3

HOW TO IMPLEMENT AND IMPROVE OPM

In the previous section, senior management determined the organizational readiness for an OPM implementation, approved the business case, and formed an implementation team. This section describes the framework to implement an OPM foundation as well as OPM improvement.

The OPM implementation framework includes the activities and core-enabling processes that support the organizational leadership in aligning project management with other business management processes to achieve strategy. An OPM framework is implemented in three distinct phases and associated steps as outlined in Figure 3-1 and further described in this section. The implementation should be guided by executive sponsorship and carried out by an implementation team, as described in Section 2.2, comprised of a respected and skilled leader and team members from across the organization. It is important that the identified stakeholders act as official representatives for their groups and that they are empowered to act appropriately.

During this process, the gap between the current state and desired future state is identified. The organization defines and implements action plans to address divergence and move to the desired state. As the future state is reached or as the strategy changes, the OPM implementation phased process may need to be progressively elaborated to meet the new strategic plan requirements or to address divergence that may be overlooked during the process. A successful OPM implementation provides value to any organization when the implementation has the proper level of fit.

3.1 Discovery and Analysis

Starting with the information from the readiness assessment (Section 2) as context, the OPM implementation team begins a discovery and analysis phase. This will help the team to gain an understanding of the organizational strategy and project management by identifying the current bond between projects and the organizational strategy and by outlining the resources and efforts required to work towards achievement of the organizational strategy. The key elements of this action are the documentation of the current state and the knowledge and ability to describe the future state and the requirements needed to fulfill it.

The discovery and analysis process is supported by the following steps:

• Understand the organization's strategy and project management practices (see Section 3.1.1),
• Identify the future state (see Section 3.1.2), and
• Perform gap analysis (see Section 3.1.3).

Each of the steps in this phase creates a deliverable that supports the efforts of the subsequent steps in the OPM implementation.

3.1.1 Understand the Organization's Strategy and Project Management Practices

Understanding the organization's strategy is one of the initial steps that serves as the main foundation during the OPM implementation. Gaining knowledge of the organization's strategy provides the basis for understanding the current state. Usually, a description of the organizational strategy is found in annual reports or in greater detail in internal and confidential documents.

Figure 3-2 depicts the relationship between organizational strategy and portfolios, programs, and projects.

The OPM implementation team should consider taking a holistic approach in order to gain a better understanding of the strategy and how the coordination of work between other functions in the organization will take place to achieve the strategy.

The main objective of OPM is to tie the project management processes to business processes and organizational strategy. It is important to understand how the elements of the business processes and organizational strategy relate to the elements of project management and how those elements can be mapped.

Figure 3-3 shows the dynamics of the relationship of the organizational strategy and project management. The portfolio includes those elements of the strategy that will be executed in the short- and long-term and those that are represented in programs and projects and other initiatives.

Programs and projects deliver results that progressively realize business value. During program and project execution, the impact to the business is monitored to ensure that the strategic objectives are fulfilled. Any variance is addressed during the portfolio review to make the necessary adjustments to the portfolio when strategy may be impacted by internal or external factors.

Portfolio, program, and project management are similar in that they align with or are driven by organizational strategies. Portfolio management aligns with organizational strategies by selecting the right programs, projects, and/or operational work; prioritizing the work; and providing the needed resources. Program management, however, harmonizes program and project components and controls interdependencies in order to realize identified benefits to support the strategy. Project management develops and implements plans to achieve a specific scope that is driven by the objectives of a portfolio or program, and ultimately, organizational strategies.

During this phase, the OPM implementation team identifies the current bond between project management practices and business management practices, as well as how they are aligned with the organizational strategy. This effort can be supported using the survey included in Appendix X3. The results of the survey provide valuable unbiased input to the OPM implementation team about the current state and reveal the divergence of the project management practices and the business management practices.

