) cover image


Updated for today's businesses-a proven model FOR assessment and ongoing improvement

Using the Project Management Maturity Model, Second Edition is the updated edition of Harold Kerzner's renowned book covering his Project Management Maturity Model (PMMM). In this hands-on book, Kerzner offers a unique, industry-validated tool for helping companies of all sizes assess and improve their progress in integrating project management into every part of their organizations.

Conveniently organized into two sections, this Second Edition begins with an examination of strategic planning principles and the ways they relate to project management. In the second section, PMMM is introduced with in-depth coverage of the five different levels of development for achieving maturity. Easily adaptable benchmarking instruments for measuring an organization's progress along the maturity curve make this a practical guide for any type of company.

Complete with an associated Web site packed with both teaching and learning tools, Using the Project Management Maturity Model, Second Edition helps managers, engineers, project team members, business consultants, and others build a powerful foundation for company improvement and excellence.

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Table of Contents

Foreword xi

Foreword to the First Edition xiii

Preface xv

Introduction xvii

1 The Need for Strategic Planning for Project Management 1

Introduction 1

Misconceptions 1

Wall Street Benefits 3

Stakeholders 4

Gap Analysis 5

Concluding Remarks 9

2 Impact of Economic Conditions on Project Management 11

Introduction 11

Historical Basis 11

3 Principles of Strategic Planning 15

General Strategic Planning 15

What Is Strategic Planning for Project Management? 16

Executive Involvement 25

The General Environment 26

Critical Success Factors for Strategic Planning 28

Qualitative Factors 29

Organizational Factors 30

Quantitative Factors 32

Identifying Strategic Resources 34

Why Does Strategic Planning for Project Management Sometimes Fail? 38

4 An Introduction to the Project Management Maturity Model (PMMM) 41

Introduction 41

The Foundation for Excellence 42

Overlap of Levels 43

Risks 45

Assessment Instruments 47

5 Level 1: Common Language 49

Introduction 49

Roadblocks 50

Advancement Criteria 51

Risk 52

Assessment Instrument for Level 1 52

Questions 53

Answer Key 63

Explanation of Points for Level 1 66

6 Level 2: Common Processes 67

Introduction 67

Life Cycles for Level 2 68

Roadblocks 71

Advancement Criteria 72

Risk 72

Overlapping Levels 73

Assessment Instrument for Level 2 73

Questions 74

Explanation of Points for Level 2 76

7 Level 3: Singular Methodology 77

Introduction 77

Integrated Processes 78

Culture 81

Management Support 82

Informal Project Management 83

Training and Education 83

Behavioral Excellence 85

Roadblocks 86

Advancement Criteria 86

Risk 87

Overlapping Levels 88

Assessment Instrument for Level 3 88

Questions 88

Answer Key 94

Explanation of Points for Level 3 96

8 Level 4: Benchmarking 99

Introduction 99

Characteristics 100

The Project Office/Center of Excellence 101

Benchmarking Opportunities 103

Roadblocks 105

Advancement Criteria 105

Assessment Instrument for Level 4 106

Questions 106

Explanation of Points for Level 4 109

9 Level 5: Continuous Improvement 111

Characteristics 111

Continuous Improvement Areas 112

The Never-Ending Cycle 114

Examples of Continuous Improvement 115

Developing Effective Procedural Documentation 116

Project Management Methodologies 122

Continuous Improvement 122

Capacity Planning 124

Competency Models 125

Managing Multiple Projects 127

End-of-Phase Review Meetings 129

Strategic Selection of Projects 130

Portfolio Selection of Projects 133

Horizontal or Project Accounting 136

Organizational Restructuring 138

Career Planning 140

Assessment Instrument for Level 5 141

Questions 141

Explanation of Points for Level 5 142

10 Sustainable Competitive Advantage 145

Introduction 145

Strategic Thrusts 146

The Need for Continuous Improvement 149

Project Management Competitiveness 150

Products versus Solutions 151

Enterprise Project Management 152

Engagement Project Management 153

11 Special Problems with Strategic Planning for Project Management 155

Introduction 155

The Many Faces of Success 156

The Many Faces of Failure 157

Training and Education 161

Cultural Change Management 162

Partnerships 176

The Impact of Risk Control Measures 177

Dependencies between Risks 179

Selecting the Appropriate Response Mechanism 182

Conclusions 184

12 The Project Office 185

Introduction 185

The Project Office: 1950–1990 186

The Project Office: 1990–2000 186

The Project Office: 2000–Present 188

Types of Project Offices 190

Project Management Information Systems 190

Dissemination of Information 195

Mentoring 196

Development of Standards and Templates 197

Project Management Benchmarking 198

Business Case Development 199

Customized Training (Related to Project Management) 200

Managing Stakeholders 201

Continuous Improvement 202

Capacity Planning 202

Risks of Using a Project Office, Reporting and Structure 203

Reporting and Structure 205

13 Six Sigma and the Project Management Office 207

Introduction 207

Traditional versus Nontraditional Six Sigma 208

Understanding Six Sigma 210

Six Sigma Myths 212

Use of Assessments 215

Project Selection 218

Typical PMO Six Sigma Projects 220

14 How to Conduct a Project Management Maturity Assessment 223

Introduction 223

Find Ways to Bypass the Corporate Immune System 223

Explain Why You Are Doing This 224

Pick the Model That Is Best for Your Organization 225

Maturity Models: How Do They Compare? 226

Create the Right Fit 227

Choose an Appropriate Delivery Method 227

Establish Responsibility 231

Decide Who Should Participate 231

Turn the Results into an Action Plan 232

Develop a Remedial Training Curriculum 233

Keep Top Management Informed 234

Virtual Reporting 235

Benchmark Your Results to Others 235

Do It Again 235

15 Understanding Best Practices 237

Introduction 237

What to Do with a Best Practice 238

Critical Questions 239

Levels of Best Practices 240

Common Beliefs 242

The Best Practices Library 243

Case Studies 247

Case 1: Packer Telecom 247

Case 2: Luxor Technologies 249

Case 3: Altex Corporation 253

Case 4: Acme Corporation 256

Case 5: Quantum Telecom 258

Case 6: Lakes Automotive 260

Case 7: Ferris HealthCare, Inc. 261

Case 8: Clark Faucet Company 263

Case 9: Hyten Corporation 266

Case 10: Como Tool and Die (A) 276

Case 11: Como Tool and Die (B) 280

Case 12: Macon Inc. 283

Case 13: The Trophy Project 285

Case 14: The Blue Spider Project 288

Case 15: Corwin Corporation 301

Case 16: MIS Project Management at First National Bank 311

Index 323

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Author Information

HAROLD KERZNER, Ph.D., Senior Executive Director with International Institute of Learning (IIL), is currently Professor of Systems Management at Baldwin-Wallace College in Ohio and President of Project Management Associates, Inc., a consulting and training firm that conducts seminars for leading U.S. and international corporations. He was a recipient of the Distinguished Alumni Award from the University of Illinois and the 1998 Distinguished Service Award from Utah State University, where he taught engineering and business administration, respectively. The Northeast Ohio Chapter of the Project Management Institute has honored Dr. Kerzner by instituting the Kerzner Award for Project Management Excellence.
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