How to Increase the Value of the PMMMs as a Business-oriented Framework

How to Increase the Value of the
Project Management Maturity Model
as a Business-oriented Framework
Regular Paper
Maria Elena Nenni1,*
, Vincenzo Arnone2
, Paolo Boccardelli3
and Iolanda Napolitano4
1 University of Naples Federico II
2 Hewlett Packard Service
3 University LUISS Guido Carli
4 Procter and Gamble
* Corresponding author E-mail: menenni@unina.it
Received 31 Jul 2013; Accepted 17 Jan 2014
DOI: 10.5772/58292
© 2014 Author(s). Licensee InTech. This is an open access article distributed under the terms of the Creative
Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,
distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract An organization’s effectiveness partly depends
on the success of its projects. With this in mind, many
efforts have been spent in recent decades to enhance the
project management culture, but results are still highly
unsatisfactory. Project Management Maturity Models
(PMMMs) are seen by both the academic and the
industrial communities as a solid instrument to achieve
this goal. The point at issue is that surveys and researches
show PMMMs must be better linked to business and
financial performance. The aim of this paper is to explore
the scope for improvement to evolve PMMMs as
business-oriented frameworks.
Keywords Project Management, Maturity Model,
Organizational Project Management
1. Introduction
As projects have been recognized as critical to the success
of any organization, more and more organizations have
embraced Project Management as an improvement tool as
well as a key strategy for remaining competitive in
today’s highly competitive business environment [1].
Many researchers and practitioners have simultaneously
begun to study the matter in a wide variety of directions
in order to enhance methods and practices and to
improve effectiveness in achieving the success of an
organization’s projects.
Despite all the efforts, in 2013 the Project Management
Institute presented its periodical Pulse of the ProfessionTM
research [2] which, even according to other studies [3],
showed that less than two-thirds of projects meet their
goals and business intent (success rates have been falling
since 2008, from 72 percent in 2008 to 62 percent in 2012)
and about 17 percent fail outright.
According to the PMI [2], in addition, the actual risk for
organizations is estimated to amount to losses of an
average of US$135 million dollars for every US$1 billion
invested in a project.
Maria Elena Nenni, Vincenzo Arnone, Paolo Boccardelli and Iolanda Napolitano:
How to Increase the Value of the Project Management Maturity Model as a Business-oriented Framework
1
ARTICLE
Int J Eng Bus Manag, 2014, 6:8 | doi: 10.5772/58292
International Journal of Engineering Business Management

Data and studies show clearly that much work remains to
be done in the area of PM and that we are now only at the
first stage: the imperative to improve project
management for competitive advantage is clear, but
barriers to an effective implementation still exist.
The approach chosen by the community to deal with the
matter is to extend the focus of project management from
studying a single project to studying the way the
organization is using projects to achieve its goals [4]. PM
is no longer a program within the company. It becomes a
strategic part of the long-term business plan. The present
view of PM recognizes - as a benefit - that it is now seen
as a strategic initiative designed to enhance shareholder
value.
Many authors [5, 6] suggest that Project Management
Maturity Models (PMMMs) could be an answer or a
support to link projects with strategy and organization.
Others [5] show that PMMMs are typically used
reactively and not proactively and that they do not have
sufficiently rigorous protocols in the evaluation of project
management maturity. Moreover there is too little
empirical evidence to match project maturity and project
performance.
The general aim of this study is to investigate the best
way to fill the gap between PM and effective success in an
organization’s projects. It is a position paper in which the
underlying assumption is that a PMMM represents a
solid answer to an organization’s needs and the research
question is about the direction PMMMs should evolve to
perform better in supporting an organization to achieve
its business goals. The authors present arguments and
evidence from the academic as well as the industrial
perspective to back up propositions about the best way to
increase the value of PMMMs as a business-oriented
framework.
The paper is structured as follows: section 2 is devoted to
comparing PMMMs and to analysing core features of the
Organizational Project Management Maturity Model
(OPM3) as best performer. In section 3, our propositions
about OPM3 are presented and discussed. Section 4
summarizes main findings and introduces the future
research work. Finally, section 5 provides some final
remarks.
2. The Project Management Maturity Model (PMMM)
The Project Management Maturity Model (PMMM) is a
formal tool used to assess, measure and compare an
organization’s own practices against best practices or
those employed by competitors, with the intention to
map out a structured path to improvement [3].
In order to adopt the project-based way of conducting
business, organizations require the necessary
infrastructure, which includes processes (methods and
techniques), governance structures, competences of
people and tools. Frequently, a lack of foresight creates an
environment where the PM systems and infrastructure
are not in place to support the needs of the practicing PM
community. This is often where the value of a maturity
assessment comes into play [7].
