SPECIAL EDEN DOCTORAL SEMINAR THE NINE SCHOOL OF PROJECT MANAGEMENT LILLE, AUGUST 18-22, 2008 PROPS – Ericsson's approach on project management Nicoleta Lungu Academy of Economics Studies, Bucharest, Romania Academy of Economics Studies, Bucharest, Romania

AGENDA Introduction Scenario PROPS-C Overview PROPS-C Structure and principles Project categories PROPS Framework  Business Perspective  Human Perspective  PROPS Project Life Cycle Model  PROPS Project Organization Model Knowledge areas Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania 2

Introduction 3 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania Why a Project Management 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 Ericsson as a project oriented company 80% of the employees are working in projects ≈ 3500 project managers and 150 PM Office managers

PROPS – Basics PROPS – PROject for Project Steering – the name of the project that developed the first version of PROPS in late 80s Ericsson’s general model available for all types of project within the organization Three PROPS applications in Ericsson:  PROPS-C: Customer Project Management – time to customer  iPROPS: R&D Project Management – time to market  ePROPS: Internal Project Management – supporting projects In line with the PMI standards Also adapted in other companies like Volvo, Saab, Teliasonera, etc. 4 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

Let’s imagine… First day as a Project Manager in Ericsson No relevant experience with PROPS and the first assignment will start soon Panic? Of course, not! PROPS is as simple as that! 5 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

Project Life Cycle Model Project Organization Model Business Perspective Human Perspective 6 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

PROPS – Structure and Principles Features  Color-coding  PROPS key elements  Templates, tools and techniques  PROPS applications  Web sites Colour coding  Red – long-term business direction  Blue – project management  Yellow – operative work and responsibilities  Green – project outcome 7 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

PROPS – Structure 8 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania Project steering process Project work model Project management process

Project categories Project categorization based on:  Complexity  Risk  Size  Environment 9Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania ESPM (Senior) EPPM (Principal) Small and non-complexLarge and complex Project Manager competence requirements based on the Ericsson PM Career Guide EPM (Experienced) ESPM (Senior) PM (Assessed) ESPM (Senior) EPPM (Principal) EPM (Experienced) ESPM (Senior) Type AType B PM (Assessed) EPM (Experienced) Type DType C ESPM (Senior) EPPM (Principal) EPM (Experienced) ESPM (Senior) EPPM (Principal) PM (Assessed) EPM (Experienced) ESPM (Senior) EPPM (Principal) PM (Assessed) EPM (Experienced) ESPM (Senior) EPPM (Principal)

Project Life Cycle Model Project Organization Model Business Perspective Human Perspective 10 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania PROPS – The Framework

Business perspective – focus on customer needs Multiple projects -> same business direction -> customer satisfaction -> efficient resource allocation Key elements:  Project management  Project portfolio management  The customer 11 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

Human perspective Individual employee – one of the most important organization assets Common project culture Teamwork and leadership High level of competence and capacity 12Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

PROPS Project organization model 13 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania WHO is responsible for doing WHAT is the project  Project Steering Function  Project Sponsor  Project Steering Group  Project Portfolio Owner  Project Management Function  Project Manager  Project Execution Function  Subproject Manager  Resource  Work Package Teams  Receiver

PROPS Project life-cycle model WHAT to do and WHEN to do  Project Steering Process  Project Management Process  Project Work Model 14 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania Project work model Project management process Project work model Project steering process Project work model

Project Steering Process Tollgates  A tollgate is a pre-defined business decisions during a project.  TG1 - Decision to start the project planning work.  TG2 - Decision to start project execution.  TG3 - Decision to continue execution according to original or revised plan.  TG4 - Decision to start hand-over of the first part of project outcome to the receivers and the customer.  TG5 - Decision to start the project conclusion after acceptance of project outcome. 15 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

Project Management Process 1. Project Analysis Phase  Customer project assessment  Core 3 Team  Customer Account Responsible  Solution Responsible  Project Manager 2. Project Planning Phase  Project is outlined 16 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

Project Management Process 3. Project Execution Phase  Establishment  Realisation  Hand-over 4. Project Conclusion Phase  Lessons Learned  Project closure 17 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

Project Work Model 18 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania Milestones  A milestone is an intermediate objective that defines an important and measurable event or deliverable in the project and represents a result that must be achieved at a given point in the project flow.  MS1 - Ready for project planning  MS2 - Ready for project execution  MS3 - Ready for continued project execution  MS4 - Ready for hand-over of first part of project outcome  MS5 - Ready for start of project conclusion  MS6 - Ready for project closure

10 Knowledge areas 19 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

20 That was it! Simple, isn’t it? Thank you ! Academy of Economics Studies, Bucharest, Romania