Level 2: Common Processes Introduction Learning the basics of project management, and even having several employees certified as project management professionals (PMP credential holders), does not guarantee that project management is being used in your organization. Even if it is being used, it may not be used effectively. Level 2 is the stage where an organization makes a concerted effort to use project management and to develop processes and methodologies to support its effective use. In Level 2, the organization realizes that common methodologies and processes are needed such that managerial success on one project can be repeated on other projects. Also apparent in this level is the fact that certain behavioral expectations of organizational personnel are necessary for the repetitive execution of the methodology. These are the characteristics of Level 2, as shown in Figure 6.1: Tangible benefits of using project management must become apparent. The most common benefits include lower cost, shortened schedules, no sacrifice of scope or quality, and the potential for a higher degree of customer satisfaction. Project management must be supported throughout all levels of the organization, including the senior levels. It is possible that changes to the corporate culture may be necessary, thus mandating executive support. A continuous stream of successfully managed projects requires methodologies and processes that can be used over and over again. This requires an organizational commitment. Managing projects within scope and time is only part of the effort. The projects must also be completed within cost, and this may mandate changes to the cost accounting system. The final characteristic of Level 2 is the development of a project management curriculum rather than just a project management course. This is often seen as proof of the organizations firm commitment to project management. PMP is a registered mark of the Project Management Institute, Inc. Using the Project Management Maturity Model: Strategic Planning for Project Management, Third Edition By Harold Kerzner Copyright 2019 by John Wiley & Sons, Inc. L e v e l 2 : C o m m o n P r o c e s s e s 66 Common processes Recognition of the benets of project management Organizational support at all levels Recognition of the need for processes/methodologies Recognition of the need for cost control Development of a project management training curriculum Figure 6.1 Characteristics of Level 2. These bullets are the outputs of the common processes. In other words, do you have common processes to facilitate repeatability? It should be noted that many of the benefits of common processes many not be clearly visible. The benefits may be intangible at first, and then become visible benefits later. Life Cycles for Level 2 Common processes require a good process-definition effort accompanied by the necessary organizational behavior needed for the execution of the processes. Level 2, common processes, can be broken down into five life-cycle phases, as shown in Figure 6.2. These life-cycle phases are actually subphases or steps within Level 2 of the project management maturity model (PMMM) in order to develop common processes. The first life-cycle phase of Level 2 is the embryonic phase, which is where the organization recognizes that project management can benefit the organization. The embryonic phase includes: Recognizing the need for project management Recognizing the potential benefits of project management Recognizing the applications of project management to the various parts of the business Recognizing some of the changes necessary to implement project management Figure 6.2 Life-cycle phases for Level 2 of project management maturity. Line management acceptance Growth Maturity Embryonic Executive management acceptance 67 L I F E C Y C L ES F OR L EVE L 2 Companies do not generally promote the acceptance of project management unless they understand a sound basis for wanting project management. The six most common driving forces for project management are as follows: Capital projects: High-dollar-value capital projects require effective planning and scheduling. Without project management, ineffective use of manufacturing resources may occur. Customer expectations: Customers have the right to expect the contractor to manage the customers work requirements efficiently and effectively. Internal competitiveness: Executives want employees to focus on external competition rather than internal competition, power struggles, and gamesmanship. Executive understanding: Although its uncommon, executives can drive the acceptance of project management from the top of the organization down to the bottom. New-product development: Executives want a methodology in place that provides a high likelihood that R&D projects will be completed successfully, in a timely manner, and within reasonable cost. Efficiency and effectiveness: Executives want the organization to be highly competitive. In theory, most companies have one and only one driving force. While weve just discussed six different driving forces, in practice they combine to give one, and only one: survival. This is shown in Figure 6.3. Once executives recognize that project management may be needed for survival, changes occur quickly. Figure 6.3 The components of survival. SURVIVAL Efciency and effectiveness New product development Executive understanding Capital projects Customers expectations Competitiveness What is unfortunate about the embryonic phase is that the recognition of benefits and applications may be seen first by lower and middle levels of management. Senior management must then be sold on the concept of project management. This leads us to the second life-cycle phase: executive management acceptance. Included in the executive management acceptance phase are the following: Visible executive support Executive understanding of project management Project sponsorship and/or governance Willingness to change the way the company does business L e v e l 2 : C o m m o n P r o c e s s e s 68 The third life-cycle phase of Level 2 is line management acceptance. This includes: Visible line-management support Line management commitment to project management Line management education Release of functional employees for project management training programs It is highly unlikely that line managers will provide support for project management unless they also see visible executive support. The fourth life-cycle phase of Level 2 is the growth phase. This is the critical phase. Although some of the effort in this phase can be accomplished in parallel