Slide titleIn CAPITALS
50 pt
Slide subtitle32 pt
Project Portfolio ManagementModel
Yvan PetitApril 25th., 2008
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© Ericsson AB 2007 2007-10-102
Ericsson dans le monde
Entreprise suédoise dont le siègesocial 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 15 000 brevets Leader dans le domaine des
infrastructures cellulaires 60 000 employés, dont quelque
1 600 à Montréal
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© Ericsson AB 2007 2007-10-103
Continued traffic growth
Traffic in Mobile Networks
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
3 500 000
2005
2006
2007
2008
2009
2010
2011
Te
rab
yte
Other Data
Downloads
TV/Streaming
Messaging
Mobile PC
Video
Telephony
Voice
Global Cellular Subscriptions (00-11)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
su
bscri
pti
on
s (
millio
n)
Latin America
Eastern Europe,
Middle East & Africa
Ro APAC
China & India
North America
Western Europe
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© Ericsson AB 2007 2007-10-104
The telecom market is redefiningitself
Voice
Lifestyle
Mobile offíce
MMS(images)
Broadband
VoiceMail
SMS(text)
Voice
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© Ericsson AB 2007 2007-10-105
The R&D and Services Centre
Montreal Site
Operational Excellence in everything we do
Multimedia NetworksGlobalServices
Technology Leadership e2e and User ExperienceInnovation
MUServices
GSM core and servicelayer in a box -QuickLINKIntegration Center forGSM and WCDMA corenetworksNetwork ResourceControlCDMA support
First line Systemsupport for USA andCanadaSystems Integrationfor USA and Canada
MessagingSolutions IMS development Converged MediaSolutions Service Innovation Gaming
Softwaredeployment andSystems Support Systems Integration Field Services &Service Deployment
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© Ericsson AB 2007 2007-10-106
Montreal R&D and Service CentreHeadcount Growth
0
200
400
600
800
1000
1200
1400
1600
1800
2000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Employees
Unique situation during the difficult years
Slide titleIn CAPITALS
50 pt
Slide subtitle32 pt
Why develop a ProjectPortfolio model?
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© Ericsson AB 2007 2007-10-108
R&D Operational Excellence
Overall target: Reduce the average lead-time fordevelopment 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 keycompetencies
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© Ericsson AB 2007 2007-10-109
Business Case Foundation =Productivity Increase
Stage 0Informal
Stage 1FunctionalPr
oduc
t Dev
elop
men
tPe
rfor
man
ce
Stage 2Project
Excellence
Stage 3Portfolio
Excellence
Stage 4Co-Develop. Excellence
Stage
15% increase
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© Ericsson AB 2007 2007-10-1010
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
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Key Requirements
Support both Portfolio and Project Managers Resource Planning (Capacity Planning) Single entry of data (Integration) Scenario Management (What-if analysis)
Integration with Financial System for cost planning andtracking
Re-use of Ericsson terminology (when possible) Re-use best practices
Key Constraints
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© Ericsson AB 2007 2007-10-1012
Deployment supported by PCP discipline
Pilot
Solution development and tool configuration
Tools evaluation & selection
Process development
Requirements specification
Sta
ge
Time
Slide titleIn CAPITALS
50 pt
Slide subtitle32 pt
The Ericsson ProjectPortfolio model
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© Ericsson AB 2007 2007-10-1014
iPROPS –A project model supporting a common approach toproduct development in Ericsson
Require-ments
Product
Project Work ModelPLCM
Project Management Process
Project Steering Process
TG0 TG1 TG2 TG3 TG4 TG5
Project Work Model
Tollgate Directive Tollgate Directive ––Business AlignmentBusiness Alignment
- Tollgates- Project sponsor- Go decisions
PROPS PROPS ––Project IntegrationProject Integration
