Global Project Management

Best Performance Around the World

English
 t
en
itm
m
om C

Commitment
Foreword

Dr. Klaus Kleinfeld

CEO of Siemens AG

Good project management is a critical factor for success for infrastructure

companies like Siemens. We generate more than half of our business
through projects, most of which are the responsibility of the Groups.
PM@Siemens now covers the lion's share of the project volume within the
Groups and Regions. The positive experiences we made during the rollout
thus far have been steadily incorporated into the initiative's goals and
activities. We are also strengthening our local project management
capabilities by establishing regional PM centers.
The subject of project management is at the very top of my personal
agenda. My particular focus is on developing a career model specific to
project managers. And I am especially pleased that it is developing well
as part of our “People Excellence” program under Fit4More.
This fourth edition of the PM guide offers concrete recommendations for
action for successful project management based on best-practice sharing
throughout Siemens. Now it's up to all of us to work together to make
“Project Management – the Siemens way” a permanent part of our
corporate culture. Because a high degree of professionalism in our
projects will yield the added value our customers demand and this, in
turn, contributes to more profitable growth for Siemens. Both are critical
to our success.

Dr. Klaus Kleinfeld

5
Operational excellence is the prerequisite to reach our profit and growth tar-
gets. The top+ philosophy and the Siemens Management System with the com-
pany programs Innovation, Customer Focus and Global Competitiveness are a
solid base for driving and supporting successful business.
And PM@Siemens is an important initiative for our project-oriented business
which accounts for 50 % of the whole company. So, excellent project manage-
ment is crucial for the global competitiveness of those businesses. Successful
project management first of all is continuous and sustainable improvement of
the processes towards process excellence. This has to be done in all project-
related businesses and especially in line with the specific business require-
ments.
PM@Siemens as an overall Inititative supports this by
Harmonization and standardization of processes, methodologies and tools
Offering a platform for best practice exchange and transfer
Providing tools and systems for performance measurement
Providing assessments to measure the maturity of the processes and to
identify fields for improvement.
Finally, however, it is the people that make the difference. Therefore, the well-
designed programs for the qualification and development of Project Managers as
“functional experts” have to be implemented worldwide.
PM@Siemens is a successful approach for driving process excellence and its imple-
mentation Siemens-wide - in all related business units at headquarters and in the
Regions.

Johannes Feldmayer
January 2006

6
 The goal of the PM@Siemens initiative, which was launched in fiscal 00/01, is to fur-
ther improve our success and profitability in designing and handling projects.
Effective measures have been defined on the basis of best practices, and most have
been introduced. However, there is still much to be done if we are to reach our goal
of directly contributing to higher earnings at Siemens through systematic process
discipline in our projects. Our focus now is on improving the early stages of projects,
particularly calculation, bid preparation and project start-up.
In an effort to firmly establish the PM@Siemens system in the Groups and Regions,
5400 employees have been informed of the initiative’s contents through the
“PM experience” project simulation. Soon the number of employees who have gone
through the simulation will exceed 10,000 and include employees on every conti-
nent. In line with the principles of People Excellence, PM@Siemens places particular
emphasis on the 5000 and more project managers. The qualifications-building
opportunities in project management that are offered worldwide through the
PM@Siemens Academy are supported by Learning Campus.
Introducing best practices and building skills and expertise is one thing. Actually
living the discipline is something else entirely. That’s why the PM@Siemens initi-
tive requires regular assessments by special assessors from Corporate Technology.
More than 70 units will have their discipline examined and critiqued objectively in
accordance with a proven maturity method by the end of this year. We plan to meas-
ure our progress in “lived” project management on a regular basis in the future.
I wish you continued success with your projects and continually improved contri-
butions to profitability through good project management.

Edward G. Krubasik
November 2005

7
PM@Siemens continues to systematically pursue the initiative’s goals that were
drafted in October 2000. That is, to steadily improve our processes. The current
focus of the initiative is on the global rollout, the early stages of projects and
making long-term improvements to all project organizations worldwide.
As globalization progresses, the Regions must take on more and more responsibility
for projects. The global rollout will create the transparency needed to purposefully
implement issues relevant to PM@Siemens and thus develop and secure expertise
in projects business. At the same time, PM Future World will give the Regions a tool
with which to select and certify qualified project managers. All of these activities
should ensure the availability of the right project management expertise in the
Regions.
Many of the problems that arise during project handling originate in the early
stages of the project (launch and start-up). In addition, having suitable project
managers available and putting together a project team on time is still often a
major challenge. That’s why another focus of the initiative will be on analyzing and
improving these situations in the future.
Furthermore, for all project organizations in the Groups and Regions the cooperate
department CT SE will determine the current level of maturity by way of Maturity in
Project Management Assessments (MPM Assessment). The results of the assess-
ments will be discussed with the project organizations and corrective actions will be
developed. This will help improve the project organizations for the long term and
serves as yet another step toward enhancing the profitability of our projects.
We have already achieved a great deal. Now we have to continue to systematically
implement the best practices, improve processes for the long term and take on and
resolve further developments. To do so, we need you on board. We need everyone
who has an impact on the flow and outcome of our projects.

Dr. Jürgen Schloss

January 2006

8
 w
vie
er
Ov
» Project Management –
the Siemens way
«

Overview
 Project Management – the Siemens way

Overview

With this manual, PM@Siemens provides recommendations

and rules for professional project management. We will
continue to develop and evolve these topics on the basis of
international best practice sharing via the Group PM
coordinators. In this manual, we have sought to make things
clearer and, where necessary, provide more details on
specific aspects. All new issues that have arisen in the last
2 1/2 years have been included in this edition of the manual
and integrated into the modules or are described in the
overview. Highlights include uniform project categorization
throughout Siemens, the global rollout and the new hub
structure, and the international project manager database
which will help ensure that the right project managers are
assigned to Siemens One projects. The new edition of the
manual also includes a variety of other issues.
I hope you enjoy reading and studying this manual and wish
you much success and profitability in your projects.

Joachim Fischer PTD QM

PM@Siemens Coordinator

11
 Status, Developments, New Topics

Are you involved in “relevant project

business” in any way?
If so, this manual will show you every-
thing you need to know about “Project
Management – the Siemens way,” and
how you can help your organization
succeed by running projects successfully.
Also, thanks to the development of the
Initiative, we are now able to answer 10
frequently asked questions having to do
with PM@Siemens:

1. What exactly is “relevant project business”?

The PM@Siemens initiative includes only We have agreed on the following project
projects that focus on Group-external cus- definition:
tomers.
Projects that focus on Group-external
Also, as we were developing the cross-Group customers are defined as projects that
project categorization system (see question provide uniquely defined and temporally
5), it became clear that we needed to clearly bounded services in accordance with
define which projects are relevant to customer-specific requirements, and for
PM@Siemens. which reliable cost and profit calculations
can be made. Furthermore, there is a con-
tract in which the obligations of the par-
ties are clearly defined (services, prices,
deadlines, duties to cooperate).
The description above generally applies to
plant business, solutions business and serv-
ice business. Pure component business and
product delivery business are not considered
to fit the definition of “relevant project busi-
ness.”
The exact differences between the relevant
business types are explained in further detail
in Module 1, Processes and Roles.

12
2. How has project business at Siemens developed,
and how mature is it now?

The recommendations of the PM@Siemens To ensure that this positive development

initiative have been implemented in all continues, the Global Competitiveness
Groups within the last few years. There was Board Steering Committee resolved to calcu-
also a rollout in the European Regions and late the process maturity level for the project
the United States, and thus far, it has organization of Groups and established
achieved a substantial level of maturity with Regions on a regular basis using the MPM
respect to its implementation. Assessments defined in Module 10; the
Committee also resolved to continue improv-
Other Regional Companies have taken the
ing the scores on these assessments
initiative to perform a rollout of the
through the continuous implementation of
PM@Siemens recommendations themselves
the standards developed for the
or done so with support from the Groups.
PM@Siemens initiative.
Thanks to the implementation of these
measures, the PM@Siemens standard report-
ing instrument now shows a major success
in the delta EBIT/VSP (sales margin) analysis.
Over the last three years, this indicator has
increased by more than 2.5 percent; consid-
ering the reported total project volume, this
represents a huge sum.

13
 3. How can we efficiently organize the
worldwide rollout of PM@Siemens?

The Global Competitiveness Board Steering The current classification is shown on the fol-
Committee has decided to cease concentrat- lowing image. Contacts and future region-
ing the rollout only on European countries al/national divisions will be updated on the
and the United States and intensify the roll- PM@Siemens home page.
out worldwide.
For this purpose, a global structure was de-
veloped for the initiative. Countries were
chosen on each continent to act as drivers
and multipliers for the content of
PM@Siemens and named as “Hubs” for the
entire Region.

11 global hubs January 2006

Overview Fig. 1

14
A “Hub” bundles the reporting, suggestions, The totality of all Group and hub coordina-
and queries from several Regional Com- tors forms the “PM@Siemens Global
panies and acts as the local PM@Siemens Coordinators Board,” which works together
expert. The management of the hub coun- to define the standards and specify the core
try names a responsible hub coordinator themes of the initiative. This allows the
who supports the operative implementation Regional representatives to be directly inte-
of PM@Siemens in all countries assigned to grated into the initiative. They take on
the hub. The hub coordinator represents responsibility within the initiative, bring
these countries in the global PM@Siemens their concerns directly into the discussion
initiative. and get all necessary information first-hand.
Development of the worldwide hub struc-
ture requires a new and effective communi-
cations model. To do justice to this idea, a
model was developed and approved with
the support of the Regions. This model is
explained in more detail in Module 9,
Transfer and Implementation.

15
 4. How do we create more value for our customers
in Siemens One projects?

Large-scale projects with a high Siemens The general project manager must have a
share across all Groups have special signifi- clear mandate endowed with clear authority
cance. They are a lever for additional growth from all affected Groups and Regions. The
and bring Siemens into a position as a pio- success of the project and of Siemens as a
neer who is ahead of the competition. With whole is the main point of focus.
our large selection of products, systems, and
The special role of Siemens One in the
services, we can offer a unique total solu-
various process phases is considered in
tion that allows us to create more value for
Module 1, Processes and Roles.
the customer.
More detailed information is available on
Our challenge is to manage large-scale
the Siemens One Intranet page:
projects and complex projects professionally
http://intranet.siemens.com/siemensone
across all Groups and all Regions. This re-
quires an open and sincere working relation-
ship between the Groups and Regions. All in-
ternal deliveries should conform to market
conditions, be handled openly, and also be
available as a “last call option.”

16
5. How do we categorize Siemens projects in a uniform
way around the world – across all Groups and Regions?

In the past, an important point for the After a successful pilot phase that tested clas-
PM@Siemens initiative was the creation of a sifications rules in various Groups and
uniform project categorization system for A, Regions, an ABC project categorization tool
B, and C projects, including the separation was developed in Excel and archived at the
for small-scale projects (D and smaller) PM@Siemens home page. The tool is a multi-
across all Groups and Regions. Among other ple-choice worksheet with main- and
things, the categorization system is used for: subcluster and customized point distribu-
tions. The maximum number of points avail-
Selecting the project managers
able for each of the main cluster are as fol-
(PM, SPM, PDir) for a given project
lows:
Applying the incentive and bonus
Financial 470 points
program
Contractual 300 points
Applying the standardized Siemens- Technical Complexity 420 points
wide PM career model Organizational
Making decisions about the necessity of Considerations 320 points
certifying responsible employees within
the framework of the PM career model The total score reveals which category the
project is in:
Qualifications planning
A > 1000 points
Application of the PMA+ Assessment B > 500 and <
= 1000 points
C <
= 500 points

17
 Level 1 Level 2

Financial 30 95
Order Value

Total Estimated
Risk Volume
Project Profit
Gross Margin

Gross R&D/Engineering Cost

(Mill. EUR)
Contractual 15 75
Contractual Position in subcontractor sole supplier
the Project 15 40
External Partners, Bound none one
by Contract 0 10
Internal Siemens Partners none one
(Number) 0 10
Customer/Rep. Relation- customer known, customer known,
ship/Rating (known and very cooperative cooperative
cooperative?)
0 15
Technical Complexity 25 90
Technical Complexity very low low
10 30
Clarity of Product/ very detailed detailed
Scope Definition 10 30
New Technology off the shelf product almost standard or duplicate
Development of existing product
5 30
Organizational Considerations 15 15
Type of Project component supply component supply with
(Supply, Syst. Turnkey) technical services
(keep but reconsider) 15 40
Contractual Complexity very low low
(low thru high) 0 30
Strategic Significance for very low low
Siemens Group
Incl. Potential Future Sales 0 10
Strategic Relevance for the very low low
Customer 0 10
85 350

Category Limits
Triggers Small Projects
A > 1000 points B > 500 to 1000 points C = 0 to 500 points

18
Level 3 Level 4 Level 5 Value

200 305 470 0

130 195 300 0

partner JV or consort. member consort. leader/gen. contractor
60 75 100 0
two to three four to five > five
30 45 70 0
two to three four to five > five
20 20 50 0
customer known, customer not known customer known,
neutral uncooperative
20 45 80 0
205 285 420 0
medium high very high
70 100 150 0
general specification very general specification only basic concept/requirements
65 85 120 0
duplicate with significant new development from new development
modifications existing components
70 100 150 0
140 215 320 0

system and solution turnkey system turnkey with ongoing operation

supply main commitment/or ownership
60 85 120 0
medium high very high
50 70 100 0
medium high very high

15 30 50 0
medium high very high
15 30 50 0
675 1000 1510

Management adjustment
Total: 0
Category

Überblick Fig. 2

19
Using the ABC project categorization tool However, the following mandatory rules for
may also separate a project, i.e., assign the ABC project categorization tool have
it a category of D or smaller. This happens been set down by the experts from the
automatically based on how the user Groups and Regions of the PM@Siemens
answers certain questions within the multi- initiative:
ple-choice worksheet.
The 4 main cluster and 15 subcluster
The application of the tool must be specified listed here are the defined minimum
in a Group-specific or Region-specific man- requirements and must not be altered.
ner. This means that each Group or Region
The weighting (number of points) for
defines its own initial criteria and/or applica-
the 4 main topics
tion criteria, such as project volume or com-
• Financial
plexity with respect to the contract, technol-
• Contractual
ogy and other general conditions.
• Technical
• Organizational
is set and must not be altered.
Each Group or Region may add additional
subcluster and adjust the point distri-
bution within the specified point totals
for each main cluster.
Top management may upgrade a
project by one level.

The IT application for the ABC project catego-

rization tool is available on the PM@Siemens
home page via the following link:
http://info.ptd.siemens.de/pmsiemens/EN/
DOCUMENTATION.HTM

20
6. How do we improve the initial phase and create
better conditions for projects to be successful?

PM@Siemens has paid special attention to the “as sold” calculation made by the person
the initial phase of a project and developed responsible for the bid (PM070), which in
the following basic principles: turn forms the basis for providing incentives
to all project participants. It is the duty of
a) Involvement of project the responsible business manager to clear
managers up any remaining discrepancies.

Project management personnel must act in- This process ensures that the project manag-
dependently of sales personnel during the er is involved in A and B projects at a very
bid and realization phase. early stage (see Fig. 3) and able to use his ex-
perience to report any possible risks before
Sales personnel and project management the contract is signed, allowing him to work
personnel must come to an amicable agree- together with Sales to take precautions to
ment on bids and order releases for A and B counter those risks.
projects.
The order profit/loss calculation made by the
project manager (PM100) must agree with

Involvement of the project manager at the initial stages of A and B projects

Current status of activities in the early stages of A and B projects

Acquisition phase Project execution phase

Project
Bid Contract Project
opening &
preparation negotiations handover
clarification

PM040 PM070 PM080 PM100

Bid calculation As Sold calculation Start of project Order profit/
LoA (Limit of Authority) loss calculation

Sales representative, Project manager

bid manager

Responsible business manager

Early appointment and involvement of PM, depending on the complexity and probability of winning the order

Overview Fig. 3

21
b) Recording NCC
(“non-conformance costs” –
cost overruns)
Empirical data show that 60% to 70% of all The results will be aggregated and analyzed
non-conformance costs occur during the ex- by PM@Siemens once a suitable level of
ecution of a project, but these costs actually data quality has been achieved. The analysis
originate back at the acquisition phase of a will be used to derive measures to avoid the
project. most significant NCCs and develop new
standards.
To analyze this trend more closely, a pilot
project during the 2005–06 fiscal year is
now (Jan. 2006) encouraging the Groups to
identify their NCCs, match them to their orig-
inal values, and report them on a quarterly
basis to the PM@Siemens initiative.

7. How can we measure our progress and develop sensible,

efficient measures for improvement for our project
organization teams?

As was mentioned at the beginning of this PM@Siemens has approved a planning pro-
section (question 2), MPM Assessments will cess to ensure the professional planning and
be performed on a regular basis for all execution of MPM Assessments in all rele-
project organization units. The PM@Siemens vant project organization units. This process
initiative has set a maturity target level of is described in detail in Module 10, PM
3.0 for the MPM Assessment. As of Assessment.
December 2005, 103 relevant project organi-
zation units had been identified. Most of
these units have already taken their first as-
sessment. However, as a rule, a re-
assessment must be performed every 18
months.

22
8. How do we rank our project managers
in our PM career model?

PM@Siemens has defined three stages in b) International project

the career of a project manager: manager database
Project manager (PM) A centralized international project manager
Senior project manager (SPM) database has been created and archived in
the IDD to ensure we are able to staff and
Project director (PDir).
run future international and cross-Group
The current classification process, including large-scale projects with qualified project
the certification of current candidates is managers. Project directors (PDirs) and sen-
mostly complete at the Group level. See ior project managers (SPMs) with potential
Module 4, Personnel Management, for the are entered into this database as people to
latest certification guidelines. lead A-level projects. The database provides
a means for centralized, specific identifica-
a) PM Future World: classification tion of suitable candidates for a given large-
of all project managers and scale project.
certification of senior project
managers In this process, management consulting per-
Candidates in the Regions will be classified sonnel (MCP) function as central resource
using the PM Future World tool. The tool will managers and contacts for all Groups and
provide a qualitatively comparable evalua- Regions. See Module 4, Personnel
tion of candidates from both the Regions Management, for more details.
and Groups; the future application of a uni-
form project categorization system across all
Regions and Groups will play an important
role in ensuring that all evaluations are com-
parable.
In the second step, results from the PM
Future World tool will be used for the certifi-
cation of SPMs as permitted by current com-
pany agreements in the Groups and Regions.

23
 9. How do we create a common PM basis and a
common PM language?

PM experience is a roughly 4-hour project PM experience is available in five languages.

management simulation for all employees Moderators have now been trained in over
who help projects succeed that is based on 30 countries, and in the first wave of roll-
our standards. outs, more than 5,000 people around the
world used PM experience. PM experience
The simulation creates a common basis for
can be used either across an entire organiza-
discussion about the current situation in our
tion to create a common understanding for
project business with references to the plan-
everyone involved, or it can be used as a
ning and implementation of PM@Siemens
team-building exercise at the beginning of a
recommendations that will improve your
kick-off workshop with a specific proposal or
project business bottom line.
project team, the members of which will
With this tool, PM@Siemens is providing a then be responsible for the various roles and
quick and efficient way for people to think duties of project planning, for example.
and talk about the process and the factors
PM experience as a method for exchanging
that make a project successful and exchange
knowledge and experiences is described in
ideas and experiences. In addition to project
more detail in Module 8, Knowledge
managers, this tool is also designed for per-
Management.
sonnel in sales and purchasing, line manag-
ers, quality manager, project team members,
and others who are involved in our projects.

10. Where do I find the answers I need in this manual?

a) Module structure

24
25
How do we organize PM@Siemens?

What do I have to do to successfully implement PM@Siemens in my organization?

Overview Fig. 4
Module 9: Transfer and Implementation

How do I successfully run projects?

Project
What parts of How can I
this do I need to support everyone
support small Module 1: Processes and Roles involved with
projects the project with
efficiently? common IT?

