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

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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

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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 Excellencemichael.ballasiotes@Electrolux.com

Dan LingPcubeddan.ling@pcubed.com

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