The history of PROPS The art of developing a method for a multinational project culture - then getting it launched and used! ERICSSON 2Publisher: Projectivity Support Group Ericsson Infocom AB Box 1038 5-651 15 Karlstad The contents of this book are protected by Swedish law (1960:729), and may not be reproduced or distributed in any form without the written consent of Ericsson Infocom AB. This prohibition covers the entire book and parts of it and includes storage on electronic media. © Ericsson Infocom AB, 1997 The history of PROPS Contents Preteen ese ies eg nes aieapaii 3 Development......... 0.0.00 ereceeeee eee: 5 Project management under the spotlight .... 5 The PROject for Project Steering . 6 The first version of PROPS .. 7 The general project model. . 9 Successes . “10 From PROPS to projectivity at The organization supporting PROPS . 13 Clear ownership responsibility. . . 1B Projectivity Support Group .. 14 The global network . 15 The Wenell Group . . 7 Reasons for success 19 Management support . 19 A structured method based on. operations teZ0, User-friendly material Implementation . Perseverance .... Training... .The history of PROPS Preface Preface Ericsson is one of the world’s most successful telecommu- nication companies with over 90,000 employees in more than 130 countries, During the 1980s, the company won great success with its AXE switchboard. Now, in the 1990s, the success is continuing as the market for mobile telephony expands at a rapid rate. Eriesson’s success has been built on its ability to provide the market with the right product at the right time, at the right price and with the right quality. This can only be achieved with short lead-times and high quality both in processes and products. Research and development are decentralized within Ericsson and carried out in project form using resources from all over the world. Co-ordinating these widespread activities requires a shared project culture and a shared terminology. This is where PROPS, Ericsson’s corporate method for project management, plays a key role. PROPS was originally developed in the late 1980s for technical projects within Ericsson’s public telecommuni- cations business area, especially AXE projects. Today, PROPS has developed into a general method for projects throughout the whole company. It has become a well esta- blished and natural part of Ericsson's project culture.The history of PROPS Ericsson’s successes in managing projects have also been noted outside the company. The method is currently being implemented at two major Swedish companies and others are expected to follow suit. PROPS has become an important chapter in Eriesson’s history which we intend to illustrate in this booklet. In it we explain why a shared method was needed within Ericsson and how the method and infrastructure was developed from the end of the 1980s until the present day. The unique thing about PROPS is its wide-scale use. That is why we devote so much space to the art of getting a met- hod accepted and used in a multinational project culture. I would like to extend special thanks to my colleagues who were involved at the start of the PROPS story — Carola du Rietz, Owe Andersson and Erling Johansson. I would also like to thank Ericsson’s management for the support they have given PROPS, especially Bo Hedfors, one of the most loyal PROPS sponsors. Catarina Meland Projectivity Support Group Ericsson Infocom AB Development Project management under the spotlight At the end of the 1970s Ericsson launched the AXE switchboard on the international telecommunications market with a major installation in Saudi Arabia. The in- stallation was managed as a project and was soon followed by new orders, and therefore new projects. At that time, Ericsson focused on one project at a time. Line managers worked as project managers, which meant that there was rarely any competition over resources bet- ween line and project organizations. About 1985 Ericsson was faced with a new situation. Ericsson Telecom received two major AXE orders which meant that two systems had to be developed, delivered and installed at the same time. This set new demands on an organization which would have to conduct several pro- jects in parallel and at a decentralized level. The customers, telecom operators in the UK and the USA, had specific demands for how Ericsson should perform the project. Roles and areas of responsibility within the pro- ject required clarification, as did their relationships with customers and suppliers. The need for improvements in Development oThe history of PROPS: project management was also emphasized by consultants from MacKinsey who had surveyed Ericsson’s technical development within AXE. In order to secure the continued success of AXE techno- logy, and of Ericsson itself, a project method was needed which would ensure the quality of a project while develop- ment operations were decentralized to development departments all over the world, The PROject for Project Steering In the mid 1980s there was a small unit within Ericsson Telecom comprising of four people. It was called Project Management Support and it worked as an internal con- sultancy for projects. Among other activities, the unit trai- ned around 50 project managers per year.The unit had its own