OPM or Organizational Performance Management is a new process area that has been added to v1.3 of the CMMI model.
It is not entirely new since it replaces and extends the OID (Organizational Innovation and Deployment) process area.
Hence effectively, version 1.3 of CMMI contains same number of process areas as compared to version 1.2 (2 at level 5 and 22 overall).
So OPM is OID plus something more.
One major difference is the expectation of CMMI v1.3 model that the performance/process improvement initiatives and activities in an organization should be explicitly linked to business objectives, must impact the PPBs (Process Performance Baselines) and PPMs (Process Performance Models) and need to be demonstrated statistically, preferably in terms of changes to PPBs and PPMs.
An example to illustrate the above is described below:
Since OPM comes after level 4 process areas have been implemented (specifically, OPP - Organizational Process Performance) use of PPBs and PPMs is clearly an expectation from the CMMI model perspective.
In a way it is also a natural progression for the organization from managing project performance or work performance quantitatively by using PPBs and PPMs in QPM (Quantitative Project Management) or QWM (Quantitative Work Management) respectively to managing the organizational performance quantitatively by using PPBs and PPMs in OPM (Organizational Performance Management).
It is not entirely new since it replaces and extends the OID (Organizational Innovation and Deployment) process area.
Hence effectively, version 1.3 of CMMI contains same number of process areas as compared to version 1.2 (2 at level 5 and 22 overall).
So OPM is OID plus something more.
One major difference is the expectation of CMMI v1.3 model that the performance/process improvement initiatives and activities in an organization should be explicitly linked to business objectives, must impact the PPBs (Process Performance Baselines) and PPMs (Process Performance Models) and need to be demonstrated statistically, preferably in terms of changes to PPBs and PPMs.
An example to illustrate the above is described below:
- Suppose the business objective is to deliver to the customers on time.
- A parameter of interest for the business in this case could be OTD (on time delivery).
- For this the 'agreed date of delivery' committed to the customer and the 'actual date of delivery' to the customer is captured.
- OTD can be defined in terms of the difference between 'actual date of delivery' and 'agreed date of delivery' and is computed for further analysis.
- The process behavior is statistically characterized (as needed by level 4 expectations also).
- This means the average (mu) and variance (sigma) of OTD is computed.
- Effectively speaking this is captured in the form of PPBs and PPMs.
- Suppose the average (mu) and variance (sigma) values are set wide apart or not within target.
- This becomes a case fit for improvement and OPM can kick in.
- The improvement effected through an OPM project needs to be statistically proven.
- This means the average (mu) and variance (sigma) values should show change (in the positive direction).
- From statistical perspective variance (sigma) should reduce and average (mu) should move closer to the target (higher or lower as the case may be).
- Effectively speaking this should result in change to the PPBs and PPMs.
Since OPM comes after level 4 process areas have been implemented (specifically, OPP - Organizational Process Performance) use of PPBs and PPMs is clearly an expectation from the CMMI model perspective.
In a way it is also a natural progression for the organization from managing project performance or work performance quantitatively by using PPBs and PPMs in QPM (Quantitative Project Management) or QWM (Quantitative Work Management) respectively to managing the organizational performance quantitatively by using PPBs and PPMs in OPM (Organizational Performance Management).
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