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Anaheim, CA | February 2-5, 2014
Cooking Up a Well Seasoned Global Portfolio & the Recipe for the Secret Sauce
Mike BallasiotesElectrolux Project Management Center of Excellence
Dan LingPcubed
PC228
Photo
Dan Ling• Managing Consultant
• 22 years of experience helping manufacturing and consumer products including Whirlpool, Praxair, Rockwell Automation, Honda, GM and Electrolux among others.
• Leader in Pcubed’s innovation and new product development
• Microsoft technology expert
• Pcubed • Consultancy focused on program/portfolio, portfolio
and change management• 30 offices globally • Serving half of the Fortune 100• Solutions that go beyond technology• Oldest Microsoft PPM Gold Partner
Mike Ballasiotes• Head of Project Management
Center of Excellence • Over 18 years in IT management • Consumer products, printing and IT consulting
industries• Held various business, IT management, consulting
and project management roles • Joined Electrolux in 2008 as Director, North American
PMO• Appointed Head of Project Management CoE in 2011• PMP certified
• Electrolux • One of worlds leading global consumer products firms
Photo
“Hi!”
“Hey!”
Mariott Courtyard Hotel, Kungsholmen, Stockholm, Sweden
“Hej!”
Most people in the US will say vacuum cleaners
What do you think of when you hear “Electrolux”?
We’re actually the second largest appliance maker in the world
Our brands
Position
Sales SEK 110 billion
Op income SEK 5.2 billion
Sales in more than 150
markets
A world leader in appliances
Figures as of 2012
Products
More than 50 million products per yearTo meet the real needs of consumers and professionals
50
MIL
LIO
N150M
AR
KETS
People
59,000 in 60 countries
60
CO
UN
TR
IES
Electrolux 2012
Electrolux business
Share of net sales as of 2012
Major appliances• Ovens & cooktops• Refrigerators and freezers• Dishwashers• Laundry products• Air conditioners and
dehumidifiers
Professional products• Major appliances for industrial
and commercial use
Small appliances• Consumer vacuums• Home HVAC• Countertop appliances $17 Billion USD
Southeast Asia, China
4%Latin Amer-
ica21%
Africa, Middle
East, East-ern Europe
10%
Australia, New Zea-
land, Japan6%
North Amer-ica
31%
Western Europe
28%
Agenda
Electrolux IT
Background & vision
Project overview
Global factors
Lessons learned
Electrolux IT
Background & vision
Project overview
Global factors
Lessons learned
653 IT employees
144 external resources
Partially outsourced application support & maintenance
100± IT projects running on average
IT personnel in 40 countries
Electrolux IT statistics
ArgentinaAustraliaAustriaBelgiumBrazilCanadaChinaColombiaCzech RepublicDenmark
EcuadorFinlandFranceGermanyGreeceHungaryIndiaIndonesiaIrelandItaly
JapanLuxemburgMexicoNetherlandsNew ZealandNorwayPeruPolandPortugalRomania
RussiaSingaporeSpainSwedenSwitzerlandThailandUkraineUnited KingdomUSAVenezuela
Number of users and applications
Users: 5200Applications: 384Locations: 34Supported Languages: 1
Users: 15 000Applications: 461Locations: 206Supported Languages: 15
Users: 4000Applications:148Locations: 30Supported Languages: 3
Users: 2941Applications:116Locations: 86Supported Languages: 6
Total Users: 27,141Applications: 1109Locations: 356Countries/Languages: 48/22
Data center Pordenone
Data center Charlotte
IT organization
Electrolux IT
Background & vision
Project overview
Global factors
Lessons learned
Previous attempts to globalize project management did not achieve adoption
• Lack of collaboration• Overly complex, rigid implementations• Attempted to adopt one region’s model
Limited Senior Management visibility• Each Region has been managing projects and process
independently• No single data source
Evaluated tools in 2011 and selected MS Project Server 2010
Launched Project PhAROS in January, 2012
Background
Drive organizational efficiency and excellence in project delivery through the development and standardization of a global IT
governance methodology, processes, and tools
Vision
Project And Resource Optimization System
Assess Organization
• Survey stakeholders
• Define current and future state
• Identify gaps
Develop Roadmap
•Define requirements•Define phases•Develop regionalization framework•Identify pilot region
Implement Tool &
Processes
• Apply best practices
• Minimize customization
• Pilot prototype• Rollout
Sustain & Improve
• Train, train, train
• Value realization
• Analyze metrics
• Continuous improvement
Deployment Strategy
Evolve the maturity in organizational program, project, and project portfolio management capabilities to more effectively deliver benefitsMaintain simplicity with initial implementation
Realign & re-plan after each
phase
CMM & Challenges
• Capability levels of project management resources, processes, and tools are not aligned
• Inconsistent organizational structure and roles
• Governance varies impacting both quality and ability to maintain accurate visibility across the organization
• Multiple languages and cultures
• Mix of internal resources and external services
Improve Organizational Project Management Maturity level from
a rating of 1.8 to 3.0
Original Roadmap
PhAROS Pilot• Matrix pilot• Global portfolio• Gateway
mgmt.• Common
solution• Portfolio
dashboard
PhAROS P1• Complete rollout• Process/solution
enhancements• Portfolio alignment• Resource alignment• Project dashboards
PhAROS P2• Strategic planning• Operational
planning• Portfolio
optimization• Schedule mgmt.• Resource mgmt.• Cost tracking
PhAROS Complete• Resource
optimization• Financial mgmt.• Deliverable mgmt.• Dependency mgmt.• Quality mgmt.• Procurement mgmt.