Module 12: Module 2: Contract Management Module 7: Operative Quality Management Module 6:
Small Projects PM Portal
Project Controlling
Modul 3:3:Projektcontrollng
Module Module 11: Project Purchasing

How do we continually improve? How do I develop

How do I create transparency? – How do we work together to learn? the employees for my projects?
Module 10: PM Assessment Module 4: Personnel Management

Module 8: Knowledge Management Module 5: Qualification

b) Overview of Recommendations

PM@Siemens PM@Siemens recommendations

Modules

Module 1 1.1 Implement project stages with the described milestone system and quality gates
Processes 1.2 Implement required results for milestones
and Roles 1.3 Implement project roles
1.4 Implement project steps
Module 2 2.1 Implement independent contract management function
Contract 2.2 Implement full-time contract managers in the bid and negotiation stage for
Management the highest project/risk class
2.3 Implement documented bid/no-bid process/release to prepare bid
2.4 Implement bid release process with Group-specific and Region-specific
project and risk classes
2.5 Final bid release by review board; seek input from Group Executive Management or
Regional Management for highest project/risk class
2.6 Provide full-time contract managers to handle projects at the highest project/risk level
2.7 Implement mandatory review for “unacceptable provisions”
2.8 Implement mandatory Group/Region policy for project business
2.9 Ensure intensive use of standards and tools provided
2.10 Hold mandatory training session on contract law and claim management for technical/
commercial employees in Sales and Project Management
2.11 Install contract management community at the Group/Region level
Module 3 3.1 Establish project-driven organization
Project 3.2 Apply integrated project controlling process from bid/no-bid decision to project
Controlling wrap-up, esp. integrated management of risks, modifications, opportunities, and claims
3.3 Implement mandatory milestones/quality gates in the project process
3.4 Implement management-driven project discussion meetings at regular intervals using
standardized reporting procedures
Module 4 4.1 Implement personnel development in project management
Personnel 4.2 Create letter of empowerment
Management 4.3 Conclude goal agreement
4.4 Include project goals in special payments
4.5 Implement project incentive system
Module 5 5.1 Determine qualification needs
Qualification 5.2 Carry out qualification measures
5.3 Safeguard quality requirements for qualification measures

26
PM@Siemens
Modules PM@Siemens recommendations

Module 6 6.1 Use MS Project, Primavera, SAP PS, Spiridon solution “Solution Business”
PM Portal as standard tools
6.2 Work on further development and implementation of the PM portal as a
standard solution for project workstations
Module 7 7.1 Actively integrate quality management function into the project
Operative 7.2 Appointment of Project Quality Manager
Quality 7.3 Drawing up project-specific Quality Plan (Q-plan)
Management 7.4 Systematic project closure
Module 8 8.1 Build project management sub-community
Knowledge 8.2 Implement project learning cycle including Lessons Learned/Project De-Briefing
Management 8.3 Pass on knowledge through coaching in PACT workshops
9.1 Establish implementation process
Module 9
Transfer 9.2 Determine implementation status
and Imple- 9.3 Create PM scorecard
mentation 9.4 Analyze project business
Module 10 10.1 Implement PMA+ assessments using Group/Region-specific specifications
PM Assessment 10.2 Perform CT SE Assessment in organizational units with project business
Module 11 11.1 Ensure early and continuous integration of Purchasing in the process,
Project from acquisition to warranty
Purchasing 11.2 A project procurement manager (PPM) must support each project (this is mandatory)
11.3 Procurement processes defined in a Group-specific manner, including change
management processes, must be complied with
11.4 Customer contract provisions in supplier contracts (“back to back”) must be completely
checked and confirmed with contract management
11.5 Perform project-specific supplier evaluation to lower costs and improve quality for
both internal and external suppliers
Modul 12 12.1 Implement processes and roles for small projects
Small Projects 12.2 Ensure contract management for small projects
12.3 Implement personnel management for small projects
12.4 Perform qualification screening for small projects
12.5 Implement transfer and implementation processes for small projects
12.6 Perform PM assessement for small projects
Overview Fig. 5

27
c) Major changes from Version 3 Module 1 – Processes and Roles:
(June 2003) to Version 4 Integration of large-scale service projects,
(January 2006) including detailed depiction of process
steps (Level 4) and results
Overview: Description of business types relevant
Project definition added to PM@Siemens
Siemens One added Reference to Siemens Reference Process
House (RPH) described in greater detail
Project categorization added
Early project stages added Module 2 – Contract Management:
Module overview figure revised LoA (Limit of Authority) process described
in more detail
Overview of recommendations
re-numbered New topic for recommendation 2.11
Recommendation 2.12 deleted with
no replacement

Module 3 – Project Controlling:

Change management described in
greater detail

Module 4 – Personnel Management:

Contents re-structured and described
in greater detail
Integration of the project manager
during the early stages of the project
added
New profile on career model
Certification and PM Future World tool
described in greater detail
Signature rules for issue of certificates
added
Project manager database added

28
c) Major changes from Version 3 Module 1 – Processes and Roles:
(June 2003) to Version 4 Integration of large-scale service projects,
(January 2006) including detailed depiction of process
steps (Level 4) and results
Overview: Description of business types relevant
Project definition added to PM@Siemens
Siemens One added Reference to Siemens Reference Process
House (RPH) described in greater detail
Project categorization added
Early project stages added Module 2 – Contract Management:
Module overview figure revised LoA (Limit of Authority) process described
in more detail
Overview of recommendations
re-numbered New topic for recommendation 2.11
Recommendation 2.12 deleted with
no replacement

Module 3 – Project Controlling:

Change management described in
greater detail

Module 4 – Personnel Management:

Contents re-structured and described
in greater detail
Integration of the project manager
during the early stages of the project
added
New profile on career model
Certification and PM Future World tool
described in greater detail
Signature rules for issue of certificates
added
Project manager database added

29
 s
sse

les
Pro d
ce
an
Ro
» The Secret to Good Projects «

Processes and Roles

Module 1
 The Secret to Good Projects

Processes and Roles

Introduction tions for small projects. This handling proc-

ess is generally similar to that used in large-
A major lever for long-term improvement
scale plant and solutions projects, but it is
in the quality of project results and
leaner due to the special efficiency require-
project profitability in the project busi-
ments and lower risks involved.
ness is the Siemens-wide implementation
and application of a standardized project In addition to the PM@Siemens initiative,
management process that supports the the Service initiative makes equally demand-
business model in question. This also cre- ing claims with regard to the competence re-
ates a foundation for continuous process quired in project management. Consistent
improvements through the application of with this, both initiatives came together and
uniform procedures, methods and roles in decided to expand the application of the
project management. PM@Siemens recommendations to the grow-
ing area of large-scale service projects. As a
The previously depicted PM@Siemens refer- result, previous depictions of project han-
ence process is primarily designed for A, B, dling processes in the plant and solutions
and C projects in the plant and solutions business are being expanded to include the
business. This process is composed of pro- handling process for large-scale service
cess elements of the following business pro- projects in categories A, B, and C (see Fig.
cesses: customer relationship management 1.1).
(CRM), supply chain management (SCM)
and product lifecycle management (PLM).
As a supplement, the reference process for
handling small projects is treated separately
in Module 12 along with other recommenda-

Project types relevant to PM@Siemens

Categorization …
D
C
B
A Small
projects
Plant and solutions
Project type

Service

Product business Corresponds to scope

of PM@Siemens
Processes and Roles Fig. 1.1

33
 Differences and similarities in
systems/solutions projects and service projects

The main difference between plant and solu- (sub)projects in accordance with the differ-
tions projects and large-scale service pro- ent project management processes (Fig.
jects lies in what happens after project acqui- 1.2):
sition:
In light of this, we can differentiate several
The goal of plant/solutions project is the cre- different kinds of large-scale service projects.
ation of a functional technical solution that
“Greenfield” projects:
is provided to the customer on an agreed-
The customer buys a system from Siemens;
upon date for him to operate.
at the same time, the customer signs a long-
The goal of a large-scale service project, on term service agreement. A new service or-
the other hand, is to build a service organiza- ganization must be formed to fill the agree-
tion (including any required technical solu- ment.
tions, if necessary) such that it is able to pro- Example: Maintenance agreement for trains
vide defined services (SLAs – Service Level supplied by Siemens (TS).
Agreements) to the customer over a longer
“Brownfield” projects:
period of time.
Siemens takes over services for the custom-
Large-scale service projects concentrate on er; these services were previously performed
project categories A, B, and C. The Service in- by the customer itself or by another service
itiative has specified that service projects of provider.
project category D and smaller should be Example: Takeover of maintenance of exist-
handled using the guidelines for small ing industrial systems (I&S).
projects.
“Brownfield” integration projects:
Sometimes Siemens ends up providing a cus- Siemens takes over service activities from
tomer with both a functional technical solu- the customer and transfers them to existing
tion and the services required to operate or expanded Siemens service activities. Ex-
said solution. In this case, the services will ample: Outsourcing business (PTD SE and
be provided by two intermeshed SBS).

34
Types of large-scale service projects and correlation
with plant/solutions projects

1 Greenfield: combined bid for “plant/solutions and services”

Opera-
Acquisition Project execution
tions

Ac- Opera- … End of

Preparation
quisition tions service
for service
provision

2 Brownfield: bid for services for existing systems (e.g., 5-year contract
for services to plant/product-related services)

Ac- Opera- … End of

Preparation
quisition tions service
for service
provision

3 Brownfield Integration: System-independent service bid (e.g., outsourcing,

consulting or other value-added services)

Ac- Opera- … End of

Preparation
quisition tions service
for service
provision

Processes and Roles Fig. 1.2

35
 Reference processes for project management:

History and overview

The first version of a reference process for These latter items will be added to the
the management of plant and solutions Siemens Reference Process House Release
projects was developed by PM@Siemens ex- 4.0 as mandatory processes in March 2006.
perts in 2003 and incorporated into the
The generic stage models for the listed
PM@Siemens recommendations. At the
project types were derived from people's ex-
same time, this process was depicted in the
periences in the Groups and Regions. They
Siemens Reference Process House. This creat-
herald the emergence of a common
ed a common foundation for spreading a
Siemens language for the management of
uniform understanding across the company
the various project types and form the basis
about how to manage such projects.
for further detailed explanation and more
The Steering Committee for the Global com- precise refinement of these models in the
petitiveness company program resolved to business units, e.g., by implementing key
revise the reference process with the goal of performance indicators to measure project
creating a mandatory, Spiridon-compatible management quality, cost, and on-time exe-
process definition with a Detail Level of 4 cution.
and making it available in the Siemens Refer-
In the following, the generic project phase
ence Process House. This goal was achieved
models for the 3 project types are shown in
with the publication of Siemens Reference
an overview:
Process House Release 3.0 in March 2005.
The depiction of the revised reference pro-
cess for the management of plant and solu-
tions projects as a PM@Siemens recommen-
dation is happening at the same time as the
depiction of the reference processes for
large-scale service projects and small
projects (see Module 12, Small Projects) in
this manual.

36
 Acquisition
Plant and Solutions Business QG

Pre- Project Bid Contract Project

acquisition acquisition preparation negotiations handover

PM010 PM020 PM040 PM070 PM080

Acquisition Go/ Bid Bid Project Start of
No-Go decision decision approval won/lost project

Service Business QG QG

Pre- Project Bid Contract Project

acquisition acquisition preparation negotiations handover

PMS010 PMS020 PMS040 PMS060 PMS070 PMS080

Acquisition Go/ Bid Bid End of Due Diligence: Project Start of
No-Go decision decision approval Best and Final Offer won/lost project

Small Projects

Pre- Project Bid Contract Project

acquisition acquisition preparation negotiations handover

PM010 PM020 PM040 PM070 PM080

Acquisition Go/ Bid Bid Project Start of
No-Go decision decision approval won/lost project

Processes and Roles Fig.1. 3 QG = Quality Gate

37
 Project execution
QG Plant and Solutions Business QG Warranty
QG
Project Purchasing Construc-
Detailed tion/ Commis- Accep- Project
opening & & manu- Dispatch
planning installation sioning tance closure
clarification facture

PM080 PM100 PM200 PM300 PM400 PM550 PM600 PM650 PM670

Start of Order receipt Approval of Dispatch Mat. and resour. Const./inst. Release for Customer Project
project clarified detailed planning approval at site completed custo. acceptance acceptance closure

Service preparation
QG QG Service Business QG

Project Detailed Mobilization Run up

opening & Transition Handover operations
planning Transformation
clarification

PMS080 PMS100 PM200 PMS300 PMS400 PM600 PMS650

Start of Order receipt Approval of Effective Transition End of mobilization/ Start Run-
project clarified detailed planning Date sign-off transformation up operations

Project execution
Small Projects Warranty

Project opening & Purchasing & manufacture/Dispatch/ Project

clarification/ Acceptance
Construction installation/Commissioning closure
Detailed planning

PM080 PM100/200 PM300/400/550/600 PM650 PM670

Start of Order receipt clarified, Dispatch approval/Material and resources at site/ Customer Project
project Approval of detailed Construction/installation completed/ acceptance closure
planning Release for customer acceptance

QG = Quality Gate Processes and Roles Fig. 1. 4

38
 Warranty phase
QG Plant and Solutions Business
Project closure

Warranty

PM650 PM670 PM700

Customer Project End of
acceptance closure warranty

Service operations
QG Service Business

Run-up operations Regular operations End of service provision

PMS650 PMS800 PMS900 PMS1000

Start Run- Performance End of End of
up operations Review operations obligations

Warranty phase
Small Projects
Project closure

Warranty

PM650 PM670 PM700

Customer Project End of
acceptance closure warranty

Processes and Roles Fig. 1. 5 QG = Quality Gate

39
The depiction of a complex, convoluted The following section takes the generic de-
project management process as a linear piction of the process stages and breaks it
stage model seems very theoretical, since down into a more detailed explanation of
the real-world process often proceeds sever- the process stages, process steps, and mile-
al times through the process stages de- stones for large-scale plant/solutions pro-
scribed, or, depending on the business, jects and large-scale service projects. The
some project stages do not occur at all, or process stages correspond to detail level 3
only in the most rudimentary fashion. The (Level 3) of the associated processes in the
stage model, with its process elements and Siemens Reference Process House; the
milestones as well as its inputs/outputs and project steps are a detail level 4 (Level 4).
roles for each process element, still provides
To ensure that a process stage is completed,
a clearly defined and uniform frame of refer-
each milestone is assigned required results
ence for synchronization, even for sub-
that should be consulted for early detection
projects. Therefore, it is valid for every com-
of project problems (quality gates, readiness
ponent/every system and thus has a practi-
reviews, etc.). Depending on the type of
cal benefit of application.
business, all milestone results may also be
By transferring the model into the integrat- achieved in an earlier project stage, but they
ed project schedule, where the individual must be achieved no later than in the
processes for the sub-projects are chronolog- project phase shown in order to ensure a
ically staggered and interlinked in a sensible smooth process.
manner, this linear process approach also be-
Please see Module 12, Small Projects, for a
comes a workable model for operative
detailed description of these processes for
project business.
small projects.

40
Project management for plant and solutions projects
(Project categories A, B, C)

Phase Process step Mile- Results

stone
Pre- Identify & analyze business PM010 Acquisition Go/No Go decision
acquisition opportunity Akquisition Decision on internal business
Identify internal business Go/No Go responsible
responsible decision Preacquisition/project data
Create business plan and assess Product related ideas
expected business Project category
Prepare/make Acquisition Go/No Go Project related Business plan
decision Scope of supplies and services

Project Evaluate expected business PM020 Bid decision

acquisition Analyze and structure customer Bid Bid project description
requirements decision Bid strategy
Analyze customers business & Customer requirements list
competitive environment/define bid Estimation of project risks
strategy LoA documents
Check commercial feasability/ Nomination of bid project manager
develop concept Offer budget
Check technical feasability/develop Project category
concept Project plan for bid project
Select and evaluate reference Project related Business plan
product (PLM) Scope of supplies and services
Determine bid depth and plan bid Technical solution concept
project
Prepare and make bid invest
decision

41
Phase Process step Mile- Results
stone
Bid Hand over bid project to bid project PM040 Bid approval
preparation manager Bid Bid documentation
Set up bid project approval Bid project account
Create commercial & contractual Bid project organization
bid part Change order strategy
Create technical bid part Claim strategy
Define product requirements (PLM) List of supplies and services
Select and evaluate reference LoA documents
product (PLM) Minutes of bid project hand over
Create and provide bid data (PLM) Negotiation framework
Create project execution bid part Project category
Perform risk assessment Project plan
Compose bid Release of bid project manager
Prepare and decide on bid release Risk assessment
If necessary: Terminate bid project

Contract Handover bid to customer PM070 Approval by risk review board

negotia- Process customer feedback Project Bid documentation
tions If necessary: Repeat bid preparation won/lost Bid project description
for changes Contract documentation
Determine negotiation strategy/ Customer feedback
nominate negotiation team Information on order win/loss
Nominate project manager and LoA documents
commercial project manager Negotiation result
Organize and conduct contract Negotiation strategy
negotiations Order Confirmation
Obtain contract approval and Result of win/loss analysis
conclude contract Risk assessment
Conduct win/loss analysis
If necessary: Terminate bid project

42
Project Determine liability PM080 Archived bid project documentation
handover Update project data Start of Bid project closure report
Hand over project to project project Determination of liability
manager Nomination of Commercial Project
Close bid project and release bid Manager
project manager Nomination of Project Manager
Set up project management Order receipt calculation
assessment Project characteristics
Project handover protocol
Release of bid project manager
Result of project management
assessment
Risk assessment

Project Structure & create project in IT PM100 Billing schedule

opening & application Order Customer requirements list
clarifi- Setup project organization receipt List of supplies and services
cation Analyze contract technically & clarified Official appointment of the project
clarify open points manager
Analyze contract commercially/ Project account
legally & clarify open points Project data in IT application
Enter order income calculation in Project organisation
IT application Project plan
Appoint project manager/conclude Result of site inspection/installation
target agreement environment
Risk assessment
Signed target agreement for project
manager

Detailed Create/release technical realization PM200 Basis time schedule

planning plan Approval of Change order strategy
Confirm & evaluate reference detailed Claim strategy
selection (PLM) planning Commissioning & installation
Update product requirements documentation
specification (PLM) Construction documentation
Define order realization concept Detailed realization plan
(PLM) Order requisitions
Create project execution plans Project plan
Finalize quality plan & hazard Quality documentation
analysis Risk assessment
Compose/release realization plan Risk analysis
Create/release detailed planning Test Plan
Realize product integration (PLM) Training documents
Prepare and release to supply chain Training Plan
(PLM)

43
Phase Process step Mile- Results
stone
Purchasing Place purchasing, manufacturing & PM300 Delivery Documents
& service orders Dispatch Dispatch Release
manufac- Ensure fulfillment of orders approval Documented supplier selection
ture Prepare & release products for decision
dispatch Products released for dispatch

Dispatch Prepare dispatch/stage products PM400 Conformance/Non-conformance

Perform & monitor transportation Material & report
Prepare infrastructure/schedule & resources Request for resources
request resources at site Verified products
Receive & verify products at site

Construc- Prepare site PM550 Approvals and Permits

tion/ Installation of plant/system Construc- Completed commissioning
installation Preparation of the commissioning tion/ documentation
phase installation Detailed commissioning plan
completed Minutes of site take over
Preliminary customer documen-
tation
Quality documentation
Release document of the customer
Release of commissioning start
Revised construction documen-
tation

Commis- Start-up plant/system PM600 As built customer documentation

sioning Perform internal plant & system Release for Customer training performed
tests customer Inspection records
Create “as built” documentation acceptance List of open points
Perform customer training Plant/system ready for test
Release acceptance Release for acceptance
Revised construction documen-
tation

44
Acceptance Prepare & perform acceptance test PM650 List of open points
Update customer documentation Customer Preliminary Acceptance Certificate
Perform customer debriefing acceptance (PAC)
meeting Result of customer satisfaction
Request Preliminary Acceptance questioning
Certificate (PAC)

Project Work-off open points PM670 Archived project documents

closure Clarify open claims with contract Project Clarified claims
partners closure Final customer documentation
Create closing invoice/execute Lessons learned from projects
receivables management List of archived documents
Create final customer documen- Project closure report
tation Release of project management
Hand over service relevant Sent final invoice
documents to After Sales
Archive project documentation
Write final project report
Close project organization & release
project manager

Warranty Perform warranty activities PM700 Archived project data in IT

Request Final Acceptance Certificate End of application
(FAC) warranty Dissolved provisions
Close warranty (incl. closing in IT Returned bonds
application) Final Acceptance Certificate (FAC)
Archive project in IT application

45
 Project management for large-scale service projects
(Project categories A, B, C)

Phase Process step Mile- Results

stone
Pre- Identify & analyze business PMS010 Acquisition Go/No Go decision
Acquisition opportunity Acquisition Decision on internal business
Identify internal business Go/No Go responsible
responsible Decision Pre-acquisition/project data
Create business plan and assess Service (product) related ideas
expected business Project category
Prepare/make Acquisition Go/No Go Project related business plan
Decision Scope of supplies and services

Project Evaluate expected business PMS020 Bid decision

Acquisition Analyze and structure customer Bid Bid project description
requirements Decision Bid strategy
Analyze customers business & comp. Customer requirements list
environment/define bid strategy Estimation of project risks
Check commercial Feasibility/ LoA documents
Develop concept Nomination of bid project manager
Develop rough service concept/ Offer budget
Check technical feasibility Project category
Select & evaluate service portfolio Project plan for bid project
(PLM) Project related business plan
Determine bid depth and plan bid Scope of supplies and services
project Technical solution concept
Prepare and make bid invest In case of investments or new legal
decision entity: Project proposal (P-Vorlage)

“Brownfield” projects only:

Draft asset/HR takeover and project
company concept

46
Bid Hand over bid project to bid project PMS040 Bid approval
Preparation manager Bid Bid documentation 1)
Set up bid project Approval Bid project account
Clarify internal Interfaces Bid project organization
Clarify external Interfaces Change order strategy
Develop and agree service concept Claim strategy
Prepare project company concept List of supplies and services
Analyze business model LoA documents
Review and agree financial model Minutes of bid project hand over
Define governance model Negotiation framework
Plan mobilization/ transformation Project category
Plan end of service provision Project plan
Create commercial & contractual Project plan for bid project
bid part Risk assessment
Create service preparation bid part Drafts of Co-operation agreements/
Create technical bid part Letters of intend
Perform risk assessment Contract proposal
Compose bid
Prepare and decide on bid release “Brownfield” projects only:
If necessary: Terminate bid project Due diligence plan
Define service requirements (PLM)
Select & evaluate service portfolio
(PLM)
Create & provide bid data (PLM)

“Brownfield” projects only:

Describe the due diligence criteria
Plan transition
Prepare HR strategy
Prepare asset strategy

1) For service projects the bid documentation

should include:
• HR Terms & Conditions Solution Summary
(brownfield only)
• Service Level Agreement Proposals
• Service Concept (appropriate level of detail)
• Transition Concept (brownfield only)
• Mobilization/Transformation Concept
• Service Closure Concept
• Draft of Business Model

47
Phase Process step Mile- Results
stone
Contract Hand-over bid to customer PMS060 For PMS060:
Negotia- Process customer feedback End of Due Documented request for due
tions If necessary: Repeat bid preparation Diligence: diligence information
for changes Best and Due diligence agreement
Determine negotiation strategy/ Final Offer Due diligence report
nominate negotiation team (for brown- In case of investments or new legal
Nominate project manager and field pro- entity: Investment proposal
commercial project manager jects only) (I-Vorlage)
Organize and conduct contract
negotiations
Obtain contract approval and
conclude contract
Conduct win/loss analysis
If necessary: terminate bid project

“Brownfield” projects only: PMS070 For PMS070:

Initiate or update due diligence Project Approval by risk review board
won/lost Bid documentation
Bid project description
Contract documentation2)
Customer feedback
Information on order win/loss
LoA documents
Negotiation result
Negotiation strategy
Order confirmation
Result of win/loss analysis
Risk assessment
Debriefing report (result of win/
loss analysis)
In case of investments or new legal
entity: Signed investment proposal
(I-Vorlage)

2) For service projects the contract documentation

should include:
• Acceptance Plan for Transition (part of contract)
– Accept. Procedure, Accept. Criteria
(brownfield only)
• Service Level Agreement
• Updated commitments for contract (e.g. by
delivery, legal, export regulations, procure-
ment ...)

