The Role of the PMO in
Defining, Measuring
and Improving
Operational Alignment
Terry Doerscher
The Role ofMeasuring
the PMO in and
Defining,
Improving
OPERATIONAL
ALIGNMENT
with
Terry Doerscher
Doerscher Consulting LLC
JUNE 2015 LONDON
WHY
“ALIGNMENT?”
We Know Alignment When We See It
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
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
80% of PMOs spend 80% of their time doing these 8 things:
Gather &
Distribute
Information
Issues &
Opportunities
Manage
Demand
Capacity
Management
Reporting &
Analytics
Provide
Processes
& Tools
Coordination &
Collaboration
Specialized
Expertise
& Consulting
Operational Alignment and the
Lifecycle of Change
© Taming Change with Portfolio Management, 2010
Used with permission
…and it’s Organizational Barriers
Board
Members
CXOs/Senior
Executives
Customers
Regulators
Senior
Management
R&D
Stockholders
Portfolio Managers
Suppliers
Product Managers
Finance
Sales
Marketing
Operations
Accounting
Business Analysts
Dept. Heads
Program
Managers
Release
Managers
QA
Resource
Managers
Line
Managers
Project
Managers
PMO
That’s why Alignment
SO DIFFICULT!!
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
Strategic Alignment
GOALS &
OBJECTIVES
STRATEGIES
PROGRAMS &
PROJECTS
TASKS &
ACTIVITIES
PRIORITIES
Functional Alignment
OPERATING
PHILOSOPHY
POLICIES
METHODOLOGIES
& STANDARDS
PROCESSES
SKILLS & TOOLS
CAPABILITIES
Cultural Alignment
ORGANIZATIONAL
BELIEFS
PRINCIPLES
VALUES, NORMS
& ATTITUDES
INDIVIDUAL
BEHAVIORS
PRACTICES
Interactive Nature of Alignment
STRATEGIES ,
POLICIES &
PRINCIPLES
PRIORITIES &
PRACTICES
CAPABILITIES
Mapping Interrelationships
What You Want
STRATEGIES
POLICIES
competency
commitment
PRACTICES
competency
How You
Behave
commitment
PRINCIPLES
CAPABILITIES
PRIORITIES
What You Get
What
You 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
Program and Project
Management
Demand
Management
Work Management
Financial and
Resource Capacity
Planning
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
STRATEGIES
PROJECTS
PRODUCTS
& SERVICES
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
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
Thank
YOU!
Terry L. Doerscher
@terrydoerscher