model, The Project Process for System Design, which described the various phases in a development project in terms of a series of decision points. The model also made clear demands for project documentation. Tn 1987 this unit was given the task of developing its model into a project method for technical development within Ericsson’s business area for public telecommunica- tions. The PROject for Project Steering (which became the acronym, PROPS) was initiated with strong and commit- ted leadership support from primarily Bo Hedfors —.then the technical manager of the business area. Thus, the ground was laid for PROPS. Development The first version of PROPS The method underwent intensive development in 1987-88 as working groups were formed that included skilled and experienced project managers from throughout Ericsson. The new method would make the most of the experience already gained by Ericsson staff, borrow ideas and seek inspiration from other companies such as British Telecom (who was setting the requirements) and IBM (who provid- ed the idea for the U). A team of consultants from the Wenell Group, already ex- perienced in the training of Ericsson's project managers, were brought in as advisors in the development work. Their views on projects and project management proved to be an important source of information. The first version of PROPS was mainly de- Pp R OPS signed for AXE technical development projects. It : j was released in Septem- ber 1989 and consisted of a number of docu- ments in A4 format, stored in a ring binder. ‘Training, The initial reception was not welcoming— “Not another binder!” — and users demanded more accessible materi- al. Difficulties in getting PROPS accepted throughout the organi- | zation indicated the need for more active internal marketing.The history of PROPS The requirements lead to further development of the product. This was when the well known PROPS boxes were created — tool boxes that contained handbooks, guides and temp- late documents. At the same time, a project was started for the implementation of the method. These measures pro- ved to be key factors in the success of PROPS. Another task was to adapt PROPS to the international market, taking into account cultural and language diffe- rences. The first version was tested on around 30 project. managers from various parts of the world. This is when the idea of creating a global network of PROPS consul- tants was born. Development The general project model In just two years, by 1992, the first version of PROPS had strongly established itself globally in AXE operations. PROPS provided a shared project language and a uniform way of working. This increased customers’ confidence in the way Ericsson worked and brought new market successes. Atthesametime, _ other Ericsson business areas and depart- ments began to > show an interest in PROPS. The method was further develo- ped as a more ge- neral method for all types of activi- ty and all kinds of organization. The new general PROPS method was developed in close consulta- tion with PROPS consultants and thus with users all over the world. The new version was much more business and profit oriented. By providing a holistic view of project work and by describing the different roles in project work, and the relationships between the roles, PROPS gave support notThe history of PROPS only to project managers, but to line managers and pro- cess owners as well. The second version of PROPS was released in April 1994 and completely replaced the first version. This was made possible by a large scale implementation project which lasted a year. Successes Two years after its launch, the general version of PROPS had become an accepted part of Ericsson’s project culture. By the end of 1996 more than 12,000 PROPS documenta- tion boxes had been distributed, which meant that one in eight employees had access to a shared project model. More than 10,000 employees from all over the world had taken part in a PROPS training course. PROPS has also attracted interest among project mana- gers from outside the Ericsson Group. While PROPS was still under development, a major Swedish company show- ed interest and began developing its own model, helped by personnel from Ericsson Infocom. The method has also been presented at international con- ferences in Stockholm in 1988, Copenhagen in 1990 and Florence in 1992. It has earned good marks from indepen- dent researchers in project management. The importance of PROPS as a project management method for the entire Ericsson organization is reflected in the fact that future development of PROPS will be carried out in co-operation with a corporate product advisory board. Development From PROPS to projectivity The project working form is now clearly established with- in Eriesson. PROPS has helped to highlight the role of the project manager and the need for a well planned strategy for developing project management competence. A lot still remains to be done, but the professionalism of Ericsson’ project managers has undoubtedly been strengthened. PROPS provides Ericsson with a firm platform on which it can build greater maturity into its projects. But even though a shared method with structured ways of working is important, it cannot solve every problem. Projects must be