The Role of the PMO in Defining, Measuring

and Improving Operational Alignment

Terry Doerscher

The Role of the PMO in

JUNE 2015 LONDON

ALIGNMENTOPERATIONAL

withTerry DoerscherDoerscher Consulting LLC

Defining, Measuring and Improving

WHY “ALIGNMENT?”

We Know Alignment When We See It

• Although alignment is highly desired, it is increasingly difficult to achieve and maintain– Business dynamics– Technology churn– Increasing specialization – Organizational compartmentalization

• Even in the best organizations, disconnects can quickly develop unless alignment is baked in to its culture, philosophy and practices

The Case for Action

The Collaboration Vacuum

68.5%* of Organizations List Departmental Silos

as a “Significant Challenge” or “Critical Problem”

*Planview 2010 PMO 2.0 Trending Survey Report

PMO is in the Business of Alignment

Gather &Distribute

Information

Manage Demand

SpecializedExpertise

& Consulting

Reporting &Analytics

Coordination &Collaboration

CapacityManagement

Provide Processes

& Tools

Issues & Opportunities

80% of PMOs spend 80% of their time doing these 8 things:

Operational Alignment and the Lifecycle of Change

© Taming Change with Portfolio Management, 2010 Used with permission

…and it’s Organizational Barriers

CustomersRegulators

Suppliers

Stockholders

Board Members

CXOs/SeniorExecutives Senior

Management

R&D

ReleaseManagers

QAResourceManagers

Portfolio Managers

Product Managers

Business Analysts

Finance

ProjectManagers

PMOLineManagers

ProgramManagers

Dept. Heads

SalesMarketingOperationsAccounting

That’s why Alignment

SO DIFFICULT!!

• Internally, alignment occurs on three distinct but highly interdependent planes:– Strategic– Functional– Cultural

• On each plane, alignment requires a strong chain of custody, from executive leadership to individual contributors, and at every level in between

Defining Operational Alignment

Strategic Alignment

GOALS &OBJECTIVES

PROGRAMS &PROJECTS

TASKS & ACTIVITIES

STRATEGIES

PRIORITIES

Functional Alignment

METHODOLOGIES& STANDARDS

OPERATINGPHILOSOPHY

PROCESSES

SKILLS & TOOLS

POLICIES

CAPABILITIES

Cultural Alignment

ORGANIZATIONALBELIEFS

VALUES, NORMS & ATTITUDES

INDIVIDUALBEHAVIORS

PRINCIPLES

PRACTICES

Interactive Nature of Alignment

STRATEGIES ,POLICIES &PRINCIPLES

PRIORITIES & PRACTICES CAPABILITIES

CO

MPETEN

CYC

OM

MIT

MEN

T

Mapping Interrelationships

STRATEGIES

CAPABILITIES

PRACTICES

PRIORITIES

POLICIESPRINCIPLES

competency

com

mitm

ent

commitm

ent

commitment competency

competency

competencycommitment

What You Want

What You Get

How YouBehave

WhatYou Do

Measuring Alignment

Getting the MOST Strategic Alignment

© Taming Change with Portfolio Management, 2010 Used with permission

Mapping Functional Alignment

© Taming Change with Portfolio Management, 2010 Used with permission

Mapping Functional Alignment

Current Operational

State:- Services- Products- Assets- Demands- Capacities- Organization- Influences- Direction

Strategic Planning& Investment

Analysis

Financial and Resource Capacity

Planning

Demand Management

Program and Project Management

Work Management

Manage Budgets and Resources

Product & Service Delivery

Asset

Management

Assessing Functional Capabilities

© Taming Change with Portfolio Management, 2010 Used with permission

What About Cultural Alignment?

• Harder to Visualize and Measure– Difficult to diagram ‘commitment’ or ‘integrity’– Truly unique to each organization

• Influenced by Strategic & Functional Alignment– Cultural alignment too often a passive

byproduct

• Greater Challenges to Alignment– Corporate culture versus personal values– Consistency versus Diversity

Developing a Culture of Accountability

• Cultural Alignment thrives on:– Consistent leadership– Setting clear and achievable

expectations– Personal accountability

Processes Matter

Processes establish the practices,

methods, rules and responsibilities that enable consistency,

communications and teamwork

© Planview, Inc., 2010 Used with permission

PMO Scope and Constituents

PROJECTS

STRATEGIES

PRODUCTS & SERVICES

Strategic Alignment“Do The Right Work”by creating continuity

between operational prioritiesand strategic plans

Cultural Alignment“Do the Right Thing”

by enabling good business decisions, consistent

communications, effective leadership and individual

accountability

Functional Alignment“Do the Work Right”

by ensuring the staff has the right guidance, support, skills

and tools

The Fully Aligned PMO

© Taming Change with Portfolio Management, 2010 Used with permission

PMO Call to Action

• Facilitate Operational Alignment on All 3 Planes– Key Challenge facing most organizations– PMO is ideally situated to help drive alignment

• Build Change Management Expertise– Extend your focus beyond tactical project

management to support the entire lifecycle of change

• Processes! Processes! Processes!– Central to fostering all forms of alignment– Streamline, simplify and continually adapt

The PMO Elevator Pitch• The purpose of our PMO is to help the organization

achieve its strategic objectives by facilitating the lifecycle of change

• We provide information to enable good business decisions, communicate priorities, set expectations and drive accountability

• We manage the portfolio of programs and projects that produce new products, services, and other assets

• We ensure we have the right capabilities to create those changes

• We provide these services across the organization, so we can all work together using consistent and common terms and methods

• Basically, we help the organization stay operationally aligned as we continually change to create our future

@terrydoerscher

ThankYOU!

Terry L. Doerscher