Corporate Process Governance versus Regional Realities and Business needs
Bonn – May 15th
BPM at Ericsson
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 2
Short facts
› Founded: 1876 in Stockholm, Sweden
› President and CEO: Hans Vestberg
› Headquarters: Stockholm, Sweden
› Employees 2011: *104,525
› Net Sales 2011: SEK 226.9 billion
(USD 32.9 billion / EUR 25,4 billion)
135 YEARS OF INNOVATION
* year end 2011
NET SALES (SEK BILLION)
179,8187,8
208,9
20102006 200920082007
206.5 203.3
226.9
2011
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 3
This is Ericsson
We provide:› Communication networks › Services to network operators
› Enablers to multimedia service providers
Our joint venture provides:› ST-Ericsson; semiconductors
and wireless platforms
THE PRIME DRIVER IN AN ALL-COMMUNICATING WORLD
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 4
50 billion connected devices
We have a vision of 50 billionconnected devices by 2020.
We do not just connect placesand people – but also machines and devices.
Anything that benefits from being connected will be connected.
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 5
BPM at Ericsson
› Corporate Process Governance versus local process management realities and business needs.
– Ericsson’s process governance setup– Standardized and harmonized processes– Regional business realities and requirements– Change & improvement framework and ways ahead
How to accelerate savings via process management in a fast changing business environment?
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 6
Ericsson Business Process
Core elements for major units
EGMS at a glance
Risk based assessments
Ericsson Group Management System (EGMS) Elements
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 7
Ericsson Business Process Governance
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 8
MEASURABLE VALUEDelivers measurable value to Ericsson and this is recognized by Ericsson’s customer and Ericsson bottom line
STRATEGY ALIGNMENTConsiders future state and transformation connected to Business strategy and how we work with Business process maturity level 4 (Excellent) by 2013
E2E PROCESS EXCELLENCEDelivers, by configuration of sub-process components, increased value for customer and increased efficiency in selected, defined E2E processes cross-function
VALUE REALIZATIONValue through high usage and usability with outside in view.
ALIGNED PROCESS AND IT EBP provides a foundation for a coherent, seamless, integrated Ericsson Process & IT roadmaps to secure Strategy to Execution
wanted position FOR PROCESSES
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 9
Ericsson Strategy Cycle and input to BPM
› Fulfill Ericsson stakeholder's expectations on direction and performance by
– providing information and insights for strategic decision making– setting the direction and strategies for Ericsson– deploy strategies into execution through priorities, targets and
programs – agilely act on new opportunities
Process deploymentStrategy cycle
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 10
Ericsson organizational Chart
REGIONS
CUSTOMERS
RESEARCHJan Färjh
BU NETWORKSJohan Wibergh
BU GLOBAL SERVICESMagnus Mandersson
BU SUPPORT SOLUTIONS Per Borgklint
BU CDMA MOBILE SYST.Rima Qureshi
JOINT VENTURES
ST-ERICSSON Didier Lamouche
GROUP FUNCTIONSCommunications – Helena Norrman Sales & Marketing – Jan WärebyFinance – Jan Frykhammar Strategy – Douglas L GilstrapHR & Organization – Bina Chaurasia Technology & Portfolio mgmt – Ulf EwaldssonLegal Affairs – Nina Macpherson
CEOHans Vestberg
North America – Angel RuizLatin America – Sergio Quiroga da CunhaMediterranean – Nunzio MirtilloWestern & Central Europe – Anders RunevadNorthern Europe & Central Asia – Robert PuskaricMiddle East – Anders LindbladSub-Saharan Africa – Lars LindenIndia – Fredrik JejdlingSouth East Asia & Oceania – Arun BansalChina & North East Asia – Mats H Olsson
IPR & Licensing – Kasim Alfalahi
Process Owner
Process Owner
Process Owner
Process Owner
Process Owner
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 11
Region Western and Central Europe Organization Chart
GCU VODAFONE
Torbjörn Possne
GCU DEUTSCHE TELEKOM
Nils de Baar
CUSTOMER UNIT UK & IRELANDChris Houghton
CUSTOMER UNITWEST EUROPE
Stefan Koetz
CUSTOMER UNIT CENTRAL EUROPE
Emil Nilsson
HEAD OF REGIONAnders Runevad
FINANCE & EFFICIENCYCarl Mellander
MARKETING &COMMUNICATIONS
Stephen Hall
HUMAN RESOURCES & ORGANIZATION
Paul van ‘t Hooft
LEGAL AFFAIRSTed Hermans
STRATEGY & BUSINESSDEVELOPMENT
Tobias Jenssen
COMMERCIAL MANAGEMENTCamilla Vautier
OPERATIONS & COMPETENCE CENTERJean-Claude Geha
ENGAGEMENT PRACTICES Ozgur Tohumcu
Process Responsibles
Process Responsibles
Process Responsibles
Process Responsibles
Process Responsibles
Process Responsibles
Process Responsibles
Process Responsibles
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 12
LineManagement
RWCE process roles and responsibilities
PS
PSPS
PS
LPR
Local Process Driver responsibilities:
•Process governance in EGMS
•Process roadmap and deviation handling
•Process management methodology and assessments
•Cross function/border coordination
•Consultancy services
Line Management and Process Specialists
responsibilities:
•Process documentation
•Process execution
•Process measurements
•Process improvements
Head OCC
PS
PS
PS
LPD
LPD
LPD
LPD
Head of EP
Head of FI
LPR LPR
LPR
Head of OperationalUnit (….)
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 13
BPM at Ericsson
› Corporate Process Governance versus local process management realities and business needs.
– Ericsson’s process governance setup– Standardized and harmonized processes– Regional business realities and requirements– Change and improvement framework and ways ahead
How to accelerate savings via process management in a fast changing business environment?
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 14
Ericsson Business Process
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 15
Sales Business Process
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 16
BPM at Ericsson
› Corporate Process Governance versus local process management realities and business needs.
– Ericsson’s process governance setup– Standardized and harmonized processes– Regional business realities and requirements– Regional change and improvement framework and ways ahead
How to accelerate savings via process management in a fast changing business environment?
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 17
three key OPERATOR (our Customer) CHALLENGES
PersonalizationSpeedQuality
ChoiceBundling
Verticals
M-2-M
MobileBroadband
2 sided business models
Business InnovationChallenge
CustomerExperienceChallenge
Outsourcing
CloudConsolidation
Business EfficiencyChallenge
Communication evolution
TransformSimplify
RunOperate
GrowExpand
Modernization
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 18
Regions CHALLENGES
Macro uncertainty
Consumer confidence
Operator revenues
Business InnovationChallenge
CustomerExperienceChallenge
Business EfficiencyChallenge
TransformSimplify
RunOperate
GrowExpand
Extreme price competition
Strong Asian players
Merger & Acquisitions
Extend Service capabilities
Invest in verticals
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 19
Vision
Mission
Organizational Strategy & Objectives
High Level Operations Process Management
PortfolioManagement
Management of On-going Operations(recurring activities & producing value)
Management of Authorized Programs & Projects
(projectized activities & increasing value production capability)
BPM and Change & Improvement Framework
How to effectively manage this
Combine Business Process Management and Region Change and Improvement Initiatives
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 20
BPM at Ericsson
› Corporate Process Governance versus local process management realities and business needs.
– Ericsson’s process governance setup– Standardized and harmonized processes– Regional business realities and requirements– Change & improvement framework and ways ahead
How to accelerate savings via process management in a fast changing business environment?
RWCE Efficiency Board
To Drive our Regional Change and Improvement Portfolio
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 22
EB Charter
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 23
High Level Process
BalanceAlign
CategorizedComponents
Monitor and Control
AuthorizedComponents
AssessCandidates
Prioritize
Launch Portfolio Scenario
Setup & Prioritize
Balance Portfolio
Resources
Evaluate Portfolio Scenario
Make Portfolio
Plan Decision
Make Portfolio Scenario Decision
Monitor Portfolio
Identify & Categorize
Idea
Balance Portfolio Finances
Communi -cate
Portfolio Plan
Report Portfolio Status
Approve Selection Authorize Plan
Monitor & Control PortfolioBalance PortfolioAlign Portfolio
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 24
Potential Programmes
M&A Excellence
Workforce Mobility& Flexibility
High Efficiency Operations
Best In Class Inventory & Working
Capital
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 25
Full RWCE Change Mgt Solution
Engagement Practices
Commercial Mgt
OCC
Finance
Sourcing
IT
OD&E
Security
HR
REFM
Legal
Internal Communications
etc
BIC Inventory & Working Capital
Workforce Mobility & Flexibility
High Efficiency Operations
M&A Excellence
Steering Group = Efficiency Board Sponsor = Region Head
Monthly Reporting
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 26
Are we in the right race?
How is our performance?
Did we get the result?
�E
ffici
ency
Boa
rd
�
LINE
EB
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 27
Timing & Content
Q1 Q4Q3Q2
Q Q QM M M M M M M
MonthlyPerformance Review
QuarterlyStrategic Alignment
Ad-HocApproval of new itemsDecisions on stopping/postponing on going changes
M Q
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 28
regional Portfolios to Steer
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 29
Monthly Status Reports
September
October
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 30
Summary
› Ensure company wide process governance and secure top level management ownership
› Standardize and harmonize processes top-down› Analyze local business environment and requirements› Establish a regional cross function / cross organization
steering board (Efficiency Board)› Decide on scope and prioritize regional change portfolio
and associated investments› Monitor on progress and value realization
How to accelerate savings via process management in a fast changing business environment?
Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 31