The strategic alignment core-enabling process supports the efforts of identifying the level of divergence and provides input to the gap analysis described in Section 3.1.3, which defines the tactical steps required to address the divergence. Figure 3-4 depicts four different scenarios that organizations may face. The ideal state is when both the project management and business management practices combine capabilities and best practices to implement improvements towards the systematic achievement of strategic goals, as depicted in quadrant 1 of Figure 3-4. Quadrants 2, 3, and 4 of Figure 3-4 show unsuitable scenarios that should be addressed in the gap analysis.

The OPM implementation team documents their findings and produces a current state review document describing how the organization works today, with descriptions of:

• Organizational structure and how it aligns with the organizational strategy,
• Organizational hierarchy,
• Core competencies,
• Project management processes and practices, including all variations of project management processes,
• List of all project management artifacts and templates,
• Business management practices,
• Key executive and management positions,
• Organizational functions,
• Organizational roles and responsibilities,
• Business processes,
• Cultural heuristics,
• Compete inventory of existing projects,
• Existing project performance data, and
• Relationships of current projects with organizational strategy.

It is important to mention that, initially, the information in the current state review serves as a baseline; however, it is a dynamic document and requires updates whenever internal or external changes affect the organizational strategy.

The deliverable from this step is the current state review document.

3.1.2 Identify Future State

Identify future state is the foundation of an OPM implementation. Upon completion of the current state review, coupled with an understanding of the long-term organizational goals, the OPM implementation team is ready to identify a high-level view of the future state of the organization and how competitive advantage can be created and sustained.

The current state review defines the starting point on the path to the future state. Using the information in the current state review, the OPM implementation team identifies the elements that will help the organization to perform better and strategically plans the execution of projects to achieve the future state. The desired future state is typically developed by the OPM implementation team and approved by senior management.

As described in Section 2.1.1, sustained leadership and continuous improvement are critical to the success of OPM. The amount of involvement from executive leadership directly correlates to the degree of success in implementing processes and executing strategic tasks. The support of core-enabling processes, such as competency management, strategic alignment, and governance processes, is indispensable in identifying and implementing the future state in the organization.

The high-level future state, developed by the OPM implementation team, provides valuable feedback to the organization on where changes need to happen and how soon they need to happen in order to achieve the organizational strategy. The high-level future state describes how the organization will work in the future and how changes will affect the organizational structure. The high-level future state is a dynamic document and requires updates whenever internal or external changes affect the organizational strategy.

The deliverable from this step is a document describing the high-level future state of the organization.

3.1.3 Perform Gap Analysis

Perform gap analysis bridges the current state, delivered in Section 3.1.1 (Understand Organizational Strategy and Project Management), with the future state. It helps the OPM implementation team to identify the variances between the current allocation and integration of resources with the required allocation and integration of resources in order to achieve the high-level future state.

There are many options available for performing a gap analysis. The implementation team can select from the available tools or artifacts that are a suitable fit for the organization. Survey results from Appendix X3 may be helpful in selecting the tools or artifacts to be used.

The gap analysis consolidates the outputs of the findings of the organizational strategy and project management of the future state to reveal areas that need to be improved to reduce the variance between the organization's business requirements and the organization's current capabilities. These elements serve as metrics when the suggested changes and improvements are implemented to compare the performance delivered by the future state versus the current state (which is the baseline for improvement).

Whenever possible, the gap analysis should use objective measurements based on the achievement of the future state and avoid inputting subjective assessments into the gap analysis model. In order to compare the performance of the current state to the future state, the OPM implementation team should meet with the required stakeholders and develop quantifiable metrics in tangible terms that will be comprehensible to the stakeholders involved in the analyzed perspective area.

The OPM implementation team conducts the gap analysis, which may cover the following areas:

• Organization's hierarchy (level of involvement of executive leadership),
• Organization's core competencies,
• Business direction,
• Business management practices,
• Review of existing metrics and alignment to future state,
• Project management practices and effectiveness,
• Project management competencies, and
• Project alignment with business management practices.

