What's CMMI Level 2 ... and How Do We Get There?
A Brief Guide to CMMI Level 2 for Small Organizations

By Maureen Sullivan,
CMMI Level 2 Boot Camp DI

Chances are good that you're reading this article for one or more of the following reasons:

• Your CEO said he wants your organization ready for a CMMI Level 2 appraisal in 12 months - and you've be charged with making it happen. Gulp! You don't have a clue how to begin!
• Your group attended an "Introduction to CMMI" seminar or workshop. While you were at the workshop, everything you heard made sense, but now that you're trying to put together a CMMI Level 2 implementation program for your organization, you realize you're totally lost.
• You have terrific project managers and top-notch developers, yet your projects are almost always late and over budget. You've heard that implementing CMMI Level 2 processes can help keep projects on track by reducing scope creep and reducing defects. You want that!
• Your organization wanted to bid on a software development contract, but couldn't, because bidding was only open to organizations that had been appraised at CMMI Level 2. You want more information on what this CMMI stuff is all about.

You've come to the right place. This FAQ answers some of the most commonly asked questions about CMMI in general and CMMI Level 2 in particular. It also briefly addresses questions related to implementation, appraisal costs, and Return on Investment (ROI).

1. What is CMMI?

In simple terms, CMMI is a model for improving and appraising the process maturity of systems and software organizations. "CMMI" stands for Capability Maturity Model Integration. CMMI was developed by the Software Engineering Institute of Carnegie-Mellon University under the sponsorship of the US Department of Defense. CMMI is actually a suite of models. However, when you hear people talking about the CMMI, they are most often referring to the staged representation of CMMI for Development, Version 1.2 (CMMI-DEV, v1.2 - Staged Representation).

The staged representation of CMMI is divided into five maturity levels:

1. Initial
2. Managed
3. Defined
4. Quantitatively Managed
5. Optimizing

A maturity level is an evolutionary rung on the ladder to full process maturity. Therefore, an organization that has been appraised at CMMI Level 2 is on the "Managed" rung of the process maturity ladder.

Each maturity level of CMMI is divided into process areas. Process areas are sets of related practices you are expected to perform to attain the required goals of each process area. Each process area contains two types of goals that must be fulfilled: specific goals and generic goals.

A specific goal is one that is unique to a process area. For example, "Establish Baselines" is a specific goal that is unique to the Configuration Management process area of CMMI Level 2. Specific goals can be achieved through the implementation of specific practices. Specific practices are activities you are expected to perform in order to fulfill the specific goal. "Identify Configuration Items" is a specific practice of the "Establish Baselines" specific goal.

A generic goal is one that is common to all process areas. For example, "Institutionalize a Managed Process" is a generic goal that is common to all process areas of CMMI Level 2. Generic goals can be achieved through the performance of generic practices. Generic practices are activities you are expected to perform in order to fulfill the generic goal. "Establish an Organizational Policy" is a generic goal of the "Institutionalize a Managed Process" generic goal.

2. What is CMMI Level 2?

CMMI Level 2 is the second of the five maturity levels in the staged representation of the CMMI. It's known as the managed level.

In an organization that has been appraised at CMMI Level 2...

"...the projects of the organization have ensured that requirements are managed and that processes are planned, performed, measured, and controlled.

The process discipline reflected by maturity level 2 helps to ensure that existing practices are retained during times of stress. When these practices are in place, projects are performed and managed according to their documented plans".

There are seven process areas in CMMI Level 2:

1. Requirements Management
2. Project Planning
3. Project Monitoring and Control
4. Measurement and Analysis
5. Supplier Agreement Management
6. Process and Product Quality Assurance
7. Configuration Management

Each process area has one or more specific goals (SG). Each specific goal has one or more specific practices (SP). In CMMI Level 2, each process area has a single generic goal (GG) that contains ten generic practices (GP).

To illustrate, below is the framework for the "Requirements Management" process area of CMMI Level 2.

