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

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

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 Manage Demand Specialized Expertise & Consulting Reporting & Analytics Coordination & Collaboration Capacity Management Provide Processes & Tools Issues & Opportunities

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

…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

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 STRATEGIES GOALS & OBJECTIVES PROGRAMS & PROJECTS PRIORITIES GOALS & OBJECTIVES PROGRAMS & PROJECTS TASKS & ACTIVITIES

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

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

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

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

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

© 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

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