What the ratings mean: Capability Level 1 - Performed Informally Base practices of the process area are generally performed. The performance of these base practices may not be rigorously planned and tracked. Performance depends on individual knowledge and effort. Work products of the process area testify to their performance. Individuals within the organization recognize that an action should be performed, and there is general agreement that this action is performed as and when required. There are identifiable work products for the process. Capability Level 2 - Planned and Tracked Performance of the base practices in the process area is planned and tracked. Performance according to specified procedures is verified. Work products conform to specified standards and requirements. Measurement is used to track process area performance, thus enabling the organization to manage its activities based on actual performance. The primary distinction from the Performed Informally level is that the performance of the process is planned and managed via a documented process. Capability Level 3 - Well Defined Base practices are performed according to a well-defined process using approved, tailored versions of standard, documented processes. The primary distinction from the Planned and Tracked level is that the process is planned and managed using an organization-wide standard process. Capability Level 4 - Quantitatively Controlled Detailed measures of performance are collected and analyzed. This leads to a quantitative understanding of process capability and an improved ability to predict performance. Performance is objectively managed, and the quality of work products is quantitatively known. The primary distinction from the Well Defined level is that the defined process is quantitatively understood and controlled. Capability Level 5 - Continuously Improving Quantitative performance goals (targets) for process effectiveness and efficiency are established, based on the business goals of the organization. Continuous process improvement against these goals is enabled by quantitative feedback from performing the defined processes and from piloting innovative ideas and technologies. The primary distinction from the quantitatively controlled level is that the defined process and the standard process undergo continuous refinement and improvement, based on a quantitative understanding of the impact of changes to these processes. Transitioning to higher levels Once there is a documented baseline, transitioning from Level 1 to 2 is simply a matter of training various groups to use the baseline. As the organization begins to understand how to gather process-related data consistently and accurately, they are ready to move to Level 3. The transition from Level 2 to 3 entails a standard set of processes to ensure that information received from various teams is at the same level of abstraction and in the same general format (i.e. well defined). It is not unreasonable to say that the transition from Levels 1-3 is more a matter of formalizing intuitive activities. However, the level of effort required to transition from Level 3 to Level 4 and from Level 4 to Level 5 is significantly greater due to the complex nature of mandatory quantitative metrics.