48
Project Determine liability PMS080 Archived bid project documentation
Handover Update project data Start of Bid project closure report
Hand over project to project Project Determination of liability
manager Nomination of commercial project
Close bid project and release bid manager
project manager Nomination of project manager
Set up project management Order receipt calculation
assessment Project characteristics
Project handover protocol (incl. work
product register)
Release of bid project manager
Result of project management
assessment
Risk assessment

Project Structure & create project in IT PMS100 Billing schedule

Opening & application Order Customer requirements list
Clarifi- Setup project organization receipt List of supplies and services
cation Setup project infrastructure clarified (Detailed agreement with customer
Analyze contract technically & on scope of deliveries/services and
clarify open points specifications)
Analyze contract commercially/ Official appointment of the project
legally & clarify open points manager
Enter order income calculation in Project account system
IT system Project data in IT application
Evaluate assets (technical & Project organisation
financial) Project plan
Final clarification of internal Result of site inspection/installation
Interfaces environment
Final clarification of external Risk assessment
Interfaces Signed target agreement for project
Appoint project manager/conclude manager
target agreement Order receipt calculation
Asset register (updated)

49
Phase Process step Mile- Results
stone
Detailed Define overall project plan PMS200 Basis time schedule
Planning Define organizational set-up for Approval of Change order strategy
operations detailed Claim strategy
Define processes planning Detailed realization plan
Define infrastructure and material Order requisitions
concept Project plan
Define communication concept Quality documentation
Plan mobilization/ transformation Risk assessment
Detail service concept Risk analysis
Define HR concept (EH&S) Test plan
Populate governance model Training documents
Define project company concept Training Plan
Define external/internal reporting Approved documents for
system construction of service activities3)
Review & plan legal concept Selected suppliers/service providers
Define IT concept Completed elements of service
Define CMMS/SMS concept4)

“Brownfield” projects only:

Plan HR transition
Plan transition

Transition Transfer people PMS300 For PMS300:

(“Brown- Transfer assets Effective Customer approval of start of
field” Transfer contracts Date transition
projects Transfer knowledge (“Brown-
only) Implement/Transform field” pro-
external/internal reporting system jects only)
PMS400 For PMS400:
Transition Governance model initiated
Sign-off HR terms & conditions documented
(“Brown- (incl. staff communication)
field” pro- Transition acceptance
jects only) (Sign offs)
3) Approved documents for construction of service 4) Completed elements of service concept
activities should include: should include:
• Transition plan (executable, revised)1) • Organizational structure, processes
• Mobilization/Transformation Plan (incl. IT, • HR concept
e.g. CMMS) • Infrastructure concept
• Communication Concept • Governance model
• Legal review and plan • Project company concept
• Reporting system
• Operations Handbook

50
Mobiliza- Implement/Transform project PMS600 (Revised) Service concept
tion/Trans- company concept End of (Revised) Operations handbook
formation Implement/Transform HR concept Mobiliza- Test documentation
Implement/Transform CMMS/SMS tion/Trans-
Implement/Transform governance formation
model
Pre-operational test
Implement/Transform organizatio-
nal set-up
Implement/Transform processes
Implement/Transform IT
Preparation of Maintenance/
Operation Manuals
Implement Infrastructure
Finalize Staff Training

Not for “Brownfield” projects:

Implement/Transform external/
internal reporting system

Handover Prepare handover PMS650 Acceptance protocol (signed by

Instruct the service operations Start Service Manager)
manager Run-up Customer acceptance (signed)
Train the customer operations List of open points (adopted
Handover to Service Operations together with Customer and
Manager Service Manager)
Obtain customer acceptance
Start/Launch service

Run-up Ramp-up operational performance PMS800 Performance verification report

Operations Review Ramp-Up Performance Perfor- Approved contract change
mance (if necessary)
review

Meilen- Ergebnisse
stein

51
Phase Process step Mile- Results
stone
Regular Perform service operations PMS900 Up to date operation documen-
Operations Perform continuous improvement End of tation
process operations Transition plan
Perform change & claim manage-
ment

End of Perform completion of operations PMS1000 Project closure report (update)

service Perform demobilization/re-transition End of Re-assignment of Service Operations
provision obligations Manager
Final customer documentation
prepared

Examples for service processes during regu-

lar operations are in the Siemens Reference
Process House (Maintenance Operations)
and are not explained in further detail here.

52
Enabler processes

Certain activities typical of projects business Claim management/change request

cannot be illustrated in a phase model. management
These “enabler” processes are core project
Resource management
management activities and can be standard-
ized for every project type. Examples: Project planning
Project controlling (including “Limit of
Authority” processes) We will not go into detail on these subjects
here, but they are anchored within the
Risk management
framework of the detailed definitions in the
Siemens Reference Process House.

Quality Gates

Quality gates have been integrated into the For service business, quality gates must be
process. applied at milestones PMS040, PMS080,
PMS100 and PMS650.
For plant and solutions business, quality
gates must be applied at milestones PM040, No quality gates are defined for small
PM100, PM600, and PM670. As an alterna- projects.
tive to PM100, the quality gate may also be
See Recommendation 7.1 in Module 7,
satisfied at PM080. The gate at PM670 may
Operative Quality Management, for more de-
also be fulfilled at PM650.
tails about quality gates.

53
 Siemens One

A major component of the Customer focus business responsibilities of the Groups and
company program is the “Siemens One” ap- bring their portfolio into customized com-
proach, where our Groups work together to plete solutions for selected industries. The
approach customers in certain industries. following additional requirements exist with
By bundling our areas of competence, we regard to the management of cross-selling
complement vertical project development – projects:

Project management –
Additional recommendation of Siemens One (CD SO)

Phase Milestone Additional results

Pre- PM010/PMS010 New opportunities are checked for cross-Group potential
acquisition Acquisition go/no-go Lead Group** defined by the respective Sector Development
decision Board (SDB) or by consensus between the parties involved
Cross-Group cooperation agreement for phases PM 010–PM 040
signed (sample and further information available on
Siemens One intranet site)

Project PM020/PMS020 Cross-Group bid team & STC are confirmed by involved BU’s*
acquisition Bid decision Overall / technical & commercial bid manager nominated
DI2 and take a BU-neutral role

Bid PM040/PMS040 Cross-Group reporting & calculation which explicitly show

pre- Bid approval synergies is established
paration DI3 LoA decisions** are traced, documented & published (technical:
Group-specific and cross-Group, commercial: cross-Group)
Offer documents are common & consistent across BU’s*
Siemens internal consortium agreement is signed
Lead Group is enabled to negotiate for entire consortium

54
 Phase Milestone Additional results
Project PM080/PMS080 Overall/technical & commercial PM have a clear mandate from
handover Start of project all BU’s (letter of empowerment) and take a BU-neutral role

Project PM100/PMS100 Synergies in project organization and site infrastructure are

opening & Order receipt realized by sharing indicated functions for all involved parties
clarifi- clarified Cross-Group single point of contact created for the project
cation
Support of executive sponsor secured
Regular reporting for consortium established including
“executive summaries”

Project PM670 Project is officially closed (post cross-Group project calculation,

closure Project closure PM’s role)
End of PMS1000 Cross-Group debriefing performed and findings are openly
service End of obligations communicated
provision

For further information please also refer to the Siemens One Intranet Site at
http://intranet.siemens.com/siemensone

* The terms Business Unit (BU) resp. Group are used synonymously
*** “Limit of Authority” – BU specific also refered to as Bid/No Bid decisions

Display in Siemens Reference Process House

The displayed reference processes for Access the PM@Siemens views displayed in
project management are shown in the the Siemens Reference Process House via
Siemens Reference Process House as special the following:
PM@Siemens views that give users a quick https://cio.siemens.com/rph
top-level overview of the process phases
Click “Process Views” to enter the individual
and milestones (see figure 1.6).
PM@Siemens views.

55
PM@Siemens view for plant and solutions projects

Reference process for systems and solutions projects

Akquisition
Acquisition
Bid Vertrags-
Contract
Pre-
Vor- Project
Projekt- Angebots- Projekt-
Project
pre- verhand-
negotia-
akquisition
acquisition akquisition
acquisition erstellung übergabe
handover
paration lung
tions

PM010 PM020 PM040 PM070 PM080

Acquisition Bid Bid Project Start of
Go/No-Go decision approval won/lost project
decision

Project execution
Project
Project Purchasing Vertrags- Construc- closure
Vor- Detailed
Projekt- Angebots- Projekt- Commis-
opening & and manu- verhand-
Dispatch tion/installa- Acceptance
akquisition akquisition
planning erstellung übergabe sioning
clarification facture lung tion Warranty

PM080 PM100 PM200 PM300 PM400 PM550 PM600 PM650 PM670 PM700
Start of Order Approval Dispatch Materials Construction/ Release for Customer Project End of
project receipt of detailed approval and resources installation customer acceptance closure warranty
clarified planning at site completed acceptance

Process phase PM@Siemens milestone PM@Siemens milestone with Quality Gate

Processes and Roles Fig. 1. 6

Select a phase to see an overview of the pro- of customer relationship management

cess steps within a process phase at the sec- (CRM), supply chain management (SCM) and
ond level of the view. The process steps are product lifecycle management (PLM) and de-
assigned by phase to the business processes picted as a simple workflow (see figure 1.7).

56
Process steps for a process phase in PM@Siemens view

6 Project opening & 7 Detailed schedule 8 Purchasing and

clarification manufacture
Project Purchasing
opening & Detailed
schedule and manu-
clarification facture
… …

PM100 PM200

CRM

Name project Create and Assemeble Distribute pur-

Create project Create and
manager/con- release technical and release chasing, manu-
management release detailed
clude goal realization realization facturing, and
schedules schedule
agreement plan plan service orders

Complete
quality plan
and risk
analysis

SCM

Confirm and Define Realize

evaluate refer- realization product
ence selection concept

Update re-
quirements spe- Prepare
cification for supply chain
the product

PLM

Processes and Roles Fig. 1.7

Select a process step to navigate to the as-

signed detailed definitions of its inputs and
outputs, roles, guidelines, templates (if de-
fined) and descriptions in the Siemens
Reference Process House.

57
 Project roles

A second essential aspect in the standardiza- ciated line organizations and are assigned to
tion of projects business is the uniform defi- people who are appointed for concrete
nition of project roles and functions. A role projects. Depending on the project's com-
is defined by a specifically described set of plexity, various roles may be filled by only
responsibilities/competence areas. Project one person.
roles are defined independently of the asso-

Project management roles

Direct project roles Supporting roles

Project manager Responsible business manager

Commercial project manager Responsible service manager
Technical project manager
Senior site manager
Commercial site manager
Sales project manager
Bid project manager
Risk manager
Schedule planner
Project Quality manager
Claim manager
Project procurement manager
Dispatch logistics manager
Project administrator
Service operation manager
Commercial service operation manager

Several roles may be combined,

but the “Four eyes” principle
should always hold.
Processes and Roles Fig. 1. 8

In addition to classic direct project roles, the

essential supporting roles have also been
defined, in order to mirror the essential inter-
actions in project processing.
A description of the responsibilities of
each of these roles is available on the
PM@Siemens initiative home page
(http://projectmanagement.siemens.com).

58
 Recommendation framework for successful processes and roles
In summary, we can make the following recommendations for
successful processes and roles:

Recommendation 1.1
Implement project phases with the described milestone system and quality gates

Recommendation 1.2
Implement required results for milestones

Recommendation 1.3
Implement project roles

Recommendation 1.4
Implement project steps

59
 Con ment
ct
tr a
e
nag
Ma
» Clear contracts and
professional contract management
will assure your projects of success
«

Contract Management
Module 2
 Clear contracts and professional contract
management will assure your projects of success.

Contract Management

Contract Management plays a crucial role On Small Projects, this function is per-
during order execution but is even more formed as part of another role (e.g., PM)
important in the bidding phase. It begins or as a temporary assignment.
with preparation of the bid, proceeds to
Contract managers perform their function in
the stage where the contract is signed
close cooperation with Legal Services and
and continues into the implementation
act as neither an attorney nor as a legal ad-
phase, where the focus is on claim and
viser (“legal advisor,” “legal counsel”) of the
change order management.
Groups.
The Contract Management team of experts Especially in the bid phase, the integration
within the context of PM@Siemens recom- of the contract manager into the organiza-
mends that a global concept be implement- tion should be close to the operative busi-
ed for the Siemens Groups as well as for all ness concerned; however, he/she should be
project and risk categories throughout the sufficiently independent so as to be able to
term of a project. Additionally, there are bring matters before the relevant Division or
recommendations on contract management Subdivision management in the event of
tools, communication and training, rollout any conflicts.
and feedback. The introduction of the bid/no-bid and bid
In this area, Contract Management provides approval procedure (graded according to
expert support in drafting or commenting project and risk categories) is still recom-
on and negotiating the commercial terms mended as an important precondition for im-
and conditions of a bid, supply and service plementing the contract management con-
contracts and also cooperation agreements, cept in the Groups. For the highest risk
along with support (in terms of contract categories, Group or Regional Executive
law) during the implementation phase. Management must be consulted.
For the highest project class and risk class
(e.g., “A projects”), the use of a full-time con-
tract manager specially named for the
project is required. Specialists for this pur-
pose are to be named and trained in the
Groups and Regions.

63
 LoA process (Limit of Authority)

The LoA process ensures a controlled review manages the associated risk
of binding bids that ensures agreement with the business
strategy, and
manages the business portfolio.

LoA process

Is there a general release, or was a conceptual framework for LoA meeting No

action created and complied with during the concept phase? required
Yes
Derive the relevant release level while considering the Definition of
risk analysis, volume specification, etc. LoA level

LoA level
defined

Perform LoA release on the current level LoA meeting

Bid
Bid
must be
confirmed
changed

Next LoA level if necessary LoA level No

achieved
Yes
Bid
release
Contract Management Fig. 2.1

Using this structured approach, non- Further considerable savings can be

conformance costs (liquidated damages, ad- achieved by way of a more focused project
ditional costs) can be reduced significantly, selection (bid/no bid; improved hit rate; see
thereby achieving a sustained improvement recommendation 2.3).
in project results. The recommendation framework developed
by the team of experts consists of the follow-
ing.
A. Concept for Contract Management
B. Standard Contract Management Tools
C. Communication & Training
D. Rollout and Feedback
These recommendations are summarized in
the following overview.
64
 Rollout/Feedback

2.11 Install a contract management community

in the Group/Region

Communications/Training
Mandatory training in contract law and claim management for Sales & Marketing and 2.10
Project Management (technical/commercial) personnel

Standard Contract Management Tools

2.7 Implement mandatory check for Implement binding Group and/or Region 2.8
“unacceptable regulations” policy for project business

2.9 Ensure intensive use of available

standards and tools

Contract Management Concept

2.1 Implement independent contract Involve full-time contract managers in 2.2
management function the bid and negotiation phase for
projects in the highest project/risk class

2.3 Implement documented bid/no-bid Implement bid release procedures with 2.4
procedure/approval for preparing a bid uniform project and risk classes across all
Groups and Regions

2.5 Final bid approval by a Review Board, in Provide full-time contract managers for 2.6
the highest project or risk category the implementation of projects in the
jointly with Group Executive Manage- highest project/risk category
ment or Regional Management

Contract Management Fig. 2.2

65
 Contract Management in the project phases

Acquisition Bid Negotiation Project Warranty

phase phase phase execution phase

Acquisition Bid Project Customer End of

Go/No-Go decision approval won acceptance warranty

Contract Management up to Contract Management after

contract signature contract signature
Contract analysis, commenting, Contract analysis in terms of oppor-
Main responsibilities

revising of supply and service contracts tunities and risks, claim potential
and cooperation agreements and the procedures to be applied
Negotiation support up to final contract Drafting and controlling of subcon-
draft and contract signing tractor agreements
Risk management within the project Analysis of contract and issues for claim
team concerning terms and conditions risks and opportunities
Implementation of the claim concept/
claim strategy in the project
Contract Manager profile

Commercial and/or contractual Technical or business administration

background background, possibly as quantity
Experience in sales and/or project surveyor
implementation Training and experience in Contract
Comprehensive know-how in project Law and Claim Management
business, negotiation skills Comprehensive know-how in projects
business

Contract Management Fig. 2.3

66
 Recommendation framework for successful contract management
In summary, the following recommendations can be made for
successful contract management:

A. Concept for Contract Management

1 Up to contract signature

Recommendation 2.1:
Implement independent contract management function

The independent activity of a contract man- count in the contract, and by providing a
ager covers mainly the project phase up to contractual basis for change order and claim
the stage where the contract is signed. It is management. Contract management is also
his/her responsibility to provide expert sup- responsible for ensuring compliance with
port in drafting or commenting on and nego- business principles and procedures in the
tiating the commercial terms and conditions bid process, as well as for ensuring involve-
of bids, supply and service contracts as well ment of the specialist departments (Legal
as a cooperation agreement (legal advice is Services, VVK etc.), where applicable. In
provided by Legal Services). In this context, smaller projects, this function can be ful-
contract management plays an important filled by using standardized contract provi-
role in risk management by ensuring that sions.
the identified technical, financial, customer
and country-specific risks are taken into ac-

67
Recommendation 2.2:
Involve full-time contract managers in the bid and negotiation phase
for projects in the highest project/risk class

At least in the highest project and risk cate- A contract manager should have sales/-
gory, the function described under marketing and project experience, business
Recommendation 1 must be performed by a administration knowledge, sound experi-
named full-time contract manager appoint- ence in contract law/preparation of con-
ed for the project, but the contract manager tracts, negotiation skills and a good knowl-
may be involved in several projects. He/she edge of business principles and processes.
should be integrated into the organization
such that he/she is able to bring matters be-
fore the relevant Division or Subdivision
management in the event of any conflicts.

Recommendation 2.3:
Implement documented bid/no-bid procedure/approval for preparing a bid

On the basis of a Group-specific or Region- and dealing with opportunities and risks at
specific procedure, the responsible sales an early stage. On that basis, the meeting
unit submits the project in standardized pres- serves to discuss the bid strategy, the factors
entation documents to the relevant manage- involved in success and the prospects there-
ment team for the latter's decision in a meet- of, the unit's own competitive position (if ap-
ing in which the management of the plicable, its unique characteristics), etc., and
necessary specialist units take part. the extent to which the project reflects the
core business policy of the unit. The budget
The Group-specific/Region-specific determi-
for preparation of the bid should also be ap-
nation of the decision-making level depends
proved in this meeting. In case an adden-
on the risk category or project category.
dum is required, it must also be presented to
Within the context of risk management, this the same decision group.
meeting is very important for identifying

68
 Recommendation 2.4:
Implement bid release procedures with uniform project and risk classes
across all Groups and Regions

Depending on the business requirements, The bid approval procedure should include
risk categories are identified for the projects. three elements:
In particular, the criteria include: Technical LoA
Business volume and result Commercial/contractual LoA
Financial risks (payment, production and Cost/Price LoA.
export risks, implementation risk,
The technical part of the bid is approved by
financing risk, etc.)
the responsible technical units in accord-
Contractual risks (liability, acceptance, ance with a stipulated risk classification. To
warranty, liquidated damages for delay this end, the technical units must produce
and non-conformance with performance binding commitments, including perfor-
guarantees, applicable law, etc.) mance characteristics.
Technical and schedule-related risks In a parallel process, the units responsible
(innovation, “exotic” solutions, critical for calculating costs submit their binding es-
performance agreements, foreign timates, which are taken into consideration
products, etc.) and in the total cost and price calculation. The es-
sential contractual contents (liability, warran-
Organizational or process risks
ty, liquidated damages etc.) are also to be ap-
(consortial cooperation, involvement of
proved in a standardized fashion, that is to
Regional Company, internal resources,
say, in accordance with Terms & Conditions,
etc.).
Limits of Authority Guidelines or compara-
ble procedures issued by the Group, Division,
For the individual risk categories, the rele-
or Region.
vant approval processes and decision-
making levels should be defined for each
specific Group or Region.

