CMMI® Institute Reports Fifth Consecutive Year of Record Growth
CMMI® Institute announced that 2,237 organizations earned a Capability Maturity Model Integration (CMMI) appraisal rating in 2016, a 16 percent global increase in the number of completed appraisals.
Business leaders who conduct a CMMIappraisal can determine what their company must do to strengthen the skills and systems designed to lift a given enterprise, business unit, or specific function to the next level. By using CMMI, companies can measure their capability against a defined framework of best practices and decisively identify sweet spots to be more competitive.
“CMMI appraisals are recognized around the world as a trustworthy measure of an organization’s capability to deliver higher quality products and services,” said Kirk Botula, CEO of CMMI Institute. “Every year more and more organizations realize the value of a CMMI maturity level and in 2016 we saw that growth particularly in the US, China, and India.”
As defined by McKinsey & Company, capability is “anything an organization does well that drives meaningful business results.” And, when a company’s distinctive capabilities are clearly defined, everything and everyone within the organization begin to reinforce one another. Many organizations can benefit from using a capability maturity model, like CMMI, to measure their capabilities against best practices and pinpoint which ones drive higher performance across the enterprise.
Results from the CMMI Institute’s Assess Your Organizational Capability Study demonstrate that leaders are increasingly aware of the value of improving the key capabilities in their organizations. The number of organizations using CMMI is rising year over year indicating that more companies than ever are looking to CMMI to build a culture of continuous improvement. And there continues to be opportunities for CMMI adoption as:
- Nearly 50 percent of organizations don’t have standard processes, process assets and job aids in place.
- 42 percent of organizations have no established standard-planning processes.
- 54 percent do not measure what matters.
Specifically, here is how two high performing organizations are using CMMI to drive business results:
Allianz UK, Europe’s largest insurer with an operating profit of 10.8 billion euros, needed to build its foundational capabilities in project management and engineering innovation across geographical divisions to manage complexity and increase performance. When they implemented CMMI, they saw a dramatic improvement in performance with a 39 percent increase in project on-time delivery rates, a 123 percent increase in projects delivered on budget, and a 53 percent jump in customer satisfaction. As stated by Allianz’s Director for Systems Development, Jean Harris, “In today’s rapidly evolving world, the ability to create new value and the ability to be innovative is now more important to an organization’s survival than at any other time in our history,”
Booz Allen Hamilton, a $5.2 billion consulting company, has built a culture of continuous improvement demonstrated by completing 18 CMMI appraisals since 1998 to build and improve its key capabilities and process maturity. In 2016, the organization went from a CMMI Maturity Level 3 to a Maturity Level 5—the highest level achievable. Their business goal was to leverage CMMI to scale their Digital Solutions business to enable them to take on larger more complex work by creating a measurement program that enables them to demonstrate the improved predictability and consistency of their performance for their clients. This resulted in achieving a 35 percent decrease in average ticket resolution time for Healthcare.gov from the previous contract. In addition, the team exceeded a 94 percent client service level agreement (SLA) by implementing more rigorous engineering processes to support larger scale and more complex systems.
See how more organizations are benefiting from their CMMI appraisal by visiting the Who Uses CMMI? web page.
For organizations that want to work with CMMI-appraised organizations, a full overview of CMMI-rated organizations is published in the Published Appraisal Results Site (PARS).
About CMMI® Institute
CMMI Institute (CMMIinstitute.com) is the global leader in the advancement of best practices in people, process, and technology. The Institute provides the tools and support for organizations to benchmark their capabilities and build maturity by comparing their operations to best practices and identifying performance gaps. For over 25 years, thousands of high-performing organizations in a variety of industries, including aerospace, finance, healthcare, software, defense, transportation, and telecommunications, have earned a CMMI maturity level rating and proved they are capable business partners and suppliers. CMMI Institute is a part of the ISACA family, the global non-profit association helping professionals to realize the positive potential of technology. To learn more about how CMMI can help your organization elevate performance, visit CMMIinstitute.com.