The support of organizational and OPM-enabling processes; for example, competency management, strategic alignment, and governance processes, is indispensable to development efforts of the gap analysis and the integration of its outcome with the rest of the organization, as deemed necessary.

Similar to the high-level future state, the gap analysis is a dynamic document and requires updates in the event that internal or external changes impact the organizational strategy.

The deliverable from this step is the gap analysis report.

3.2 Implementation Roadmap

Having completed the discovery and analysis phase and having a clear understanding of the gap to be addressed, the next phase is the identification and alignment of initiatives and development of an implementation roadmap for OPM.

3.2.1 Identify and Prioritize Initiatives

This step primarily uses the gap analysis data, and as needed, references the current-state review or high-level future state from the discovery and analysis phase to identify a list of initiatives that addresses the identified gap.

In the process of developing the list of OPM initiatives, focus on making a stronger tie to the organization's strategic objectives and metrics. These metrics provide the OPM implementation team with information to help in the selection and prioritization of initiatives to ensure alignment with the business case.

The initiatives resulting from the gap analysis are reviewed by a team of stakeholders and prioritized based on their strategic importance and difficulty in implementing, all of which are based on the current needs of the organization, fit, desired future state, resource-sharing issues with other projects and initiatives within the organization, business timelines, and strategy alignment. This process is essentially an application of program management, so be sure to follow the organization's program management practices. Refer to The Standard for Program Management.

To bring some objectivity and consistency to the prioritization process, first develop a set of weighted criteria that can be used to help prioritize the different initiatives. Then plot initiatives in the prioritization matrix based on the scoring.

Plot the initiatives using a two-by-two quadrant based on the assigned priorities. An example of a prioritization matrix is shown in Figure 3-5.

Based on the prioritization ranking, the initiatives may fall in the following categories:

• Quick wins. These initiatives have high-strategic importance, are less difficult to implement, and can be completed within a short time span. These quick wins also help to achieve buy-in from te organization. Therefore, implement these initiatives immediately and include in the short-term planning.
• Differentiators. With high scores in the “difficulty of implementation” and “strategic importance” ranges, these initiatives will be the most complex to implement. Include these initiatives in long-term planning.
• Building blocks. These initiatives are easy to implement, but their contribution is minimal to the future state. Use a rigorous selection criterion to implement building blocks; otherwise, these initiatives could become distracters. Include selected building block initiatives in short-term planning.
• Low value. Do not implement these initiatives because they divert resources from higher-priority initiatives and may be too risky.

Develop the prioritization matrix as follows:

• Review data. Review the current state, high-level future state, and gap analysis data from the discovery and analysis phase.
• Identify initiatives. Identify a list of possible initiatives that can address the identified gap. Refer to Section 4 to identify the core-enabling processes to be selected as initiatives for inclusion in the current implementation roadmap. What fits one organization may not fit others; however, it is recommended that each organization implement all four core-enabling processes.
• Define weighting criteria. Define a set of weighting criteria for grading the initiatives to be included in the prioritization matrix to ensure consistency. Be sure to consider possible constraints, risks, opportunities, and the promised benefits from the business case in the weighting criteria.
• Ensure alignment to strategy. Assign a higher priority to the initiatives that can be directly linked to the organization's strategy. These initiatives support the achievement of the organization's strategy and do not contradict or conflict with the organization's strategy. Each initiative should move the organization closer to the future state by delivering benefits that close gaps identified in the gap analysis.
• Identify collaboration and synergistic opportunities. When possible, identify existing or impending projects within the organization that can benefit from shared scope, resources, etc. when linked or combined with a particular OPM initiative. In other words, apply a program management mindset when prioritizing these initiatives. It is also important to incorporate programs, projects, and other work that may be necessary to support a high-priority project.
• Develop a prioritization matrix. Using a prioritization matrix format similar to the example in Figure 3-5 or another preferred prioritization tool, plot the possible initiatives from the previous steps into a prioritized list.
• Obtain agreement and approval. Review the list with stakeholders and obtain agreement on the selected initiatives as well as their prioritization ranking. Obtain approval, as required.