69
Recommendation 2.5:
Final bid approval by a Review Board, in the highest project or risk category jointly
with Group Executive Management or Regional Management

The Review Board approves the bid on the part in this meeting if the highest project/
basis of a standardized brief project presen- risk category is concerned.
tation, which, in addition to pricing/costing,
At a minimum, the manager(s) of the techni-
points out significant technical and contrac-
cal units responsible for significant perfor-
tual risks as well as other possible frame-
mance characteristics and for the scope of
work conditions of importance for the deci-
supply and service, the technical and busi-
sion. Approval is given in a meeting,
ness administration project management,
possibly also in a videoconference. At least
and the contract manager must also attend
one member of Group or Regional Executive
this meeting.
Management and of management of the
sales or business unit affected must take

70
2 After contract signature

“Contract management after contract (costs and time), and the recording of evi-
signature” is focused at the Group or Region dence for defending incoming claims and
level on proactive claim management (in- justifying and substantiating outgoing
cluding change order management). claims.
Analogously to contract management prior Consequently, the requirements to be met
to signing of the contract, Claim by contract management during contract
Management plays an important role in risk processing differ substantially from those
management by identifying the opportuni- that apply to the bid phase. In the implemen-
ties and risks inherent in the customer con- tation phase, the emphasis is less on draft-
tract (including the technical sections), not- ing the contract and analyzing the risk poten-
ing the potential for changes and claims and tial inherent in the terms and conditions of
defining the procedural rules that have to be request for the tender. The primary goal in
observed. Apart from that, the second main the implementation phase is to identify caus-
task of contract management is to support al links in such areas as deviations from
the drafting and administration of subcon- agreed deadlines and quantities, obstacles,
tractor agreements, for the purpose of risk other contract problems and the various in-
transfer and defending or enforcing claims. terfaces to subcontractors/consortium mem-
bers. Therefore, the skill profile required for
Contract processing (customer, consortium
this phase calls for a technically trained
and subcontractor agreements) also in-
claims manager who not only knows how to
volves identifying events relevant to the con-
analyze schedules and portray complex sub-
tract and assessing them in terms of claim
ject matters briefly and in a form illustrating
risks (incoming claims) and claim opportuni-
causal relationships, but is also sufficiently
ties (outgoing claims), documenting these
experienced in international contract law.
events and the resulting consequences

Recommendation 2.6:
Provide full-time contract managers for the implementation of projects
in the highest project/risk category

In view of the importance of claim manage- For large-scale project business comprising
ment and the effects of any deviations from installation and commissioning, a contract
a contract, a full-time contract manager is manager is required to be at the site.
appointed to assume the aforementioned
duties in the highest project/risk categories.
Depending on project size and complexity, a
contract manager may be involved in one or
more projects.

71
 B. Standard Contract Management Tools

Recommendation 2.7:
Implement mandatory check for “unacceptable regulations”

“Unacceptable regulations” must be integrat- of criteria for the project release procedure.
ed by each Group or Region into its catalog

Recommendation 2.8:
Implement binding Group and/or Region policy for project business

The Group or Regional Executive Manage- tory) and optional elements for the liability
ment is responsible for implementing Group- concept, warranty, liquidated damages, etc.
specific or Region-specific project policy. are defined and specified in this project
Obligatory elements, key figures (manda- policy.

Recommendation 2.9:
Ensure intensive use of available standards and tools

As a central provider for the Groups and ment with LS and make them available to
Regions, Legal Services (LS) devises and up- their sales units and contract managers via
dates both standard contracts for the the Intranet. We also recommend that
Groups and Regions as well as the LS Legal Group-specific/Region-specific tools and reg-
Manual (which is standard throughout ulations be made accessible to other Groups
Siemens). In addition, the Groups and via a central Intranet platform.
Regions can formulate Group-specific or
Region-specific standard contracts in agree-

72
C. Communication & Training

Recommendation 2.10:
Mandatory training in contract law and claim management for Sales & Marketing
and Project Management (technical/commercial) personnel

We recommend that staff in Sales & Group-specific/Region-specific training

Marketing and Project Management com- courses (e.g., business-oriented claim
plete mandatory modules in order to acquire management) should be devised and
further knowledge of contract law and claim offered in cooperation with LC and LS.
management.

73
 D. Rollout and Feedback

Recommendation 2.11:
Install a contract management community in the Group/Region

We recommend installing a contract man- This should create a foundation for a

agement community within the cross-Division, uniform regulation to
Group/Region to encourage people to ex- clarify contractual issues in customer
change experiences and discuss current projects.
project-related problems and issues (see
Module 8, Knowledge Management).

74
 Proje g
n
ct
rolli
Cont
» Regular project controlling
creates transparency, prevents
unpleasant surprises, and
allows people to act quickly
to counteract crisis situations «

Project Controlling
Module 3
 Regular project controlling creates transparency,
prevents unpleasant surprises, and allows people
to act quickly to counteract crisis situations.

Project Controlling

Project controlling is a significant tool for The standard variables for project control-
handling projects successfully. Ultimately, ling related to the business management
the success of a project is measured in data and risk management are based on CF
terms of profits and customer satisfaction. specifications for all Groups according to US
GAAP (US Generally Accepted Accounting
Which key variables must be recorded in Principles) and according to the KonTraG law
the context of project controlling so as on risk management. This includes value-
to permit a reliable forecast of the profits oriented control that encompasses payment
at the end of the project? flows and funds commitments.
How can risks be detected and evaluated Other key variables not related to financial
early, and how can they be minimized by aspects are stipulated in a business-specific
taking appropriate action? manner for the individual Groups. These vari-
ables include:
How can project controlling, which
includes project reporting, be integrated Technical controlling
uniformly and systematically in the
Milestone and project progress
business processes of the Groups?
controlling
These questions are core issues in the
Change order and business opportunity
Project Controlling module. Project control-
management
ling is sufficiently regulated in all Groups.
Resource management
Customer and employee satisfaction.
Various Good Practices related to these
areas were taken from all Groups and ana-
lyzed by the evaluation team.

77
 Recommendation framework for successful project controlling
In summary, the following recommendations can be made for successful
project controlling:

Recommendation 3.1:
Establish a project-driven organization

Establish a project-driven organization, and However, project controlling can contribute

assign project teams with clearly defined to improving the results of the project only if
authorities and responsibility in the hands of clearly defined overall responsibility and
the project manager as entrepreneur. authorities are assigned to the project man-
Modern project controlling that points out ager. As a result, integration of projects in a
problem areas at an early stage to the project-driven organization becomes a
project manager and its own management matter of course.
must be integrated into a consistent project
handling process that is characterized by a
free flow of communication between the
levels of hierarchy concerned.

78
 Recommendation 3.2:
Consistent project controlling process from the bid/no bid decision through to the
end of the project, in particular integrated risks, change order/opportunities and
claim management

Empirical data show that 60% to 70% of all In addition to agreed-upon changes (e.g.,
non-conformance costs are identified during change orders), one must also consider devi-
the execution of a project, but these costs ations from plan values (e.g., NCC) or
actually originate at the bid phase of a changed estimates (e.g., of risks). The order
project. For this reason, project controlling entry calculation (OEC) is the starting point
must be performed continuously, all the for such efforts. Changes to the values en-
way from the bid through to the end of all tered there for sales, costs, and precautions
obligations entailed in a project. Modern to counter risks must be recorded, evaluated,
project controlling supports the manage- and documented. Furthermore, each
ment of risks/opportunities, claims and Division must specify internally what level of
change orders as an integral part of the change is required to trigger an escalation or
project process and lies within the project require the agreement of people beyond the
manager’s sphere of responsibility. An impor- project management team.
tant component is the updating of financial
The following figure shows schematically
project planning using change order man-
how elements of change management af-
agement.
fect planned sales and planned costs for the
project.

79
 Change Cost impro-
Risk Claim NCC
Order vement

Actual sales
Gross
Marginact.
Gross
Actual costs
MarginOEC

Risk
Contingencies

OE-Calculation Customer acceptance

(PM100) (PM650)
Planned sales Planned costs Actual costs

Project Controlling, Fig. 3.1

If change management is handled properly, Additionally, if the percentage-of-com-

project planning will always reflect the most pletion method is used, a cross-unit (e.g.,
recent data; when the project ends, actual headquarters and National Company)
sales will agree with the updated planned project controlling system must be imple-
sales figures, and actual costs will agree mented, in which one unit bears the respon-
with the updated planned costs. sibility for doing so. Appropriate contractual
agreements are to be used to ensure that
the project controller promptly receives all
information necessary for cross-unit project
controlling on a continuing basis.

80
 Recommendation 3.3:
Implement required milestones/Quality Gates in the project process

A project must run consistently in accord- The milestones/Quality Gates for the project
ance with defined rules and decision levels process are defined in Module 1 (Processes
even at the bid phase. Implementation of and Roles). In the project process, the man-
required milestones/Quality Gates and datory milestones play an important role in
associated documentation of the results will the success of project activities.
help the project do just that.

Recommendation 3.4:
Hold regular management-driven project meetings on the basis
of standardized reporting

Standardized, regular reporting takes place The result-oriented execution of projects

at the Group or Regional level; associated requires current and up-to-date controlling
controlling parameters are defined in a busi- of business administration, technical and
ness-oriented fashion. contractual parameters. The controlling
process, in dialog with management, is
The main tasks of project controlling are to
supported by standardized project meetings
ensure that the project activities of all organi-
and a defined escalation process in the
zational units involved in the project are
event of critical developments.
transparent, and that support is provided for
commercial project execution.

81
 Best Practice recommendations

Examples of standardized methods and

processes from Siemens Groups are avail-
able on the home page.

PTD info on http://info.ev.siemens.de/ev_ga/pm-ptd/de/Quellen/home-

project reporting: quellen-tools-vorlagen_scorecards.htm?PIdent=1144&SIdent=
1150&TIdent=1151

COM info on https://intranet.communications.siemens.de/scb/pmn/

project reporting:

I&S info on http://fpinfo.erlm.siemens.de/atd/gemeinsam/cm/de/pm/rl/

Claim Management: rl-home.htm?PIdent=1032&SIdent=1080

SBS info on http://risk-management.sbs.de/html/index.asp

risk management: http://regiond.sbs.de/commerce/risk.htm
PG W info on planning http://www.pg.erl.siemens.de/f/w5/de/W5B/Redir-PlaTo.htm
and reporting:

SBT info on controlling http://intranet.sbt.siemens.com/CON GUIDELINES/de/de

guidelines: http://intranet.sbt.siemens.com/top-plus/en/BrowserTree/
index.asp

Project Controlling Fig. 3. 2

82
 Personn t
men
el

M an a ge
» Your Career in Project Management «

Personnel Management
Module 4
 Your Career in Project Management

Personnel Management

“A project should be managed like a But what does the term “project entre-
company” – this guiding principle defined preneurship” mean? What best practices in
by the Corporate Executive Committee this area already exist at Siemens AG? And
has a very decisive influence on the en- which of these solutions can be recommend-
tire PM@Siemens initiative, particularly ed for implementation in all Groups and
on Personnel Management. Regions?

Project manager as an entrepreneur

Objective

Delegate Ensure Reward and

and accept empowerment recognition
responsibility

Letter of empowerment
Income and
project incentives
Target agreements
Measures

Adequate assignment

PM training and qualification

PM career model

Personnel Management Fig. 4.1

85
Delegating the responsibility for a project Experience has shown that cooperation with
means primarily that the scope of such re- line management is particularly important
sponsibility must be clearly defined. It also here. Partnership-based cooperation is an es-
means that the project manager must be sential success factor in projects.
willing and prepared to exercise this respon-
Along with project management, which
sibility. To ensure this is the case, it is neces-
begins depending on the project cate-
sary to precisely define the requirements
gorization with the realization of mile-
and compare them to the individual capabil-
stone PM 040 respectively PM 080, the
ities and experience of the project manager.
PM@Siemens project culture must also incor-
However, this alone is not enough. The or- porate management of the bid preparation
ganization must delegate very clear authori- process. Bid preparation is as important for
ties to the Project Manager. This principle of the ultimate success of the project as realiza-
our project culture must be recognized and tion of the project itself. For category A and
practiced in the organization and also be B projects, only employees with realization
conveyed to our customers and project part- and sales experience may be responsible for
ners. bids.

86
 Current status of activities in the early stages of category A and B projects

Acquisition phase Project execution phase

Bid Contract Project Project

preparation negotiation handover opening &
clarification

PM040 PM070 PM080 PM100

Bid calculation As-sold calculation Start of project Orders
LoA entry
calculation

Sales manager, Project manager

Bid project manager

Responsible business manager

Appointment and involvement of the PM at an early stage depending on the complexity and likelihood of an order
Personnel Management Fig. 4.2

In both, the bid phase and the realization career in the project management career
phase, we need independent and objective path. This is an alternative to a career in line
project managers who are not beholden to management. We recommend project incen-
anything but the project goals, and who ex- tive systems or individual special payments
ercise their authority on behalf of the respon- related to specific project goals as a form of
sible business manager. recognition with short-term effect for suc-
cessful projects. Both forms of recognition
We can achieve this through empowerment,
enable individual motivation and give the
supported by a target agreement between
Project Manager a share in the success of
the responsible business manager and the
the current project.
person responsible for the bid and/or the
project manager. The Personnel Management panel of ex-
perts analyzed and evaluated the solutions
It is also important to recognize people's ac-
applied in the Siemens Groups and made
complishments in project management. This
the following recommendations based on
occurs in a long-term fashion over an entire
their research.

87
 Recommendation framework for successful personnel management
In summary, the following recommendations can be made for
successful personnel management:

Recommendation 4.1:
Implement personnel development in project management

The PM@Siemens initiative offers employ- a qualifications model within the PM

ees an independent project management ca- career model (see Module 5, Qualifica-
reer path in addition to the technical and tions)
management paths.
qualifications programs at the
This path includes: PM@Siemens Academy (PM Learning
Programs PM4–PM1 and the
Profiles for project managers (3 profile
PM@Siemens curriculum)
stages: Project Manager, Senior Project
Manager and Project Director)

88
Introduction of PM Career Model

The PM@Siemens career model is the basis for personnel development in project management

Project categories Levels of qualification

(with responsibility for results)

Management of Project Director (PDir)

category A/B/C projects • cross-Group certification via
Management levels

the Learning Campus

Senior Project Manager (SPM)
Management of •with LC or in accordance with
category B/C projects LC guideline
• with “PM Future World”
(self-assessment/outside
Management of assessment + review board)
C-level projects and/or Project Manager (PM)
several Small Projects • internal Group/Region
certification
(without responsibility

Participation Practitioner
Technical levels

in projects (no certification)

approx. 1–2 years*
for results)

Experience
in processing/
assembly/
commissioning/ approx. 2–3 years*
engineering
or sales
*Suggested values

Personnel Management Fig. 4.3

89
Those wishing to embark on a career in management of projects of varying degrees
project management should first work in a of complexity represented by the three
technical or sales department and then ro- project categories of A, B, and C. For each of
tate through various project assignments the three levels, project management pro-
with varying responsibilities. files have been defined. These profiles de-
scribe the requirements with respect to are-
The essence of the management levels is
as of responsibility/tasks and the knowledge,
based upon responsibility for results. The dif-
experience, and skills needed against the
ferentiation into the levels of Project Manag-
background of the Siemens competence
er, Senior Project Manager and Project Direc-
model.
tor is the result of the entrepreneurial

Project Manager Senior Project Project Director

profile Manager profile profile

Project C B A
Category

Responsi- Customer Management, Proposal Contract Management, Risks and Opportunities

bilities Management, Claim Management, Partner Management, Purchasing and Logistics,
Finance Management, Project Planning and Controlling and Completion,
Networking, Knowledge Management

Knowledge Methods: PM methods for tasks, leadership skills, motivation ...

Technical skills: PM tools, procedures and relationships in a project environment, Contract/
employment law, languages, industry-specific and customer-specific knowledge, familiarity with
spectrum of goods and service offered by one’s own Group, inter-cultural communication ...

Experience ≥ 1 year of responsible ≥ 2 years responsible ≥ 6 years responsible

assistance with customer management of category management of category B
projects C customer projects customer projects
≥ 1 year management of ≥ 2 years management ≥ 6 years management of
employees of project teams project teams

Skills Results-oriented attitude, ability to make decisions, excellent organization skills and
focus on quality, customer-focused attitude, assertiveness, ability to motivate others,
excellent communication skills

Personnel Management Fig. 4.4

90
The project management profiles let employ- Project managers at all levels of qualification
ees interested in a project management ca- think and act in an entrepreneurial manner.
reer compare their professional aspirations They lead employees working on the project,
with the listed areas of competence and re- are authorized to make decisions within the
sponsibility and make the appropriate deci- framework of the areas of competence grant-
sions about their professional development. ed to them (see "Letter of Empowerment")
They are also the basis for systematic qualifi- and are invested with the corresponding lev-
cation and PM@Siemens certification. el of responsibility. Based on this, the respon-
Project success depends heavily on the selec- sibility of a project manager for his or her
tion of a qualified Project Manager. The ca- project is comparable to the responsibilities
reer model and the project management pro- of line managers. Thus, the project manage-
files create the necessary transparency for ment career path offers interesting opportu-
efficient resource management. nities for development and advancement.

Management development roadmap

Division Manager President Management of Program

Currently not
in focus

programs Director
(cross-process
Responsibility/qualification level

Subdiv. Manager Vice President general management)

Segment Manager Director

Management of Project
A/B/C projects Director
PM@Siemens
Defined via

Department Senior Manager Senior

Manager Management of
Project
B/C projects
Manager
Management of Project
C projects Manager

Management functions Project management functions

Personnel Management Fig. 4.5

91
 Project manager certification

Internal Siemens certification of project man- The technical PM knowledge can be docu-
agers is a documented quality indicator for mented with a qualification/attendance cer-
their competence and professionalism and tificate from the PM@Siemens Academy.
creates added value in our relationships Such certificates are issued after a candidate
with partners and customers. attends the PM Learning Programs PM4–
PM1 or selected seminars from the curricu-
As a voluntary measure, it is available at the
lum.
end of the competence management and
qualification process for the individual levels. These certificates do not replace the PM
It is a personnel development measure rele- certification; they are simply proof of
vant to promotion, and it is therefore inte- qualification.
grated into existing and agreed-upon HR
(Human Resources) instruments and process-
es (e.g., EFA/Staff Dialogue).
The goal is to document the breadth of com-
petence of an employee that makes him ca-
pable of independently managing the corre-
sponding customer project categories.
Essentially, for an assessment of a Project
Manager's competence, project experience

Personnel Management Fig. 4.6

defined in the requirements profile will be
decisive. Comparing the target agreement
(see Recommendation 4.3) with project
results creates a continuous documented
record for the project manager's ability to
manage category A, B, and C projects.

92
Concrete implementation

For a successful certification, it is absolutely These prerequisites are based on the project
critical to fulfill the defined entry prerequi- management profiles and reviewed in the
sites. EFA/staff dialog process.

Checklist of entry prerequisites

(Confirmation at Group/Region level via staff dialogue on the basis on the PM profiles)

PDir SPM PM
1. Experience/knowledge Comparison through self at least at least at least 1 year
assessment/outside assessment in the preliminary 6 years 2 years with of partici-
discussion with C projects and pation in C, B
Full responsibility for managing projects for B projects more than or A projects
Group-external customers 1 project

2. Leadership experience at least 6 at least 2 at least 1 year

years of man- years of man- functional
agement of agement of management
project teams project teams of employees

Intercultural experience Experience living and required recommended recommended

working abroad and work on intercultural teams

Appropriate qualification, e.g., through PM learning required required required

programs or modules from the curriculum

3. Project history and achievement of goals Written recommended recommended recommended

description of project history as preparation for the
EFA round/staff dialog

4. Management of a project of the next higher A project B project C project

category started required required required

5. Statement from staff dialog: Potential for Level PM, PDir SPM PM
SPM, PDir and documentation in the field required required required
“next step ...” on EFA Web/IDD

6. Decision from staff dialog; poss. condition for PDir AC SPM certified as PM
repetition met certification
Personnel Management Fig. 4.7

93
 Details about certification

Project Manager (PM) Senior Project Manager (SPM)

Certification as a Project Manager (PM) For the Senior Project Manager (SPM) level,
occurs as part of the annual EFA process- 2 principal forms of confirming the requisite
es/staff dialog in the Groups/Regions. qualifications are possible:
Certification of the candidate is decided
Certification using LC or in accordance
upon during the EFA round/staff dialog. To
with LC guideline
provide additional support, an evaluation
using PM Future World (see next section) Certification via questionnaire
can be performed, but compliance with com- (PM Future World) and review board
pany agreements must be ensured.
(See Personnel Management Fig. 4.8)

SPM certification process with LC or in accordance with LC guideline, or us-

ing the questionnaire catalog and having the review board make a decision

Certification via LC or in accordance with LC guideline

Assessment
Decision via Feedback
center at LC or in
assessors from
accordance with
conference assessors
LC guideline

Identifi- Transfer of
cation via certificate/do-
staff dialog/ cumentation/
EFA feedback staff
Certification via question catalog and review board dialog
Feed-
Line Decision
Self- Check by back
manager by the
assess- “neutral” from Line
assess- review
ment body man-
ment board
ager

Personnel Management Fig. 4.8

94
1) certification
using LC or in accordance with LC guideline

The components are: Assessor roles and minimum number of

assessors/assessor requirements/assessor
Assessment Form: Group AC
training
Assessment Design/Type of Exercises:
GEM 34/01: Participation of 1 psycholo-
Group discussion where members arrive
gist for a period of 2 days
at a decision: Leadership of a project
group (case study); presentation of a Cross-Group: 1 assessor from a different
category C or category B project the Group than the candidate, 1 assessor
candidate has led; interview on candi- from the same Group as the candidate,
date’s individual project experience and and 1 psychologist assessor
feedback discussion
Groups that perform their own ACs must
Entry prerequisites and how they will be name a responsible LC contact (or Group
tested using the EFA process coordinator) to ensure compliance with
the named components
Follow-up process
Certification criteria and their weighting
(basis: job profile)

2) certification
via question catalog (PM Future World) and review board

Ensuring quality and cross-Group/cross-

Region comparability and recognition of cer-
tificates requires the use of a uniform pro-
cess with self-assessments and assessments
by others and a decision-making process
conducted by a review board. This is why
PM Future World and its associated process
were developed.

