The Five levels of CMM

Level One
Company has no standard process for software development. Nor does it have a project-tracking system that enables developers to predict costs or finish dates with any accuracy.

Level Two
Company has installed basic software management processes and controls. But there is no consistency or coordination among different groups.

Level Three
Company has pulled together a standard set of processes and controls for the entire organization so that developers can move between projects more easily and customers can begin to get consistency from different groups.

Level Four
In addition to implementing standard processes, company has installed systems to measure the quality of those processes across all projects.

Level Five
Company has accomplished all of the above and can now begin to see patterns in performance over time, so it can tweak its processes in order to improve productivity and reduce defects in software development across the entire organization.