Ericsson project governance and portfolio management

Ericssonproject governance and portfolio management

Andrea FidoneHead of Project Management Office – Region Mediterranean

Ericsson presentation to PMI Northern Italy Chapter

agenda

THE PROJECT MODEL

ERICSSON and REGION MEDITERRANEAN IN BRIEF


› Founded: 1876 in Stockholm, Sweden› President and CEO: Hans Vestberg› Headquarters: Stockholm, Sweden› Employees: 104,525 › Net Sales 2011: SEK 226,9 billion› 27 000 granted patents worldwide

› Communication networks › Services to network operators › Enablers to multimedia service providers

The Prime driver in an

all- communicating World

› ST-Ericsson; semiconductors and wireless platforms

› Customers in more than 180 countries, including AT&T, China Mobile, Vodafone, NTT Docomo, Telefonica, Verizon, France Telecom, Deutsche Telekom and Telekom Italia

› 40% of the world’s mobile calls pass through our networks

Company at a Glance Installed Base

What we provide Our joint venture provides


The networked society

EMPOWERED PEOPLE

ENABLINGTECHNOLOGY

CHANGINGBUSINESS

+ +


Opportunities beyond imagination

Collaboration

Integrity

Trust

Global challenges

Scale

Innovation

INTERACTIONBroadband Mobility Cloud

INFRASTRUCTURE

Transformation

Inclusion


three key OPERATOR CHALLENGES

PersonalizationSpeedQuality

ChoiceBundling

Verticals

M-2-M

MobileBroadband

2 sided business models

Business InnovationChallenge

CustomerExperienceChallenge

Outsourcing

CloudConsolidation

Business EfficiencyChallenge

Communication evolution

TransformSimplify

RunOperate

GrowExpand

Modernization


Region Mediterranean

10.000+ employees

25 countries

5 r&D centers

3 acquisitions in

Systems Integration

333 million people


Our market

GILBRATAR

Albania

ALGERIA

ANDORRA

BULGARIA

CYPRUS

FRANCE

FYROM

GREECE

ISRAEL

ITALY

LIBYA

MALTA

MAURITANIA

MOLDOVA

MONTENEGRO

MOROCCO

NEW CALEDONIA

PORTUGAL

ROMANIA

SAN MARINO

SERBIA

SPAIN

TUNISIA

VATICAN


FINANCIAL RESPONSIBILITY WITHIN EXECUTION IS STRENGTHENED

ACCOUNTABILITY AND RESPONSIBILITY ADDRESSED IN ROLES –NOT ORGANIZATIONS

COM

CPM

MSCOO

$

$$

SDM

How we work

CUSTOMERS

CUSTOMER UNIT $ $$ $$

COM Customer Operations ManagerMSCOO Managed Services Chief Operating Officer

CPM Customer Project ManagerSDM Service Delivery Manager


agenda

THE PROJECT MODEL

ERICSSON and REGION MEDITERRANEAN IN BRIEF


Why Project Model?

Companies that have a consistent approach to managing projects, can perform their projects at a cost 75% less than companies that leave project management practices up to individual project managers.

The Fast Forward MBA in Project Management, by Eric Verzuh


solid foundation

FIRST ALIGNMENT IN 1996 WITH PMBOK GUIDE1ST EDITION

CPM CAREER PATH ALIGNED WITH PMP IN 2003-2004

ERICSSON PROPS MODEL EXISTS SINCE 1979:E-PROPS (ERICSSON INTERNAL CHANGE MANAGEMENT PROJECTS)I-PROPS (R&D)PROPS-C (CLIENT PROJECTS)

PMBOK GUIDE PMO = ERICSSON PMO BLUEPRINT


Organization model - overview

PROJECT MANAGEMENT OFFICE

PMO is located on the Region level and report on the whole Region project portfolio .

PROJECT OFFICE

PO is located on Country or other level and report the project portfolio on that level . PO report to PMO .


Pmo/po Main functions

PORTFOLIO MANAGEMENT

(FINANCE & PERFORMANCE) ASSIGNMENT HANDLING

PROCESSES, METHODS AND TOOLS

(ADHERENCE AND DEPLOYMENT)

PM STAFFING & COMPETENCE DEVELOPMENT


Project governance

PROJECT PORTFOLIO

KEY PROJECTS

TOP PROJECTS

Corporate TOP Projects

Key Account

Governance

(bi-weekly)

Regional Governance

(monthly)

Hub Governance

(monthly)

Corporate Governance

(monthly)

Customer Satisfaction Profitability Up sellingMain Measurements


backGroundproject portfolio in ericsson

› The project portfolio comprises all projects and project programs run in the organization. All projects in the portfolio should bealigned with the organization's objectives and strategies.

› Any decision to initiate or terminate a project, or to change the project scope and limits, should be related to the project's potential impact on the total project portfolio and on the rest of the organization's operations.

› The ultimate responsibility for the project portfolio in the organization rests with senior management. The manager who takes on this responsibility is referred to as the project portfolio owner.


Growth strategy and project excellence

Create growth

Excellence in delivery

(quality, time & cost)

Create benefit

Customer loyal

CREATE A POSITIVE SPIRAL


Deal could be closed within this period of time

BUSINESS process RELATION

Analysis Planning Execution Conclusion

TG1 TG2 TG3 TG4 TG5

Close Deal Contract Handshake Contract Management

SDP3 SDP4

Recommendation Monitoring

Delivery Preparation

BRP1 BRP4BRP2

Planning

BRP5

Delivery Execution

BRP0

Presales Execution

BRP3

START START START START

PHASEPHASEPHASEPHASE----ININININ

READY FORREADY FORREADY FORREADY FOR

marketingmarketingmarketingmarketing

Delivery Delivery Delivery Delivery

readinessreadinessreadinessreadiness

READY FOR READY FOR READY FOR READY FOR

implementationimplementationimplementationimplementation

PhasePhasePhasePhase----inininin

CONCLUDEDCONCLUDEDCONCLUDEDCONCLUDED

READY FORREADY FORREADY FORREADY FOR

tendertendertendertender

BUSINESS READINESS PROCESSBUSINESS READINESS PROCESSBUSINESS READINESS PROCESSBUSINESS READINESS PROCESS

SALES PROCESSSALES PROCESSSALES PROCESSSALES PROCESS

PROJECT MANAGEMENT PROJECT MANAGEMENT PROJECT MANAGEMENT PROJECT MANAGEMENT

PROCESSPROCESSPROCESSPROCESS

Phase-in is concluded after ending FNI in case of products delivery or project end in

case of solutions/services.

SDP3 …

Qualify Sales

Opport.

SDP1 SDP2

Create Proposal

SDP2

Generic Presales

Create Proposal

RFQs

BRP2


ConclusionsKey success factors

ORGANIZATIONAL MODEL

EXECUTIVE INVOLVEMENT

GOVERNANCE MODEL

BUSINESS PROCESS

Documents

Ericsson project governance and portfolio management