95
“PM Future World” Tool

Based on PM experience as well as self A total of 94 items must be evaluated

assessment and management assess- by the
ment • PM candidate
Comparison of PM experience with mini- • Line manager
mum criteria for PM, SPM and PDir in
Target profile for PM, SPM, PDir
accordance with project management
profile Comparison of evaluations with target
All areas of responsibility of the PM@ profile
Siemens career model include, e.g.:.
• Business responsibility Results output by the tool
• Customer management Possible level (PM, SPM, PDir)
• Commercial leadership experience Strengths and weaknesses
• Business development Need for additional qualification
• Risk management Comparison with the target profile
• Planning and organization
Personnel Management Fig. 4.9

SPM certification using questionnaire and review board

In addition to the use of the “PM Future World” tool, other mandatory process steps include:

Identifi- Line Check Feedback

Self- Decision/
cation via manager by to employee Documen-
assess- review
staff dialog/ assessment “neutral” by Line tation
ment meeting
EFA body manager

Check of Self- Outside Comparison Peer-to-peer Information Creation and

requirements assessment assessment of comparison; on transfers of
according to based on based on information Participants: certification the certifi-
PM@Siemens: questions questions and with available representa- level, cate, filing
HR distributes and check of PM documents. tive/mentor of agreement on of docu-
tool to identi- statements experience Review by a the candi- qualification mentation
fied partici- on project recognized dates, PM measures
pants experience “authority” Coach or PM
Champion;
HR; “assessors”
Personnel Management Fig. 4.10

96
The user handbook and answers to selected Certifications via the Learning Campus or in
questions can be accessed on the accordance with the LC guideline take into
PM@Siemens Intranet home page. The tool account valid company agreements. For cer-
itself is provided by the Group, Hub, or Re- tification within the Group (in accordance
gion coordinators. with the LC guideline or using PM Future
World), the Group is responsible for ensur-
ing that all valid company agreements are
complied with.

Project Director (PDir)

At the Project Director (PDir) level, success-

ful participation at a cross-Group individual
assessment center (AC) is a prerequisite for
certification. The certification exam will be
administered by the Learning Campus (LC).

Awarding of certificates for PM, SPM, PDir

Groups or Regions are responsible for award-

ing and issuing certificates for PM, SPM, and
PDir. We recommend the following signa-
ture rules:

Position Group/Germany Region

PM Subdivision management or higher Region mgmt. or Group mgmt.

SPM Division management or higher Region mgmt. or Group mgmt.

PDir Group Execution Management Region mgmt. or Group mgmt.

Personnel Management Fig. 4.11

97
 External certificates

Internal Siemens certification is a logical con- External certificates may be earned as sup-
sequence of the PM@Siemens requirement plemental qualifications if customers ex-
for a systematic, standardized project man- plicitly require it, or if the certificates repre-
agement procedure with competent and sent an additional value in the given market
highly qualified project managers. (industry, Region). However, such supple-
Certificates from international professional mental certificates do not replace an inter-
associations PMI1) and IPMA2) cover only nal
some of the Siemens-specific requirements Siemens certification.
regarding international project business and External certifications that have already
the career model. been earned will be considered within the
Therefore, project managers at any level of framework of entry prerequisites for partici-
qualification must be certified in accordance pation in the PM@Siemens certification pro-
with the PM@Siemens and internal Siemens cess.
process.
1) IPMA International Project Management Association,
Zurich
2) PMI Project Management Institute, USA

Project manager database (PM-DB)

Project manager database for cross-Group For situations in which a Group/Region can-
and cross-Region PM assignment not use someone from its own ranks for a
category A project, or a complex multi-
In addition to the economic feasibility of con-
Group/multi-Region project is involved, the
tractual obligations, the use of a suitable
search must be expanded beyond the
project manager is critical to the success of a
Group/Region in question. To support the
project. The business manager is responsible
staffing processes, a Siemens-wide PM data-
for selecting the project manager; as a rule,
base was set up under the guidance of Man-
he is supported by the Group/Region staff-
agement Consulting Personnal (MCP).
ing process when making this decision.
As part of the International Development Da-
tabase (IDD), the PM database includes
project managers who have experience with
category A projects (PDir) and project man-
agers for category B projects (SPM) who
have the potential to work with category A
projects. In addition to each candidate's
skills, his or her previous projects, industry
experience, project volume data, and inter-
national expertise should be considered.

98
Overview of cross-Group/cross-Region
PM staffing process

Request 1 5 PM staffing
Centralized PM search
all across Siemens
3 7
2 4 6
Request Search PM-Staffing
PM-?
Group/Region process

1. Inquiry from CEC, corporate units (e.g., Siemens One), or Group/Region resource managers
2. Pre-selection in the PM database by corporate PM resource managers (at MCP)
3. Inquiry to Group/Region resource managers to clarify availability
4. Feedback from potential candidates to corporate PM resource managers (at MCP)
5. Forwarding of “shortlist” to responsible business managers who will make the decision
6. (Bilateral) interviews, negotiations, staffing decision
7. Information given to resource and project managers involved

Personnel Management Fig. 4.12

99
The following roles are integrated into For centralized PM search
the database maintenance and staffing (all across Siemens):
process:
Corporate PM resource manager
To maintain the PM DB: (moderator/broker role at MCP)
Project manager (PMs for category A • can evaluate the relevant data from
projects and PMs for category B the Siemens-wide IDD for PM search
projects who have the potential to • “Moderates“ additional clarification
run category A projects) rounds via the PM resource managers
for the Groups/Regions (suitability
• Maintenance of one's own data on
and availability)
PM skills (esp. project experience)
• Ongoing dialog between manage- Group/Region resource managers
ment and employees (self-evaluation
• Current resource managers: see
and personal goals)
Intranet, PM@Siemens, Modules,
• Integration of data into EFA interview
Module 4
• Ensuring data are up to date (each
• Can evaluate data for PMs in his
person is responsible for his own
Group (worldwide) or his Region
data)
(all Groups)
• Clarifies additional details with man-
Manager
agers and/or PMs in accordance with
• Ongoing dialog between manage- Group/Region-specific processes
ment and employees
(Outside evaluation; SLF feedback, For PM staffing:
agreement on development
The person who has the need or
measures)
announces the need initiates the
• Integration of data into EFA interview
PM staffing process.
• Ensuring data are up to date
The PM staffing decision is made by
the responsible business manager
for the project with the affected
project manager (PM) and his or her
supervisor.

100
 Recommendation 4.2:
Create Letter of Empowerment

The Letter of Empowerment transfers The panel of experts recommends inclusion

responsibility and authority to the person of the following in the Letter of Empower-
responsible for the bid and the project ment:
manager
Project designation and period of validity
of the Letter of Empowerment
Assignment of authorities and obligations
for handling of the project in conformity
with the contract (also worded precisely
in the enclosed target agreement)
Assignment of responsibilities for results;
customer and employee satisfaction must
also be included
Reference to the valid project manage-
ment method in accordance with
PM@Siemens (process manual)
Provision of resources by the responsible
and supporting offices (if required,
enclose as appendix)
Right and duty to submit reports (regular
controlling, special incidents)

Personnel Management Fig. 4.13

101
Recommendation 4.3:
Conclude target agreement

Concrete target agreements help everyone The target agreement also constitutes a
get oriented and support effective project point of reference for the EFA interview/staff
handling. A target agreement with the dialog each fiscal year. Where possible, the
project manager – it is recommended to in- parameters mentioned above can be inte-
clude the person responsible for the bid as grated into the balanced scorecard and ap-
well – should include the following parame- plied to the SLF (Siemens Leadership
ters: Framework). The project goals achieved
serve as a basis for the employee’s further
Result
development and as a foundation for the
Deadlines (milestones) definition of variable salary components and
Costs project incentives.

Quality goals The target agreement should be complete

no later than the start of the project and is
Customer satisfaction valid until the project is complete. We recom-
Lessons learned mend that the project manager also con-
clude a target agreement with the sub-
project managers.

Recommendation 4.4:
Include project goals in special payments

Individual special payments allow outstand- HR (Personnel) in each case so that each
ing achievement in the handling of crisis project management level receives a fair po-
projects to be recognized proportionately to sitioning in the performance portfolio in the
the performance given. The amount of the EFA rounds/staff dialogs.
special payment should be coordinated with

102
 Recommendation 4.5:
Implement project incentive system

We recommend that you recognize project project incentive rules. The panel of experts
managers' entrepreneurial achievements us- recommends including the following key
ing project incentives. Allowing project man- points in your project incentive rules. The
agers share in the success of “their” projects Groups already have examples of best prac-
is an important step toward the goal of im- tice. Remember to consider current co-
proving project results over the long term. determination rules when approving or
Groups are responsible for developing amending project incentive rules.

Authorized Project Manager and core team (Group-specific definition)

Coordinate personnel included in the agreement with the disciplinary supervisors for international,
cross-Group, or cross-Division teams

Field of Categorized customer projects

Application
Target Value Improvement in EVA/EBIT/gross margin compared to order entry calculation

Incentive Percentage of improvement achieved with Group-specific top limit/bottom limit

Budget
Incentive to Weighted by degree of involvement (project role/project influence)
be Paid Out
Cap Yes, using a percentage of the annual salary (monthly salary x 12)

Income Reference Independent of existing income components

Time of PM 650 (customer acceptance)

Payout
Deduction Possible for project terms > 1 year; by project progress (PoC)

Personnel Management Fig. 4.14

To support the transition from sales to execu-

tion, sales representatives and those respon-
sible for bids should be included in the incen-
tive system.
This group’s goal should be to minimize the
deviation between the as sold calculation
and the order entry calculation (front end
slippage) with the assistance and guidance
of the project manager.

103
 Qualification
» Training costs less than
having to learn the hard
way in a project ...
«

Qualification
Module 5
 “Training costs less than having to learn
the hard way in a project … ”

Qualification

PM@Siemens Academy Academy goals:

In addition to our technological expertise, Long-term assurance of a structured and
the professionalism of all those involved market-appropriate offer of qualifications
in projects business is a significant factor based on best practices
for our company's future and success. Ensured implementation of corporate
As the Siemens know-how center for content
project management qualification and High degree of compatibility with the
coaching, the PM@Siemens Academy has standards of internationally recognized
the task of enhancing project manage- project management institutions/
ment and of ensuring that project man- standardization bodies.
agement standards are put into practice
throughout Siemens via appropriate quali- For more details, please refer to the Rules of
fication programs. The PM@Siemens Internal Procedure.
Academy promotes new and innovative
project management issues, ensures that
training quality is consistently high, cre-
ates the conditions for internal Siemens
PM certification, and makes Siemens
more competitive.

As a virtual organization, the PM@Siemens

Academy, with its representatives from the
Groups, Regions (Hubs) and the Learning
Campus, is an integral component of the
PM@Siemens initiative.
The PM@Siemens Academy does not have a
qualification mission of its own. The Learn-
ing Campus fulfills this mission as the ser-
vice provider.
The PM@Siemens Academy coordinates the
interests of the Groups/Regions, and the
Learning Campus is oriented to international
standards.

107
PM@Siemens Academy

President
Steering Committee
Jürgen Schott

A&D COM I&S MED PG

Rüdiger Gerhard Jürgen Klaus Michael

Jung Kastl Schott Fremmelev Eckert

PTD SBS SBT SV TS

Joachim Magdalene René Günther Ernst
Fischer Kühnel Tschupp Wittig Reuß

Learning Campus Dr. Martin Kärner

Communications Elisabeth Bittner (LC)

Regions

Qualification Fig. 5.1

Qualification measures
Acquiring project management knowledge
and expertise appropriate for the given job
profile is a must for every project manager.
To build project management competence,
the PM@Siemens initiative recommends the
qualification measures developed, made
available, and implemented by the Learning
Campus on behalf of the PM@Siemens Acad-
emy. As a supplement, we recommend indi-
vidual skill building through project manag-
ers' own on-the-job experiences, through
coaching and best practice sharing.

108
The qualification measures of the Learning Enabling of systematic personnel develop-
Campus (PM Learning Programs PM4–PM1, ment and qualification for project manag-
PM@Siemens curriculum) fulfill the follow- ers and employees on the basis of the
ing criteria of a Siemens-wide standardized PM@Siemens career model
approach to project management that simul-
Promotion of cooperation at all phases of
taneously leaves sufficient flexibility for
project management, especially in the
Group-specific and/or Region-specific re-
sales/bid phase (e.g., using cross-
quirements:
functional bids)
Uniform qualification standards
Support of an issue-oriented and techni-
Focus on defined, approved project cally-oriented international project
management profiles management network.
Implementation of uniform methods,
procedures, and terminology

Qualification is tailored to the requirements

of the career model

Carrier model Project management qualification

Project management
Project
Project Director PM1

PM@Siemens Curriculum
Director
PM Learning Programs

Management of A/B/C-projects
Senior Project Manager
Senior Project
Management of PM2 Manager
B/C projects
Project Manager
Project
Management of PM3 Manager
C projects

Project Practitioner
Project
Team function PM4 Practitioner

Entry level

Qualification Fig. 5.2

109
Two specific qualification models have been PM@Siemens curriculum. Both models
developed. The first is the PM Learning are tailored to the job profiles of the
Programs PM4–PM1; the second is the PM@Siemens career model.

1. PM Learning Programs PM4–PM1

PM Learning Program (model)

approx. 3–9 months

Module 1 Module 2 Module 3 Module X

Classroom training Classroom training Classroom training Classroom training

Practical phase Practical phase Practical phase

Practice loops, continual reflection, coaching, community

Qualification Fig. 5.3

The PM Learning Programs PM4–PM1 are tai- The PM Learning Programs PM4–PM1 are
lored to the job profiles and are recommend- built in a modular fashion. The combination
ed as qualification measures by the of classroom training and practice phases
PM@Siemens initiative because they ensure (learning on the job) offers participants the
a uniform training program for project man- opportunity to implement the project man-
ager, much as the general Siemens agement methods, communication skills,
Management Learning Programs do for line and leadership skills they have learned in
management. their day-to-day work.
Once the candidate has completed the PM
Learning Programs PM4–PM1, the Certi-
ficate of Participation issued by the
PM@Siemens Academy confirms that he or
she has reached the corresponding level of
qualification.

110
 2. PM@Siemens Curriculum

Suggested topics to include in the PM@Siemens curriculum

Project Project Manager Senior Project Project Director
Practitioner Manager

Subject- Contract law Strategy development Strategy development

related English for
expertise project managers

Methods Project Project management, Coaching methods Project coaching

management advanced Contract management, International project
Basics I Project controlling advanced business
Project Contract management Knowledge Best practice sharing
management management
Basics II Claim management Business responsibility
Risk management Business responsibility for major projects
for major projects Business development
Problem solving and
decision making Business development

Negotiation techniques

Techno- MS PROJECT MS PROJECT,

basics advanced
logies

Skills Teamwork in Leadership in projects, Leadership in

projects Basics projects, Advanced
Conflict management
in the team

Experi- Coaching, networks, Coaching, networks, Coaching, networks,

exchange of experience exchange of experience exchange of experience
ence
Experts forums,
conferences

Qualification Fig. 5.4

The PM@Siemens curriculum is a collection The PM@Siemens Academy issues Certifi-

of topics that are relevant for becoming qual- cates of Participation for the recommended
ified for a job profile. This qualification may seminars from the PM@Siemens curriculum.
be earned at seminars, but also through
project-specific coaching, workshops, or
best practice sharing. The suggested and op-
tional seminars in the PM@Siemens curricu-
lum can be booked individually and are
systematized by career path level. For
employees with the appropriate prerequi-
sites or those making a lateral move, they
represent an alternative to attending the
Learning Programs for qualification purpos-
es.

111
The following graphic summarizes the possi- Certification for the Project Manager, Senior
ble qualification options. Project Manager and Project Director levels
is a Group/Region-specific process for which
the Groups/Regions are responsible. (cf.
Module 4, Personnel Management)

Qualification and certification process

Qualification
PM@Siemens Academy
• PM Learning Programs
• PM@Siemens Curriculum

Competence
Certification
analysis

Staff dialog
Job Profiles Project Experience

Qualification Fig. 5.5

Siemens Groups/Regions PM@Siemens Academy

112
International availability of PM@Siemens Academy

The PM Learning Programs and the curricu-

lum are offered internationally. General contact:
PM@Siemens Academy
Global presence of the Intranet: http://projectmanagement-
PM@Siemens Academy academy.siemens.com
E-Mail: [email protected]
Telephone: +49-89-636-33311

Regional partners/
contacts for PM@Siemens qualification
(as of July 2005):

Central and South America USA

Siemens S.A. Siemens Corporation
Shared Services Latin America (SSLA) Learning Campus (LC), New York
Bogotá, Andres Bonilla Anita Reid
E-mail: [email protected] E-mail: [email protected]
Tel.: +57 (1) 425-3550 Tel.: +1 732 590 5361

Asia/Pacific United Arab Emirates

Siemens Ltd. Siemens LLC, Dubai
Siemens Management Institute (SMI) Janet Ghosh
Beijing, Tang Qiyu E-mail: [email protected]
E-mail: [email protected] Tel.: +971 4 2894828
Tel.: +86 10 64763508

Germany
Siemens AG, Learning Campus (LC)
Munich, Elisabeth Bittner
E-mail: [email protected]
Tel.: +49 89 636 33311

In the Regions, the Learning Campus carries

out the curriculum seminars and the PM
Learning Programs PM3 and PM4 by itself or
in cooperation with Regional training part-
ners.
The PM Learning Programs PM1 and PM2
are presented and guided on a pan-Regional
basis by the Learning Campus.

113
 Recommendation framework for successful qualification
In summary, the following recommendations can be made for
successful qualification:

Recommendation 5.1:
Determine need for qualification

Determining the need for project manage- This need is derived from:
ment qualification presumes a goal-driven,
the results of the EFA rounds and
business-oriented analysis. In the process,
staff dialogs
particular attention should be paid to special
requirements, e.g., with respect to coopera- the catalog of measures from the project
tion during the sales phase, deployment as a and process assessment (see Module 10,
project quality manager, etc. PM Assessment)
The project management profiles with their PM Future World as a placement and
defined requirements developed in the certification tool
Personnel Management module are a good cross-Group assessment of qualification
basis for determining an individual employ- needs (e.g., via interviews, best practice
ee's qualification needs. sharing …)

114
 Recommendation 5.2:
Implement qualification measures

All Groups and Regions commit themselves This systematic process supports an efficient
to make consistent use of the qualification and strategic approach to personnel develop-
offerings developed and made available by ment while maintaining an individualized ap-
the Learning Campus on behalf of the proach to continuing education.
PM@Siemens Academy.
The qualification concept of the
As part of their annual EFA process/staff dia- PM@Siemens Academy will strengthen the
log, Groups and Regions will plan their quali- Siemens project culture on a best practice
fication load for the coming fiscal year and level.
act promptly to coordinate the training
schedule with the Learning Campus.

Recommendation 5.3:
Ensure that qualification measures fulfill quality requirements

To ensure that the products of the Learning In addition, the Groups and Regions will
Campus (PM Learning Programs and meet their obligations as outlined in the
PM@Siemens curriculum) meet the required Rules of Internal Procedure, e.g., through
quality standards, the PM@Siemens partnerships for the PM Learning Programs
Academy performs regular quality control- and by participating in expert panels and
ling audits. The Groups and Regions collect closing events in the Learning Programs
feedback from participants and pass it back PM4 through PM1.
to the PM@Siemens Academy as input.

115
» The PM Portal –

PM Portal
the Web-based workplace
for all internal and

«
external parties
to the project

PM Portal
Module 6
 The PM Portal – the Web-based workplace for
all internal and external parties to the project

PM Portal

The PM Portal is a Web-based project work- volved in a project by allowing worldwide

place that helps improve cooperation be- and inter-organizational access to all pro-
tween all internal and external parties in- cedures and data available in a project.

Contract Analysis

Document and Claim and

Information Submission
Management Management
Cooperation Cooperation
with Suppliers with
and Partners Customer

Calculation and Time and

Cost Planning Project Resource Planning

Project
Suppliers Reporting
and Partners Customer

PM Portal Fig. 6.1

119
 Goals and Benefits

The aim of the PM Portal is to improve both Specific alignment of the PM Portal to the
quality and productivity in project manage- project process and to the needs of the
ment within Siemens by enhancing clarity in project team members in accordance with
projects and reducing non-conformance defined project roles should allow everyone
costs in project processing. access to precisely the functions and infor-
mation they need in order to proceed with
Improved clarity in project management
the current job. As a result, cooperation in
must be supported by uniform procedures
the project teams, efficiency in the project
and tools for all those involved in the project,
processes and the quality of project results
including management. In doing so, availa-
will improve.
ble IT processes will be put to more efficient
use through integration into the PM Portal Implementation of the PM Portal on the ba-
and access will be facilitated through uncom- sis of the standard platform Enterprise Portal
plicated operation without additional regis- Services made available throughout the com-
tration procedures (single sign on). pany as a Shared Service by Siemens CIO
aims to advance the standardization of pro-
cesses and tools. At the same time it aims to
optimize the costs for users by utilizing the
effects of scale.