More generally, the use of a PMMM provides three main
advantages:
1. A PMMM provides a normative description of good
practices. That is, the maturity levels set an ideal
standard that organizations can strive for [8].
2. A PMMM is a discussion tool for engaging
interviewees and enabling reflection on the current
status of an organization [9]. The resulting
identification of strengths and weaknesses provides
a logical path for progressive development and a
strategic plan for advancing project management
improvement within the organization [7].
3. A PMMM can be used to benchmark (parts of)
organizations [10, 11].
Judgev and Thomas [9], however, note that the benefits of
PMMMs should not be overestimated because they
provide only temporary competitive advantage to the
firms using them.
In any case, since the Capability Maturity Model
Integration (CMMI) was first created in 1989, many other
maturity models have been developed. We can now
enumerate more than twenty PMMMs, which are
substantially different from each other in terms of
structure and features.
We have, therefore, explored some studies in order to
compare different models. Grant [3] identified the
following criteria for the evaluation: (i) degree of
alignment with the methodology, (ii) scope, (iii) degree of
publication, (iv) degree of independence from industry,
(v) transparency of calculation, (vi) independence of the
tools used, (vii) number of years of existence and (viii)
ease of use. In a more concise way, the evaluation of
maturity models for PMMMs could be developed along
three dimensions [12]: (i) structure, (ii) applicability and
(iii) usage.
Combining both frameworks, we have selected the
following shortlist of maturity models:
1. Organizational Project Management Maturity
Model (OPM3).
2. Capability Maturity Model Integration (CMMI-DEV).
3. Kerzner Project Management Maturity Model
(PMMM).

4. Project, Program, Portfolio Management Maturity
Model (P3M3).
5. Maturity Increments IN Controlled Environments
(MINCE2).
However, we have limited the final choice to the only
models - OPM3 and P3M3 - that better fit the basic
assumption for our research.
Basic assumption: in order to achieve the expected benefits, a
maturity model for a project-based organization should always
cover three domains: project, program and portfolio.
In our opinion, it is completely wrong to try to achieve
success by working only from a point of view of projects.
Portfolio management is central to many organizations'
strategic processes and requires consideration of multiple
factors and the ability to envision alternative future
consequences to support strategic project portfolio
decision-making. However, programs and projects are
necessary to perform the detailed operational execution.
Only through the creation of a positive pattern from project
to portfolio management is it possible to link strategy and
project and improve the general performance.
Indeed, many authors [13] have supported the same
assumption, stating repeatedly that simultaneous
formalization of single projects, as well as of entrepreneur
portfolio projects, is the only way to increases the positive
effect on performance and that mature organizations
realizing one domain cannot exist without the others.
Finally, we have embraced the theory of Khoshgoftar and
Osman [14], who conclude in their review of maturity
models that OPM3 is the better maturity model for
improving organizational performance. This theory,
combined with the following remarks about OPM3, has
convinced us that OPM3 would be the most appropriate
maturity model regarding the aim of our paper:
• P3M3 uses a separate five-stage process to evaluate
the maturity stage; by contrast, OPM3 approach is
continuous and it is considered as a positive point.
• OPM3 model has been subject to the results of
feedback from the industry for a long time and it
has been modified repeatedly.
• The Project Management Institute enjoys wide
popular credibility.
• OPM3 emphasizes determining weak points
particularly and the continuous improvement of the
related issues.
2.1 The Organizational Project, Program, Portfolio Management
Maturity Model (OPM3)
This is a standard published for the first time in 2003 by
the Project Management Institute and it is now in its third
edition [15]. OPM3 defines organizational PM at the
systematic management of projects, programs and
portfolios in alignment with the achievement of
organizational strategic goals. The main features of OPM3
that are useful for our study are:
• OPM3 is not prescriptive; rather it provides a broad-
based set of organizational project management best
practices (BP). This standard allows an organization
to use it as a basis for study and self-examination
and consequently to make its own informed
decision regarding potential initiatives for changes
[PMI].
• OPM3 is industry independent: it seeks to create a
framework within which organizations can re-
examine their pursuit of strategic objectives via BPs
in OPM3.
• OPM3 offers reports as [16] a continuum of BPs, but
also as stages of improvement.
• OPM3 does not allow partial fulfilment of any BP.