The deliverable from this step is the prioritization matrix.

3.2.2 Develop Implementation Roadmap

Using the list of prioritized initiatives from the previous step, the team develops the implementation roadmap.

The implementation roadmap depicts the high-level, short-term and long-term milestones for implementing the required initiatives to achieve the future state. The implementation roadmap helps the implementation team to:

• View all initiatives, their estimated start and stop dates, and relationships to other initiatives, for example predecessor and successor relationships.
• Commit to implement the initiatives included in the roadmap.
• Forecast resources during the implementation of initiatives.
• Develop detailed implementation plans.

The implementation roadmap is a chronological representation in graphical form of the selected initiatives as well as a high-level view of key milestones and decision points. It depicts key dependencies between major milestones, communicates the linkage between the selected initiatives and business strategy, and provides a compelling vision and high-level snapshot of the supporting infrastructure and component plans.

Plot the initiatives in the prioritization matrix by grouping them, as required, and scheduling them based on priority, strategic importance, and timing of organizational resources and other collaborative opportunities. Figure 3-6 shows an example of a roadmap.

OPM implementation is often a long-term endeavor with a starting point (the initial implementation), followed by an incremental improvement effort that can be handled as part of a routine annual planning process. A long-term implementation roadmap accommodates the strategy for sustaining OPM as a continuous, long-term improvement effort. In addition, the long-term view helps to gain leadership confidence and stakeholder buy-in because it: (a) is less threatening to the current commitments; and (b) demonstrates that OPM can be incorporated into the organization's long-term development strategy and implemented within a reasonable timeline.

While developing the implementation roadmap, consider taking a phased approach tailored to the needs of the organization. Examples of commonly exercised options include:

• Implement by portfolio, program, and project domains. This option can be used with the initial focus for all components of OPM associated with portfolio management, then program management, and finally project management. Depending on the needs of the organization, the sequence for implementation is flexible; however, it is likely that some level of formal or informal portfolio and/or program management is already in place to enable the selection and chartering of the organization's projects.
• Implement by programs, projects, geographic locations, or organizational units. This option considers the best logical grouping that coincides with the organizational structure.
• Implement by readiness level and business impact. This option is used when there may be substantial differences in readiness levels among business units, program groups, or projects. This option also works well when there is evidence that the business impact (positive or negative) can be managed by the timing of the OPM implementation. For example, if an organization decides to enter into a market where a formalized project management framework is required as a key entry criterion (e.g., a large defense contract) then the OPM implementation roadmap should reflect the appropriate timing.
• Implement by maturity ratings. This option is adopted by organizations that prefer a more comprehensive maturity-based focus in their OPM implementation approach. In this case, implementation is focused on business units, programs, or projects that have similar maturity model ratings or those that share the same target maturity ratings. Refer to the Organizational Project Management Maturity Model (OPM3®) – Third Edition.

Develop the implementation roadmap using the following activities:

• Review the prioritization matrix. Review the initiatives plotted on the prioritization matrix to gain an understanding of the identified initiatives and their relative ranking.
• Select initiatives for implementation roadmap. From the prioritization matrix, select initiatives for inclusion in the target planning cycle. For example, to develop a 5-year roadmap to match the organization's 5-year business planning cycle, select the number of prioritized initiatives that can be reasonably implemented during a 5-year cycle. Note that it is also possible to select all prioritized initiatives provided that the roadmap appropriately reflects the appropriate roadmap timeline.
• Develop implementation roadmap. Work with stakeholders to create a time-phased chart showing the following planning elements:
  • Planning period (year 1, year 2, etc.),
  • Long-term view for all selected initiatives as well as a short-term view for initiative(s) to be implemented in the most current planning period,
  • List of selected initiatives,
  • Alignment to associated strategic objectives, when applicable, and
  • Target start and completion dates for each initiative.
• Obtain agreement and approval. Work with stakeholders to obtain agreement and approval for the proposed implementation roadmap. Be sure to secure commitment for the required resources, budget, and proposed timing.

