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Level 1 is fundamentally a software process that is ad hoc. There is no specific methodology, and each project is more or less a new activity. The initial stage is the default in software management. According to Joseph Raynus, President and CEO of VistaPortal, "Unfortunately, the initial level processes are the most practiced processes in the software business" [6].
Ultimately, the most serious problem with most Level 1 organizations is that management doesn't realize it's at that level. Like an alcoholic who can't be helped until he or she admits the problem, Level 1 organizations typically can't be improved until management recognizes that it is, in fact, a Level 1 organization. In the real world, this recognition often occurs when the organization wants to market to another organization that insists its vendors have a CMM process in place.
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Basic management exists within Level 2 organizations. Level 2 organizations have a basic project management structure in place that tracks costs, schedules, and, to some degree, systems functions. As the name implies, the software process in place is repeatable and reinforced by training and management controls.
Repeatable level organizations use the same processes time after time. Because the organization has repeatable processes, it can begin to work on measuring and improving these processes. It can also begin to work on the development process itself.