Ericsson project governance and portfolio management. Andrea Fidone Head of Project Management Office Region Mediterranean

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1 Ericsson project governance and portfolio management Andrea Fidone Head of Project Management Office Region Mediterranean

2 agenda ERICSSON and REGION MEDITERRANEAN IN BRIEF THE PROJECT MODEL

3 The Prime driver in an all- communicating World Company at a Glance Installed Base Founded: 1876 in Stockholm, Sweden President and CEO: Hans Vestberg Headquarters: Stockholm, Sweden Employees: 104,525 Net Sales 2011: SEK 226,9 billion granted patents worldwide 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 What we provide Our joint venture provides Communication networks Services to network operators Enablers to multimedia service providers ST-Ericsson; semiconductors and wireless platforms

4 The networked society + + EMPOWERED PEOPLE CHANGING BUSINESS ENABLING TECHNOLOGY

5 Opportunities beyond imagination Global challenges Innovation Transformation Collaboration INTERACTION Broadband Mobility Cloud INFRASTRUCTURE Inclusion Integrity Trust Scale

6 three key OPERATOR CHALLENGES Modernization Consolidation Outsourcing Cloud Business Efficiency Challenge Transform Simplify Bundling Quality Personalization Choice Speed Customer Experience Challenge Run Operate Communication evolution M-2-M Verticals 2 sided business models Mobile Broadband Business Innovation Challenge Grow Expand

7 Region Mediterranean 25 countries 333 million people employees 5 r&d centers 3 acquisitions in Systems Integration

8 Our market Albania ALGERIA ANDORRA BULGARIA CYPRUS FRANCE FYROM GILBRATAR GREECE ISRAEL ITALY LIBYA MAURITANIA MOLDOVA MONTENEGRO MOROCCO NEW CALEDONIA PORTUGAL ROMANIA SAN MARINO SERBIA SPAIN TUNISIA VATICAN MALTA

9 How we work FINANCIAL RESPONSIBILITY WITHIN EXECUTION IS STRENGTHENED ACCOUNTABILITY AND RESPONSIBILITY ADDRESSED IN ROLES NOT ORGANIZATIONS COM CPM MSCOO SDM $ $ $ $ CUSTOMER UNIT $ $ $ $ C U S T O M E R S COM Customer Operations Manager MSCOO Managed Services Chief Operating Officer CPM Customer Project Manager SDM Service Delivery Manager

10 agenda ERICSSON and REGION MEDITERRANEAN IN BRIEF THE PROJECT MODEL

11 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

12 solid foundation FIRST ALIGNMENT IN 1996 WITH PMBOK GUIDE 1ST EDITION 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 CPM CAREER PATH ALIGNED WITH PMP IN

13 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.

14 Pmo/po Main functions PORTFOLIO MANAGEMENT (FINANCE & PERFORMANCE) ASSIGNMENT HANDLING PM STAFFING & COMPETENCE DEVELOPMENT PROCESSES, METHODS AND TOOLS (ADHERENCE AND DEPLOYMENT)

15 Project governance Corporate TOP Projects Corporate Governance (monthly) TOP PROJECTS Regional Governance (monthly) KEY PROJECTS Hub Governance (monthly) PROJECT PORTFOLIO Key Account Governance (bi-weekly) Main Measurements Customer Satisfaction Profitability Up selling

16 background project portfolio in ericsson The project portfolio comprises all projects and project programs run in the organization. All projects in the portfolio should be aligned 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.

17 Growth strategy and project excellence Create growth Customer loyal Excellence in delivery (quality, time & cost) Create benefit CREATE A POSITIVE SPIRAL

18 BUSINESS process RELATION START PHASE-IN READY FOR marketing READY FOR tender Delivery readiness READY FOR implementation Phase-in CONCLUDED BRP0 BRP1 BRP2 BRP3 BRP4 BRP5 Recommendati on Planning Presales Execution Monitoring Delivery Preparation Delivery Execution BUSINESS READINESS PROCESS Deal could be closed within this period of time Phase-in is concluded after ending FNI in case of products delivery or project end in case of solutions/services. SDP1 SDP2 SDP3 SDP3 SDP4 Qualify Sales Opport. Create Proposal Close Deal Contract Handshake Contract Management SALES PROCESS BRP2 SDP2 Generic Presales RFQs Create Proposal TG1 TG2 TG3 TG4 TG5 Analysis Planning Execution Conclusion PROJECT MANAGEMENT PROCESS

19 Conclusions Key success factors ORGANIZATIONAL MODEL EXECUTIVE INVOLVEMENT GOVERNANCE MODEL BUSINESS PROCESS

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