The deliverable from this step is the implementation roadmap.

3.3 Implementation

In the prior phase, the OPM implementation team prepared an implementation roadmap for OPM based on the output from the discovery and analysis phase. During the implementation phase, the OPM implementation team elaborates the roadmap into a detailed plan and carries out the plan to establish OPM in the organization (or implement OPM improvements). Depending on the scope and duration of the roadmap, it may require multiple cycles of implementation to complete.

3.3.1 Develop Implementation Plan

The first step in the implementation phase is to develop a detailed implementation plan for each initiative. While the roadmap lays out a long-term plan for the implementation of OPM, the implementation plan provides the details necessary to fulfill the roadmap.

Each organization that implements OPM starts from a different point and has a different desired target implementation. What fits one organization may not fit others; however, it is recommended that each organization implement all four core-enabling processes, as explained in Section 4 (OPM Implementation Core-Enabling Processes) while using the initiatives selected in Section 3.2 (Implementation Roadmap). A foundation of implementation guidance is provided in Section 4. There is also a vast knowledge base of good practices available to draw upon in PMI standards and other publications. The value to the organization in implementing OPM is maximized when the proper fit within the organization is achieved. This is why it is important to explore options before proceeding. Guidance in Section 4 should be used to elaborate the details of the implementation plan.

The OPM core-enabling processes are as follows:

• Strategic alignment. Strategic alignment aligns portfolios, programs, and projects with the organization's strategic goals and objectives.
• Organizational project management methodology. The system of practices, techniques, procedures, and rules used in portfolio, program, and project work to meet requirements and deliver benefits.
• Governance. The systems and methods by which OPM management and strategy are defined, authorized, monitored, and supported.
• Competency management. Competency management facilitates the timely and appropriate assessment of the skills and development of the experience necessary to implement portfolios, programs, and projects within the organization.

A significant step in an OPM implementation is the creation of an OPM policy (or amendments to an existing OPM policy) and determination as to which methodology, processes, and tools will be used to carry out the policy. The OPM policy formalizes OPM within the organization giving direction to members of the organization on what processes are required to be followed. Details for achieving this for each enabling process are outlined in Section 4. The OPM implementation team needs to decide whether they will be improving what is already in place in the organization or implementing something new. When implementing something new, determine whether to build it from scratch, buy it, or buy it and modify. In assessing which approach to take, consider the OPM budget and team size as the main determining factors. In each scenario, the underlying goal is to select the approach that will provide a high degree of fit with what will work best in the organization.

Consider using a pilot phase in the implementation plan prior to the implementation phase for each initiative planned, when the future state is substantially different from the current state. The pilot phase provides an opportunity to validate the fit of the implementation, reshape the organization-wide deployment, and gain buy-in from pilot participants throughout the organization. When the pilot is completed, initiate communications and training plans to support the implementation. This ensures that those affected have a clear understanding of what is new and how they should leverage it. Tailor the training so that it is specific to the organization. The detailed implementation plan provides an opportunity for adjustment in all plans after the review of pilot results.

The detailed implementation plan is comprised of a number of elements as described in The Standard for Program Management - Third Edition, which include a work breakdown structure and a program schedule. Create a work breakdown structure for implementing an OPM initiative using the following steps:

• Determine requirements for initiative. Beginning with the high-level input from the gap analysis performed in Section 3.1.3, document the detailed requirements for the initiative by elaborating the scope. Use the requirements to ensure that there is fit for the deployed initiative in the organization and include them as a subset of the success criteria for the initiative. When developing requirements, consider the following factors:
  • Characteristics of projects managed, for example, size, complexity, internal/external, duration, risk level, work content, and departmental/enterprise-wide applicability;
  • Characteristics of the organization, that is, formal/informal, matrix/functional, cultural mix, and/or global/colocated;
  • Budget;
  • Resource availability;
  • Current state of initiative components, such as project management methodologies, competency model, and artifacts;
  • Standards, such as A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition [6], other PMI standards, or industry-specific standards;
  • User-submitted requests for change;
  • OPM-related benchmark data; and
  • Lessons learned.