- Project management process- Ten PM knowledge areas- Project management
documentsPLCM PLCM ––Process IntegrationProcess Integration
- Product decisions- Disciplines
Product Integration Product Integration ––Operative Operative ProcessesProcesses
- Project anatomy- Work packages- Shipments- Work Package Teams- Quality doors
PROPS
Tollgates Directive
PLCM
OperativeProcesses
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© Ericsson AB 2007 2007-10-1015
Project Portfolio
Product Portfolio
Product versus Project Portfolios
TG Project 2
TG Project 1
TG
Project 4
Project Portfolio Management
Product Portfolio Management
Product 3
Product 1
Product 2
PD
PD
PD
PD
PD
PA Product Line/ Product Council
PDU Project Office/ OSG & PSG
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© Ericsson AB 2007 2007-10-1016
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© Ericsson AB 2007 2007-10-1017
New Roles
ProjectMember
ProjectSponsor
ProjectManager
ResourceOwner
Why –Scope,Cost
WhatWhen
WhoHow
ProjectPortfolioOwner
Strategic fitPriority
ProjectPortfolioManager
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© Ericsson AB 2007 2007-10-1018
Selection of Potential Projects
SelectionVerification of proposals’ alignment to strategy
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
Idea
ProjectAnalysis
ProjectAnalysis
ProjectAnalysis
Project Planning
Project Planning
Tollgate DecisionConfirmation of project’s alignment to strategy
Proposal
Proposal
Proposal
Proposal
Proposal
Project Portfolio
Projects
Execution
Execution
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© Ericsson AB 2007 2007-10-1019
Availability versus Allocations
Project 2
Project3
Project5
Project6
Project9
Project10
Project20
Project21
Project22
Project23
Project24
Project26
0.0
50.0
100.0
150.0
200.0
250.0
2007
-10
2007
-11
2007
-12
2008
-01
2008
-02
2008
-03
2008
-04
2008
-05
2008
-06
2008
-07
2008
-08
2008
-09
2008
-10
2008
-11
2008
-12
2009
-01
2009
-02
2009
-03
2009
-04
2009
-05
2009
-06
2009
-07
2009
-08
2009
-09
2009
-10
2009
-11
2009
-12
Time (Invoicing periods)
Fu
ll-T
ime e
qu
ivale
nts
Actuals
Portfolio balancing
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© Ericsson AB 2007 2007-10-1020
Project coverage
0.0
5000.0
10000.0
15000.0
20000.0
25000.0
30000.0
35000.0
40000.0
2007-
10
2007-
11
2007-
12
2008-
01
2008-
02
2008-
03
2008-
04
2008-
05
2008-
06
2008-
07
2008-
08
2008-
09
2008-
10
2008-
11
2008-
12
Time
Ho
urs
Required
Allocated
Available
Portfolio balancing
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© Ericsson AB 2007 2007-10-1021
Authorize Project Portfolio Plan
Portfolio Decision:Authorization
Approval of the balanced project portfolio’s aggregated plans and cost(based on current approved project and proposal plans)
Project Portfolio
Plan
´Project
´Project
´Project
Proposal
Proposal
´Project
´Project
´Project
´Project
Proposal
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© Ericsson AB 2007 2007-10-1022
PMI Portfolio Management Process
Identification(3.2.1.1)
Evaluation(3.2.1.3)
Selection(3.2.1.4)
Authorization(3.2.1.7)
PortfolioBalancing(3.2.1.6)
Prioritization(3.2.1.5)
ComponentExecution and
Reporting
Categorization(3.2.1.2)
CurrentStrategic Plan•Goals Definitions•& categories•Key Performance Criteria•Capacity Definition
Strategic Planning Process OutputCurrent Strategic Plan Aligning Process (3.2.1) Monitoring and Controlling
Process group (3.2.2) Components Processes
Source: The Standard for Portfolio Management
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© Ericsson AB 2007 2007-10-1023
Differences with PMI Standard
Limited mentionsIntegrated inprocess description
Connection withProjectManagementprocess
Executive ManagerSponsor
Portfolio Manager
Portfolio OwnerSponsor
Portfolio Manager
Roles
Limited mentionsMore focus onadding new projects
and handlingchanges
Projectdisturbances
StrategicContinuousProcess
PMIEricsson
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© Ericsson AB 2007 2007-10-1024
Questions?
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