Performance Measurement Maturity Model (PM3)

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Simplifying a maturity model

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Performance Measurement Maturity Model PM 3 Betty Ann M. Turpin Ph.D. CMC C.E. Turpin Consultants Inc. January 2016 1

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Purpose of a Maturity Model  … is to assist organizations to identify and characterize the maturity of their workforce practices establish a program of continuous improvement and workforce development set priorities for improvement actions integrate workforce development with process improvement and establish a culture of excellence in support of the strategic people management strategies. 2

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Context  Maturity models broadly refer to a process improvement approach that is based on a process model.  Model comprised of structured levels that describe the expected behaviors practices and processes an organization can reliably and sustainably produce to reach the desired outcomes.  Maturity" relates to the degree to which the organization has succeed each level demonstrating more accomplishment then the previous one.  Model first developed by the Software Engineering Institute SEI in the mid- 1980s in response to a product-oriented military contract. Since then multiple perpetuations in the model have evolved 1. Wikipedia. Capability Maturity Model. http://en.wikipedia.org/wiki/Capability_Maturity_Model. Retrieved May 20 2015 3

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Context continued While model levels and characterization have varied usually 5 levels are included that are generally defined as IRDMO:  Initial - This is where all new processes start. Processes are chaotic and often ad hoc.  Repeatable - This happens when a company has developed a process to produce repeatable outcomes.  Defined - At this point the process is defined and has been chosen as a standard business process.  Managed - Someone manages the process according to metrics defined during stage three.  Optimized - The management procedure includes process optimization. Each level addresses five key process areas: Goals Commitment Ability Measurement Verification GCAMV 4

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Cautionary Note  When measuring becomes the focus not a means to understanding performance certain outcomes will be pursued at the expense of others.  To circumvent this shortfall there is a need for a more holistic approach to performance measurement. 5

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The PM 3  The Performance Measurement Maturity Model PM 3 profiles three maturity states – Develop Transition Sustain – reflective of stages an organization will follow toward achieving HR strategies.  A progressive graduated approach to performance is adopted and designed to assist organizations in characterizing and measuring the maturity of their workforce and workforce practices and as such human capital.  For each HR outcome a description of what the performance expectations are must be articulated for each stage of the model. 6

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Model Example:Performance and Accountability 7 HR owned People Strategies are identified and aligned to the Department business lines. HR Plans are produced and owned by Management plans identify core HR services and strategic business partners. Management is committed and engagement strategies and mechanisms are in place to facilitate partnerships and client Results-based information available for line decision- making and linked to the HR strategic plan. Systems in place to capture and measure performance. Ongoing and regular performance monitoring and reports address results-based outcomes. Accountabilities and benchmarking efforts are institutionalized and demonstrate continuous improvement. Management owns and demonstrates good people management. Collective responsibility between management labour unions and employees for reporting. Develop Transition Sustain

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Further Considerations  A key objective of a progressive approach is to “institutionalize” the performance measurement framework within the organization.  Key stakeholders therefore need to understand the planning and performance cycle as well as the drivers and enablers. Further a progressive model means that outcomes are treated as a continuum rather than a single overall threshold to be achieved at some point in time.  This approach has value-added because it will facilitate the organization’s effort to be more definitive about committing to specifics achievements and results that emanate from the actions/activities undertaken. 8

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Contact Us: Turpin Consultants Inc. baturpsympatico.ca 9

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