co-ordinated, routines must be created which guaran- tee that resources are used effectively, processes must be developed which support projects, etc. By moving the focus away from the individual project to a higher management level, PROPS has shown the dem- ands that a company must meet if it is to manage its busi- ness efficiently and successfully in project form. This is where the term ‘projectivity’ comes in. Coined by Torbjérn Wenell of the Wenell Group, it stands for “an organization's ability to use the project form to reach its goals”. ‘The Ericsson department responsible for PROPS is now offering a series of projectivity services to support Ericsson’s projects. Examples include project analysis, PROPS implementation, support during project start-up and during project planning, and risk analysis. The department also conducts PROPS training courses all over the world. 1The history of PROPS The organization supporting PROPS The organization supporting PROPS Clear ownership responsibility A fixed organization with clear responsibility for method ownership is a vital precondition for the full development of a method and ensures support for its users and regular communication with them. Such an organization has de- veloped for PROPS as the method has become more and more successful and increased in strategic importance. Responsibility for PROPS rested initially with Project Management Support within Ericsson Telecom. The group was responsible for method implementation, user support and training. Technical information specialists at Ericsson Infocom AB (then called Programatic) in Karlstad, Sweden, were cal- led in to rework the documentation for the first version of PROPS and to design the PROPS boxes. This partnership would gradually be made wider and deeper. When the project to develop a general version of PROPS began, a project organization was formed that included personnel from both Project Management Support and Ericsson Infocom. This co-operation was formalized even further with the launch of the general version and the 12 13The history of PROPS 14 formation of Project Management Training Center. Ericsson Infocom took over operational responsibility for PROPS training throughout the Ericsson Group. Projectivity Support Group In July 1994, Project Management Support was trans- ferred from Ericsson Telecom to Ericsson Infocom’s office in Kista, Sweden. Thus, all PROPS activities were gath- ered within one organization. Since the start of 1996 PROPS has had its own operation, Projectivity Support Group, with a staff of around 50 Ericsson Infocom employees based at two sites, Kista and Karlstad. Most of the staff work either as in- structors or as course administra- tors. The group also provides other ¢on- sulting services, such as risk analy- sis, PROPS imple- mentation, and support in the development and application of PROPS for various types of projects, called PROPS applications. A team of experienced project managers is also linked to the group. They are ‘hired out’ for short or long assign- ments in order to support projects and help project man- agers within Ericsson. ‘The organization supporting PROPS The global network Projectivity Support Group has concen- trated hard on gi- ving support to the network of PROPS consultants that was formed in 1989. A member of the group has responsibility for maintaining and developing the net- work and distri- buting news and information to con- sultants via memo and a newsletter. Consultants are offe- red training, support via a helpdesk and help with information material, such as posters and information for articles in in-house journals. The global network of PROPS consultants has been very important for the implementation and further develop- ment of PROPS. PROPS consultants act as ambassadors for PROPS within the Ericsson organization and have an important role to play providing local support. PROPS consultants provide valuable feedback to Projectivity Support Group, are an important source of experience and make suggestions for improvements. APROPS consultant knows all about their local company, can speak the local language and understand national and cultural characteristics. This knowledge is very important. as PROPS develops as a multinational method that can be adapted to different cultures.The history of PROPS 16 PROPS consul- tants are ap- pointed by their local or- ganizations and are specia- lists within a certain field. They can prov- ide concrete and valuable help to project managers, line managers and other people within their organization who are involved in project work. The role of the PROPS consultant is to inform, motivate, support and initiate activities that are related to PROPS. ei Fie BAINITIATE 4, SUPPORT” Consultants must have project management skills, be good presenters and have respect within their organiza- tion. They must also have a deep understanding of PROPS. To ensure this, Projectivity Support Group car- ries out special training for PROPS consultants. Three seminars were held in Stockholm, Haag and Dallas in 1989 in order to discuss the first version of PROPS. The network was formed in the spring of 1990 at a seminar in Sunne, Sweden, at which 27 PROPS consultants from the public telecommunications business area participated. Since