Oct 2012
Global Methodology
Common Solution
Dec 2012
Finalize RolloutAligned Portfolio
March 2013
Optimized PortfolioTime Tracking
Sept. 2013
Integrated DeliveryOptimized Resources
Jan 2012
Kick -off
Program scope
Phase I• Portfolio management• Project management• Reporting• Issue & risk management• Document management
Phase II• Time management• Resource management
Target ResultsPhase I Success Metrics
• All regions entering all projects in PhAROS
• All Project Managers maintaining accurate phase governance for projects
• All Regions & Executive Management using PhAROS portfolio process
• Elimination of manual reporting
Benefits
• Single Source of Project Data– Eliminates reporting overhead– Consistent information– Full visibility
• Consistent Process– Improves quality of delivery– Provides flexibility across organization
• Benefits Based Portfolio– Projects selected based on return to
organization and alignment with strategic goals
– Balances project load
• Performance Metrics– Standardized measures– Cost and effort analysis across enterprise
Electrolux IT
Background & vision
Project overview
Global factors
Lessons learned
Project organization
Operations Leadership
Steering CommitteeCIO
IT Senior Management
Mike BallasiotesProject Leader
Governance Head Exec Sponsor
Dan Ling Lead
CoE AdminLATAM SME CoE Admin
NA SME
Global Infr. Svcs SME
EMEA SME
Demand Mgr
APAC SME
Contract & Svc MgtSME
SAP Program SME
P-Cubed Consultant
P-CubedDeveloper
Group StaffSME
Finance SME
Change Mgt SMEOPS SME
Countries Represented:Belgium, Brazil, Holland, India, Italy, Sweden, UK, United States, Singapore,
1st LanguagesDutch, Danish, English, Hindi, Italian, Portuguese, Swedish
Layered Team ApproachCore Team
• Primary Requirements Gathering
• Develops primary process models & deliverables
• Roadmap recommendation
Extended Team
• Ensures collaboration across IT groups
• Validates requirements, processes and deliverables for representative groups
Steering
Held extended team meetings to validate design and support adoption
Portfolio Process
• Provide visibility to all ideas• Validate rank and project type in order to classify for assessment
• Gather initial charter, benefit and technical information in order to prepare for portfolio review
• Determine by strategic value and benefits which projects should be added to portfolio with a low chance of rejection at a later phase
• Complete detailed planning and architectural assessment and development of cost estimates
• Completion of SDLC and transition to production support
• Completion of all post mortem activities
Developed basic portfolio process with key stage gates for Planning and Execution
Core team representative acted as primary support for each region
Phase I • Heads of PMO and Support Teams• Project Managers • Contract Managers• Support Managers• Demand Management
Project Managers and their PMO heads trained.
Each participant managing all or a significant subset of their work in PhAROS in parallel with the system/process currently used.
Feedback sessions conducted approximately 2 weeks apart to review change requests, assess them and implement those approved.
A Go decision was taken at the end of the pilot for approval to go-live.
Pilot
Production Project Center View
For the first time, all IT projects are visible and governed through a consistent process.
