Project Portfolio Management Model
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1 Project Portfolio Management Model Yvan Petit April 25th., 2008
2 Ericsson dans le monde Entreprise suédoise dont le siège social est situé à Stockholm Présente dans plus de 140 pays Fondée il y a plus de 125 ans Plusieurs centres de R-D dans le monde Plus de brevets Leader dans le domaine des infrastructures cellulaires employés, dont quelque à Montréal Ericsson AB
3 Continued traffic growth 5000 Global Cellular Subscriptions (00-11) Traffic in Mobile Networks subscriptions (million) Latin America Eastern Europe, Middle East & Africa Ro APAC China & India North America Western Europe Terabyte Other Data Downloads TV/Streaming Messaging Mobile PC Video Telephony Voice Ericsson AB
4 The telecom market is redefining itself Broadband Voice Voice Mail Voice Mobile offíce SMS (text) Lifestyle MMS (images) Ericsson AB
5 The R&D and Services Centre Montreal Site Technology Leadership Innovation e2e and User Experience Global Services MU Services Networks Multimedia Software deployment and Systems Support Systems Integration Field Services & Service Deployment First line System support for USA and Canada Systems Integration for USA and Canada GSM core and service layer in a box - QuickLINK Integration Center for GSM and WCDMA core networks Network Resource Control CDMA support Messaging Solutions IMS development Converged Media Solutions Service Innovation Gaming Operational Excellence in everything we do Ericsson AB
6 Montreal R&D and Service Centre Headcount Growth 2000 Unique situation during the difficult years Employees Ericsson AB
7 Why develop a Project Portfolio model?
8 R&D Operational Excellence Overall target: Reduce the average lead-time for development projects Increase effectiveness (What): Do the right projects Increase efficiency (How): The right way: Processes, Methods and Tools Optimize use of R&D Centers (Who & Where): At the right place: resource utilization and key competencies Ericsson AB
9 Business Case Foundation = Productivity Increase Product Development Performance Stage 0 Informal Stage 1 Functional 15% increase Stage 2 Project Excellence Stage Stage 3 Portfolio Excellence Stage 4 Co-Develop. Excellence Ericsson AB
10 Consensus on most relevant areas Resource Allocation to projects Dynamic situation: change in scope, new demands Too many projects Not the right projects Scope too big Slows down development process Project visibility especially in multi-site environment Integration of the project management and financial tools Ericsson AB
11 Key Requirements Support both Portfolio and Project Managers Resource Planning (Capacity Planning) Single entry of data (Integration) Scenario Management (What-if analysis) Key Constraints Integration with Financial System for cost planning and tracking Re-use of Ericsson terminology (when possible) Re-use best practices Ericsson AB
12 Requirements specification Process development Stage Tools evaluation & selection Solution development and tool configuration Time Pilot Deployment supported by PCP discipline Ericsson AB
13 The Ericsson Project Portfolio model
14 iprops A project model supporting a common approach to Requirements product development in Ericsson TG0 TG1 TG2 TG3 TG4 TG5 Project Steering Process Project Work Model PLCM Project Management Process Project Work Model Product Tollgates Directive PROPS PLCM Operative Processes Tollgate Directive Business Alignment - Tollgates - Project sponsor - Go decisions PROPS Project Integration - Project management process - Ten PM knowledge areas - Project management documents PLCM Process Integration - Product decisions - Disciplines Product Integration Operative Processes - Project anatomy - Work packages - Shipments - Work Package Teams - Quality doors Ericsson AB
15 Product versus Project Portfolios Product Portfolio Management PA Product Line/ Product Council PD PD Product Portfolio Product 1 PD Product 2 PD PD Product 3 Project Portfolio Management TG Project 1 TG Project 2 PDU Project Office/ OSG & PSG Project Portfolio TG Project 4 Ericsson AB
16 Ericsson AB
17 New Roles Project Portfolio Owner Strategic fit Priority Project Portfolio Manager Why Scope, Cost Project Sponsor Resource Owner Project Manager Who How Project Member What When Ericsson AB
18 Selection of Potential Projects Selection Verification of proposals alignment to strategy Idea Tollgate Decision Confirmation of project s alignment to strategy Idea Idea Proposal Idea Idea Idea Idea Idea Idea Idea Proposal Proposal Proposal Proposal Project Analysis Project Analysis Project Analysis Project Planning Project Planning Execution Execution Projects Project Portfolio Ericsson AB
19 Portfolio balancing Actuals Availability versus Allocations Full-Time equivalents Project24 Project10 Project22 Project21 Project26 Project23 Project Project9 Project5 Project6 Project3 0.0 Project Ericsson AB Time (Invoicing periods)
20 Portfolio balancing Project coverage Hours Required Allocated Available Time Ericsson AB
21 Authorize Project Portfolio Plan Project Project Project Portfolio Plan Project Project Project Project Project Proposal Proposal Proposal Portfolio Decision: Authorization Approval of the balanced project portfolio s aggregated plans and cost (based on current approved project and proposal plans) Ericsson AB
22 PMI Portfolio Management Process Strategic Planning Process Output Current Strategic Plan Aligning Process (3.2.1) Monitoring and Controlling Process group (3.2.2) Components Processes Identification ( ) Prioritization ( ) Component Execution and Reporting Current Strategic Plan Goals Definitions & categories Key Performance Criteria Capacity Definition Categorization ( ) Evaluation ( ) Selection ( ) Portfolio Balancing ( ) Authorization ( ) Source: The Standard for Portfolio Management Ericsson AB
23 Differences with PMI Standard Ericsson PMI Connection with Project Management process Process Integrated in process description Continuous Limited mentions Strategic Project disturbances Roles More focus on adding new projects and handling changes Portfolio Owner Sponsor Portfolio Manager Limited mentions Executive Manager Sponsor Portfolio Manager Ericsson AB
24 Questions? Ericsson AB
25 Ericsson AB
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