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PMITRANSCRIPT
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Page 1 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Wolfgang RaschkaNovember 19th, 2010 -
Milano
PM@Siemens Project Management
the
Siemens Way
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Page 2 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
IntroductionSiemensPM@Siemens
How to establish good project management in a companyStakeholder managementWhat are the different stakeholder expectations?
Siemens Focus Topic 1: ProcessesProcess and quality make the difference
Siemens Focus Topic 2: PeopleWell qualified project managers are a big asset
Siemens Focus Topic 3: TransparencyInformation is power
Maturity and Culture Change
Agenda
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Page 3 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Siemens
A global view
World leader
in electrical engineering and electronics solutions
Active in three sectors: Industry - Energy
Healthcare
Annual sales of 77 billion with more than 50% project business
Represented in more than 190 countries
Producing in
219 factories
405,000
employees
worldwide
More than 40.000 projects
per year
Roughly 17,000 project managers
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Page 4 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Edition 2001 Edition 2003 Edition 2009
No. of copies: 5,000
No. of copies: 11,000
No. of copies: 25,000
No. of copies: 25,000
Edition 2006
PM@Siemens
a brief history
In a heterogeneous world our project management standards were diverse.So were the project results!Thus, in 2000 Siemens started a project improvement program.The PM Guide has become our standard body.
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Page 5 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Edition 2009
Nr. of copies: 25,000
PM@Siemens defines PM standards in a guide with 12 modules and 55 requirements
PM@Siemens goals are:Harmonize Project ManagementImprove profitImprove qualityReduce risk
Most requirements were developed out of best practice examples
from the central
divisions and regional companiesSome of the most important binding standards
are
Project ProcessProject CategorizationProject Manager Development
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Page 6 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
The PM Guide is binding!
For all Siemens units involved in project business, it is a binding guide.
Besides that, it provides valuable practical advice and orientation for daily project work. Make use of it
for the benefit of our company!
Peter LscherCEO Siemens AG
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Page 7 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
PM@Siemens acts globally in the roll out of the program
Steering Committee
Innovation
Prof. Dr. Requardt
Board Member, Head
of Corporate Technology
Program
Director:
Dr. Schlo, CT O PM
Core
Team: W. Raschka,
Industry Energy HealthcareCorporate Units for Internal
Projects
Headquarters
USA
CAN -
Canada
MAM -
Meso-America
BRA -
Brazil
AAN -
Austral Andina
NWE
North West Europe
CEE
Central Eastern Europe
SWE
South West Europe
GER
Germany
MEA -
Middle East
RCA -
Russia/Central Asia
AFR -
Africa
SAS -
South Asia
NEA -
North East Asia
ASN -
Asean
PAC -
Pacific
Regional Clusters
Special Partners
PM Academy CMMI Assessment Unit
VorfhrenderPrsentationsnotizenIndustry: auf Division Ebene, nur Osram noch nicht, ist aber angeschriebenEnergy: auf Sectorebene mit etabliertem TeamHealthcare: offene Inkonsistenzen in den verschiedenen Beschreibungen, kein PM@Siemens Coordinator benanntSIS: etabliert und arbeitetSRE: etabliert und arbeitet, eventuell Wanderung in Community Internal Projects
