Ratings for Organizations

The SW-CMM is a mature, effective model for organizational improvement. By stratifying software organizations into five levels, it is also an effective model for organizational assessment. Other, more mature professions use organizational assessment as part of their program for maintaining a high standard of practice. Accounting firms are required to go through a peer review every three years. Colleges are accredited for a maximum of three years and must be re-reviewed before their accreditation expires. Some individual programs within colleges are accredited separately. Hospitals are accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and are accredited for a maximum of three years.

JCAHO lists these reasons that a hospital would seek accreditation. Accreditation:^[13]

• Enhances community confidence

• Provides a report card for the public

• Offers an objective evaluation of the organization's performance

• Stimulates the organization's quality improvement efforts

• Aids in professional staff recruitment

• Provides a staff education tool

• May be used to meet certain Medicare certification requirements

• Expedites third-party payment

• Often fulfills state licensure requirements

• May favorably influence liability insurance premiums

• Favorably influences managed care contract decisions

Hospital accreditation is a voluntary process, but most hospitals try to maintain accreditation for the reasons listed.

The parallels to software organizational assessment are clear. SW-CMM assessments provide a report card that potential clients can use in evaluating software contracting arrangements or packaged-software purchases. They provide an objective, publicly recognized standard of comparison. They stimulate quality improvement efforts by encouraging organizations to improve their level rankings. It's easy to imagine insurance companies providing better rates on errors and omissions policies to companies operating at higher maturity levels.