1. The Role of the PMO in Defining, Measuring and Improving Operational Alignment Terry Doerscher

2. with Terry Doerscher Doerscher Consulting LLC
The Role of the PMO in
Defining, Measuring and Improving
OPERATIONAL
ALIGNMENT
with
Terry Doerscher
Doerscher Consulting LLC
JUNE 2015 LONDON

3. WHY “ALIGNMENT?”

4. We Know Alignment When We See It

5. The Case for Action
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

6. 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

7. PMO is in the Business of Alignment
80% of PMOs spend 80% of their time doing these 8 things:
Gather &
Distribute
Information
Manage Demand
Specialized
Expertise
& Consulting
Reporting &
Analytics
Coordination &
Collaboration
Capacity
Management
Provide Processes
& Tools
Issues & Opportunities

8. Operational Alignment and the Lifecycle of Change
© Taming Change with Portfolio Management, 2010
Used with permission

9. …and it’s Organizational Barriers
CXOs/Senior
Executives
Board
Members
Senior
Management
Customers
R&D
Regulators
Portfolio Managers
Product Managers
Business Analysts
Finance
Stockholders
Suppliers
Sales
Marketing
Operations
Accounting
Program
Managers
Dept. Heads
Release
Managers
Project
Managers
PMO QA
Resource
Managers
Line
Managers

10. That’s why Alignment
SO DIFFICULT!!

11. Defining Operational Alignment
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

12. Strategic Alignment STRATEGIES GOALS & OBJECTIVES PROGRAMS & PROJECTS
PRIORITIES
GOALS &
OBJECTIVES
PROGRAMS &
PROJECTS
TASKS &
ACTIVITIES

13. Functional Alignment OPERATING POLICIES PHILOSOPHY METHODOLOGIES
CAPABILITIES
METHODOLOGIES
& STANDARDS
PROCESSES
SKILLS & TOOLS

14. Cultural Alignment ORGANIZATIONAL BELIEFS PRINCIPLES PRACTICES
VALUES, NORMS
& ATTITUDES
INDIVIDUAL
BEHAVIORS

15. Interactive Nature of Alignment
COMMITMENT
COMPETENCY
STRATEGIES ,
POLICIES &
PRINCIPLES
PRIORITIES &
PRACTICES
CAPABILITIES

16. Mapping Interrelationships
What You Want
competency
STRATEGIES
commitment
competency
commitment
POLICIES
PRINCIPLES
commitment
competency
How You
Behave
What
You Do
CAPABILITIES
PRACTICES
PRIORITIES
commitment
competency
What You Get

17. Measuring Alignment

18. Getting the MOST Strategic Alignment
© Taming Change with Portfolio Management, 2010
Used with permission

19. Mapping Functional Alignment
© Taming Change with Portfolio Management, 2010
Used with permission

20. 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

21. Assessing Functional Capabilities
© Taming Change with Portfolio Management, 2010
Used with permission

22. 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

23. Developing a Culture of Accountability
Cultural Alignment thrives on:
Consistent leadership
Setting clear and achievable expectations
Personal accountability

24. © Planview, Inc., 2010 Used with permission
Processes Matter
Processes establish the practices, methods, rules and responsibilities that enable consistency, communications and teamwork
© Planview, Inc., 2010 Used with permission

25. PMO Scope and Constituents
STRATEGIES
PROJECTS
PRODUCTS
& SERVICES

26. The Fully Aligned PMO Strategic Alignment “Do The Right Work”
by creating continuity
between operational priorities
and 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
© Taming Change with Portfolio Management, 2010
Used with permission

27. 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

28. 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

29. Thank
YOU!
Terry L. Doerscher
@terrydoerscher