CLUSTER:USA Coordinator nur von Community als Verwalter der Zusammenarbeit gewhlt, aber nicht von Cluster CEO empowertSehr schlechte Arbeitsgrundlage, Steuerung der Implementierung hngt vom Durchgriff der Sectoren abCAN arbeitet mit NWE zusammen und lt sich auch durch NWE im Global Coordinator Board vertretenMeso-America / Austral-Andinagut etabliert, mit Management Committment und eingespieltem TeamBrazil etabliert mit Management Committment, aber neuer Coordinator, luft gutGER etabliert, keine Beteiligung am Budget aber sehr engagierter CoordinatorNWE / SWE / CEE etabliert mit Management Committment, Spannungen durch Abstimmung Verantwortung zwischen Sector/Weltunternehmer und Clusterleitung; CEE hat krzlich Cluster Eastern Mediterranean integriert (war aber frher in unserem Hub MSE schon zusammen und klappt gut)Russia/Central Asia sehr engagiert und langjhriger Coordinator, Intensive Zusammenarbeit mit NWEMiddle East krzlich Zusammenlegung Middle East (wenig entwickelt und gerade Wechsel Koordinator) mit West Asia (etabliert, sehr konservativer und genauer Coordinator der gleichzeitig Q-Manager ist) unter Leitung des frheren West-Asia Coordinators; noch in vielen beteiligten Lndern im Anfangstadium der ImplementierungWestern & Central Africa neuer Cluster mit neuem Siemens Mitarbeiter als Coordinator, Fokusthema des verantwortlichen Cluster CEOSouthern Africa neue Coordinatorin, langsame aber stetige ImplementierungNorth East Asia neue operative Coordiantorin unter gleicher Leitung; Schwierige Situation mit SOC = viel Einfluss aus Sectoren ntig zur Untersttzung der Cluster-PM CoordinatorenSouth Asia gut etabliert mit neuem Coordinator, sehr viele Aktivitten in Indien / Cross-SectorPacific neu aufgesetzt mit kompetenter Fhrungskraft in der Rolle des PM Coordinator, noch in der Anfangsphase (Prozesse gut bearbeitet da vorher in CIO angesiedelt, aber Training / Karriere / MPM etc. noch nicht weit entwickelt)ASEAN Committment Management mit neuer Coordinatorin, derzeit in der Koordinationsphase da der Cluster neu gegrndet wurde und die Lnder noch nicht gut abgestimmt sind; auf dem Weg zur fortgeschrittenen Implementierung
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Page 8 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
With our 12 modules we focus on three main aspects
Transparency People
Processes
VorfhrenderPrsentationsnotizenYou probably know the output: our first PM Guide, edition November 2001. We documented seven modules with 29 recommendations.Cooperating with representatives of all groups in work teams, we completed the twelve modules and compiled the 53 recommendations in June 2003. We feel that this includes all relevant issues for an organisation to become truly efficient in managing their projects. Since then, we described many topics in more detail and included selected regions into this discussions.This last year was very busy, we developed new tools and many new standards: (for example) PM experience PMA+ Version 4 Worldwide Project Manager Database, integrated in IDD PM Future World for assessment and certification of all levels of Project Managers Uniform PM Categorisation A systematic process for CT SE assessment planning Detailed project definition Alignment of processes and roles with Siemens reference process house -- Above all, we created a new supporting organisation for the global roll out with our hubs (you) and new team members in the PM@Siemens Core Team.NOW it is time to communicate and implement all this! The newest edition of our PM Guide, integrating all these new topics, will be ready given the decision about the uniform project categorisation is taken in january 2006 for print in german and translation into english.
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Page 9 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
IntroductionSiemensPM@Siemens
How to establish good project management in a companyStakeholder managementWhat are the different stakeholder expectations?
Siemens Focus Topic 1: ProcessesProcess and quality make the difference
Siemens Focus Topic 2: PeopleWell qualified project managers are a big asset
Siemens Focus Topic 3: TransparencyInformation is power
Maturity and Culture Change
Agenda
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Page 10 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Organizational changeThe organization takes the lead defines processes and standards and works on continuous improvement.
People changeThe organization defines necessary roles organizes trainings and certifies its project managers and invites them to engage in further improvements.
Who are the stakeholders of such changes?Top managers lead the change.Line managers back the change.Project managers live the change.Project employees follow the change.
To establish systematic project management means to change the organization
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Page 11 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
What do the stakeholders expect from good project management?
