Appendix D: Maturity and competence
D.1 INTRODUCTION
Appendix C refers to the use of maturity modelling in assessing the health of MoV applications within an organization. The purpose of this Appendix is to introduce the concept of maturity models with particular reference to the OGC P3M3 model. Organizations should tailor and develop these models as they gain experience in the use of MoV.
P3M3 relates to the maturity of portfolio/programme/project processes as applied across an organization. It is also useful to assess the maturity of individual MoV study leaders if the organization has opted to use internal resource for this purpose. This section therefore also introduces a method of assessing individuals’ MoV maturity.
Regular use of the organizational maturity model can provide the basis for setting long-term goals for MoV and coordinating it with other ways of measuring business performance. At the highest level of maturity, the business will be focused on optimizing its key processes based on quantitative measurement and aligned with business strategy and the external business environment.
The individual competence model is intended for assessing an individual’s capabilities and the type of MoV study for which they are suited. A fully but recently qualified practitioner will lack the experience to undertake studies on particularly complex projects or programmes, particularly those where human or cultural factors may be significant. An initial period of acting as assistant study leader will improve competence to the point where the practitioner will be able to lead studies unaided. Further experience will render the practitioner able to lead more complex studies and to operate at programme and project levels.
D.2 PROCESS IMPROVEMENT
Embedding MoV in an organization, as discussed in Chapter 7, will require investment. The full benefits and the potential of that investment and the resulting competitive advantage will not be realized unless the organization strives to continually improve performance. Maturity models provide a widely recognized method of assessing progress in improving process delivery.
D.3 DEFINITION
The P3M3 maturity model is designed to provide a means of progressing towards realistic and achievable organizational goals. In the descriptions below, we have aligned P3M3 with how it might be applied to MoV.
Essentially, a maturity model is a structured group of attributes that together describe the characteristics of an effective process.
The MoV maturity model comprises five levels:
Level 1 – Awareness process The organization recognizes that there are processes for maximizing value that could exist and should be followed but there is no consistency in approach, allocated roles and responsibilities or process across the organization.
Level 2 – Repeatable process The organization has some developed standard methods to apply MoV, but those that exist are not consistently applied across the organization.
Level 3 – Defined process There is a standard set of methods to apply MoV across the organization, which are consistently applied with clear process ownership.
Level 4 – Managed process The organization captures the outputs from the MoV activities, monitors and measures them so that it can establish process efficiency quantitatively with a view to improving and optimizing performance.
Level 5 – Optimized process The organization aligns its optimized delivery of MoV with its business needs, other key processes and the changing environment within which it operates and adjusts delivery accordingly.
It should be noted that not all organizations will be able to or need to achieve level 5 maturity in all MoV principles. The target levels should be set out in the MoV policy and plan, together with the reasons for selecting the target levels. Often level 3 maturity will be adequate to achieve value for money on most projects, and striving to achieve higher levels may, in itself, not represent the best use of management time and resources. The target should be related to the value added to the organization.
D.4 PURPOSE
As outlined above, the purpose of the MoV maturity model is to allow organizations to assess their MoV performance against objective criteria.
D.5 STRUCTURE
The MoV maturity model mimics the P3M3 structure outlined in Figure D.1.
Figure D.1 P3M3 maturity structure
Table D.1 shows the maturity levels described above and suitable attributes to explore to assess an organization’s maturity.
Table D.1 Outline MoV maturity model
Individual questions relating to each maturity step may be developed for each of the seven fundamental principles of MoV to explore the attributes outlined above:
Align with organizational objectives
Focus functions and required outcomes
Balance the variables to maximize value
Apply throughout the programme or project
Tailor to suit the subject
Learn from experience and improve
Assign clear roles and responsibilities and build a supportive culture.
D.6 USE AND DEPLOYMENT
D.6.1 Progressing between maturity levels
Once MoV maturity has been assessed, it should be possible to identify what is needed to progress to the next level. This will require management time and effort, and the steps should be included in the MoV plan by the senior MoV practitioner. An example of the steps that may be needed in the plan to move from level 2 to level 3 is given below:
Develop MoV processes that are tailored to suit the organization.
Assess the organization’s key objectives in managing value.
Develop generic value profiles that may be tailored to suit typical subjects that are relevant, together with common areas in which value may be added.
Develop MoV terminology that is consistent with that used in other processes in the organization to assist its embedding.
Develop success stories and identify the benefits gained by the use of MoV (internally or by third parties) and disseminate across the organization.
Develop recording and reporting formats and procedures.
Allocate explicit roles and responsibilities.
Introduce a suitable training programme to raise awareness, build culture and assist involvement in MoV studies.
D.6.2 Maintaining the highest level of maturity
Once the organization has achieved the level of maturity to which it aspires, maintaining that level will require discipline and management effort. The principal activities that will be needed will include:
The implementation of a continuous improvement process, including using lessons learned to inform and refine established processes.
