The Role of the PMO in
JUNE 2015 LONDON
ALIGNMENTOPERATIONAL
withTerry DoerscherDoerscher Consulting LLC
Defining, Measuring and Improving
WHY “ALIGNMENT?”
• 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
• 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
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
Getting the MOST Strategic 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
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
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