There should be a Business Objective (BO) for each and every organization. It can be in terms of profitability, time to market etc. Basically it is chosen on the basis of work being handled by the organization. Here the problem is to map the BO from enterprise level or organizational level to each work units inside the organization. Based on the work units inside the organization, a second layer of objectives might need to be defined (Process Performance Objectives- PPOs, in CMMI terms). The parameter for PPO should be taken based on the critical set of parameters which needs to be monitored. For example to improve profitability, productivity can be critical parameter. So profitability will become the parameter for BO and Productivity as the parameter for PPO. Based on the PPO defined at the organizational level and customer requirements project team needs to come up with project specific goals. For a CMMI high-maturity compliant organization, probability analysis should be there providing enough evidence for achieving the targets. As the PPOs are defined for a range at the organizational level, the probability analysis done at the organizational level won’t match with that at the project level as project goal will be more stringent usually. Hence blindly following the organizational PPOs and corresponding probability analysis might lead to irrelevant conclusions.
Consider a baseline deduced for productivity in an organization as below
Lower control limit= 24 units, Central Value = 27 units and Upper control limit=30 units
There can be four goal statements as given below.
- Goal = Baseline
- Improve average
- Reduce sigma
- Improve average and Reduce sigma