Purpose:

Establish and maintain a quantitative understanding of the performance of selected processes in the organization’s set of standard processes in support of achieving quality and process performance objectives, and to provide process performance data, baselines, and models to quantitatively manage the organization’s projects.

Objective:

Establishes organizational expectations for analyzing the organization’s business performance using statistical and other quantitative techniques to determine performance shortfalls, and identifying and deploying process and technology improvements that contribute to meeting quality and process performance objectives.

Description:

The Organizational Performance Management process enables the organization to manage organizational performance by iteratively analyzing aggregated project data, identifying gaps in performance against the business objectives, and selecting and deploying improvements to close the gaps.

The term “improvement” includes all incremental and innovative process and technology improvements, including those improvements made to project work environments. “Improvement” refers to all ideas that would change the organization’s processes, technologies, and performance to better meet the organization’s business objectives and associated quality and process performance objectives.

Organizational Performance Management business objectives might address include the following:

    • Improved product quality
    • Increased productivity
    • Increased process efficiency and effectiveness
    • Increased consistency in meeting budget and schedule
    • Decreased cycle time
    • Greater customer and end-user satisfaction
    • Shorter development or production time to change functionality, add new features, or adapt to new technologies
    • Improved performance of a supply chain involving multiple suppliers
    • Improved use of resources across the organization

The organization analyzes product and process performance data from the projects to determine if it is capable of meeting the quality and process performance objectives. Process performance baselines and process performance models, developed using Organizational Process Performance processes, are used as part of the analysis. Causal Analysis and Resolution processes can also be used to identify potential areas of improvement or specific improvement proposals.

The organization identifies and proactively solicits incremental and innovative improvements from within the organization and from external sources such as academia, competitive intelligence, and successful improvements implemented elsewhere.

Realization of the improvements and their effects on the quality and process performance objectives depends on being able to effectively identify, evaluate, implement, and deploy improvements to the organization’s processes and technologies.

Realization of the improvements and beneficial effects also depends on engaging the workforce in identifying and evaluating possible improvements and maintaining a focus on long-term planning that includes the identification of innovations.

Improvement proposals are evaluated and validated for their effectiveness in the target environment. Based on this evaluation, improvements are prioritized and selected for deployment to new and ongoing projects. Deployment is managed by the deployment plan and performance data are analyzed using statistical and other quantitative techniques to determine the effects of the improvement on quality and process performance objectives.

This improvement cycle continually optimizes organizational processes based on quality and process performance objectives. Business objectives are periodically reviewed to ensure they are current and quality and process performance objectives are updated as appropriate. The Organizational Process Focus process includes no assumptions about the quantitative basis for identifying improvements, nor their expected results.

Organizational Performance Management extends the Organizational Process Focus practices by focusing on process improvement based on a quantitative understanding of the organization’s set of standard processes and technologies and their expected quality and process performance.

Entrance Criteria:

  • Simulation Packages
  • Prototyping Tools
  • Statistical Packages
  • Dynamic Systems Modeling
  • Subscriptions to Online Technology Databases and Publications
  • Process Modeling Tools

Exit Criteria:

  • Documented Lessons Learned from Improvement Validation
  • Deployment Plans
  • Revised Improvement Measures, Objectives, and Priorities
  • Updated Process Documentation and Training Material

Process and Procedures:

Tailoring Guidelines:

Organizations may choose to purchase an organizational performance management process and procedures rather than develop them.  Using the Causal Analysis and Resolution process, they can tailor the process to fit their organization.

Process Verification Record(s):

  • Lessons learned captured from analysis of process performance data compared to business objectives
    • Stored By: [PMO Director]
  • Documented measures of the costs and benefits resulting from implementing and deploying improvements
    • Stored By: [PMO Director]
  • Report a comparison of similar development processes to identify the potential for improving efficiency
    • Stored By: [PMO Director]

Measure(s):

  • Change in quality and process performance related to business objectives
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  • Schedule for implementing and validating an improvement
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  • Schedule activities to deploy a selected improvement
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References: