LinkingBenefits to MaturityModels
Jorge Gomes1, Mário Romão2,Mário Caldeira1
1
Instituto Superior de Economia e Gestão
Universidade Técnica de Lisboa, Portugal
[email protected];
[email protected]
2
Instituto Superior de Ciências do Trabalho e da Empresa
Instituto Universitário de Lisboa, Portugal
[email protected]
Abstract
Many organizations today need to deliver more complex products and services in a better,
faster, and cheaper way. The business problems that some companies address require enterprisewide solutions that call for an integrated approach and an effective management of organizational
resources to achieve business objectives with an acceptable level of risk.A maturity model is a
process improvement approach that provides organizations with the essential elements of
effective change. It can be used to guide process improvement across a project, a division, or an
entire organization. Maturity models help integrate traditionally separate organizationalfunctions,
set process improvement goals and priorities, provide guidance for quality processes, and provide
benchmark for appraising current processes outcomes. The benefits management approach
emerges as a complement to traditional management practices and proposes a continuous
mapping of benefits, implementing and monitoring intermediate results. Benefits management
reinforces the distinction between project results and business benefits.Based on a case study the
authors show how a set of business objectivescan be obtained from identifying, structuring and
monitoring business benefits, supported byinformation technology enablers and organizational
transformations,and as a result of a certain maturity level.The authors also state that the main
focus of an investment success lies not only in technology implementation, but mainly in
changesin organizational performance and business efficiency by means of improved processes
and modificationsin the way the work is done.We emphasize that the integration between
aMaturityModel and a Benefits Management approach can increase the effectiveness of projects,
programs or portfolios outcomes.Besides, this linkage canalso improvedecisionmakersconfidence that the investments done match the desired maturity stages and will then, with
more probability, collect more value for businesses.
Introduction
Gaining a competitive advantage over competitors has been focus of the organizations
since a long time because only a competitive advantage can assure the long term existence of the
organization [1,2]. Firms that have captured competitive advantage [3] are attempting to maintain
their competitiveness by increasing knowledge and managing that knowledge. In a competitive
environment, organizations need flexibility to meet customers’ demands, by offering customized
and high-quality products and services.While managing projects, organizing people and work in
an appropriate way is a key success factor. The functional organization, with a distinct hierarchy
is being left behind in the modern business world while other organizational structures enabling
higher flexibility are becoming more and more dominant [4].For organizations to succeed in the
global business competition of today, it is necessary that they produce a high standard of
performance. Basically, the purpose of the maturity modelis to provide a framework for
improving an organization’s business result by assessing the organization’s strengths and
weaknesses, enabling comparisons with similar organizations, and a measure of the correlation
between organization’s [5,6]. There are a number of reasons why organizations might choose to
use maturity model to assess their current performance, such as: justifying investment in
portfolio, programme or project management improvements, gaining recognition of service
quality in order to support proposals or gaining a better understanding of their strengths and
weakness in order to enable improvement to happen.Maturity model is an important element of
strategic planning as it provides a methodology, a road map to determine and compress the gaps
on resources and quality [7]. Working with different types of projects within an organization
requires standard models in order to deliver successful future projects repeatedly, improve both
the quality of future projects and gain knowledge and learn from past mistakes. According to
Andersen and Jessen [8], measuring maturity in organizations is regarded as a subjective instead
of objective measurement since most significant research is primarily focusing on what people
are doing operationally. Skulmoski[9] recommends a view where competence and maturity
should be linked together for project success and not focusing only on action and where
competence should be regarded as a combination of knowledge, skills and attitudes that supports
performance.The assessment procedures helped an organization understand where they have
been, where they are, and what processes they need to implement, in order to continue their
implementation of management methodologies. As organizations mature in business and project
management processes, and their use of information technology, they implement centralized
solutions to facilitate these processes.
Maturity models
These models are usually divided in progressive maturity levels, allowing the
organization to plan how to reach higher maturity levels and to evaluate their outcomes on
achieving that.According to Levin andSkulmoski[10] the maturitymodels provide a framework to
help enable organizations toincrease their capability to deliver projects on schedule,within budget
and according to the desired technicalperformance.The worksof IbbsandKwak, [11,6,12], and
IbbsandReginato[13]over the last decade focused on recognizing the benefits ofinvestment in
project management competency through measures of maturity in an organization's practice of
projectmanagement.Following, we make a brief description of the three most popular and
referenced maturity models, analyzing the singularities of each one and find the approach that fits
better on the dynamic characteristics of the case study organization.The CMMI emerged in 1987
as the Capability Maturity Model (CMM), a project at the Software Engineering Institute (SEI),
which is a research center at Carnegie-Mellon University. This center was established and funded
by the United States Department of Defense. The CMM for Software was first published in 1991
and is based on a checklist of critical success factors in software development projects during the
late 70s and early 80s.CMM has achieved considerable adoption and undergone several revisions
and iterations. Its success led to the development of CMMs for a variety of subjects beyond
software. The proliferation of new models was confusing, so the government funded a two-year
project that involved more than 200 industry and academic experts to create a single, extensible
framework that integrated systems engineering, software engineering, and product development.
The result was CMMI. This framework defines sets of best practices grouped into process areas
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that productdevelopment organizations implement to improve the predictability of their project
costs and schedules [14]. This model consists of transcending disciplines byoffering the best
practices through pointing out development and maintenance programmerscovering the whole
life cycle of the product from the conceptualization to the delivery and maintenance
[15].Considerable research has been done to determine the best software and
systemsengineeringdevelopment, acquisition, and sustainment practices. Many of these practices
are part of theCMMI framework [16]. The five-step CMMI process is used to establish an
organization’s current maturity level. According to Cooke-Davies[17] no discussion of
organizational project management maturity would be complete without the mention of OPM3,
the PMI’s organizational project management maturity model. The PMBOK Guide describes a
process model for the execution of single projects with five process groups including thirty-nine
processes, divided into core and facilitating processes [18]. Organizational project management,
as defined in OPM3, requires an understanding of not only project management and its processes
but also portfolio and program management.Thedevelopment of this standard was inspired by the
increasinginterest in a maturity model that shows a step-by-stepmethod of improving and
maintaining an organization’sability to translate organizational strategy into the successfuland
consistent delivery of projects. OPM3 is the systematic management of projects, programs, and
portfolios in alignment with the achievement of strategic goals. The concept of organizational
project management is based on the idea that there is a correlation between an organization‘s
capabilities in project, program and portfolio management, and its effectiveness in implementing
strategy. The degree to which an organization practices this type of project management is
referred to as its organizational project management maturity [18].OPM3 does not measure the
maturity of the organization as an achieved level, as is the case with many other maturity models,
but as a percentage of best practices achieved. OGC[19]describes P3M3 as a key standard
amongst maturity models, providing a framework withwhich organizations can assess their
current performance and put in place improvement plans. The P3M3 is an enhanced version of
the Project Management Maturity Model, itself based on theprocess maturity framework that
evolved into the SEI CapabilityMaturity Model (CMM). Although connected, there are no
interdependencies between these models, which allows for independent assessment in any of the
specific disciplines. P3M3 uses a five level maturity framework and focuses on seven process
perspectives, which exist in all three models and can be assessed at all five maturity levels. For
each of the process areas there are a number of attributes defined at each level of maturity. These
attributes are the basis on which the organization should assess its current maturity and make
plans to improve.
Limitations of Maturity Models
Maturity models are now in widespread use but it seems maturity models do not in
themselves result in performance improvements. There is little evidence suggesting that process
capability improvement results in improved project successalthough a few studies are
promising[20,21]. No studies have been able to show that using maturity models or assessing
project management maturityresults in a sustained competitive advantage for an organization
[22].Maturity models claim torepresent all processes present for a project to be
successful[23,24].Unfortunately this assertion is notsupported by evidence, with many models
either lacking empirical evidence to support the use of particularmeasures [9] or lacking a
theoretical basis [22]. Many factors that impact performance are not specifically addressed by
maturity models[23,21].
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Anotherunderpinning assumption is that an improvement in process maturity will yield an
improvement in overallorganizational maturity. Neither of these assumptions has been
empirically tested.Maturity models characterized as “step-by-step recipes” that oversimplify
reality and lack empirical foundation [25,26,27,28]. Moreover, maturity models tend to neglect
the potential existence of multiple equally advantageous paths [29]. According to Mettler and
Rohner[30], maturity models should be configurable because internal and external characteristics
(e.g., the technology at hand, intellectual property, customer base, relationships with suppliers)
may constrain a maturity model’s applicability in its standardized version [31].King and Kraemer
[27] postulate that maturity models should not focus on a sequence of levels toward a predefined
“end state”, but on factors driving evolution and change. Gareis and Hueman[32] reject the
notion of a maturity ladder of stages: the argument being that a ladder model might be too rigid.
Instead he goes for a spider web presentation to allow for more differentiation in describing the
needed competencies in handling the specific processes of the project-oriented organization.Ibbs
and Kwak[12]demonstrated no statistically significant correlation between project management
maturity and projectsuccess based on cost and schedule performance. Jugdev and Thomas[22]
could not find a correlation betweenprocess capability and project success of many maturity
models. Mullaly[20] raised the concern of lack of evidenceof PMM’s contribution on
organization success as a means of competitive advantage.
Benefits Management
SzczepanekandWinter[33] claims that projects and programs should be seen as value
creating processes rather than the old view of a temporary organization for production. Recent
surveys highlight the need for a more strategic approach in project management, where value and
benefits that contribute to the organizations are having a greater emphasis.Today, projects are not
only seen as a tool for solving technical problems, they are also serving as a vehicle for business
and change. Project maturity can be seen as an indication of the organization’s ability to initiate
and execute projects for different and correct purposes [34].The benefits management involves
the processes for delivering the project’s objectives and goals that are not only based on the
outputs of the project as is common for immature organizations but on measurements of the
performance of a specific activity. Change management is a central topic as well as ways of
measuring long term achievement for the organization’s customer satisfaction through delegation
of responsibilities and coordination between several projects. For achieving a high maturity
rating within benefits management, frequent collection and analysis of the performance metrics
should be made for improvement of future projects.The benefits management process draws on
the model for managing strategic change developed by Pettigrew and Whipp[35] as well as on
Total Quality Management approaches.Benefits Management (BM) can be described as: “The
process of organizing and managing such that potential benefits arising from the use of IT are
actually realized”[36]. Benefits Management is a process of organizing and managing IS/IT
[37,36]. Its objective is to ensure that the potential benefits arising from the use of information
technology in organizations are actually attained. BM process is structured in five fundamental
phases: (1) Identify and structure benefits. (2) Plan benefits realization. (3) Execute benefits plan.
(4) Review and evaluate benefits. (5) Potential for further benefits. The initial phase is probably
the most complex phase in the whole process, and it is a critical one. In this phase, all potential
benefits should be identified, classified according to their nature, and located in the
organizational processes [38]. The key tool of this approach is the Benefits Dependency Network
(BDN) that was introduced for the first time by Ward and Elvin [39], designed to enable the
4
investment objectives and their resulting benefits to be linked in a structured way to the business,
organization and IS/IT changes required to realize those benefits. The following answers are used
to develop both a robust business case for the investment and a viable change management plan
to deliver the benefits: (1) Why must we improve? (2) What improvements are necessary or
possible?(3) What benefits will be realized by each stakeholder if the investment objectives are
achieved? (4) How will each benefit be measured? (5) Who owns each benefit and will be
accountable for its delivery? (6) What changes are needed to achieve each benefit? (7) Who will
be responsible for ensuring that each change is successfully made? (8) How and when can the
identified changes be made?According to Ward and Daniel [36] to agree on the objectives and
benefits is advisable to organize workshops with all the relevant stakeholders to meet the
alignment needed to develop the BDN. Bennington and Baccarini [40] also suggest that the
benefits identification should be a combined approach of interviews and workshops involving
key stakeholders.
Self – Assessment
Considering the three approaches described above, and being aware of the advantages and
limitations in order to satisfy the particular business organization characteristics and the market
constraints, we decided to adopt P3M3. The reasons for selecting P3M3 model were the
following: (1) It is a public model where all characteristics and sample questions and necessary
information are available online;(2) Updated frequently, 2009 and 2010; (3) Contains three
different perspectives,where the questions are easily addressed to either project managers or
senior management; (4) Already includes benefits management as a “vertical” process
perspective in the maturity model.The complexity of change management should be built into the
organization’s framework in order to deliver attractive projects for the customers. Definitions of
dependencies between the benefits to be delivered and descriptions on how to conduct the work
necessary to achieve the desired benefits, and not just the project outputs, must be presented and
understood.P3M3[19] gives an opportunity to use a self-assessment in order to the organizations
can get a direct and up to date evaluation of their project maturity. Our linking process intends to
use the BM not only as a contained process area but as a process that crosses all the process
areas. We have also decided undertaking a self-assessment process to collect the information
needed to get the correct organization “picture”. The organization under the study is assessed in
order to satisfy the next two following questions: “where we are now” and “where do we want to
be”. This self-assessment will be crucial to feed the strategic analysis that endorses the
organization to choose the drivers for the investments, identify and structure the benefits beyond
the objectives. The first step was about clearly defining what the assessment is aiming to achieve
and how it will be undertaken. Given that the assessment is a defined set of deliverables, to be
created by a defined team, within a defined timeframe, it makes most sense to establish and run
the self-assessment as a project. This step thus involves creating project initiation documentation
aimed at answering the following questions: (1) What is the purpose of the assessment? (2) How
will we measure success? (3) What is the scope of the assessment?. (4) How many
programs/projects need to be included and which ones will be covered? (5) How long will it
take? (6) How much will it cost? The organization expected the following benefits: (1) Evidence
of success and improvements related to the targets; (2) Reduced bureaucracy through streamlined
processes; (3) Reduced reporting overhead; (4) Better control of resources; (5) Reliable and
quicker information; (6) Higher performing workforce; (7) Credibility and achievement of
sustained and meaningful change. In order to undertake the assessment it was necessary to gather
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information on the status of the organization’s projects. This was done including face-to-face
interviews, questionnaires and document analysis.Prior to conducting interviews an assessment of
current documentationof management processes to gain an initial understanding of the level of
documentationas well as a view of how initiatives should be managed. Sponsors, program and
project managers are selected to cover a range of projects and programs in terms of size and life
cycle stage. Documentary evidence mentioned during interviews is reviewed and assessed against
maturity levelcriteria.During, and at the conclusion of interviews, documentation forspecific
initiatives was reviewed. Once the information collected can be assessed against the criteria and
report can be produced, it becamerelatively easy to take the information and come up with a
maturity level. However, the real value lies not just in identifying a maturity level but also in
understanding how the different perspectives interact, the implications of the maturity assessment
and recommendations for improving the management capability. Analysis of the interviews and
documentation provides a maturity score for each managementperspective. The maturity level is
the median score of the assessments for each management perspective.The assessment contains
nine questions for project, program and portfolio, resulting in a total of 27 questions with five
different alternatives where the user must decide which of five descriptions most represents the
organization’s current capability.
Case Study
We have carried out seven face-to-face interviews to two top managers and five program
managers, questionnaires to fifteen project managers and collected a documentation sampling
concerned all the areas. We have followed the “P3M3® v2.1 Self-Assessment” [9]for the
instructions and questionnaire. The questionnaire contains nine questions, one for each of the
seven process perspectives contained within the approach covering: Management
Control,Benefits Management, Financial Management, Stakeholder Engagement, Risk
Management, Organizational Governance, Resource Management and two more overall
organization maturity models. The organization does not have all the seven analyzed processes,
and there was no evidence of a benefits management process. The major issues are the following
(Table 1):
Question 1 – the overall organizational maturity levels.Results: Processes are not usually
documented, there are no, or only a few, process descriptions. Processes are undeveloped or
incomplete.
Question 2 - Management control is characterized by clear evidence of leadership and
direction, scope, stages, tranches and review processes during the course of the initiative.Results:
Programmeor project management terminology is used by some members of the organization but
not consistently and possiblynot understood by all stakeholders.
Question 3 – Benefit dependencies and other requirements are clearly defined
andunderstanding gained on how the outputs of the initiative will meet those
requirements.Results:Not applied.
Question 4 – There should be evidence of the appropriate involvement of the
organization’s financial functions.Results:Programme or projects business cases are produced in
various forms. Overall cost not monitored or fully accounted for.
Question 5 - Stakeholder engagement includes communications planning, the effective
identification and use of different communications channels, and techniques to enable objectives
to be achieved.Results: Stakeholder engagement and communication is rarely used by
programmes or projects as an element of the delivery toolkit.
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Question 6 - Risk management maintains a balance of focus on threats and opportunities,
with appropriate management actions to minimize or eliminate the likelihood of any identified
threat occurring, or to minimize its impact if it does occur, and maximize opportunities.Results:
There is minimal evidence of risk management being used to any beneficial effect on
programmes.
Question 7 - how the delivery of initiatives is aligned to the strategic direction of the
organization.Results:Programme or project management from an organizational perspective is
beginning to take shape but with ad hoc controls and no clear strategic control.
Question 8 - A key element of resource management is the process for acquiring
resources and how supply chains are utilized to maximize effective use of resources.Results:
There is some recognition within the organization of the need to manage resources effectively to
enable successful delivery of programmes or projects, but little evidence of resource acquisition,
planning or management.
Question
9
The
overall
organizational
capability
maturity
evaluation.Results:Programmes and projects may be running informally with no standard
processes or tracking system.
Table 1. Self - assessment questions
P3M3 Model Answers
1
2
3
4
5
6
7
8
9
Questions
How our organization can be characterized
How our management control is best described
How our benefits management is best described
How our financial management is best described
How our risk management is best described
How our approach to stakeholder management is best described
How our organizational governance is best described
How our resource management is best described
How does the organization about program/ project management
a
x
x
b
c
d
e
level
1
1
Not applied
2
1
1
2
1
1
x
x
x
x
x
x
Table 2 .Process area capability model
Process perspectives
Code
MC
BM
FM
SM
RM
OG
RM
Capability level
Management Control
Benefits Management
Financial Manangement
Stakeholder Management
Risk Management
Organizational Governance
Resource Management
1
x
2
3
4
5
level
1
Not applied
x
x
x
x
x
2
1
1
2
1
The results of the self-assessment gives to the organization a maturity stage below two on
the majority of the processes areas (Figure 2).It should be noted that the overall assessed maturity
level is equal to the lowest score for the process perspectives. So, after wide open internal
discussion with the top managers, business managers IS/IT specialists and others relevant
stakeholders they all agree that the stage two will be the immediate target to achieve. The
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maturity level 2 is characterized for basic management practices, e.g. tracking expenditure and
scheduling resources, are in place and being improved. Key individuals are trained and
demonstrate a successful track record and through them, the organization is capable of repeating
success. Initiatives are performed and managed according to their documented plans; project
status and delivery is visible to management at defined points. To ensure that the benefits from
the investments do arrive there are two questions to answer: “What benefits are we seeking?” and
“How will get them?”.The following BM activities to start the process are: Analyse the drivers to
determine the investment objectives, identify the benefits that will be measure, establish
ownership of the benefits, identify changes required and stakeholder implications and produce an
initial business case.Two internal workshops were settle down for further discussion and sharing
the knowledge and expertizes. The ability of all stakeholdersto commit the time and resources
required by the project shouldalso be ensured. The outputs from the workshops will form the
basisof the business case and benefits plan and should become integralcomponents of the overall
project plan.
