Payroll Capability Maturity Model (CMM)

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This document provides a sample capability maturity model and six elements of infrastructure for the payroll process.

The capability maturity model describes a maturity curve on these capability levels: INITIAL, which describes a poorly aligned function with non-documented strategies, manual management processes, lack of integrated systems and heavy reliance on spreadsheets/manual documents; REPEATABLE, which describes a loosely aligned function supported by informal policies applied to processes performed by personnel with mixed skill levels; DEFINED, which describes a strategic management structure in place with well-defined processes supported by an organized and highly trained team; MANAGED, which describes a function aligned with the organizational strategic plan and personnel; and OPTIMIZING, which describes a management process performed at an optimal level with best practices in full use.

In the payroll process, the OPTIMIZING phase includes aligned HR, compensation, benefits and payroll strategies; defined and integrated policies and responsibilities; and integrated and effective payroll processes that recruit, hire, retain, incent and compensate the best talent while keeping fixed payroll costs low.

The Capability Maturity Model (CMM) is a framework that describes an improvement path from an ad hoc, immature process to a mature, disciplined process focused on continuous improvement. The CMM defines the state of a process using a common language that is based on the Carnegie Mellon Software Engineering Institute Capability Maturity Model.

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