3. Propositions about OPM3
In order to improve the value of OPM3 as a business-
oriented framework, the points of view of users,
managers and consultants from the industrial world
should be evaluated too. In this direction, Special Interest
Groups (SIG) [17] and Websites [18] on the topic have
contributed a great deal, enabling authors to feel the
pulse of OPM3 users and practitioners.
From a recent survey among OPM3 practitioners [19],
more specific motivations for using OPM3 have emerged.
Of particular interest to our research are the motivations to:
• Obtain a competitive advantage by recognizing the
BPs the organization should strive to attain.
• Discover the best way to perform BPs to achieve
overall strategic goals and objectives.
• Determine whether the procedures/processes [the
company] follows are actually producing the most
effective, efficient and productive results.
• Benchmark results with those of the competition.
• Establish the connection between financial
performance and PM maturity.
All of these emphasize the need for linking a maturity
assessment and improvement with the company’s
specific business goals and financial objectives. Indeed,
the expected result from OPM3 is concrete support to
improve “competitive advantage” in an “effective,
efficient and productive” way.
Based on the results of this investigation from the
academic to the industrial world, we have formulated our
propositions to improve the value of OPM3 as a business-
oriented framework.
3

Proposition 1.a: A contingency approach in using OPM3
should be highly recommended.
Proposition 1.b: OPM3 should include a reference to letting
organizations develop their own contingency approach in a
very effective and clear way.
Using a contingency approach means recognizing that
one size of standardization factors does not fit all
organizations. Organizational Project Management
standardization factors should be customized to fit the
strategic purpose of the company and thus each
organization may have its own set, or “size,” of best
practices (BP) on the OPM3 approach. Many authors [20]
agree on the importance of a contingency approach and
they insist [21] that it is wrong to assume that BPs will
automatically enhance project success.
Indeed, OPM3 does not impede a contingency approach
at all. In fact, it is not prescriptive, but it provides
guidelines regarding the kinds of things an organization
may do in order to achieve excellence in Organizational
Project Management. Otherwise, it does not mean with
certainty that OPM3 fully supports a contingency
approach. In our opinion, to be effective, a contingency
approach should be developed through a specific
methodology or following definite criteria (for an
example, see [22]). Instead, in OPM3 room is also left for
subjective evaluations and generic tools in decision-
making processes used to choose the potential
improvements and select the BPs. Neither a common
reference nor specific methodologies to develop an
organization’s contingency approach exist in OPM3.
Results are often, therefore, disappointing.
Milosevic and Patanakul [25], however, proved that a
“compass” occurs. Based on their exploratory research,
they discovered that there is a specific point - which they
referred to as the inflection point – beyond which further
increasing standardization may actually stifle project
success. Where this inflection point exactly appears to be
company-specific, meaning that it varies from company
to company, but many authors [23, 24] agree that various
characteristics, such as the size, composition or
innovativeness of projects in the portfolio [25], might
influence the effectiveness of maturity. Kiskela [20] and
Milosevic [21] have linked the optimal degree of maturity
to factors such as complexity, uncertainty and risk. In
short, there are many factors influencing a contingency
approach. The literature as well as the industrial cases
now offer the chance to formalize them into a framework
to drive organizations in developing their own effective
contingency approach. Including and structuring all this
knowledge should enhance the OPM3’s value for
organizations, saving them from a badly tailored
approach.
Proposition 2 happens strictly sequentially because it
restates the opportunity to enlarge investigation of other
factors in OPM3 assessment.
Proposition 2: an OPM3 assessment should provide
organizations with a big picture and a thorough knowledge
about their maturity.
There are many researches about the opportunity to
include other factors in a really effective assessment.
Many authors [27, 28] have demonstrated that there is
variability between industries: the more established users
of project management such as the engineering-based
industries demonstrate a higher level of maturity.
Eisenhardt and Tabrizi [29] have observed that the effect
of maturity on project performance may be contingent on
certain environmental factors (industry, competition,
political interference, etc.). Other authors [24] are inclined
to consider structural factors (technological capacity,
organizational culture, management systems, financial
management and employee morale) and contextual
factors (social, political and financial). Finally Mullaly
[26] identifies external factors (economic, regulatory and
market driven) as potential influences on the maturity
level.
All this evidence is consistent with the main idea that
assessing the maturity level only through OPM3
assessment is not adequate; organizations should look for
a more structured scorecard. Maturity level provided by
OPM3 is a solid measure because it allows a standard
measurement, monitoring and comparing. Otherwise, the
meaning is strongly influenced by organizations’ business
and strategy.
Our opinion is that more work is needed to see if we can
measure more thoroughly the maturity levels and this is
possible only through an enlargement of the assessment,
even taking in other business-oriented parameters.