  For example, when implementing a training program for project managers in the organization, the requirements may include different levels of project management needed to support the organization's portfolio, the existing level of project management expertise in the organization, and the available learning tools available for training.

• Develop tailored components of initiative. These components may include a decision to buy or build for the initiative, based on the organization's current state, its ability to support different alternatives, and available resources. Once the decision is made, acquire, develop, and tailor the components for the initiative. When the organization is improving an existing deployed initiative, a pilot phase may not be needed.

  For example, an organization may choose to hire a learning provider to deliver an off-the-shelf training program or may choose to develop a company-specific training program. In either case, this activity should result in a set of learning tools that can be piloted.

  • Pilot initiative. Develop a pilot for the initiative before widespread implementation to minimize risk across the organization and to ensure a successful implementation. The pilot may be either a subset of the initiative across a large part of the organization or a full initiative across a small part of the organization. In either case, the goal is to ease the organization through the process of change without introducing unnecessary risk. For example, provide training to project managers in one department and assess the results before proceeding with a complete deployment.
  • Adjust components of initiative and implementation plan. Based on lessons learned during the pilot, review all plans for implementation and adjust accordingly. This may include adjustments to specific requirements for the initiatives or the deployment process. For example, the pilot may reveal that the practitioners being trained in project management also need additional training in team leadership. To fill this gap, the implementation team could supplement the planned training. In this case, the planned schedule needs to be adjusted to accommodate the additional time needed for training.
  • Deploy initiative across organization. Finally, based on the implementation plan, deploy the initiative fully across the organization. For example, conduct the training for all project managers in the organization.
  • Conduct lessons learned review. Throughout the implementation, the team should identify lessons learned (during meetings, as deliverables are completed, etc.). At the conclusion of each implementation phase, conduct a thorough review to compile a repository of the lessons learned. For example, assess the progress made in improving project management skills across the organization to determine any remaining gaps and to understand how to keep the level of knowledge current as the organization changes in the future due to turnover, business changes, etc.

Base the detailed implementation plan on good program management practices and include all of the subordinate plans that comprise a complete program management plan. The implementation plan should include a clear schedule that includes deliverables, due dates, and responsibilities, and should incorporate steering committee meetings. While not all-inclusive, consider the following for developing components of the program management plan, which are specific to implementing OPM:

• Benefits realization plan. The benefits realization plan identifies how and when the selected benefits of OPM will be delivered to the organization. The baseline document guides the delivery of benefits during performance of the detailed implementation plan. Executive support for OPM may fade when the implementation team is unable to demonstrate benefits from its implementation.
• Resource management plan. Develop a plan for identifying, securing, and managing OPM core resources. This includes a possible organizational reporting structure of the team and resource commitment. When an organization does not have a dedicated team of OPM practitioners or has limited funding to support such a team, one alternative approach is to enlist volunteers from the project management community in the organization for the effort. The OPM implementation team should work with management to create incentives for participation as a volunteer in the OPM implementation. The incentives are easily offset by the community buy-in that results when volunteers socialize their experience into the community. Another approach, especially when the organization is conducting an OPM implementation for the first time or is a low-maturity organization, is to engage OPM subject matter experts knowledgeable in OPM models, standards, and practical approaches that enhance and accelerate organizational benefits.
• Organizational change management plan. Organizations assess change readiness, initiate change, and manage change for initiatives that modify their environment, processes, and tools. Organizations achieve successful change initiatives with a clear understanding of the current state and desired state, coupled with effective management and leadership of the process and human factors. An OPM-detailed implementation plan should emphasize the people element of change, in addition to the technical aspects. An effective plan ensures people have a good understanding of how the changes will affect their job and specifies the skills and capabilities for applying the changes to produce the desired results. Change management is more than just communication management. Effective organizational change management requires an understanding of stakeholder attitudes toward the change and ensures the proper training, support, and reinforcement for all involved.
• Risk management plan. Effective management of OPM implementation also requires effective management of possible risks to the OPM implementation program and secondary risks caused by OPM that may affect the organization. This process should also seek to find opportunities for improved implementation. Identify the risks and plan for mitigation using a standard risk management process.
• Key performance indicators (KPIs). Define KPIs for performance tracking. The starting point for these KPIs is the business case that was available from the early OPM effort, with details developed as part of the planning process and data collected and measured with refinements incorporated as part of the OPM implementation. These will become the metrics for measuring delivery of expected benefits; therefore, it is important to capture a baseline prior to the OPM implementation in order to determine to what extent OPM has improved the KPI.

The deliverable from this step is a detailed implementation plan.

3.3.2 Pilot and Implement OPM

The pilot and implement step of OPM consists of carrying out the detailed implementation plan developed in the previous step. If one or more pilots are planned, the OPM implementation team should adjust the detailed implementation plan after the pilot(s) are concluded, based on lessons learned. A pilot may not be necessary or appropriate in all OPM implementations.

Implementing OPM can be a lengthy endeavor and often stakeholders are impatient and are only interested in progress that can be seen “this month” or “this quarter.” If stakeholders do not see progress, they may become disinterested in the program and could pull support, funding, etc. An OPM implementation program should strive to attain quick wins in small steps early in the cycle. Quick wins should be celebrated with the team, widely communicated, and used as part of the organizational change management plan to promote the value of OPM. This is especially true when an organization does not have any formalized project management processes in place. If a large ambitious OPM process improvement is desired, it may be best to implement it in smaller steps, both for the benefit of those implementing the improvements and for the ability to show short-term successes. This does not imply a reduction in the final desired outcome, but rather an incremental approach to achieving it. While this decision is a primary objective of the implementation roadmap, the OPM implementation team should evaluate pilot results to ascertain whether rework of the implementation roadmap is necessary.

In some organizations, it may be useful to classify project and programs, and offer different levels of OPM process rigor to support different levels of complexity, size, duration, etc. While fit at an organizational level is important, it is also important to achieve the correct level of fit at the program or project level. Too much rigor will be perceived as administrative overhead. Too little rigor will likely inhibit achieving the desired OPM goals. This is another area of the OPM implementation program that may be adjusted, based on the results of pilots in different parts of the organization.

Once the pilot is completed and any adjustments are made from lessons learned, the OPM sponsor should work with the organization's executive stakeholders to ensure that a new OPM policy is documented and communicated clearly, concisely, and emphatically to all affected stakeholders in the organization. In some organizations, this may be accomplished through communications from the head of the organization. In other more complex organizations, it may be necessary to use formalized documentation that is distributed at various levels in the organization from recognizable executives. The key is to ensure that everyone understands that a change has occurred, what it means to them, and what actions they need to take. It needs to become important enough so that stakeholders will prioritize it over other activities occurring in their daily job. The organizational change management plan frames the steps needed to accomplish this, including the plan for communications, as well as training. The OPM policy should be available in a prominent location, such as an intranet webpage along with other organizational policies.

The deliverables from this step are OPM policy, tailored core-enabling processes, lessons learned, and benefits metrics.

3.3.3 Realize Benefits

As the detailed implementation plan is carried out and OPM is incorporated into the organization, the organization will begin to realize the intended benefits, as defined in the benefits realization plan. In order to determine whether the intended OPM organizational benefits are being realized, the OPM implementation team needs to measure progress according to the defined quantitative KPIs.