Project ManagersProject team satisfactionSuccessful projects
Get clear decisionsGuidelines
Little mgmt. interferenceHelp from managementMethods and tools
Entrepreneurial freedomRoom for developmentContinuity and careerFair payment
ManagersCustomer satisfactionProfitable projects
Make clear decisionsNo project crisis
Stable project environmentMeasurementSimilar look & feel
A good overviewPortfolio managementResource planningReliable project managers
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Page 12 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
IntroductionSiemensPM@Siemens
How to establish good project management in a companyStakeholder managementWhat are the different stakeholder expectations?
Siemens Focus Topic 1: ProcessesProcess and quality make the difference
Siemens Focus Topic 2: PeopleWell qualified project managers are a big asset
Siemens Focus Topic 3: TransparencyInformation is power
Maturity and Culture Change
Agenda
Processes
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Page 13 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Most important improvements at Siemens include
... a standardized project management process
Clear decision making rules
Project categories Quality controls
plus
plus
Respective methods and tools
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Page 14 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Project categorization
helps
to focus
and distinguish
Clear System
Division into
Large Projects (A-C)
Small Projects (D-F)
Managers getA good overview
The basis for portfolio management
Project managers getRoom for development
A chance for continuity and career
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Page 15 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Standardized milestones
Clear inputs and outputs
Q-Gate systematic
Limits of Authority for decisions
A stable process is the backbone of successful project management
Leadmanagement
Projectacquisition
Bidpreparation
Contractnegotiation
Projecthandover
Project opening
& clearing
PM010 PM070 PM080 PM100PM020 PM040
Detailed
planning
Purchasing &
manufacture Dispatch
Construction/
Installation
Commis-
sioning Acceptance Warranty
PM200 PM500 PM600 PM650PM300 PM400 PM700PM670
QGQG: LoA Meeting
QGQG
Managers getStable project environment
Similar look & feel
Clear decision framework
Project managers getClear decisions
Guidelines
Tools
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Page 16 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Q-Gate concept enhances prevention
We achieve comprehensive transparency of the project status.Thereby, we focus on financial, technical and project managementaspects.
Readiness Check
Readiness Check
Structured & methodical
Proven by experts
Makes critical voices heard
Q-Gate
Q-Gate Meeting
Q-Gate Meeting
Clear transparent decisions
Clear escalation procedure
Management involvement
MeasureControlling
MeasureControlling
Sustainable implementation
Integrated in project plan
Clear responsibilities
Quality Manager
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Page 17 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
IntroductionSiemensPM@Siemens
How to establish good project management in a companyStakeholder managementWhat are the different stakeholder expectations?
Siemens Focus Topic 1: ProcessesProcess and quality make the difference
Siemens Focus Topic 2: PeopleWell qualified project managers are a big asset
Siemens Focus Topic 3: TransparencyInformation is power
Maturity and Culture Change
Agenda
People
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Page 18 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Mea
sure
s
Baseline:
PM career model
PM training and qualification (according to function by in-house Academy)
Certification and adequate assignment
Our way of project manager development
The project manager has to act as entrepreneurwith full profit and loss responsibility!
Obj
ectiv
e
Allow for knowledge and experience
Ensure
empowerment and responsibility
Give
Reward and recognition
Income, project
incentives, key
functions, other forms
of recognitionTarget agreements
Letter of empowerment
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Page 19 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
The PM@Siemens training and certification scheme
On the Siemens-internal job market, such certificates becomeindispensable
for a Project Manager Career!
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Page 20 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
E
F
D
C
B
A
Project Engineer
Project Manager
Senior PM
PDir
PM
Small Projects
Training
Certification
yearly staff dialog
17.000 Project Managers
5.600 certified
assignedProject category
The project manager career path
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Page 21 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Participants in PM Curriculum (cumulated)
2687
5499
830810599
12902
1565518152
20704
2002 2003 2004 2005 2006 2007 2008 2009
Participants in PM Learning Progr. (cum.)
52 239604
1169
1868
2718
3521
4322
2002 2003 2004 2005 2006 2007 2008 2009
Global PM@Siemens Training Programs
The importance of training: PM Academy
Global standardized development
We trained approx. 21.000 employees in Siemens PM standards.