Enterprise Portfolio by Value Chain
Count% of Count
Cost(values in
KSEK)% Value
% of Count
5 2% 600 0.32% 1%1 0% 0 0.00% 0%
34 16% 6,588 3.50% 17%24 11% 17,599 9.36% 17%3 1% 1,100 0.58% 0%22 10% 37,016 19.68% 18%2 1% 0 0.00% 0%16 7% 38,144 20.28% 5%27 13% 21,476 11.42% 7%5 2% 435 0.23% 2%6 3% 1,867 0.99% 2%35 16% 45,465 24.18% 16%34 16% 17,763 9.45% 15%1 0% 0 0.00% 0%
215 100% 188,052 100% 100%Treasury 0 0 0.00%Total 103 336,633 100%
Sales 16 39,559 11.75%Supply Chain 15 51,905 15.42%
Purchasing 2 1,051 0.31%R and D 2 943 0.28%
Manufacturing 5 53,408 15.87%Marketing 7 17,448 5.18%
IT 19 42,059 12.49%Legal 0 0 0.00%
Finance 18 36,730 10.91%HR 0 0 0.00%
Corporate Control and Services
0 0 0.00%
Customer Care 18 93,531 27.78%
Value ChainCount
Cost(values in
KSEK)
% Value
Communications 1 0 0.00%
Project Stages 0 - 3 (Demands) Project Stages 4 - 5 (Active)
Electrolux IT
Background & vision
Project overview
Global factors
Lessons learned
The Secret Sauce
Timing Language Culture
Concept of urgency varies by region• What Europe may perceive as quick may seem slow to an American• Make sure to clarify expectations around timing
Time Zones• You can’t be everywhere • Travel impacts productivity• Account for timing differences between regions and adjust pace to
account for any lost productivity• In a global company someone is always sleeping – be considerate of
outlying time zones
Everything can take longer in a global environment
Timing
Evaluate the timing impact for your situation
Timing Language Culture
English is a second language for most in global organizations
Just because it is spoken well doesn’t mean it’s well understood
• A high percent of what you say can be misunderstood• Participants may not acknowledge they don’t understand• Make sure to engage everyone – confirm understanding• Slow down your speech
Some regions will not have good English skills• Make allowances for some groups who may need to translate
Process diagrams, RACIs, etc. can help ensure understanding
Language
Make sure to confirm key decisions more than once
Timing Language Culture
Regional differences can greatly impact projects• Americans can be viewed as “aggressive”• Some areas can be very hierarchical• Some European countries have long vacations vs. Americans (4-5
weeks) and may not be available• Some countries require vacations• Some countries don’t allow a certain number of hours to be worked per
week• Not all cultures/nationalities will get along
Styles & decision making can vary• Consensus building
• Desire to be prescriptive vs. entrepreneurial
• Back channel relationship building can be required
• Demanding vs. asking
Culture
Learn the differences and adjust your communications and timing if needed
Time• Scheduled for most overlap ( early morning) to be able to include all regions• Trained APAC after Charlotte business hours • Shifted schedules slightly later in EMEA
Language• Corporate intranet for general communications authored by European team
member• Brazil translated all documentation to Portuguese• Employed department personnel to check language in presentations• Extensive use of feedback sessions with issues documented
Culture• Met face to face with core team and as many extended team members as possible• Visited regional headquarters where possible• Slowed down timing for some countries/regions• Conducted 1:1 sessions with managers in some countries
How Did We Use TLC?
One Year Later: Adoption by Region
2013 0
1
2013 0
1
2013 0
2
2013 0
2
2013 0
3
2013 0
3
2013 0
4
2013 0
4
2013 0
5
2013 0
5
2013 0
6
2013 0
6
2013 0
7
2013 0
7
2013 0
8
2013 0
8
2013 0
9
2013 0
9
2013 1
0
2013 1
0
2013 1
1
2013 1
1
2013 1
2
2013 1
2
To-tal
Run Tot Run Tot Run Tot Run Tot Run Tot Run Tot Run Tot Run Tot Run Tot Run Tot Run Tot Run
0
50
100
150
200
250
300
350
NALAEMEAAPAC
Training completed in March with stability achieved in June and pipeline filling through October
Total of all projects, all phases
Projects in Execution
Target Results
Results
• Project Data– High compliance levels
– Full visibility enabling executive governance of major projects
• Process Compliance– Process stable
– Low maturity areas needing additional training
• Portfolio Management– Implementing program to utilize
Portfolio Analysis by region
– EMEA positioned to utilize aggressively to for cost containment
• Reporting & Metrics– Replaced manually generated CIO
reporting with reporting services
– Utilizing system generated KPIs to measure region performance
Phase I Success Metrics
• All regions entering all projects in PhAROS
• All Project Managers maintaining accurate phase governance for projects
• All Regions & Executive Management using PhAROS portfolio process
• Elimination of manual reporting
Roadmap
PhAROS Pilot• Matrix Pilot• Global Portfolio• Gateway
Mgmt.• Common
Solution• Portfolio
Dashboard
PhAROS P1• Complete Rollout• Process/Solution
Enhancements• Portfolio Alignment• Resource Alignment• Project Dashboards• Schedule Mgmt.
PhAROS P2• Strategic Planning• Operational Planning• Portfolio
Optimization• Resource Mgmt.
PhAROS P3• Resource
Optimization• Dependency Mgmt.• Cost Tracking.Oct 2012
Global Methodology
Common Solution
Mar 2013
Finalize RolloutAligned Portfolio
Jan 2014
Optimized PortfolioTime Tracking
Dec 2014
Integrated DeliveryOptimized Resources
Jan 2012
Kick -off
Electrolux IT
Background & vision
Project overview
Global factors
Lessons learned
Regional/Cultural differences can create challenges• Meet at least once at the start face to face to establish a relationship• Staff regionally if possible• Focus on understanding specific differences by region/country• Language is very important
It will take more time than you would typically plan• Levels of maturity will vary with less mature areas taking longer • Issues outside of the program will impact schedules in global programs• Keep it simple and resist over-engineering when deploying globally
Desire to make the change will likely be the barrier point • Utilize popular communication vehicles to reach users and create
awareness• Show off the solution and benefits as soon as possible to gain acceptance• Work with Senior management by region to address obstacles if necessary• Assigning Regional accountability is an effective break-through strategy
Lessons Learned
Questions?Mike BallasiotesElectrolux Project Management Center of [email protected]
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