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Matrix |

Matrix

The matrix below summarizes the components and their capabilities in different maturity levels.

Component 1 – Information silos 2 – Understanding the value 3 – Fact-based decision-making 4 – Analytical business 5 – Strategic tool
Communication Organization strategy and mission are not communicated Communication is still in its infancy; organization attempts to communicate its goals and objectives Business goals are presented; strategy is communicated through metrics, scorecards and dashboards Strategic goals are defined and communicated across the organization; frequent communication of the progress towards set objectives Communication is continuous; vision and values are developed in co-operation; supports external communication
Information Bad quality and scattered data; lack of standards, common structures and master data; people cannot access the data they need Business understands the value of information; no trust in information quality and consistency; much redundant and inconsistent data Data quality becomes better; collecting financial data is highly automatized; data warehouses have timely data; common data model and business vocabulary; better data availability; people have access to data they need in their work Data and information are high quality; understanding that information is critical for business; all relevant performance data is available in data warehouse; data is available for every measure; performance data is used for analysis Information is trusted across the organization; data is fully integrated; information is highly valued asset in the organization
Intangible assets Awareness of PM is completely lacking; success is based in individuals; resources are used widely to consolidate data; organizational resistance; no top management support Organization starts to understand PM and its value; information systems cannot be exploited sufficiently; limited senior management support Common organizational culture starts to evolve; people are adopting fact-based decision-making; factors affecting business are understood better; support from senior management; projects become more strategic; competence centre is being formed People are formally committed to strategy process; people are trained to process data; sponsors come from senior management; competence centre that reports directly to senior management Vision and values are fully integrated into organization culture; measurement and accountability culture exists; organization-wide PM culture; individuals understand the impact of performance goals; mature, proactive and dynamic competence centre
Management and responsibility No shared resources or management; proper PM program not started; no formal operations and development plan; lack of responsibility Project planning and management is based on previous experience; costs, schedules and functionalities are monitored Metrics are defined for owners; program manager; management roles and structures becomes more formal; data ownership and responsibilities are defined The importance of responsibility is stressed; all performance owners are held responsible; management principles are defined and followed Top management is assigned to use PM; the PM organization is formal and coordinates operations across the organization
Methods and tools Only a few methods defined; combination of spreadsheets and desktop databases (spreadmarts) Effective collection of transaction data; discussion about business intelligence and data warehousing; a formal PM method in use; operations and development plan Assortment of various methods in use; organization recognizes no single method can cover PM; standardized set of project and development methods and tools Processes are defined, followed and monitored; organization is proactively looking for new methods and tools; methods are combined appropriately; methods and metrics are becoming closer Methods and tools are critical for competitiveness; learning and development functions become a natural process; a constant development process is maintained; methods and tools are driving the improvement in effectiveness
Performance No defined measures; PM measurement system not in use; at strategic level performance is not measured and monitored; no formal strategic planning or management; fixed management reports in use Performance measurement is financially focused; departmental level measurements; historical metrics; PM not done at the individual level; no common strategic measures; first KPIs are being built; budgeting; planning; consolidation; strategy monitoring and execution KPIs that are derived from organization’s strategic goals; performance measurement is aligned with strategic goals; visualization of data via dashboards and scorecards; KPI scorecards; performance-based component in bonus or compensation plan; risk management Role in individual level increases; performance-based compensation program; metrics are in balance; improved performance and added value from analytics; KPIs are focused frequently; stakeholder scorecards; metrics refines existing metrics; rolling forecasting; strategic planning and analysis Relative performance goals; objectives are compared to competitors; metrics are used comprehensively; key metrics are assessed periodically; analysis and optimization; processes are integrated together; combination of processes such as rolling forecasting and budgeting; strategy scorecard
Scale and scope Local solutions, often done for a single business case; projects are tactical by nature Improved coordination between business units and functional groups; first steps towards functional cross-border reporting Moving outside finance operations; performance is managed at organizational and individual levels; organization-wide PM strategy and goals Organization-wide analytical plan and framework for metrics; vertical and horizontal expansion; performance is managed at every organizational level Use expanded to external stakeholders; information is shared with external parties; solution supports strategic, tactical and operational decision-making; goals and metrics are everything that is done in the organization
Strategy and business Mission and goals are indefinite; typically they are only defined annually and published throughout the organization; the value of PM to business is not understood; strategic decisions are made based on business instinct; funding comes from the IT budget and is divided between cost centers Strategies to achieve organizational targets start to evolve; the goals are defined; PM helps in the creation of strategic goals; PM is focused on monitoring the goals; only a small group of people are responsible for strategic planning; funding comes from business units on a project basis Particularly supports strategy execution and monitoring; indirect benefits are gained through better quality data; cost savings; promotes fact-based decision-making; funding from business units on a project basis Lessens the gap between strategic planning and execution; metrics have a direct and strong impact on organization strategy; scorecards and dashboards connect employees to strategy; investments starts to pay off; funding is easy to obtain Business strategy oriented: provides feedback for strategy and refines strategy; constant strategic planning; PM has become a strategic management tool; PM cannot be replaced; real business value is gained from investments
Technology No common architecture or infrastructure; temporary ad-hoc solutions; primitive technologies; data is reported directly from operational information systems; IT seen as a cost center Use is focused largely on basic functionalities; data marts; some data warehouse projects; tools in use, but they are in silos; interactive reporting systems; ready software suites; no proper information system for collecting the data Data warehouses; the importance and number of data marts is decreasing; great number of different technologies; initiatives for organization-wide technology management and architecture targeting to multi-layer platform; implementation can be repeated and moved elsewhere Centralized organization-wide data warehouses; data warehouses constantly consolidates analytical structures; flexible and layered architecture; solution drives everyday functions in the organization; hybrid technologies; integrations between applications Service-oriented architecture; full-scale organization-wide analytical architecture; integration into enterprise architecture; data warehouses and analytical functions become part of basic infrastructure; EDW is a strategic resource; external data sources used widely

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