PM Portal Fig. 6.2

Quality Optimization of
increase the project term

Reduction of
project costs

Uniform nature Single

of project data sign-on

120
 What does the PM Portal offer?

Project management including cost management and reporting

Purchasing&
Project opening Manufacture/
Pre- Project Bid pre- Contract Project & clarification/ Accep- Project
Dispatch, Warranty
acquisition acquisition paration negotiation handover Detailed tance closure
Construction,
planning Commissioning

The PM Portal in all phases of the

bid and order processing schedules

Requirements

Portal functions
PM Portal Fig. 6.3

The IT applications relevant for project Project Manager: The Project Manager
processing, as derived from the standard View displays the project team members
project process, are integrated in the PM and their roles, the project status and
Portal and made available to those involved information on current events in the
in the project. project at a glance.
The information within the PM Portal is struc- Project Staff: The Process View supports
tured according to project roles and views. systematic project processing on the
Each project role is linked to an authoriza- basis of the standard processes defined
tion concept in which the views intended for by PM@Siemens for different project
each role are recorded. types; its aim is to contribute to improv-
Some examples for project roles and views ing the quality of project execution.
allocated to them:
Manager: The Management View allows
Business Managers a quick overview of
the current project situation on the basis
of scorecards and management reports
for their area of responsibility.

121
 Status and next steps

The first version of the PM Portal was devel- The Region Germany has since implemented
oped by PTD with the assistance of CIO and a PM Portal for the central RD IT project cur-
uses the Enterprise Portal Services provided rently with about 500 project employees
by CIO. The concept contained in this for based on the experience gained at PTD and
roles and rights resulted in a separate view is now using it productively.
for project staff in the Enterprise Portal.
Other corporate units such as the Region
Apart from a PM frame that can also be used
Spain and CIO are preparing to use the PM
by other Groups and Regions, PTD has inte-
Portal for supporting the processing of their
grated its own business-specific procedures
projects.
and solutions for projects business.

122
 Recommendation framework for a successful PM Portal
AInsummary
summary,ofthe
thefollowing
recommendations for a successful
recommendations can be PM Portal
made for
is given below:
successful PM Portal:

Recommendation 6.1:
Use of MS Project, Primavera, SAP PS, SPIRIDON solution “Solution Business”
as standard tools

The planning and control of activities, dead- Since this solution is already linked to the
lines and resources, along with their depend- SPIRIDON Business Warehouse (“MISS
encies and the use of IT tools to support SPIRIDON”), the system also supports the
these processes, are essential elements of quarterly PM@Siemens reporting required.
the project processing task. Within the con-
For project management outside SAP, the fol-
text of the PM@Siemens Initiative, the
lowing tools are recommended as a uniform
Groups involved devised the following recom-
solution for Siemens AG:
mendations:
MS Project: For projects/office applica-
As a uniform solution for deadline manage-
tions with less than 500 activities.
ment in conjunction with SAP, the recom-
MS Project is an application that can
mended tool is the SAP module PS, wherev-
quickly be applied to smaller-scale
er possible.
projects. Only minimal training in its use
Use of the SPIRIDON solution for "Solution is required; its flexibility is advantageous
Business" is recommended, especially for the thanks to its ease of incorporation in the
regional units, as it supports the integrated MS Office world.
processing of project tasks starting with ini-
tial bid preparation, through order process-
ing, up to and including the end of the war-
ranty period and subsequent archiving. This
solution is based on a development from
Synergy+ and is suitable for small and large-
scale projects as well as for Consulting
Business or even large-scale installations.

123
 Primavera Enterprise: for projects with Due to its efficiency and complexity,
more than 500 activities for multi-project however, significant training in its use
or multi-user assignments. is required, in addition to support during
introduction and professional system
Primavera Enterprise is an internationally
administration.
recognized PM tool for complex projects.
This tool is both multi-user and multi- See also CIO Circular No. 09/2002 dealing
project capable. Its application as a with this recommendation.
Siemens-wide standard improves cross-
Group communications.

Recommendation 6.2:
Participation in further development and introduction of the PM Portal as a
standard solution for project workplaces

The PM Portal created by PTD and CIO forms The PM@Siemens initiative has thus decided
the basis of a standard solution for Web- that:
based project workplaces. This solution is ful-
the PM Portal should be extended to all
ly compatible with the Siemens standards
Groups/Regions involved.
for portal and portal implementations speci-
fied by CIO (see CIO Circular Nos. 11/2002 the Groups/Regions should use the
and 15/2005). standard solution as the basis for future
project portals of their own.
Active financial and practical cooperation be-
tween all Groups and Regions is required to The Groups will themselves decide as to
ensure that the basis of the standard solu- when they are going to embark on the
tion can be developed further in a target- project. However, until that time they will
oriented fashion and that the requirements refrain from developing project portals
of all Groups/Regions are incorporated. independently.

124
» Professional quality management
ensures the success of projects
«

t
gemen
tive
Quality
Opera

Mana

Operative Quality Management

Module 7
 Professional quality management
ensures the success of projects.

Operative Quality Management

The aim of Operative Quality Manage- As an expert and partner, the Project Quali-
ment is to lay the foundations for trust- ty Manager supports the Project Manager in
based, effective cooperation with our cus- effective planning, implementation and con-
tomers, partners and staff. Such coopera- trol of the project-specific actions taken for
tion must be based on systematic, clear quality control. The Project Quality Manager
and proactive approaches toward honor- is involved in all project-specific decisions
ing contractually agreed guarantees and and in the escalation process in the case of
performances. Operative Quality Manage- failure to meet customer requirements
ment assists the Project Manager and the and/or project goals. Depending on the
Project Teams in meeting the project re- project category, either an independent
quirements in terms of functionality, Project Quality Manager in the project is ap-
costs and deadline. pointed, or the role is performed by a suita-
bly qualified member of the project team. In
Operative Quality Management is an inte- all projects, the function of the Project Quali-
gral part of the PM@Siemens process and ty Manager in the project is allocated func-
as such includes the planning and safeguard- tionally to the quality organization.
ing of the quality requirements over the en-
The concrete measures for meeting the quali-
tire project period in all its phases and steps.
ty requirements, including deadlines and re-
Quality management is particularly impor-
sources, are defined as part of quality plan-
tant in the bid phase up to the contract finali-
ning in a Quality Plan (Q-plan) that must
zation. Deficits and errors committed in this
be kept updated over the entire project term.
phase can burden the entire project substan-
tially and can rarely be rectified – with all An additional goal is the systematic project
the resultant consequences for the custom- closure, the identification for the reasons
er and our company. for successes or failures, and to draw conclu-
sions from past experience – strengths and
improvement potential – which can be of
benefit to future business.

127
 Recommendation framework for successful quality management
In summary, the following recommendations can be made for successful
quality management:

Recommendation 7.1:
Active implementation of the Quality Management function in the project

Quality Management comprises the follow- In the interests of a proactive approach,

ing tasks: important suppliers must already be
incorporated in the bid phase and
Active involvement in the bid and
assessed for their quality capabilities.
project clarification phase
The following success factors must be
The complexity of many projects with
taken into account:
respect to customer requirements,
infrastructure, and consortium partners • Check the texts of invitations to bid
poses a potential quality risk even at the (including drawings) for completeness,
bid phase. Projects must therefore be comprehensibility and relevant rules
systematically analyzed with regard to and standards
feasibility and risks. • Clearly define what proof is required
for verifying quality and agree contrac-
Determining the product and process-
tually with the suppliers
related quality requirements derived from
• Check that proof of quality is provided
the invitation to bid, the customer
• Always agree on correction, prevention
contract and other stipulations (legis-
and improvement measures
lation, standards, company guidelines,
• Choose professional quality auditors
etc.)
and stipulate audit program, audit plan,
Drawing up and updating the Q-plan audit report, etc.
Planning and ensuring the quality of Neutral implementation of reviews at
project-specific supplies sourced milestones and Quality Gates
internally or externally by auditing and
Reviews are used for the objective
certification
assessment and safeguarding of impor-
tant interim results or mandatory results
in the project.

128
 Quality Gates are decision-making cautionary measures in case of risks, and
points at critical places in processes and a decision is taken on the further proce-
projects for checking whether all require- dure if this is possible within the sphere
ments of the customer or client and all of competence of the Project Manager.
other project objectives are fulfilled or
Critical subjects for which the required ac-
whether they can be fulfilled using the
tion exceeds the competence of the
planned method.
Project Manager are submitted to the
The quality gate contains a preparatory Business Manager at a Quality Gate
readiness check. This is a check as to Meeting which may also be attended by
whether the results planned up to the other persons nominated for specific are-
quality gate are correct and complete and as. Proposals for action and alternatives
whether subsequent project planning is are also presented as a basis for deciding
up-to-date and plausible. Alternatives are on further procedure.
shown in case of differences and pre-

Recommendation for the positioning of Quality Gates

PM040 PM100 PM600 PM670

Construction & installation

Project closure
Project opening
& clarification

Purchasing and
manufacture
Project acquisition

Contract negotiation

Warranty
Pre-acquisition

Project handover
Bid preparation

Dispatch

Commissioning
Acceptance
Detailed planning

Quality Management Fig. 7.1

129
Continuous risk and activity Continuous quality reporting
management
Continuous quality reporting must
Another important aspect of Operative contain the following elements:
Quality Management is early detection
• Implementation status of the quality
of non-commercial risks and avoidance
assurance functions and measures
or reduction of the likelihood of occur-
stipulated in the Q-plan, including
rence and damage impact by suitable
assessed risks,
preventive measures:
• Status of the results achieved, reflected
• Use of risk assessments from past in the customer requirements and the
projects at an early stage, internal process and business require-
• Assessment of risks by means of FMEA ments,
in case of highly innovative project • Status of correction measures in case
contents, of failure to meet planned targets or
• Preparation of assessment by cross- results.
functional teams,
Ensuring feedback of experience
• Defining and controlling of measures
(Lessons Learned), e.g., by means of
to minimize risks
analysis and processing of experience
• Regular updating of risk assessments.
gained from the project on the basis of
project assessments, reviews, audits,
and project status meetings.

130
 Recommendations 7.2:
Appointment of Project Quality Manager

Selection and appointment In each case the Project Quality Manager is

functionally assigned to the quality organiza-
The complex tasks of the Project Quality
tion that also ensures the required qualifica-
Manager call for special expertise and experi-
tion.
ence for the particular project category.
With category A projects, this expertise and Authorities:
experience and the necessary independence
Access to all relevant project documents
is ensured by appointing a suitably qualified
and functionally independent Project Escalation beyond the level or scope of
Quality Manager. The appointment is made the project in accordance with Group-
by the Business Manager on the suggestion specific stipulations in case of deliberate
of the Project Manager. non-adherence to and/or non-attainment
of important quality requirements (e.g.,
This approach is also recommended for cate-
key customer requirements, external and
gory B projects. In the case of projects of a
internal standards, product safety require-
lower project category, the role of the
ments)
Project Quality Manager can be performed
by a suitably qualified member of the
project team.

131
 Qualification criteria and qualification
The following diagram shows the generic
profile of the Project Quality Manager.

Job profile Project Quality Manager

Project category All categories

Preparation of, adherence to, and updating of the quality plan

Areas of
Processing of Lessons Learned
responsibility
Quality reporting and ensuring that derived measures are monitored

Specialized expertise: quality assurance, planning, test / trial / inspection

Expertise planning, product and technology expertise, fundamentals of project
(Extracts) management, sector-specific processes
Methods: fundamentals of contract management, quality management
methods, supplier management, change management, assessments, audits,
reviews, rhetoric, presentation, standards and guidelines, problem solution/error
prevention/error analysis methods

Professional experience in projects, production, assembly, commissioning or

Experience engineering; alternatively, professional experience in operative quality
management, quality assurance

Communication, analysis skills, initiative

Skills Customer orientation, assertiveness, coaching and mentoring

Quality Management Fig. 7.2

The basic training course “Project Quality

Manager” from Learning Campus is recom-
mended for introduction to this function. It
teaches the fundamentals for the operative
duties in the project. The training program is
aimed at Project Quality Managers in plant
and solution business projects.
An additional option is to use the ongoing
training courses relating to (business-)
specific quality topics and methods from
Learning Campus.

132
 Recommendation 7.3:
Drawing up project-specific Quality Plan (Q-plan)

The Q-plan is drawn up in the project plan- The Q-plan must fulfill the following mini-
ning phase and updated over the entire mum requirements in terms of content and
term of the project. It contains the concrete structure:
quality measures for attaining the project
Content:
goals, how these are measured and assessed,
at what times what results are to be Documenting of the quality requirements
achieved, and who is responsible for imple- and deriving quantified quality targets
mentation. The human and financial resourc- from the customer's viewpoint and from
es required for implementing the Q-plan the Siemens viewpoint,
must be taken into account in the project Selection and specification of quality
planning. assurance methods,
It is recommended that a sample Q-plan be Defining the processes, procedures and
drawn up for specific project types. This rules to be applied,
must be adapted (tailored) to the specific
project requirements within the permissible • Approval procedure (bids, milestones,
limits during project planning. Quality Gates),
• Tests and acceptance of project results
(internal/external),
• Quality assurance methods, such as
QFD, FMEA,
• Change management,
• Quality reporting,
• Audits.

Structure:
Cross-functional preparation in the
project team including coordination with
the customer and communication to all
project team members,
Configuration according to the project
structure, i.e., all contents are to be
assigned to the individual project
components and activities.

133
 Quality Plan: configuration, structure, approach

General structure Project-related Checklists

(Group-specific) structure

QM in projects Quality Plan Checklists

1) 2) PM milestones
PM guideline Project plan Checklist,
pool of possible
Q actions
QM Project
documentation manual 3)
(process
descriptions) Project
agreement

Project goals:
Function Subject areas:
Deadline
Design/engineering
Costs, con-
crete, in detail Documentation
Product safety
Method application
(prevention, reviews,
Quality Gates ...)
Lessons Learned Risk management
Processes (change,
error, claim ...)
Suppliers, supply quality
Assembly, production
1) As a chapter of the PM guideline, if required Integration
2) For individual projects, a project-related Internal/external
description / version may be issued, if so acceptance
requested by the customer.
Delivery, dispatch
3) In accordance with the Group
Specifications ...

Quality Management Fig. 7.3

134
 Recommendation 7.4:
Systematic project closure

The aim of the systematic project closure is Final project report

to identify critical success factors, potential
Processing and communication of project
project risks, and Good Practices. Apart from
experiences.
the project team, it may be necessary to in-
volve other people, e.g., customers and part- The project experiences gained from the
ners in the project. projects form the basis for continuous
improvement of business processes. This
Minimum requirements for a systematic
process acts as a form of preventive quality
project closure are:
management and helps to avoid errors in
Systematic project documentation in a subsequent projects. This increases both
form that can be archived the profitability of our projects and custom-
er satisfaction.
Lessons Learned Workshops (including
assessment of customer satisfaction
survey, supplier assessment, the causes
of NCC and cost improvements)

135
» A mistake can always happen
and an opportunity can be missed –
but only once, please!
«

e nt
Man ledge
agem
w
Kn o

Knowledge Management
Module 8
 A mistake can always happen and an opportunity
can be missed – but only once, please!

Knowledge Management

Projects are highly knowledge-intensive. The Siemens Global PM Community pursues

There is therefore a great need to intensi- the following goals:
fy and optimize the exchange of knowl-
Establishing and support of cross-
edge and experience within a project and
organizational and cross-project exchange
also between projects.
of knowledge and experience in project
Exchanging experiences with all Project operations.
Managers and the circulation of findings
Guaranteeing efficient best and
will lead to an increase in efficiency and
worst practice sharing.
improved results in projects because mis-
takes from previous projects are avoided Practical feedback to PM@Siemens with
in subsequent ones and new ideas can be regard to all given recommendations.
developed for simpler solutions. Establishment and networking of multi-
Ways of bringing about this practical pliers for supporting the global rollout
exchange is the focal issue of Module 8 – of PM@Siemens.
Knowledge Management. The target group for the Siemens Global
PM Community is all Project Managers from
Siemens Global PM Community” – the or- the qualification measures of the
”
ganizational framework for promoting the PM@Siemens Academy, which are organized
exchange of knowledge and experience for principally by Learning Campus. The Project
PM throughout Siemens. Managers (PM/SPM/PDir) form the core of
Siemens operates a global PM@Siemens the Siemens-wide Project Management Com-
Community specifically designed to further munity and further the inter-organizational
this exchange between projects and organi- exchange of experience through their in-
zations. It is run by the members of the work- volvement in the Siemens Global PM Com-
group of PM@Siemens Module 8 who active- munity.
ly encourage Project Managers to take part Employees who make an important contribu-
in the Community at Group and regional lev- tion to specific specialized areas, for exam-
el. The established PM@Siemens Communi- ple Sales & Marketing, Controlling, Purchas-
ty is the umbrella organization for sub- ing, Quality Management, etc. will also be
communities with PM topics. involved in this exchange of experience in
the future.

139
 Structure and operation of the
“Siemens Global PM Community”

The “Siemens Global PM Community” con- In the initialization phase the sub-commu-
sists of individual sub-communities that are nities are moderated and assisted by staff
grouped together in an umbrella organi- from the PM@Siemens Learning Programs
zation. There are three types of sub- (PM3–PM1). This support comprises practi-
communities: cal help in motivating attendees, in defining
goals and the charters of the sub-com-
1. Network of former participants in the
munities and in organizing and conducting
PM@Siemens Learning Programs
Community Workshops, etc.
(PM1–PM4) of the PM@Siemens
Academy The following supporting services by partici-
pating Project Managers are typical of the
In co-operation with Learning Campus
services provided by the Siemens Global PM
and the PM@Siemens Academy all parti-
Community:
cipants will be able to join the Siemens
Global PM Community (Alumni network), Exchange of experience and information,
in order to keep contact with other if necessary coaching
course attendees and to develop an
Exchange of know-how with external
exchange of experience about other
sources of experience
courses.
Concrete support in projects (Best Practice
2. Sub-communities relevant to particular
Sharing, Debriefing/Lessons Learned,
areas, for example Contract Management
PMA+ ...) with the aim of increasing pro-
3. Business-relevant sub-communities, for ject success
example for cross-selling projects or
Active and creative participation in
multinational projects
meetings, conferences, and workgroups
The members of the Alumni network from
The structure of the community with the
the PM@Siemens Learning Program
sub-communities derived from the qualifi-
(PM1–PM3 = PM, SPM and PDir) have a spe-
cation (subject or project-specific) is config-
cial role to play. They form the core of the
ured as follows:
Siemens Global PM Community and assist
with the building up and initialization of all
other sub-communities.

140
Siemens Global Community – Structure

PM@Siemens PM@Siemens Academy

Groups (Board Member, GCs, Management ...)

Special
PDir Theme 2
(PM1-01)
PM
SPM
PM
Regions

SPM
PM
PDir
PDir
SPM (PM1-02)
Project
1
Special
Theme 1 Project
2 External,
e.g., PMI

Knowledge Management Fig. 8.1

141
 PM experience – the Project Management simulation
from PM@Siemens

The basis for the exchange of information on Attendees at this workshop work in a team
project-relevant topics is a common language to simulate a project with the most impor-
and a mutual understanding of the core top- tant pitfalls and challenges over the entire
ics of the projects business. process PM010–PM700. They simulate a typi-
cal Siemens project completely from acquisi-
To create this basis PM@Siemens offers a
tion to follow-up business. Attendees have
4-hour workshop with a project simulation
to decide jointly on what actions to take in
based on the “Project Management – the
the individual project phases. The initial ex-
Siemens way” standards described in this
change of experience between the attend-
manual.
ees develops automatically in this discussion.
Meanwhile the project management simula-
tion is available in 5 different languages: ger-
man, english, spanish, portuguese, chinese.

Common language as the basis

for discussion of Project Management:

The Project Management

simulation

Acting together.

Learning together.

Co-operating more effectively!

Knowledge Management Fig. 8.2

The entire workshop including debriefings

and application to attendees’ own field of
work lasts about 4 hours and is suitable for
4–6 members per team. Ideally several
teams work in one room and exchange re-
sults and experiences after the sales phase
and after project finalization. In practice
workshops have been held with 3 to up to
35 teams (= 12 to 180 participant in one
room).

142
During the simulation the development of This simulation exercise is directed by a
four identified Key Performance Indicators is trained moderator who guides the partici-
continuously logged: pants through the simulation and assists
with the debriefings and final discussions.
Customer Management
Employees from the operational side of busi-
Scope
ness are trained as moderators and organize
Project team and conduct the workshops at their own lo-
Co-operation with internal & external cations. This minimizes time expenditure
partners. and financial costs for all participants.

The status of these KPIs forms the basis for Dates for moderator training and up-to-date
making decisions on the actions to be taken information for ordering material can be
in the next phase. On completion of the sim- found on the PM@Siemens Web site.
ulation the KPIs are suitable for examining
the momentary situation in attendees’ own
organizations and for identifying potential
for improvement in Project Management.
This results in measures for implementation
in one’s own projects or in the organization
and a corresponding plan of action.

Creation of the local PM sub-community anchored

in the global network

The “Siemens Global PM Community” pro-

vides a good basis as a Siemens-wide frame-
work and platform but is not adequate in it-
self. Additional communities must be
created in the Groups and Regions to make
allowance for the special needs of business
and to create value directly in the organiza-
tion through the exchange of knowledge
and experience.

143
 Recommendation framework for successful Knowledge Management
In summary, the following recommendations can be made for
successful Knowledge Management:

Recommendation 8.1:
Establishment of a Project Management sub-community

People learn best in direct exchange with The PM program caters for two types of
one another, not from documents or descrip- communities:
tions. The communication of learning experi-
Topic-oriented PM sub-communities
ences from projects serves two purposes:
Project/process-oriented PM
a) Other people can understand the context
sub-communities.
and identify the person who can help
them with their experience and contact
When establishing a community, the mem-
this person.
bers should agree on the following points:
b) Detailed knowledge or models can be
Name of the community
used on the basis of an existing exchange.
Description/charter of the community
The Project Management sub-community in
(e.g., open or closed)
an organizational unit creates the framework
for this exchange. Activities/milestones of the community
Communities are both personal and virtual Moderating, controlling and organization
networks that are founded on a common of the community by defined drivers
and business-relevant interest. Members of the community
Rules of the community
Type of interaction and communication
within the community
Ways of measuring success and
implementation of these methods.