then, Projectivity Support Group has arranged an- nual seminars for PROPS consultants in order to provide a forum where members can make new contacts and learn from each other’s experience. Over the years seminars have been held in Segovia, Stockholm, Copenhagen, Ro- me, Rijen, Dallas, Melbourne, Lund and Amsterdam. Each The organization supporting PROPS seminar has been attended by between 20 and 80 PROPS consultants. By the end of 1996, the global network of PROPS consul- tants had over 100 members at about the same number of units in the following 25 countries: Australia, Austria, Brazil, Canada, Chile, China, Denmark, Finland, France, Germany, Greece, Holland, Hungary, Ireland, Italy, Japan, Malaysia, Mexico, New Zealand, Norway, Spain, Sweden, Switzerland, the UK, USA. By acting as an instrument for the distribution of informa- tion and the exchange of experience between different parts of the Ericsson Group, the PROPS consultants net- work actively contributes to the improvement of working methods and project management within the company. The Wenell Group As early as 1994 personnel from Ericsson were involved in developing and implementing a general model of project management, based on PROPS, within a major Swedish company. In order to meet the external interest that has been shown in PROPS, Ericsson signed a joint venture agreement in 1997 with the Wenell Group. The agreement gives the Wenell Group the right to offer PROPS as a platform for developing project methods and making them more effi- cient. The target groups are companies and organizations throughout the Nordic countries. 17The history of PROPS Reasons for success Reasons for success A model for project management might be a world beater, but if it is not accepted and used then it will never do any- thing to improve operations and make them more effi- cient. Within Ericsson, with the full support of management, a well structured method has been developed based on ope- rations, and packaged in a way that is easily accessible. Through successful implementation followed by success- ful training and, just as important, a determination to see the method fully established, a platform has been built for Ericsson’s continued success. A success based on efficiency and a focus on business in every project. In this chapter we will take a closer look at the reasons for the success of PROPS. Management support Strong support and commitment from top management have been vital preconditions for the acceptance of PROPS throughout Ericsson. The project working form has beco- me more common and more important in terms of redu- cing lead-times, raising efficiency and improving quality. 18 19The history of PROPS 20 Ericsson’s management has seen PROPS as an investment. in increased efficiency and an important means of achiev- ing Total Quality Management. PROPS is recommended as a shared corporate tool and considerable resources are channelled into further development and implementation of the method. A structured method based on operations PROPS provides support for Ericsson’s working methods that are themselves based on modern industrial processes. A process-oriented operations system provides a good over- all picture of the company and a clear description of oper- ations. The processes clarify roles and areas of respon- sibility in the development chain and explain how these roles are co-ordinated, internally and externally in rela- tionships with customers and suppliers. A process-oriented operations system requires high levels of participation and clearly defined rules. Everyone within the company must understand their importance for the company as a whole. To avoid conflicts of interest between the line and project organizations, responsibility and au- thority must be defined clearly in the company’s opera- tions system. The various roles in a project are defined clearly in PROPS and it is stressed that the responsibilities and authority attached to these roles must be equally clear. A clear and consistent use of symbols, colours and graphics enable roles and responsibilities to be monitored throughout a project. Reasons for success Described in diagram form, PROPS consists of a project model —the blue U — divided into four pha- ses, This is where project administration activities are described along with the project documentation. The general model is al- ways the same from pro- ject to project. A working model — the yellow U — is added to the project model and descri- bes the result-oriented activities which must be performed and the documents which must be written in order to achieve the project’s goals. The yellow working model is different for different types of project. : The project model and the working model are kept to- gether by green milestones which represent specific goals. Milestones are defined within a project so that the project manager can check that the planned results are actually being achieved and that the project is on the right track. Red tollgates indicate superordinate decision points when the project’s sponsor — the person who ordered the project internally, reach agreement about whether the project be continued according to plan, whether it should change direction, or be cancelled outright. Tollgate decisions are commercial decisions based on the benefits for the com- pany itself and the customer, on how effectively the project is using the company’s resources and on the results that are being achieved by the project. 