2. Cooking Up a Well Seasoned Global Portfolio & the Recipe for the Secret Sauce Mike Ballasiotes Electrolux Project Management Center of Excellence Dan Ling Pcubed PC228

6. Most people in the US will say vacuum cleaners What do you think of when you hear Electrolux? Were actually the second largest appliance maker in the world

7. Our brands

8. 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 year To meet the real needs of consumers and professionals 50 MILLION 150 MARKETS People 59,000 in 60 countries 60 COUNTRIES Electrolux 2012

9. 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

10. Electrolux IT Background & vision Project overview Global factors Lessons learned

11. Electrolux IT Background & vision Project overview Global factors Lessons learned

12. 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 Argentina Australia Austria Belgium Brazil Canada China Colombia Czech Republic Denmark Ecuador Finland France Germany Greece Hungary India Indonesia Ireland Italy Japan Luxemburg Mexico Netherlands New Zealand Norway Peru Poland Portugal Romania Russia Singapore Spain Sweden Switzerland Thailand Ukraine United Kingdom USA Venezuela

13. Number of users and applications Users: 5200 Applications: 384 Locations: 34 Supported Languages: 1 Users: 15 000 Applications: 461 Locations: 206 Supported Languages: 15 Users: 4000 Applications:148 Locations: 30 Supported Languages: 3 Users: 2941 Applications:116 Locations: 86 Supported Languages: 6 Total Users: 27,141 Applications: 1109 Locations: 356 Countries/Languages: 48/22 Data center Pordenone Data center Charlotte

14. IT organization

15. Electrolux IT Background & vision Project overview Global factors Lessons learned

16. Previous attempts to globalize project management did not achieve adoption Lack of collaboration Overly complex, rigid implementations Attempted to adopt one regions 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

17. Drive organizational efficiency and excellence in project delivery through the development and standardization of a global IT governance methodology, processes, and tools Vision

18. Deployment Strategy Evolve the maturity in organizational program, project, and project portfolio management capabilities to more effectively deliver benefits Maintain simplicity with initial implementation Realign & re-plan after each phase

19. 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

20. 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 Rollout Aligned Portfolio March 2013 Optimized Portfolio Time Tracking Sept. 2013 Integrated Delivery Optimized Resources Jan 2012 Kick -off

21. Program scope Phase I Portfolio management Project management Reporting Issue & risk management Document management Phase II Time management Resource management

22. Target Results 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 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

23. Electrolux IT Background & vision Project overview Global factors Lessons learned

24. Project organization Countries Represented: Belgium, Brazil, Holland, India, Italy, Sweden, UK, United States, Singapore, 1 st Languages Dutch, Danish, English, Hindi, Italian, Portuguese, Swedish

25. Layered Team Approach Core 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 Final process and deliverables approvals Approves roadmap Key decisions Held extended team meetings to validate design and support adoption

26. 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

27. 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

28. Production Project Center View For the first time, all IT projects are visible and governed through a consistent process.

30. Electrolux IT Background & vision Project overview Global factors Lessons learned

31. The Secret Sauce LanguageCulture

32. 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 cant 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

33. TimingCulture

34. English is a second language for most in global organizations Just because it is spoken well doesnt mean its well understood A high percent of what you say can be misunderstood Participants may not acknowledge they dont 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

35. TimingLanguage

36. 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 dont 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

37. 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?

38. Training completed in March with stability achieved in June and pipeline filling through October Total of all projects, all phases Projects in Execution

39. 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

40. 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 Rollout Aligned Portfolio Jan 2014 Optimized Portfolio Time Tracking Dec 2014 Integrated Delivery Optimized Resources Jan 2012 Kick -off

41. Electrolux IT Background & vision Project overview Global factors Lessons learned

42. 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

43. Questions? Mike Ballasiotes Electrolux Project Management Center of Excellence michael.ballasiotes@Electrolux.com Dan Ling Pcubed dan.ling@pcubed.com

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