SPECIAL EDEN DOCTORAL SEMINAR THE NINE SCHOOL OF PROJECT MANAGEMENT LILLE, AUGUST 18-22, 2008

1. SPECIAL EDEN DOCTORAL SEMINAR THE NINE SCHOOL OF PROJECT MANAGEMENTLILLE, 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

2. 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

3. Introduction 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 3 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

4. 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

5. 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

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

7. 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

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

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

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

11. 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

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

13. PROPS Project organization model • 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 13 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

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

15. 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

16. 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

17. 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

18. Project Work Model • 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 18 Nicoleta Lungu - Ericsson & Academy of Economics Studies, Bucharest, Romania

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

20. That was it! Simple, isn’t it? Thank you ! Nicoleta.Lungu@Ericsson.com Academy of Economics Studies, Bucharest, Romania 20