21The history of PROPS 22 PROPS is based on Total Quality Management (TQM) in order to achieve customer satisfaction and is characteri- zed throughout by a focus on business and quality. Regu- larly recurring decision points and check points require disciplined and clear thinking. By focusing on the early stages of a project, the method makes sure that things are done correctly, right from the start. This attitude can be summed up in the phrase “We haven’t got time to rush things!”. The model is sufficiently ge- neral to suit all kinds of projects and all forms of operations, from developing pro- ducts and servi- ces to carrying out a specific customer order. PROPS helps to raise the perspective of project members from the immediate concerns of the, pro- ject to the larger picture that includes the surrounding or- ganization. Reasons for success User-friendly material In order to give users effective support in their project work, PROPS documentation in the form of handbooks and templates has been made as user-friendly as possible. For many products, especially computer software, users can often guess what to do without the need for instruc- tions or handbooks. This is not the case for a method, which is often a very abstract thing. In such a case, the do- cumentation often is the product. The first PROPS binder was strongly criticized and it was clear that the documentation needed significant improve- ment. The basic guideline was to give everyone the right information at the right time. An overall structu- re was set for the documentation and the target groups for each different chapter were defi- ned. This led to the creation of a toolbox — the PROPS box, consisting of uni- formly designed sections for diffe- rent categories of personnel in diffe- rent situations. It included posters featuring the PROPS U, handbooks for specific users, documentation instructions and detailed textbooks. A spe- cial terminology guide was included in order to encourage a shared terminology. 23‘The history of PROPS New media have been used to make the material even bet- ter and easier to use. The entire PROPS documentation, together with standardized templates, is now available on-line via the PROPS home page. Experience from PROPS shows that methods must be do- cumented in a very user-friendly manner, otherwise they will not be used at all — no matter how good they are. Implementation With the support of management, a well-documented met- hod and user-friendly materials, the ground had been laid for the most important thing of all — getting the method widely known and used. The implementation project cove- red planning and execution. It was based on two impor- tant preconditions: Implementing the method (just like developing it) must be customer-oriented. A method must be assessed like any other product or service. It must be marketed and sold if it is to yield results. Implementing the method requires, and must always require, resources in terms of time and money. The first version of PROPS cost about three times as much to im- plement as it cost to develop. This has since become a guiding figure for the introduction of new methods within Ericsson. Implementation of the first version of PROPS was mana- ged by Project Management Support with support from PROPS consultants. The target group was limited to pro- ject organizations within AXE development. Group mana- gement gave considerable support to marketing. Reasons for success A support project called Sunrise was planned for the launch of the second version of PROPS. Responsibility for implementation was kept at a local level, that is the organizations who would be using it. PROPS consultants played a very important role in the release of the second version. The reason for the change was that, the more ge- neral the nature of the method, the greater the emphasis on describing how it would be used among different orga- nizations. This could only be done locally. Project Manage- ment Support advised the local line organizations and provided marketing materials and other information acti- vities. Implementation was planned in parallel with develop- ment of the method. It was important to solve preparatory questions at an early stage, questions such as who the tar- get group was, what sort of media would be used for diffe- rent types of information, the structure of the informa- tion, layout, phasing out of existing materials, communi- cation plans, ete. The target groups for the various information activities existed at all levels of the organization, from top manage- ment down to project members. Marketing covered speci- fic information for specific groups and general information for everyone in personnel magazines, on posters and in direct mailings. Conventional marketing and sales methods were used to produce the presentation material. Clear and simple sym- bols were chosen for their recognition value. The PROPS U became well known throughout the Ericsson Group. High quality information material available to everyone meant that no-one had to make their own overheads, for example, or