More than 4.300 Project Managers took learning programs to prepare for certification.
The training and development offers are now available worldwide.
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Page 22 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
IntroductionSiemensPM@Siemens
How to establish good project management in a companyStakeholder managementWhat are the different stakeholder expectations?
Siemens Focus Topic 1: ProcessesProcess and quality make the difference
Siemens Focus Topic 2: PeopleWell qualified project managers are a big asset
Siemens Focus Topic 3: TransparencyInformation is power
Maturity and Culture Change
Agenda
Transparency
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Page 23 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%
Gross Margin (OEC)
Gro
ss M
argi
n (F
C)OI before FY 2009
OI in FY 2009OI in FY 2010 before FY 2009 FY 2009 FY 2010
Plan
We measure our success in facts and figures
Gross Margin Development
We look at each project and compare the earnings calculated at the time of the order entry with the monthly updated forecast.
A simple graph shows the improvements and the slippages.
Raw data allow for manifold analyses.
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Page 24 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
not only for one project, but for our project portfolio
No. of projects xxx
Total project volume FC yyy
No. of projects FC < OI calc. xxx
Corresp. to EBIT / GM yyy
No. of projects OI calc. < 0 xxx
Corresp. to EBIT / GM yyy
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Page 25 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
We measure the implementation of our program
Status of reporting: Q1/FY 2006Level of Implementation -
Siemens total IL 1Implementation level 1
decision in favor of implementation
There is a concrete goal.
IL
2
Implementation level 2
the PM@Siemens requirement has been analyzed and quantified
The actions for implementing the PM@Siemens requirements are clear and have been described, the potential has been quantified; responsibles have been appointed.
IL
3
Implementation level 3
action has been elaborated and is being implemented
There is a concrete action plan with deadlines, responsible parties and milestones up to DI 4 to which all those involved have given their commitment.
IL
4
Implementation level 4
action has been taken
The action plan has been completed in full, all those affected have been informed or instructed accordingly.
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Page 26 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
We also create operational transparencyProactive opportunity & risk management, claim and
change order management in projects
Monthly / quarterly forecasts in projects (costs, efforts, timelines, measures)
Timely involvement of management (Status Meetings)
Regular analysis of Non Conformance Costs (NCCs)
With all that managers getProfitable ProjectsNo Project CrisisStable Project EnvironmentOpportunity to measure
Project Managers getSuccessful ProjectsMethods and ToolsHelp from ManagementRoom for Development
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Page 27 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
IntroductionSiemensPM@Siemens
How to establish good project management in a companyStakeholder managementWhat are the different stakeholder expectations?
Siemens Focus Topic 1: ProcessesProcess and quality make the difference
Siemens Focus Topic 2: PeopleWell qualified project managers are a big asset
Siemens Focus Topic 3: TransparencyInformation is power
Maturity and Culture Change
Agenda
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Page 28 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
The clear direction: From compliance to culture change
Implementation
Delivery of Change
Movement of Organisation
Measure of Compliance
Intense program, long duration. Requires continuous drive. High potential to regress !
Realization
Assessment of Relevance
Definition of Priority
Development of Program
Relatively short duration
1
2
3
4
0
Level of Implementation
time
COMPLIANCEImplementation of change to process and structure in line with 53 recommendations.
Maturity
Ownership of Change
Continuous Improvement
Measure of Performance
CULTURE CHANGEEmbedded processes, aligned with business need, driving improved performance.
CULTURECHANGE
Continual Evolution !
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Page 29 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
We now implement continuous improvement
Measures
Standard
Time
Process Maturity
Initial
Repeatable
Defined
Managed
Optimizing5
Impr
ovem
entSiemens
Target: 3,0
Achievable:4,0
6
2
34
5Monitoring
Targets
ProblemAreas
LeversMeasures
Imple-menta-
tion
1
ContinuousImprovement
Process
Implementation
Delivery of Change
Movement of Organisation
Measure of Compliance
Intense program, long duration. Requires continuous drive. High potential to regress !