Proposition 3: The way of scoring the maturity level in OPM3
is inadequate.
Findings from OPM3 assessment are often disappointing
for users and in our opinion the main reason is the
method of scoring.
Few researches are focused on the measurement of
maturity level: [30] adopts the fuzzy comprehensive
evaluation method to evaluate the NPD PM maturity. [31]
presents an approach to apply OPM3 to effectively assess
organizational project management capability, based on a
neural network assessment model. Up to now results
from the literature have not been able to remove the
weakness of OPM3 scoring method.

There are two different methods of scoring that can be
used to represent the maturity state of a company within
the OPM3 literature [32]. The first one is based on the
percentage of Best Practices, Capabilities and Capability
Outcomes which have been fully achieved, relative to the
number that was assessed. An alternative scoring
provides a more quantitative assessment of maturity by
measuring the extent to which Capabilities are present in
the organization. Results from the first scoring represent
the maturity level, that is, the degree to which the OPM3
methodology is implemented, which is comparable across
all organizations. It is very general and at times it may be
seen as too strict. The second scoring, based on
Capabilities, gives a more detailed picture of the ability of
an organization to “do right things well” [33], but it
depends on the organization’s own strategy and
environment. Any two organizations could even have the
same level of maturity against completely different
capabilities, because the methodology allows them to self-
determine goals for process capability. In our opinion,
this makes the scoring too subjective, making a
comparison among organizations difficult and not
completely meaningful. In the same way, what feedback
could be given for two similar organizations with
different capabilities and different competitive
advantage? It comes from capabilities or from the specific
goals? OPM3 definitely links value decision making with
value delivery and fulfilment, but the scoring does not
allow for highlighting that connection in a useful way.
Removing this weakness should greatly increase the
value for organizations.
4. Discussion and future research work
All our propositions aim at the target from different
directions: the point at issue is that OPM3 is too focused
on best practices and capabilities. It is an excellent
standard, but it almost appears to consider an
organization as just the sum of BPs and capabilities. Ann
organization is really a more complex system and other
factors and their influence should not be ignored.
On the basis of our propositions we intend to develop
future research work. The specific aim is to study all the
factors (environmental, internal, external, etc.)
influencing the organizational Project Management
maturity level.
The conceptual research model investigates three areas of
decision-making, capabilities and performance
evaluation, and it aims at highlighting how
environmental, cultural, organizational as well as other
factors are able to activate synapsis among any areas.
The research work is expected to increase the value of
PMMM in a double way:
• Moving from a subjective perspective to an objective
one creates trust in the model, as results could be
used to prove the ability of an organization to deliver.
That would be a competitive advantage for groups
that are selling services, e.g., consulting companies.
• Linking the results of the different domains (project,
program and portfolio) into a holistic framework
would help organizations understand the
correlations among them. Currently, the scores are
very much standing alone and the ability of the
assessors to create strategic connections is the only
way to read the results.
5. Research methodology
The research methodology is based on observation of
repeated OPM3 analysis and deep study of the model. It
appears quite obvious from analysing the model that the
same results can be achieved with completely different
starting points.
In order to achieve our specific goal, we intend to use a
multi-method approach:
• Descriptive: a survey using questionnaires or
interviews will be used for data collection; through
case studies, specific characteristics will be analysed
in depth; additionally, existing records will be used
to collect data.
• Correlational: results from data collection will be
evaluated and interpreted through statistical tests
for comparisons and to demonstrate relationships.
• Review: through an extensive literature review, the
opportunity to integrate OPM3 with a framework
for business analysis as a balanced scorecard and a
set of methods for benchmarking will be evaluated.
The practical implications of our research should be to
increase the value of OPM3 as a business-oriented
methodology. Another expected result is to enable and
improve the benchmark among organizations.
6. Conclusions
Our aim has been to investigate OPM3 in order to evolve
it as a business-oriented model that meets organizations’
demands.
The main findings of our position paper are:
• PMMMs are useful to improve the organizations’
performance.
• OPM3 is the most complete and effective PMMM.
• OPM3 is too BP-centred, but other factors are
important to drive organizations to an appropriately
tailored maturity level.
• A review of the assessment and scoring method is
needed.
5

The expected results from research based on this paper
are a thorough knowledge of factors influencing
organizational PM maturity in order to develop an
effective contingency approach to OPM3 and to link PM
maturity and business performance.
The limitation could be that we do not release the model
from a very strong influence of the assessor. That is key to
the result. The quality of the assessor determines the
quality of the outcome
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