Table 3. Investment objectives and business benefits codification
Investment objectives
Business benefits
B1 – Better skills
B2 – Better internal cooperation
B3 – More reliable process system
B4 – More cost and time control
B5 – Costs reduction
B6 – Better services
B7– Better internal communication
B8 – Better client intimacy
B9 – Better team work
O1 – Improve efficiency and efficacy
O2 – Increasing projects success rate
O3 – Implementing best practices
O4 – Improving internal communication
O5 – Better organization alignment
O6 – Better customer intimacy
Figure 1.Linking Investment objectives with business benefits
B1
O1
O4
B2
B3
B4
B5
O2
O5
B6
B7
B8
O6
O3
B9
In order to manage an investment properly it is essential that we can know that the
benefits have actually been realized, so the benefit should be observable and in some way
measurable. Each benefit should be considered in turn and the changes that wouldbe necessary to
realize that benefit should then be identified and described on the BDN (Figure 3). The things
only improve when people do things differently. New ways of working always needed some
8
enabling changes. Once the expected benefits from the investment have been identified, it is then
important to add two essential pieces of information to each benefit: firstly, how the benefit could
be measured and secondly, an individual who will be the owner of the benefit. An owner should
also be assigned to each benefit.The BDN(Figure 4) enables both the investment and changes to
working practices and processes necessary to deliver each of the benefits to be identified and
agreed. An important step in developing a BDN is the identification of change owners. A good
business case should enable the outcome of the investment to be assessed in terms of the benefits
delivered, or if they were not achieved, to explain why. Following the full implementation of the
outcomes and business changes, the achievement of the businesscase and benefits plan should be
formally reviewed. The purposes of the review include adetailed assessment of whether each of
the benefits intended have been achieved or not. This stage provides the opportunity to plan for
and realize these further benefits as well as to learn from the overall process. The benefits review
may identify opportunities for realization of benefits which were not identified at the start of the
process. Such opportunities may arise at any time during or after the process, and
mechanismsshould be in place to capture these opportunities and exploit them, by bringing these
new benefits within the scope of the IS/IT investment [19].In P3M3 the BM appears as a vertical
process. By using the BDN we noticed that the BM could be advantageous as a means to
integrate initiatives of other processes, in order to synchronize and align the transformations
execution to get benefits. Thus, the BDN is an instrument to capture and visualize the integrative
initiatives from different areas of the organizational towards benefits. That is, in the context of
P3M3, BM should also be considered as a "horizontal" process, since it integrates transversely
the initiatives and dependencies between various fields of the overall organizational maturity.
We have built the BDN “left side” considering the enablers and changing elements (Table
4and Figure 2).
Table 4. Enablers and changing elements
Enablers IS/IT
T1 – Project management
tool
T2 – Management System
tool
T3 – Customer relationship
Management tool
T4 – Intranet
T5 – Website
Enabling Changes
E1 – Project Management Training
E2 – Quality Training
E3 – Intranet Training
E4 – Communication Training
E5 – Team Building
E6 – Customer Management
Training
E7 – Creating KPI´s
E8 – New Services Identification
E9 – Encourage Internal
Relationship
E10 – Processes New Design
Business Changes
C1 – Project Planning
C2 – Formal Management
C3 – Uses of Management and
Monitoring Tools
C4 – Lessons Learned
C5 – Organizational and Individual
Performance Measures
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Figure 2 - Linking organizations changes to business benefits
B1
C1
E1
T1
B2
C2
E2
B3
T2
E3
C3
B4
E4
T3
C4
E5
B5
C5
E6
B6
T4
E7
T5
C6
E8
B7
E9
B8
C7
E1
B9
Conclusions
We claim that by integrating Benefits Management and Maturity Model approachesone
can increase the effectiveness of the strategic projects portfolio and improve the confidence of
business sponsors that their investments in projects will return business benefits.Higher level of
maturity is achieved when organizations assess their capabilities and benchmark their
performance against standards and among competitors.Knowing the impact that process maturity
has on organizations performance, it is essential that they can focus on eliminating the internal
resistance to change, taking advantage of the favorable factors that positively influence
organizational maturity.By using a Benefits Management approach we’ve shown how to collect
the business drivers, discuss with all the relevant stakeholders, agree on the objectives and the
benefits, as well as on the organizational changes and on the right set of IS/IT enablers.Benefits
Management adds value providing relevant information to the strategic framework of the
Maturity Model, by identifying the goals and the benefits and by mapping the way to get them,
supported on the right combination of organizational changes, enabling factors and IS/IT
enablers.The authors claimthat Benefits Management provide a richer and more useful decision
support and monitoring tool, making the strategy implementation visible, traceable and
measurable. Developing a Benefits Dependency Network results in a clear statement of the
benefits from an investment, the activities and the IT capabilities required to achieve those
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benefits. Benefits Management not only increase the value of investment but also avoid spending
money on projects that would not have delivered benefits, increasing greatly the likelihood of the
benefits expected from the investment being realized.The maturity model is designed to enable
organizations to understand their current level of maturity and highlight areas that would give
them the most value and performance improvement in the short and long terms. Our study is an
attempt to reinforce maturity models with a more integrated view. We have approached the
Benefits Management process, explaining how it could be seen as a more transversal process by
integrating the initiatives from distinct areas of the overall organizational maturity.
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