Realisation
Assessment of Relevance
Definition of Priority
Development of Program
Relatively short duration
1
2
3
4
0
Leve
l of I
mpl
emen
tatio
n
time
COMPLIANCEImplementation of change to process and structure in line with 53 recommendations.
Maturity
Ownership of Change
Continuous Improvement
Measure of Performance
CULTURE CHANGEEmbedded processes, aligned with business need, driving improved performance.
CULTURECHANGE
Continual Evolution !
LoI 4 ?
Achieving LoI 4 is only the Start
Commitment must Continue !
Capability Maturity Assessmentvia
MPM1).
Assessments
Help the organisation identify strengths and weaknesses
Define improvement measures which when adopted, lead to higher levels of process Maturity
Help to improve Customer and Employee Satisfaction and Loyalty
1)
MPM Assessment = Maturity in Project Management
4
3
2
1
VorfhrenderPrsentationsnotizenWe need a continuous improvement process Implementing PM@Siemens is not a once-done-and-forget-about-it process.It is an ongoing process. And the results need effort to be maintained as business, people and organizations change.This can only be achieved by a profound culture change.For example: the recent PM@UK conference in Birmingham with over 180 participants had the cultural change and how to embed this behavior in everybody's daily life as main topic!The key steps to improve your maturity in project business are plotted in our initiative and constantly communicated by all representatives:Start to implement the recommendations and monitor your progress with the scorecardImprove individual projects management by using PMA+ with the team and a coachUse MPM assessments to get a neutral expert view on your achievements and room for improvementThan we move to a better project performance!
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Page 30 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Conclusion: Four Steps to Success
Identify all internal stakeholders for project management
development
Line managers
Project managers
Project employees
Others (e.g. HR)
Identify all internal stakeholders for project management
development Line managers Project managers Project employees Others (e.g. HR)
Analyze the different expectations and try to align them
Management must be in the drivers
seat.
Project managers must help in the
organizational development.
Analyze the different expectations and try to align them
Management must be in the drivers seat.
Project managers must help in the organizational development.
Set ambitious targets on various aspects of project management,
e.g.:
Processes and roles
Standards, methods and tools
People development
Transparency and measurement
Set ambitious targets on various aspects of project management,
e.g.: Processes and roles Standards, methods and tools People development Transparency and measurement
Take your time and dont rush. Maturity may take a while!
Set implementation targets and
measure them
After some years, start to measure your processes and operational results.
Take your time and dont rush. Maturity may take a while!
Set implementation targets and measure them
After some years, start to measure your processes and operational results.
The drivers for these goals:
PMOs
around
the
globe!
Only an empowered PMO can reach both
the development of the organization and
the development of our project managers!
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Page 31 Copyright Siemens AG 2010. All rights reserved.Wolfgang Raschka, CT O PM
Wolfgang RaschkaPrincipal ConsultantSiemens AG, MunichCorporate Technology, CT O PMmailto: [email protected]
PM@Siemens Project Management
the
Siemens Way
Thank
you
for
your
Attention!
PM@SiemensProject Management the Siemens WayAgendaSiemens A global viewFoliennummer 4PM@Siemens defines PM standards ina guide with 12 modules and 55 requirementsThe PM Guide is binding!PM@Siemens acts globally in the roll out of the programWith our 12 modules we focus on three main aspectsAgendaTo establish systematic projectmanagement means to change the organization What do the stakeholders expectfrom good project management?AgendaMost important improvements atSiemens include Project categorization helps to focus and distinguishA stable process is the backbone of successful project managementQ-Gate concept enhances preventionAgendaOur way of project manager developmentThe PM@Siemens training andcertification schemeTrainingCertificationyearly staff dialogFoliennummer 21AgendaFoliennummer 23Foliennummer 24We measure the implementation of our programWe also create operational transparencyAgendaThe clear direction:From compliance to culture changeWe now implement continuous improvementConclusion: Four Steps to SuccessPM@SiemensProject Management the Siemens Way