144
 People learn best in direct exchange with The PM program caters for two types of
one another, not from documents or descrip- communities:
tions. The communication of learning experi-
Topic-oriented PM sub-communities
ences from projects serves two purposes:
Project/process-oriented PM
a) Other people can understand the context
sub-communities.
and identify the person who can help
them with their experience and contact
When establishing a community, the mem-
this person.
bers should agree on the following points:
b) Detailed knowledge or models can be
Name of the community
used on the basis of an existing exchange.
Description/charter of the community
The Project Management sub-community in
(e.g., open or closed)
an organizational unit creates the framework
for this exchange. Activities/milestones of the community
Communities are both personal and virtual Moderating, controlling and organization
networks that are founded on a common of the community by defined drivers
and business-relevant interest. Members of the community
Rules of the community
Type of interaction and communication
within the community
Ways of measuring success and
implementation of these methods.

Structure and cooperation of the PM sub-communities

Topic-oriented communities concentrate on

one focal point such as project management,
claim management, etc. and its further de-
velopment, whereas project-oriented com-
munities are aimed at developing projects
with the main view to their successful finali-
zation. Both types of community interact
with one another and can profit from one an-
other.

145
 PM Community (all Community Members)
PM Development PM Projects
Subject-oriented (Members of Project- & process-oriented
the workgroups and subject groups) (Project manager & project team members)
Sub-Community PM Steering Board Project Subcommunity: Project XY

Sub-Community PM Core Team Pre- Project Bid Contract Project Project

kick-off and
Detailed
acquisition acquisition preparation negotiation handover schedule
clarification

Sub-Community PM Regions PM010 PM020 PM050 PM070 PM080 PM100 PM200

Acquisition Bid decision Bid approval Project Start Project Incoming Approval of
Go/No Go won/lost order detailed
decision clarified schedule
Sub-Community PM ...
Purchasing&
Einkauf & Erection Inbetrieb- Abnahme- Warranty
Garantie-
Versand
Dispatch Errichtung Commissioning Acceptance period
Phase
Herstellung
Manufacture Installation setzung Messung

Sub-Community: Processes & Roles

Milestones, project phases, roles and steps PM300
Dispatch
PM400
Material &
PM550
End of
PM600
End of
PM650
Provisional
PM700
Final
approval resources erection commis- handover to handover
on site sioning customer to customer

Sub-Community: Contract Management I

LoA Process steps, tools, templates,
Methods, coaching, checklists
Sub-Community: Contract Management II
Claim Management Experiences
and results
Sub-Community: Project Controlling I
Reports Project Subcommunity: Project XY
Pre- Project Bid Contract Project Project kick-off Detailed
acquisition acquisition preparation negotiation handover and clarification schedule

Sub-Community: Project Controlling II PM010

Acquisition
Go/No Go
decision
PM020
Bid
decision
PM050
Bid
approval
PM070
Project
won/lost
PM080
Start Project
PM100
Incoming
order
clarified
PM200
Approval
of detailed
schedule

Risk Management Purchasing&&

Einkauf
Herstellung
Manufacture
Dispatch
Versand
Erection
Errichtung
Installation
Commissioning
Inbetrieb-
setzung Acceptance
Abnahme-
Messung
Warranty
Garantie-
Phase
period

PM300 PM400 PM550 PM600 PM650 PM700

Dispatch Material & End of End of Provisional Final handover
approval resources erection commissioning handover to to customer
on site customer

Sub-Community: ...

Knowledge Management Fig. 8.3

The success of a community is dictated by It is recommended that project and expert

the practical relevance of the topics/results profiles be drawn up as brief outlines, possi-
and by the regularity with which it exchang- bly also for sub-projects. This will provide
es information. Project Managers with the most efficient
possible overview of projects and project
management experts for their reference.
Details: See Siemens Community Support
link at the end of this chapter.

146
 Recommendation 8.2:
Implementing project learning cycle including Lessons Learned/project debriefing

Project debriefing and Lessons Learned are a Debriefings and Lessons Learned are
fixed component of project work. They pro- mandatory and play an important role in
vide a means of deriving findings explicitly improving project quality at Siemens.
from projects and, in the initial step, of con-
Debriefings (reflecting on experiences)
solidating these findings in a usable form for
should be carried out after completion of a
the participating persons as new knowledge
milestone, at the end of a project activity or
for future projects.
on completion of a project in order to high-
The exchange of information and experi- light successes and also failures and provide
ence about the most important successes a means of measuring them.
and failures, research into their causes from
Other community members and Project
the different points of view of the different
Managers can obtain an insight into Lessons
project team members and analysis of the
Learned on the basis of such reflections and
entire project form the basis for expanding
avoid repeating mistakes.
the horizon of all team members and for
bringing about a lasting improvement in the The “Siemens Global PM Community” offers
ability of the persons involved to act. practical assistance with the design of de-
briefing processes or debriefings in a project.
The essential knowledge and experience
modules are described with details of the
corresponding contact persons so that this
experience can be made accessible to other
people.

147
 Outline of a debriefing process

1. Compiling current documentation The principle views are:

and results
Customer relationship with contract,
The team leader collects together all change order, Claim Management
documents such as contracts, minutes,
Project scope with project planning, Risk
analyses of the NCC (non conformance
and Quality Management, technical and
costs), risk analyses, etc. and prepares
commercial controlling
the workshop.
Project team with team members, quali-
Result: The foundation is laid for elabo-
fication, cooperation, roles and respon-
rating the Lessons Learned in the team.
sibilities
2. Holding Lessons Learned Workshop Partners with Purchasing, suppliers,
with the team cooperation within own organization.
The main team members involved in the Result: Joint picture of the success
acquisition, implementation and finali- factors and difficulties with their causes,
zation of the project look at the process reusable experiences and solutions.
as a whole and at the various views of
the project. The persons responsible for 3. Documenting and communicating
the following service process may also learning points
be present. Processing of the learning points and
experiences with review/expiration date,
contacts and target group
Result: Learning experiences can be
made available to other interested parties.

4. Documenting reusable solutions

Processing the reusable solutions with
expiration date, contact and target group
Result: Reusable solutions are available
for the next projects.

148
 Recommendation 8.3:
Passing on knowledge through coaching in PACT* Workshops

How can available experience be used to Elements of a PACT Workshop

help a Proposal Team with the planning and
Project
preparation of their bid and Project Teams
The contents of the workshop are indi-
with the setting up and detailed planning of
vidually geared to the proposal or project.
their project?
Contents, time expenditure and agenda
PACT stands for “Project Acceleration by are agreed upon in a preliminary dis-
Coaching and Teamwork” and will be rolled cussion between PM Coach and Proposal/
out globally via a network of professionally Project Manager. PACT is not a training
trained PM Coaches. This recommendation course. The workshop refers to a parti-
describes the extract from the Best Practice cular team with its real proposal/project
and provides instructions for making use of and contributes to the work of the team
this experience in other areas. in terms of content.
Acceleration
Benefits from using PACT Workshops
The workshop forms the basis for an opti-
A PACT Workshop mized planning process in a short time.
Processing the actual contents of the pro-
supports the Proposal/Project Manager
posal or project is conducive to team inte-
and their team principally in the planning
gration, which impacts directly on the effi-
and early phases
ciency and cost-effectiveness.
is coached by Project Managers experi-
Coaching
enced in the relevant business (“PM
According to the definition of “Coaching”
Coach”) who act as moderators and bring
the person or team being coached defines
their experience from other projects and
the object and content of the coaching
regions to bear
program personally. PACT is not a training
expands and consolidates the knowledge course but provides professional support
of the Proposal/Project Manager and their for a team to help it achieve its goals
team, for example with regard to project with the help of an experienced modera-
management methods and processes tor, professional methods and the Project
as well as efficient teamwork Management experience of the PM Coach.
ensures a systematic project
management approach at Siemens
offers quick learning and development
opportunities for working on concrete
project contents

* PACT – Best Practice procedure at Siemens SV

149
 Teamwork
A PACT Workshop brings the entire pro-
posal/project team together at an early
phase of cooperation. It provides a forum
for discussing interfaces, clarifying unclear
points and sharing knowledge about the
proposal/project.

Application of the PACT Workshop

concept
PACT Workshops are based on a methodical
framework that is different in form for specif-
ic situations along the life cycle of a propos-
al/project. As a first step two PACT
Workshops are recommended for Siemens
for use in category A and B projects:

1. PACT Quotation Workshop 2. PACT Concept Workshop

Time: After PM020 Time: After PM080, before PM100:

Decision is taken on preparing a bid Contract is signed, handover by Sales
& Marketing to the project team
Requirement: Proposal Manager and
required
core functions in his or her team are
appointed Requirement: Project Manager and
core functions in his or her team are
Participants: Proposal Manager and
appointed
core team, PM Coach and (at the end)
the management responsible Participants: Project Manager and
core team, representatives from the
Duration: up to two days depending
Proposal Team, PM Coach and (at the
on the scale of the proposal
end) the responsible management
Duration: up to three days, depending
on the category of the project

150
Recommended elements of the PACT Workshop

1. PACT Quotation Workshop 2. PACT Concept Workshop

Information from Account Planning/ Project status

Business Development and Lessons
Definition of the project goal (update)
Learned from earlier projects of this
type/with this customer PMA+ (realization phase)
Provisional description of contents and Reading/analysis of the contract
Management Summary Project plan with work breakdown
PMA+ (Acquisition phase) structure (WBS), network plan,
implementation plan
Proposal Team and project organization
Risk and opportunity assessment
Provisional implementation concept
(plant/solution/service) Project organization with core team
and extended team, Steering
Proposal Plan (scheduling, persons
Committee, communication and
responsible, milestones)
information flow
Initial risk and opportunity assessment
Change and claim management
Negotiation strategy strategy
Business case Team development
Discussion of the results with the Project agreement (management
responsible Management with team)
Additional subjects as required Discussion of the results with the
responsible Management
Additional subjects as required

151
 Requirements and implementation
in own Group/Region

The following basic requirements apply 1. Participation in an existing PACT Work-

for the successful implementation of PACT shop by the manager responsible for
Workshops: adapting and implementation. Getting
acquainted with the method and how it
Management’s commitment to hold a
is applied in practice.
PACT Workshop for this proposal/project
PACT Workshop is an integral part of 2. Adapting of the PACT Workshop concept
the internal Project Management Analysis of the contents and existing
guideline examples and best practices, selection of
the suitable elements, elaboration of the
Availability of a suitable PM Coach with
business-specific elements (integration
experience in this business
of the PM guideline and specifications
Availability of a community of PM
for the business).
Coaches with the business-specific
knowledge 3. Development of a pilot
Selection of a Proposals/Project team,
Adapting of the PACT Workshop concept
coaching of the team by an exprienced
to fit the specific business of the project
PM Coach and activities for adapting the
organization
PACT Workshop to own business.
Integration of Best Practice, PM guide-
line, models and contents from the 4. Completion of the materials and mode-
business, e.g., typical risks ration guideline, selection and training
of the own PM Coaches.
The following steps must be carried out for
implementation in a Group/Region. The 5. Assistance with the rollout and support-
recommended procedure is to begin with ing of own PM Coaches.
the PACT Concept Workshop and after evalu- Continuous exchange of experiences
ation of the initial experiences in general with problems occurring and new
use to decide on whether to go on to the solutions.
PACT Quotation Workshop.
The link to this Best Practice can be found at
the end of this module under Siemens SV.

152
 Links to Group-specific “Best Practices”

Link to the overview of all communities at Siemens:

http://siemap.siemens.com/siemap/SieMap?mandant=SIEMAP&node_categoryid=
23f178:fc307d7315:-7ffb14625422161&execute=PortalHoo_Node_Show

Links to the CT Community Support:

German:
<http://intranet.ct.siemens.de/community/de/infopool/support/index.html>
English:
http://intranet.ct.siemens.de/community/en/infopool/support/index.html
Links to COM Group:
PM sub-community KM area in Knowledge Motion:
<https://knowledgemotion.sbs.de/livelink/livelink.exe/fetch/2000/-53407/
customview.html?func=ll&objId=150322&objAction=browse>
Knowledge Transfer:
<https://knowledgemotion.sbs.de/livelink/livelink.exe?func=ll&objId=1538868
&objAction=browse>
Links to Med Group:
MED info on internal Communities of Practice:
https://knowledgesharing.med.siemens.com/ksmed/default.jsp?menu=acops
MED info on external Communities of Practice:
https://knowledgesharing.med.siemens.com/ksmed/default.jsp?menu=axcops
Links to Siemens SV Group:
https://intranet.siemensvdo.com/Home/topWIP/Initiatives_SV/ProjectManagemet/
https://intranet.siemensvdo.com:8443/Home/topWIP/Initiatives_SV/
ProjectManagement/Project+Management+Skill+Development/PACT/_PACT.htm
Link to PM experience at the PM@Siemens Web site:
http://info.ptd.siemens.de/pmsiemens/DE/documentation.htm?Pldent=1036
Links to the TS Group:
http://intra.ts.siemens.de/arbmittel/km/

153
» 4 steps for winning with
PM@Siemens or:
How do I make PM@Siemens
a business success?
«
d
tat en-
Im er an

ion
m
ple
nsf
Tra

Transfer and Implementation

Module 9
 4 steps for winning with PM@Siemens or:
How do I make PM@Siemens a business success?

Transfer and Implementation

“We've done a great deal of analysis, iden- Following commitment of the Management
tified the causes and developed approach- the main steps in this procedure are as fol-
es to enable us to improve the situation. lows:
Now it's up to us to implement this sys-
tematically and with lasting effect in or- 1. Analysis
der to generate value from our invest- Communicate PM@Siemens in the
ment!” Group/Region
Johannes Feldmayer at the Siemens PM
Day in Nuremberg in October 2004 Create framework

Read here how to implement Create clarity

PM@Siemens successfully in 4 steps! Evaluate the 53 recommendations
Coordinate with those responsible for
PM@Siemens has developed the joint stand-
the Sales and Execution process
ards described in this PM Guide, which are
the results of cooperation between all busi-
ness areas and inputs from many Regions. 2. Design
An efficient procedure for the implementa- Define actions
tion of these standards in different Divisions
Set up Scorecards
and Regions has developed over the past
few years. Communicate benefits
Create implementation concept

3. Implementation
Elaborate actions
Plan and set up implementation project
Carry out implementation

4. Follow-up
Control implementation
(Scorecard/Shotgun)
Lessons Learned
Best Practice Exchange

157
Main steps in implementation
in a Group or Region

These main steps are a recurring process

Design
Management
Commitment

Start Analysis Implementation

Control
implementation

Monitoring

Transfer and Implementation Fig. 9.1

Each Group or Region has a different maturi- The quality and efficiency of the implemen-
ty level with respect to the implementation tation itself also increases with experience.
and application of the 53 recommendations,
Overall this results in the following picture
which also means the recurring application
for the application of the main implementa-
of the main steps. An improvement in the
tion steps with respect to the timeframe and
maturity level of a project organization (CM-
the maturity level of the project organiza-
MI Level, see Module 10: PM Assessment)
tion.
can be expected with each recurring applica-
tion.

158
 Main implementation steps plotted against time with development
of the maturity level of a project organization (CMMI Level)

Implementation
maturity level Continuous
Target: improve-
CMMI ment
Level Design
3.0
Analysis Implemen-
tation
Check
implementation

Monitoring
Design

Analysis Implemen-
tation
Check
implementation
Design
Monitoring

Analysis Implemen-
tation
Start: Check
implementation
Manage- Monitoring
ment Time
Commit-
ment Participation Implementation of recommendations Performance
Create org. framework Recommendations imple- Analysis of the maturity level
Create transparency mented or in process of by means of internal PMA+
Define goals implementation assessments
Common general frame- Analysis of the maturity level
work created within the by means of external MPM
Group/Region assessments
Standard reporting
Implementation of devised
established
improvement measures
Transfer and Implementation Fig. 9. 2

159
 Recommendation framework for successful transfer and implementation
In summary, the following recommendations can be made for
successful successful transfer and implementation:

Recommendation 9.1:
Establishing implementation process

The following points have materialized as Definition of the specific need for action
important success factors for the implemen-
• Analysis of actual situation (Kick-off
tation of PM@Siemens:
Workshop) for each module
A. Management of the implementation • Elaborating actions for each module
process • Define responsibilities and deadlines
Commitment on the part of management • Integration in a roadmap for implemen-
Definition of roles of all involved in the tation with regular reporting to the
implementation process Group/Regional Management
Well developed communication process Determining the implementation status
with targeted addressing of relevant (Fig. 9.8, 9.9 and 9.10)
participants Monitoring the activities in the PM
Set-up of a program organization Scorecards (Fig. 9.11)
(Fig. 9.6) with Analysis of project business (Fig. 9.12)
• PM@Siemens coordinator Coaching support at all levels
(Group or Region)
Gearing of implementation activities to
• PM driver per Division or regional unit the improvement of project results.
• Experts These points are differently weighted accord-
ing to the situation of the organization and
the implementation maturity level.

160
 B. Organizational framework Methodical and results-oriented attitude
to work
The most important basis for success and
for the efficient use of resources in the im- Knowledge of business processes
plementation of PM@Siemens is commit-
Knowledge of Group or Region-specific
ment on the part of management.
standards and guidelines pertaining to
The management has declared its support project management
for the objectives for improving project man-
Experience in improvement programs
agement and has appointed a Coordinator
and team in the organization with clear tar- Communication skills and powers of
gets and responsibilities. persuasion
This team has access to all necessary con-
D. Organizational framework for deci-
tacts and the roles and responsibilities for
sions and supporting the rollout
implementation are defined and communi-
cated. The management is given implemen- A working model with decision making
tation progress reports at regular status body and participation of the coordinators
meetings and plays an active role in imple- from all Groups and representatives of the
mentation on its own responsibility. Regions has been devised as a framework
for the global rollout of PM@Siemens stand-
C. Driver for implementation ards.
An important success factor in operative im-
plementation is the PM@Siemens manager
responsible for implementation on behalf of
the Division Management or the Regional
Management of a Group.
The PM@Siemens manager in a Division or a
regional company should have the following
skill and quality profile:
Several years of experience in managing
projects
Acceptance in the organization

161
Global Organization of PM@Siemens
Driver Operative implementation

Dr. Schloss (Chairman) Standards

Steering Tools & Methoden
Commit- Joachim Fischer (Coordinator)
tee 2 members (Core Team) Head
Global 1 … 12 of Work-
Competi- Group
1
tiveness
WG 12

PM@Siemens Global Coordinators Board

Group
Executive Group Define Work
Coordi- A&D COM … TS
Manage- assignment/ 1 … n teams
ment nators goal/Project
Regional- Hub Manager/ 1
Manage- Coordi- team Team n
ment nators members
Standards
Board &
Information/ Create & Design
Regional-
Manage- requirements/
ment support

1 Group/Hub/Region
Team n Implementation
of PM@Siemens
Transfer and Implementation Fig. 9. 3

Several Regions have been grouped togeth-

er in a so-called Hub in order to simplify com-
munication by the Regions with the Groups
and the PM@Siemens core team. The Hub
Coordinator helps communications in both
directions and is the driver for PM@Siemens
in its hub.

162
Lead Regions (so-called “Hubs”) concentrate communications

Transfer and Implementation Fig. 9. 4

Within this framework, Groups and Regions

appoint persons responsible for implementa-
tion in their Division/Subdivision or in the
Region and the regional business units.

163
Implementation in a Region or in a Group

Group Executive
Management
Group Coordinator

PM@<Group>
Coordinator Group Div. A
…
Division/Subdivision
Coordinators Div. n

“The standards are defined so

that they are suitable for the
Group's business and are
RG Management “The stan- detailed so that they can be
(hub country) dards are applied in the business”
Hub coordinator applied in
such a way
that they lead Coordinators of the regional
to efficient Business Units (BU)
PM@<Hub>Coordinator Group projects in the Head of BU
Coordinators of the Regions local market (Entrepreneur)
involved with custom-
ers and Project
Region A … Region n employees.” Managers
Region 1
Region …
Region n

Transfer and Implementation Fig. 9.5

164
E. Clear roles and responsibilities at the Operative implementation and the creation
Headquarters and the Operational Units of actual numerically quantifiable benefit is
the responsibility of the Group’s internal or-
The organization of PM@Siemens is based
ganization or the regional organization.
on the definition of standards on topics that
benefit many businesses in the Group The roles and responsibilities are set out in
and/or Regions based on the experience the following table accordingly.
(Best Practices) and requirements of our
project business.
The global organization is responsible for
the definition of the standards and for sup-
porting implementation in the Divisions of
the Groups and in the Regions.

