Tuesday 2 February 2016

Project Management Maturity Model

Project Management Maturity Model

SAP and Petrotrin Success

Success achieved by both SAP solutions and Petrotrin is largely attributable to Project Management Maturity Model (PMMM). Today, SAP is a leading business software provider thanks to the quick global adoption of PMMM. SAP is working hand-in-hand with PM solutions and other technology firms to enhance responsiveness to the customer needs. Indeed, SAP has become a global leader in the improvement of tools and practices to aid firms' consultancy position (SAP, 2013). On the other hand, use of PMM by Petrotrin has resulted in efficiency hence stamping the firm's position as one of the leaders in oil and gas industry. While many experts consider PMMM to be repetitious and tedious to follow, the success stories by firms using it invalidates such claims.
There is a positive impact between PMMM’s and its ability to meet the stakeholders demands. It is not surprising that Petrotrin and SAP managers have declared it a theme for the future. Modern projects, like those implemented at Petrotrin, are more than just simple solutions to loosely technical problems. In addition, a success in these projects serves as a means of change and business prosperity.
Petrotrin's integration of PMMM in its day-to-day operations has not only ensured timely accomplishment of planned tasks but also, the firm has saved on cost. In fact, the firm is now able to set quality targets because there is a sense of confidence that they will be achieved in time (Moya e al., 2010). PMMM tools improve skills of SAP and Petrotrin. Furthermore, the model ensures proper management of activities in accordance to the organization’s objectives. Subsequent improvements and upgrades conducted on PMMM inched it closer to a result-oriented style of management applicable all sorts of projects executed at any economic sector.
Project management maturity refers to a measurement of a firm's level of excellence in a given area. Often, market forces and business nature wield an effect on the organization's maturity level in project activity. In the case of Petrotrin, it is arguable that use of PMMM has mostly been successful because its sector is adaptable. Furthermore, the firm is state-owned and nearly monopolistic making it easier for PMMM to be adopted. Petrotrin’s success is evident in its expansion program: there is an upgrade of a second refinery that will ensure an improvement of refined products’ quality so as to attain the international standards.
PMMM is critical in the information technology project development process. It is because of this reason that SAP saw the need for its adoption (Snabe et al., 2008). PMMM has an innate ability to ensure the distinction between immature firms with ad-hoc procedures and the well-established mature ones. The traits for the distinction made it possible for SAP to gauge its operation and to subsequently grade its performance. Using the outcome as a baseline, SAP’s management endorsed a performance acceleration plan in line with PMMM’s recommendations to ensure its current success.

Improvement in PMMM levels

There are five maturity levels of PMMM. Firstly, there is an initial process where a firm exhibits no standards or business practices. At this stage, project documentation and metrics are collected informally. This is the level which both SAP and Petrotrin started from during their early years of PMMM's adoption. At the second level, the firms advance to structured standards and processes. Though limited, there is a presence of project documentation and basic metrics at this stage. However, there are no standards set to be followed in organization’s internal environment. Notably, Petrotrin recently graduated from this level to the third level. The third PMMM stage involves a utilization of institutionalized processes and organizational standards (Vergopia, 2008). SAP and Pretrotrin just formalized the standards for their institutionalized projects to compete with other multinationals. Thus, they are at the third maturity level. 
The fourth maturity level involves absolute automation of management processes. Most tasks currently performed by skilled workforce are taken over by metrics. The efficiency of metric operations ensures its integration and replication to other systems of corporate management to ensure maximum performance. A few firms, if any, have met the necessary qualifications to upgrade smoothly into the fourth maturity level. However, the swift technological advancement and improvements in business innovation implies project automation is within reach. The last maturity stage entails an optimization process. Firms at this maturity level utilize learned lessons in previous levels to improve the processes.

Project Management Focus

It is undeniable that SAP and Petrotrin have joined a league of successful firms because of their shift in focus towards project management. A comparison of the firms’ initial performance (prior to PMMM adoption) with the current data reveals a sharp contrast. Besides, Petrotrin and SAP managers admit that positive results and efficiency in project implementation are fruits of an investment in PMMM. Today, SAP boasts of operations in more than 190 states as a result of efficiency in its expansion projects for the past 5 years (Doz & Kosonen, 2010). While SAP has restructured numerous times, it is interesting to note that its focus on cloud service provision is part of a wider plan to ensure a successful transition to the subsequent PMMM levels (Armburust et al., 2010).

References

Armbrust, M., Fox, A., Griffith, R., Joseph, A. D., Katz, R., Konwinski, A., ... & Zaharia, M. (2010). A view of cloud computing. Communications of the ACM,53(4), 50-58.
Moya, R., Mohammed, A. M., & Sookram, S. (2010). Productive Development Policies in Trinidad and Tobago: A Critical Review (No. IDB-WP-115). IDB Working Paper Series.
SAP, A. (2013). or an SAP affiliate company. SAP HANA Implementation and Modeling, Participant Handbook, 176-180.
Snabe, J. H., Rosenberg, A., Mller, C., & Scavillo, M. (2008). Business process management: The sap roadmap. Berlin: SAP PRESS.

Vergopia, C. (2008). Project review maturity and project performance: an empirical case study. Michigan: ProQuest.

No comments:

Post a Comment