produce any other type of material. This 25__The history of PROPS 26 strengthened the professional image and provided good PR. PROPS and services linked to PROPS are currently pre- sented in brochures, product sheets, overheads, special editions of articles written about PROPS, and gift items promoting the product. An unusual type of promotion ar- ticle is the small pocket-sized plastic cards which describe the Tollgate model. The target group, managers, are very pleased with this type of brief, user-friendly information. Implementing a new method also entails phasing out an old one. This must be done successfully if the new method is to function as intended. During the launch of the first version of PROPS, great im- portance was attached to information about the method, especially the benefits of the method compared with other methods. Two types of phasing out operations were planned for the launch of the second version; firstly, replacing other met- hods with PROPS; secondly, replacing the first version of PROPS with the second version. The first version, which was designed for a specific and limited target group, had been well received, was well established and well used. The second version, which was more general, might not have been seen by the original target group as an impro- vement. In these cases it was important to stress the be- nefits of having a common method. Reasons for success Perseverance Introducing a new method like PROPS means changing the way people work. Inevitably, this takes time, especially in a global organization with many independent units. Work on PROPS has been carried out systematically and, over the long term, with a great deal of humility and pa- tience. The result has been a common model, with a com- mon view of project work. The aim has been to make projects run more efficiently with shorter lead-times and a quality-assured result. There have been several alternative project methods with- in Ericsson, mainly ones that were tailored specifically to certain operations. These methods have had strong sup- porters, both among users and the people who developed them. It was not thought necessary to introduce PROPS in these instances. However, attitudes have changed. People have seen the benefit of using shared terminology and a shared project culture. Ultimately, this is what it is all about — changing attitu- des and enabling something new to grow within the orga- nization, step by step. It is not enough to just send out a series of documents and say, “Do this!” The reasons for using the method must be explained, along with the ef- fects for both the individual and the organization. The functions that will be affected must be clearly listed. By creating positive expectations and motivation, people will become receptive to, and curious about, what is new. The documentation will be in demand. It will be discussed and used instead of lying on a shelf collecting dust. 27The history of PROPS 28 The road towards this end is often long and troublesome. Great patience is required. Large changes are not achie- ved overnight. Training Once we had a common project method, we needed to teach it. Previously, training in project management had been carried out by different units within Ericsson and there was little co-ordination. In order to achieve a uni- form training programme, the Project Management Training Center was formed in 1994. The aim was to organize and sell scheduled and customer- adapted training courses to users of PROPS, both within Ericsson and externally. The training programme was di- rected at all possible users, from project members to ad- vanced project managers. A lot of hard work went into the content of the courses and the educational methods used. The quality of the courses and the competence of the ins- tructors have been assured by the introduction of an authorization programme for instructors. Reasons for success When PMTC started up in 1994, the first version of the “PROPS Project Management” course had recorded 1,200 participants since 1990. Since then, the range of courses has widened and the number of participants has increased considerably. In 1996 the following five courses were offered throughout the world by the Projectivity Support Group: * Basics about PROPS * PROPS for Project Managers * PROPS for Line Managers * Human Skills for Project Managers * PROPS - Project Planning More than 10,000 people within Ericsson have participa- ted in one of the five courses, and demand for the courses remains high. The success of the courses shows that both PROPS, and the teaching methods, function well in an international envi- ronment. Ericsson Infocom is currently engaged in develo- ping a comprehensive competence development pro- gramme within the field of project management, covering everything from basic introduction courses to a program- me for senior project managers. 29Ericssons 90 000 employees are active in more than 130 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in tele- communications. Eriesson Infocom AB with 360 employees is a product and development company in the field of mobile telecommuni- cations. Information about ordering PROPS documentation is presented on the previous page. Ericsson Infocom AB Box 1038 EN/LZT 108 104 RL $-651 15 Karlstad