SG 1 MANAGE REQUIREMENTS

SP 1.1 Obtain an Understanding of Requirements
SP 1.2 Obtain Commitment to Requirements
SP 1.3 Manage Requirements Changes
SP 1.4 Maintain Bidirectional Traceability of Requirements
SP 1.5 Identify Inconsistencies between Project Work and Requirements

GG 2 INSTITUTIONALIZE A MANAGED PROCESS

GP 2.1 Establish an Organizational Policy
GP 2.2 Plan the Process
GP 2.3 Provide Resources
GP 2.4 Assign Responsibility
GP 2.5 Train People
GP 2.6 Manage Configurations
GP 2.7 Identify and Involve Relevant Stakeholders
GP 2.8 Monitor and Control the Process
GP 2.9 Objectively Evaluate Adherence
GP 2.10 Review Status with Higher Level Management

3. What is a CMMI appraisal?

A CMMI appraisal is a rigorous examination by a team of professionals led by an SEI- trained and certified appraiser. The appraisal provides a formal benchmark-level CMMI rating for your organization. A CMMI appraisal is formally known as a "Standard CMMI Appraisal Method for Process Improvement Class A Appraisal" - or "SCAMPI A", for short.

In a nutshell, a SCAMPI A appraisal examines your organization's maturity level. It is expected that your organization's software projects adhere to documented processes composed of practices that fulfil the specific and generic goals in the process areas of the maturity level for which you're being appraised. Project team members may be interviewed or surveyed by the appraisers to determine how well they understand and apply the documented processes for which they are responsible. Each project will be required to supply the appraisers with direct evidence of using the processes, such as plans, schedules, and other artifacts that are produced as a result of performing those processes. Each project will also be required to supply multiple instances of indirect evidence, such as meeting minutes, notes, email, or other indirect artifacts, that demonstrate consistent process compliance throughout the project life cycle.

4. How much does a CMMI Level 2 appraisal cost?

The cost of a SCAMPI A appraisal depends on a variety of factors, such as the size of your organization, the number of projects reviewed during the appraisal, the number of people interviewed, the number of documents and artifacts reviewed, and so forth. Because of that, the cost for a CMMI Level 2 appraisal can range anywhere from $38K to $75K for a small-to-medium sized organization, and more for larger organizations.

5. How long does it take for an organization to create and implement CMMI Level 2-compliant processes and prepare for an appraisal?

According to the SEI, "organizations with little existing infrastructure or experience with process improvement projects typically require 18 to 24 months to reach maturity level 2".

6. Wow, this CMMI stuff takes a LOT of time, work, and money. What can my organization expect in return?

Glad you asked! According to the results of a study published by the SEI on December 15, 2005, the median Return on Investment (ROI) of organizations implementing process improvements through the use of CMMI models is 4.7 : 1! In addition, the organizations participating in the study reported a 20% reduction in project costs, a 37% improvement in schedule, a 14% increase in customer satisfaction, a 62% increase in productivity, and a 50% increase in quality.

7. What is the TCG CMMI Level 2 Mentoring Service, and how will it benefit me?

In April 2004, Turner Consulting Group (TCG) was appraised at CMMI Level 2 by an independent SEI-accredited appraisal team. Because we're a small company, we're extraordinarily proud of our achievement. But, oh, the time, effort, weeping, wailing, and gnashing of teeth it took to get there! Even with the assistance of CMMI consultants, it was a long, hard, uphill climb.

In retrospect, we realized that it need not have been so difficult, costly, and time-consuming. In fact, CMMI is very straight-forward and logical once you get the hang of it. It's getting the hang of it that's the hard part. You see, the CMMI model is not a "how-to" manual. Although its 561 pages describe the goals and practices comprising each maturity level, it doesn't provide implementation guidance. When it comes to the "who, what, when, where, how, and how often" of implementation, you're on your own. And therein lies the problem for any organization wishing to become CMMI appraised!

In recognizing this dilemma, which is especially acute for small-to-medium sized businesses with limited staff and financial resources, we created the TCG CMMI Level 2 Mentoring Services. The program is designed to provide the very things that the CMMI model doesn't give you -- guidance for the "who, what, when, where, how, and how often" of CMMI Level 2 practice implementation.

We help you to create the necessary infrastructure to support CMMI Level 2. We show you how to develop the required policies, processes, plans, and schedules necessary to get your process improvement program off the ground. We show you how to create the artifacts and evidence that are necessary during an appraisal to demonstrate ongoing compliance with your processes. We provide you with samples and resources to help you over the rough spots. Most importantly, we show you how to create processes that will be easy for project teams to understand and adhere to -- processes that will ensure your company achieves the promised cost, quality, schedule, productivity, and ROI benefits of the CMMI.