with the first three life-cycle phases of Level 2, the completion of this phase is predicated upon the completion of the first three life-cycle phases. The growth phase is the beginning of the creation of the project management process. Included in this phase are: Development of company project management life cycles Development of a project management methodology A commitment to effective planning Minimization of scope changes (i.e., of creeping scope) Selection of project management software to support the methodology Unfortunately, companies often develop several types of methodologies for each type of project within the organization. This becomes an inefficient use of resources, although it can function as a good learning experience for the company. The fifth life-cycle phase of Level 2 is the initial maturity phase. Included in this phase are: The development of a management cost/schedule control system Integration of schedule and cost control Development of an ongoing educational curriculum to support project management and enhance individual skills Many companies never fully complete this life-cycle phase because the organization is resistant to project cost control, otherwise known as horizontal accounting. Line managers dislike horizontal accounting because it clearly identifies which line managers provide good estimates for projects and which do not. Executives resist horizontal accounting because the executives want to establish a budget and schedule long before a project plan is created. Roadblocks Figure 6.4 illustrates the most common roadblocks that prevent an organization from completing Level 2. Based on the strength and longevity of the corporate culture, there could be strong resistance to change. The argument is always, What we already have works well. The resistance to change stems from the fear that support R i s k 69 for a new methodology will result in a shift in established power and authority relationships. Another area of resistance is due to the misbelief that a new methodology must be accompanied by rigid policies and procedures, thus once again causing potential changes to the power and authority structure. The final roadblock comes from the fear that horizontal accounting will bring to the surface problems that people would prefer to keep hidden, such as poor estimating ability. Advancement Criteria Four key actions are required to complete Level 2 and advance to Level 3: Develop a culture that supports both the behavioral and quantitative sides of project management. Recognize both the driving forces/need for project management and the benefits that can be achieved in both the short term and the long term. Develop a project management process/methodology such that the desired benefits can be achieved on a repetitive basis. Develop an ongoing, all-employee project management curriculum such that project management benefits can be sustained and improved upon for the long term. Risk The successful completion of Level 2 usually occurs with a medium degree of difficulty. The time to complete Level 2 is usually six months to two years, based on such factors as the following: Type of company (project-driven versus nonproject-driven) Visibility of executive support Strength of the corporate culture Figure 6.4 Roadblocks to completion of Level 2. Common processes Level 2 Process denition Resistance to a new methodology What we already have Belief that a methodology needs rigid policies and procedures Resistance to horizontal accounting works well L e v e l 2 : C o m m o n P r o c e s s e s 70 Resistance to change Speed with which a good, workable methodology can be developed Existence of an executive-level champion to drive the development of the project management methodology Using a PMO to lead the effort Speed with which project management benefits can be realized The risk in this level can be overcome through strong, visible executive support. Overlapping Levels Level 2 can and does overlap Level 1. There is no reason you must wait for a multitude of people to be trained in project management before you begin the development of processes and methodologies. Also, the earlier the company begins developing processes and methodologies, the earlier those processes and methodologies can be included as part of the training. One company conducted a three-day course on the principles of project management. A fourth day was spent covering the companys processes and methodologies for project management. Thus, the employees could see clearly how the processes/methodologies utilized the basic concepts of project management. Assessment Instrument for Level 2 Level 2, common processes, is the process-definition level. Level 2 can be fulfilled by recognizing the different life-cycle phases of Level 2. The following 20 questions explore how mature you believe your organization to be in regard to Level 2 and the accompanying life-cycle phases of Level 2. Beside each question, circle the number that corresponds to your opinion. In the following example, your choice would have been slightly agree: 3 Strongly disagree 2 Disagree 1 Slightly disagree 0 No opinion +1 Slightly agree +2 Agree +3 Strongly agree Example: (3, 2, 1, 0, +1 , +2, +3) The row of numbers from 3 to +3 will be used later for evaluating the results. After answering question 20, you will grade the exercise. Q u e s t i o n s 71

Explanation of Points for Level 2 High scores (usually +6 or greater) for a life-cycle phase indicate that these evolutionary phases of early maturity have been achieved or at least you are now in this phase. Phases with very low numbers have not been achieved yet. Consider the following scores: Embryonic + 8 Executive +10 Line Management + 8 Growth + 3 Maturity 4 This result indicates that you have probably completed the first three stages and are now entering the growth phase. Keep in mind that the answers are not always this simple because companies can achieve portions of one stage in parallel with portions of a second or third phase. Opportunities for Customizing Level 2 Level 2 focuses heavily on culture. Many of the questions can be changed to include how much executive and line management support exists, whether you use virtual teams and the support for virtual teams, how well functional organizations work with one another, and stakeholder relationship management issues. If the customization is done carefully, the grading system may not need to be changed.

Address 2 ideas in 2-3 paragraphs Should be aligned with the main ideas to the PMMM using their personal experience and/or personal research on a case study.