Maintaining records and undertaking reviews to ensure that MoV is effective in achieving results and supporting decision-making.
Maintaining training and process improvement.
Keeping policies and the MoV plan up to date to maintain its relevance.
Broadening the scope of projects and other activities subject to MoV.
Continuing efforts to embed and enhance the MoV culture.
D.6.3 Principal benefits
The use of maturity models is increasingly seen as a valuable tool to enhance performance and competitiveness in both public and private sectors. Some of the key benefits that arise include:
More effective delivery of services and products
Reduction of wasteful practices through the effective use of MoV
A higher rate of return on investment
Greater production efficiency
Lower production or operational costs due to more efficient processes
Better-quality outcomes
Improved customer satisfaction
Enhanced employee morale
A means of identifying and implementing management’s plans to achieve realistic and achievable goals.
D.6.4 Reasons for use
An organization might choose to use maturity modelling for several different reasons. These could include:
Assessing the success of introducing and embedding MoV into the organization
Providing evidence to enhance competitiveness when bidding for providing services to a project
Understanding strengths and weaknesses better to improve performance
Assessing the effectiveness of training.
D.7 INDIVIDUAL COMPETENCE MODELS
The foregoing has focused mainly on organizational maturity models. If an organization has elected to develop the means of delivering MoV studies using its own internal resources or if it needs an objective method of assessing the competence of external resource, an individual competence model will be useful.
The primary difference between the organizational maturity model and the individual competence model is that the latter focuses on the individual’s ability to undertake complex and strategic MoV studies.
An individual who has qualified in a knowledge-based qualification such as MoV foundation or practitioner level also needs the attributes described in section 7.2, as well as leadership, presentation and facilitation skills, to be fully competent as a study leader.
Various organizations have well-developed training courses to instil the above skills, should potential study leaders not already possess them.
Possession of these skills, together with the knowledge contained in this guide, will enable an individual to deliver formal MoV studies, using the accepted and effective processes described elsewhere in this guide.
Once qualified, the individual can then aspire to improve performance and competence to progress from running simple studies to very complex and strategic studies at programme or project levels.
The competence model below is indicative of the attributes needed by a study leader to achieve the levels indicated. The senior MoV practitioner should develop a suitable competence assessment model tailored to the requirements in his organization.
Assessment of an individual may be undertaken by use of a questionnaire or interview.
Suggested competence levels for each practitioner’s understanding and ability to lead a study are:
1 Able to contribute constructively and to help organize an MoV study run by a competent and qualified study leader.
2 Able to plan, arrange and run a simple MoV study, including preparation and submission of reports and agreeing plans for implementing the recommendations.
3 Able to plan, organize and run a series of coordinated studies across one or several projects of medium complexity or to run a single study on a highly complex project. Able to apply qualitative and quantitative value metrics for monetary and non-monetary attributes. Includes responsibility for capturing relevant data in a suitable database for others to use in learning lessons and improving performance. The latter resource may not be available in a smaller organization.
4 Comfortable with leading a team of qualified study leaders and support personnel to conduct MoV at programme level, including consolidating reports prepared by others for reporting to the project board. Sufficiently experienced and qualified to train and mentor others to become MoV study leaders to level 2 competence.
5 Capable of running a programme of MoV activities across the organization, addressing strategic, programme, project and operational levels. Very experienced and able to apply MoV across a broad range of applications and/or disciplines. Qualified to train and mentor others to become MoV study leaders to the highest levels of competence. Contributes to decision-making by senior management.
D.7.1 Progression between levels
An individual at level 1 is unlikely to have had formal accredited training except at foundation level. To progress to level 2 the individual would typically:
Undergo formal accredited practitioner training including facilitation training
Have participated in several formal MoV studies led by others
Led at least two successful formal MoV studies.
Progression from level 2 to higher levels will depend upon the individual acquiring broad experience and practising MoV across a range of subjects of increasing complexity. Such progression will be largely self-motivated and include some or all of the aspects outlined below:
Demonstrating an eagerness to learn from more experienced study leaders
Demonstrating an ability to innovate the design of MoV events within the frameworks given in this guide
Demonstrating the ability to motivate others to contribute actively and constructively in MoV studies
Preparing and presenting original papers at professional events that advance the acceptance and practice of MoV
Making positive contributions to embedding MoV in the organization
Inspiring senior management to commission MoV at increasingly strategic levels
Adapting practice to learn lessons from previous MoV studies as well as practices adapted from other sectors
Tailoring MoV processes to suit the organization
Authoring success stories and case studies and disseminating these across the organization
Gathering useful qualitative and quantitative data and making it available to others for continuous improvement, and building the culture in the organization.
Training others to improve their performance.