Depending on the size and complexity of the organization, there are tactical and strategic approaches to measuring progress. From a tactical perspective, a scorecard can be used with OPM metrics to measure the progress of specific components of an enabling process. Examples of scorecard measurements are the percentage of project managers in each internal organization that have attained the desired level of education for their position, or a grading scale for what percentage constitutes red, amber, or green. This type of metric is valuable for the OPM implementation team and shows progress against their tactical program goals. This type of metric is most useful in the beginning stages of an OPM implementation, but may not be suitable for the business leaders to accept as evidence of benefits realization.

Measuring the business impact from an OPM implementation is the best way to show business leaders the value of the OPM implementation. This is also the most challenging metric to incorporate. Business leaders are interested in business results that affect the bottom line, such as time to market, budget attainment, and resource utilization, etc., including other metrics that directly measure the organization's attainment of its strategy. For example, it may be possible to take a project management specific indicator, such as the increase in projects completed on time, and associate it with a business value indicator, such as time to market, to determine a financial value to the business.

The challenge is that most measurements for business results are impacted by many internal and external factors beyond the implementation of OPM. For this reason, it is important to have a baseline measurement for any business value indicator that the business leaders understand and accept as a starting point. Many OPM implementations fail to show value to business leaders because measurements are not taken until the core-enabling processes are in place. Agreement on a baseline KPI measure is a critical success factor in demonstrating the value of OPM.

Experience has shown that a measurement program should start with basic measures and evolve into models that are more complex over time with application and feedback from stakeholders.

The deliverable from this step is the measured benefits KPIs.

3.4 Continuous Improvement

Continued realization of OPM benefits is dependent upon the stewardship of the OPM governance body in the organization. As explained in Section 2, studies have shown that the majority of organizations that do not pursue continued improvement will regress and lose the value previously attained. For that reason, it is important to ensure that the OPM policy outlines a continuous improvement process.

It is recommended that the OPM cycle be continued in the organization on an ongoing basis. Conduct the analysis and discovery step periodically (for example, every 12 to 18 months) to determine the state of OPM and to identify which improvements should be made, and then follow up with the remaining cycle phases described in Section 3. Each successive iteration that is conducted through the cycle has the benefit of the baseline metrics and OPM processes to rely on, making it easier to carry out than the initial implementation cycle. It is valuable to cycle different project management professionals into the assessment teams when the organization is large enough to support it. When this is done, insight is maintained in the process and is grounded in what is being practiced, rather than relying solely on dedicated OPM implementation team members who, over time, may become disconnected from the practice of project management in the business. This practice also serves to reinforce a deeper understanding of OPM and its importance, and builds more champions across the organization.

3.5 Summary

3.5.1 Discovery and Analysis

• The current state review documents form a basis for a common understanding of the strategy, business management processes, and project management processes.
• The high-level future state describes the desired end state, including the effective alignment of the business and project management processes to the strategy.
• Gap analysis describes the variance between the current state and the future state with suggested areas of work needed to achieve the future state.

3.5.2 Implementation Roadmap

• Using the information from the gap analysis, the implementation team develops a list of OPM-related initiatives, then identifies and prioritizes the initiatives to align with the organizational strategy.
• The implementation team develops an implementation roadmap that considers the current business constraints.

3.5.3 Implementation

• The implementation team develops detailed implementation plans for each initiative based on the roadmap and gap analysis, including appropriate subordinate plans and implementation schedules.
• The OPM benefits realization plan provides a consistent means of collecting and reporting the KPIs of OPM, which can be used to feed back into the continuous improvement of OPM.

3.5.4 Continuous Improvement

• Continued realization of OPM benefits is dependent on the continued pursuit of improvement.
• The OPM governance body is responsible for the stewardship of OPM and a continuous improvement process as part of the OPM policy.