165
Global Organization
Role Responsibilities and functions

STC GC Defines framework and goals for the initiative

Steering Committee
Decides on mandatory standards and the core topics
Global Competitive-
of the initiative
ness

Group Executive Defines framework and objectives for a Group/a Regional

Management/ Company
Regional
Is responsible for implementing PM@Siemens in the Group/RC/OC
Management
Communicates the significance and objective for the Group/Region
Agrees on goals for implementation with managements and
functional departments
Appoints and empowers the Group or Hub/Region Coordinator

Regional Creates Management attention

Management Board
Drives implementation in the Regions involved

PM@Siemens Core Supports the global rollout

Team
Is the driver for the entire initiative
Moderates the compiling of all standards
Is an information center and coordinates all topics
Supports the Regions in building up expertise for implementing
the standards
Clarifies open questions of Hub Coordinators for implementation
in all Regions of their hub

166
 Role Responsibility and functions

Hub Coordinator Drives and supports the rollout in the assigned Regions
Consolidates the interests and needs of the Regions in his/her hub
in the direction of the global initiative
Identifies common topics of all Regions and moderates the ex-
change of experience and joint activities
Builds up knowledge and experience for the standards defined in
PM@Siemens and is the local PM@Siemens expert (first level
support)
Assists and advises the Regions in his or her hub on implementa-
tion along the defined maturity levels and clarifies unsettled
points with PM@Siemens
Summarizes the situation with regard to project business for the
hub and reports quarterly as part of the PM@Siemens standard
reporting to all Regions of the hub
Is the mutual information channel between the global initiative
and Regions of their hub
Collaborates on the definition of PM@Siemens standards
Is involved in the further development of PM@Siemens

Group Coordinator Drives and supports the rollout in all Divisions and Regional
Units of the Group
Exchanges Best Practices and collaborates on the definition of
the PM@Siemens standard
Is involved in the further development of PM@Siemens
Monitors (Scorecard) the implementation progress in the
Division/Regional Units of the Group
Supplies Group input for PM@Siemens reporting in the Steering
Committee
Incorporates Best Practices and requirements from PM@Siemens
in their coordinator Group
Supports the Executive Management, e.g., with the definition
of the specific implementation actions
Assists all coordinators of the Division/Subdivision in the Group,
e.g., in Controlling, Scorecard

167
Group-Internal/Regional Organization
Role Responsibility and tasks

Division Is responsible for the implementation project in

Management Division/Regional Business Units of the Group
Regional Communicates the significance and objective for Division/Regional
Management Units of the Group
Agrees on target with Subdivision/Business Segment manage-
ments, and Department Units for implementation
Appoints and empowers the Regional Coordinator or the
PM@Siemens Manager of the Division
Monitors (Scorecards) implementation progress in the
Subdivision/Business Segment/Regional Units of the Group
Is responsible for reporting to the Group Executive Management

Regional Drives and supports the rollout in all Business Units

Coordinator in the Region
Collates inter-Group topics for implementation in the Region,
e.g., certification
Monitors (Scorecard) implementation progress of all Regional
Units of the Groups (Business Units) in the Regions
Supplies Region input (via Hub) for PM@Siemens reporting in the
Steering Committee
Coordinates and moderates the implementation of PM@Siemens
in the Group/Region
Elaborates the scope and the objective of implementation of
PM@Siemens with RG Management and the Managers of the
Regional Business Units
Manages and supports the PM@Siemens Managers of the
Regional Business Units of the Groups in his or her Region
Establishes the PM@Siemens Scorecards in the organizational unit
Reports to the Management

168
 Role Responsibility and functions

Coordinator of a Responsible for the operational implementation in own

Division of the Division/Regional Business Unit of the Group in the Region
Regional Business
Plans and controls implementation of PM@Siemens in own
Unit of a Group (BU
Regional Unit in coordination with the Group and Regional
in the Region)
Coordinator
Provides consultancy and support for the management for
implementing PM@Siemens
Provides consultancy, support and coaching to Project Managers
in operations
Supports the implementation of the actions
Communicates with and trains the persons involved in imple-
menting PM@Siemens
Reports to Division management/Regional management and
the responsible Coordinator

169
Persons responsible for the subject content
contained in each of the 12 modules of this
manual will be appointed from the Group or
the Region.

Functions and responsibilities (form)

in a Group or Region

Group/Region Group with Division/Subdivision/Business Segment or Region with BU

Division/ GG1/ GG2/ GG…/ GG…/
Region BU1 BU2 BU… BU…
Processes and Roles
Contract Management
Project Controlling
or s
d i nat tent
Personnel Management or pe
n a l Co r com
Qualification
gio rts o
PM Portal u p /Re expe
Gro nsible
Operative t of o
Quality Management Lis resp
a nd t s
Knowledge Management t ac
con
Transfer and
Implementation
PM Assessment
Project Procurement
Small Projects
Transfer and Implementation Fig. 9.6

170
 Recommendation 9.2:
Determining the implementation status

The implementation status is evaluated at need for action of the organization unit is
regular intervals and compared with the first defined and the necessary activities de-
plans in order to be able to react promptly to rived from this.
changes and to take measures to achieve
the implementation targets. The specific

Group/Region-specific implementation of the recommendations (form)

Group with Division/Subdivision/Business Segment or Region with BU
PM@Siemens PM@Siemens-
modules recommendations Relevant, if “no”
give reasons Activities Deadline
Processes and Roles
Contract Management
Bid / No-bid
Contract Bid approval
Management procedure
Contract law
Community
Project Controlling

Personnel Management
le
mp
Qualification Exa
PM Portal
Operative Quality
Management
Knowledge
Management
Transfer and
Implementation
PM Assessment

Project Procurement

Small Projects
Transfer and Implementation Fig. 9.7

171
Definition of the implementation status (Group/Division/
Subdivision/Business Segment/Region)

No implementation
The PM@Siemens recommendation is not implemented in the Group/Region. There
is a plausible explanation from the Group/Division/Subdivision/Business Segment/Region.

Implementation level 1 – decision in favor of implementation

DI* 1 There is a concrete goal, e.g., goal specified by the Board/Division/Subdivision/Busi-
ness Segment/Region/Regional Unit. There is an objective with a gauged effect.
Implementation level 2 – the PM@Siemens recommendation has been analyzed
and quantified for the Group/Division/Subdivision/Business Segment/Region
DI* 2 The actions for implementing the PM@Siemens recommendations are clear and
have been described in an action sheet, the potential has been quantified; those
responsible for the actions have been appointed and the next steps for DI 3
including deadline have been specified.
Implementation level 3 – action has been elaborated and is being
implemented
DI* 3 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. The poten-
tials have been evaluated in detail by means of a quantity or value estimate.
Implementation level 4 – action has been taken
The action plan has been completed in full, all those affected have been informed
DI* 4 or instructed accordingly and implementation was subjected to a random check.

*DI = Degree of implementation according to top+ reporting system. DI 5 is not reported since a
result cannot be derived directly from the recommendations. The effect of the action taken
can be seen from the analysis of the project business and in the Scorecard.

Transfer and Implementation Fig. 9.8

172
Implementation status Modules 1–5 (form) – 1/2

PM@Siemens Group/Div/Subd/BS/Region
module PM@Siemens recommendations
.... .... .... ....
1.1 Implement project phases with the described milestone system and Quality Gates
Module 1 1.2 Implement required results for milestones
Processes 1.3 Implement project roles
and Roles 1.4 Implement project steps
2.1 Implement independent contract management function
Module 2 2.2 Implement full-time contract managers in the bid and negotiation stage for
Contract the highest project/risk class
Management 2.3 Implement documented bid/no-bid process/release to prepare bid
2.4 Implement bid release process with Group-specific and Region-specific
project and risk classes
2.5 Final bid release by review board; seek input from Group Executive Management or
Regional Management for highest project/risk class
2.6 Provide full-time contract managers to handle projects at the highest project/risk level
2.7 Implement mandatory review for “unacceptable provisions”
2.8 Implement mandatory Group/Region policy for project business
2.9 Ensure intensive use of standards and tools provided
2.10 Hold mandatory training session on contract law and claim management for technical/
commercial employees in Sales and Project Management
2.11 Install contract management community at the Group/Region level
3.1 Establish project-driven organization
Module 3 3.2 Apply integrated project controlling process from bid/no-bid decision to project
Project wrap-up, esp. integrated management of risks, modifications, opportunities, and claims
Controlling 3.3 Implement mandatory milestones/Quality Gates in the project process
3.4 Implement management-driven project discussion meetings at regular intervals using
standardized reporting procedures
4.1 Implement personnel development in project management
Module 4
4.2 Create letter of empowerment
Personnel 4.3 Conclude goal agreement
Management 4.4 Include project goals in special payments
4.5 Implement project incentive system
5.1 Determine qualification needs
Module 5 5.2 Carry out qualification measures
Qualification 5.3 Safeguard quality requirements for qualification measures

No implementation Implementation decided Being planned Being implemented Regularly implemented

DI 1 DI 2 DI 3 DI 4

Transfer and Implementation Fig. 9.9

173
Implementation status Modules 6–12 (form) – 2 /2

PM@Siemens Group/Div/Subd/BS/Region
module PM@Siemens Recommendations
.... .... .... ....
6.1 Use of MS Project, Primavera, SAP PS, SPIRIDON solution “Solution Business” as standard tools
Modul 6
6.2 Participation in further development and introduction of the PM Portal as a standard solution for
PM Portal project workplaces
Module 7 7.1 Active implementation of the Quality Management function in the project
7.2 Appointment of Quality Manager in the project
Operative
7.3 Drawing up project-specific Quality Plan (Q-plan)
Qual. Manag. 7.4 Systematic project closure
Module 8 8.1 Establishment of a Project Management sub-community
8.2 Implementing project learning cycle including Lessons Learned/project debriefing
Knowledge
8.3 Passing on knowledge through coaching in PACT* Workshops
Management
Module 9 9.1 Establishing implementation process
9.2 Determining the implementation status
Transfer a. Im-
9.3 Drawing up PM scorecard
plementation 9.4 Analysis of projects business
Module 10 10.1 Implementing PMA+ Assessment according to Group or Region-specific requirements
10.2 Implementing CT SE Assessment in the Organizational Units with project business
PM Assessment
Modul 11 11.1 Integration of the Purchasing function in the process must be ensured at an early stage
continuously from acquisition through to the warranty period
Project
11.2 Every project must be mandatorily supported by a Project Procurement Manager (PPM)
Purchasing 11.3 Compliance with Group-defined Procurement Processes including Change Management
(utilizing available operative ordering systems) must be assured
11.4 Customer contract contents in supplier contracts (back-to-back) must be consistently secured in
cooperation with Contract Management
11.5 A project-specific supplier evaluation must be performed to reduce costs and improve quality
at both internal and external suppliers
12.1 Introducing processes and roles for Small Projects
Modul 12
12.2 Ensuring Contract Management for Small Projects
Small Projects
12.3 Implementing Personnel Management for Small Projects
12.4 Implementing qualification for Small Projects
12.5 Implementing processes for the transfer and implementation of Small Projects
12.6 Implementing PM Assessment for Small Projects

No implementation Implementation decided Being planned Being implemented Regularly implemented

DI 1 DI 2 DI 3 DI 4

Transfer and Implementation Fig. 9.10

174
 Recommendation 9.3:
Drawing up PM scorecard

The effect of the actions shows up in the op- The trend in the quality of order entry for
erative projects business. A report on the new projects, along with the improved mar-
project business situation of an organiza- gins attainable in projects, serve as a yard-
tional unit is therefore produced at regular stick for effective implementation of elabo-
intervals with the aim of identifying im- rated recommendations.
provements and analyzing how worthwhile
This project Scorecard of the Groups/Regions
measures taken to date have been.
involved is subjected to quarterly controlling
by the Steering Committee.

175
Scorecard PM@Siemens

Example of a PM@Siemens Scorecard

Implementation level Processes

and roles
100 % Contract
Small Projects
80 % Management
60 % Project
Project
40 % Controlling
Procurement
20 % Personnel
PM
Assessment 0% Manage-
ment
Transfer
and Imple- Qualification
mentation

Knowledge PM Portal
Management
Operative Q4/2005
Quality
Management Q3/2005

*projects shown: all Divisions/all regional units

Sales margin OEC* Development Delta Sales margin*

Sales margin closed orders*
-0,0%
15,0% -0,5%
-1,0%
10,0% -1,5%
-2,0%
5,0% -2,5%
-3,0%
0,0% -3,5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
GJ 2003 GJ 2004 GJ 2005 GJ 2003 GJ 2004 GJ 2005
Transfer and Implementation Fig. 9.11

176
 Recommendation 9.4:
Analysis of projects business

The projects business of an organizational Detailed analysis of projects business shows

unit is shown based on the data for the indi- the changes that have occurred in a project
vidual project as a means of identifying its during the course of its processing as a func-
relevance for business success and hence of tion of new order costing in a particular fiscal
creating a basis for planning the objectives year. The project data show the improvement
and implementation of improvement mea- potential that could yet be exploited within
sures. Later on, the success of the improve- the scope of processing, along with the
ment measures of every Group unit and re- number of qualified Project Managers.
gional unit is derived from the development
The definition of the individual key figures
of these figures.
should assist in providing a uniform illustra-
tion.

177
 Definition of key figures in project analysis

Example of the analysis of projects business

100
1. Group data
80 Total sales in FY 4“444 €
Proportion – projects business
in FY 5“555 €
60

2. Evaluation of projects business

40
Number of projects shown 222
EBIT/Sales margin OI calc.

Total project volume OI calc.* 6“666 €

20 Number of projects OI calc. < FC 33
corresponds to EBIT -333 €
0 proportionate project volume 1”111 €
-100 -80 -60 -40 -20 0 20 40 60 80 100 Number of projects FC < 0 22
-20 corr. to EBIT -222 €
proportionate project volume 0”555 €

-40
3. Number of project managers certif.
-60
New orders received before FY 2004
Project Manager (overall) 200 150
New orders received in FY 2004

New orders received in FY 2005

Project Director 20 10
Av. before FY 2004 Senior Project Manager 80 60
-80
Av. FY 2004
Project Manager 100 90
Av. FY 2005
Externally certified PM 10
-100
EBIT/Sales margin FC (in %) * projects shown: all Divisions/all regional units
OI calc.: Order Income Calculation
FC: Forecast
Transfer and Implementation Fig. 9.12

178
» Assessments create the
transparency for improving
projects and processes
«

t
en
ssm
A s PM
se

PM Assessment
Module 10
 Assessments create the transparency
for improving projects and processes.

Project Management Assessment

The implementation status of the stan- The processes defined and used in the or-
dards elaborated for the PM@Siemens ganization offer the best possible guarantee
Initiative and the maturity level of the that the same principles will be applied for
processes in the projects and project all projects within an organization. This en-
organizations of the Groups and Regions sures continuity and reproducible quality of
should be analyzed at regular intervals. projects and products to the benefit of the
The results of these analyses form the ba- organization and the customer.
sis for defining appropriate actions for im-
These first two analyses, 1 and 2, are car-
provements that are then implemented.
ried out with the project team members
The analyses are carried out at different and the project organizations.
levels and from different viewpoints:
project, organization, and the initiative it- 3. Analysis of the success of the
self.
PM@Siemens modules and of the
initiative
1. Analysis of projects
The results of analyses 1 and 2 are fed back
Analysis of an ongoing project to determine into the initiative and provide the basis for a
how far the elements of a successful project continuous improvement process.
management system have been realized,
such as planning, contract management, The PM@Siemens initiative records the find-
and risk management. The assessment re- ings about strengths and weaknesses as
sult shows whether a high standard of well as identified Best Practices. Expert
(project) clarity has been attained through teams select Best Practices from this fund of
adequate principles, guidelines, specifica- knowledge or elaborate them jointly. Where
tions, etc. and whether it can thus be en- practical, these are defined as the Siemens
sured that the project is being handled effi- standard.
ciently and effectively.

2. Analysis of the project

management processes of
the organization
Analysis of what progress the organization
has toward establishing a successful and ap-
propriate project management system in its
specific business context, and toward imple-
menting it in practice and further develop-
ing it.

181
 Project Management Assessment Procedure

Only analyses 1 and 2 are dealt with in Two harmonized, mutually complementary
more detail here. procedures/tools are recommended for carry-
ing out assessments:
A method of carrying out such analyses that
has proved its value in practice are assess- PMA+ (Analysis 1) and
ments in which the current status of the de- MPM Assessements* (Analysis 2)
fined processes and procedures actively im-
plemented in the project or within the Both assessment methods
organization are compared with a standard-
follow the principle of the top+ system
ized model of Best Practices.
for consistent optimization of product
and process quality.
are integrated in the particular control
loop for optimizing processes and
projects.
are geared to identifying the need for
action.

* formerly CT SE Assessments

182
Control loop for optimizing processes and projects

PM@Siemens
Organization
Project
MPM Assessment
PMA+ 6
Monitor
progress 1
5 Define
improvement
Implement targets
actions

4 2 PMA+
Define Determine MPM
actions main problem Assessment
3 areas
Identify
improvement
levers

PMA+
MPM-Assessment

PM Assessment Fig. 10.1

Experiences with Project Manage-

ment Assessments to date:
PMA+: MPM Assessment:
All Groups confirm high acceptance by MPM Assessments: about 60 carried out
users to date
Nearly 5 years of operational experience High acceptance by management and at
operative level
The results of analyses to date indicate
clearly where improvements are needed Identification of typical, characteristic
in the project strengths and weaknesses of the project
management in the Siemens Groups
involved
Distribution of Best Practices

183
 Recommendation framework for a successful PM Assessment
In summary, the following recommendations can be made for
successful PM Assessment:

Recommendation 10.1:
Implementing PMA+ Assessment according to Group or Region-specific requirements

PMA+ is first and foremost a method of self-

assessment for category A and B projects.
PMA+ This gives the Project Manager/team a
means of analyzing the project at any time
Self-assessment for category A and during processing with the results remaining
B projects in the project.

External moderation recommended, PMA+ should be applied by the Project

but self-assessment is possible Manager/team with deployment of a moder-
ator not involved in the project to eliminate
Focus on the project
the risk of incorrect interpretation of con-
Initiation by the Project Manager/team tents and to guarantee objectiveness.
Assured success of the analyzed However, this is not stipulated mandatorily.
project PMA+ focuses only on the individual project
Checking of valid standards and checks the effectiveness of the project
Low time expenditure (2– 4 hours), management system used, as well as com-
can be repeated any number of munication and cooperation with all those
times (e.g., at bid approval PM040, involved.
project handover PM080 or any The results are then used to supplement or
other project phase) correct the existing project documents in
Results remain in the project terms of their suitability for the further
course of the project and to provide informa-
tion on how to safeguard and improve the
project result.

184
 Of particular advantage is its uncomplicated The better the concurrence between the
nature; a typical run takes a few hours. For project analyzed and the specified process
this reason, it can be put to work repeatedly steps and results, the higher the rating.
during the course of a project, e.g., in order
In PMA+, the content-related scope and the
to make sure that important project mile-
project assessment take the form of an
stones/Quality Gates are reached. The list of
Access-based DP application, downloaded
questions can be filtered either for the bid or
from the PM@Siemens Homepage. The tool
the execution phase.
comprises questions on the project manage-
The idea behind PMA+ is the GMP (Associa- ment system; the answers can be entered
tion for Project Management) model for directly into the tool. The assessment is
Project Excellence. This model defines those worked out and presented on the basis of
subject areas that experts unanimously these answers.
agree are essential for a project’s success
(see assessment spider chart). Compared to
the initial model, the individual subject
areas are further broken down in order to
give greater consideration to significant
Project Management issues.

185
Illustration of the results of PMA+

This diagram depicts an example of a PMA+ project management system and deviations
result for a project. The spider chart provides from defined standards at the time of investi-
an overview of the strengths and weakness- gation.
es of the project in relation to the applied

Project profiles in PMA+ at a glance

PM Assessment Fig. 10.2

186
 Recommendation 10.2:
Implementing Maturity in Project Management Assessment (MPM Assessment)*
in the Organizational Units with project business

The PM@Siemens initiative has decided that

all project organizations at the headquarters MPM Assessment
and in the Regions at the Division/Sub-
division level are to carry out a MPM Focus on the organization
Assessment for determining the maturity lev-
Moderation by external assessors
el and are to schedule the MPM Assessment
in their continuous improvement process as Initiation by the organization
a standard procedure. management
Maintains the long-term project
MPM Assessments focus on an entire or- management expertise of the
ganization and are initiated by the manage- organization
ment of units working on projects. They typi- Check for adequate valid standards
cally involve the analysis of 3– 4 selected
projects. The aim is to ensure the ongoing Result is a clear strengths/weaknesses
availability of an organization's project man- assessment
agement expertise in the long term. Total duration about 3 weeks,
of which about 1 week for organization
The particular advantage of the process is
that all aspects of Project and Process Repeated every 1–2 years
Management of an organization can be as- Method based on CMMI maturity
sessed integrally and comprehensively. The level model
yardstick for evaluating process maturity is Target is a maturity level of 3.0
the five-level maturity model for processes,
CMMI© (Capability Maturity Model Inte- Results remain in the organization
gration).
This model is used worldwide as a de facto * formerly CT SE Assessments

standard for rating process quality. The ma-

turity levels define characteristic behavioral
patterns of organizations with respect to
project handling, all the way from individual-
ly characterized procedures through to the
continuous, selectively controlled optimiza-
tion of defined processes. A higher level of
process maturity means that the risk poten-
tial inherent in projects decreases, while per-
formance quality improves proportionately.
The PM@Siemens initiative has defined a ma-
turity level of at least 3.0 as the target figure.

187
The MPM Assessment is a practically orient- Evaluation of project documents and a dem-
ed method that analyzes the documented onstration of procedures directly at the work-
process and the process actually applied place round off this compilation of informa-
with respect to project management. It also tion. The maturity level is then determined
examines the optimization potential with automatically by answers to the questions
the greatest leverage effect. At the end, a contained in the underlying list.
list of actions is drawn up and evaluated by
The key assessment results comprise a port-
the assessment team members with respect
folio specifying what needs to be done (de-
to implementation and priorities set for the
rived from the strengths and weaknesses
actions.
profile), along with detailed proposals for ac-
The assessments are carried out by two as- tion.
sessors from CT SE with the participation of
These detailed proposals for action and their
management, managers of the projects at
implementation step by step by means of
the particular project phases from sales,
work packages provide the basis for improv-
through the bidding phase to execution,
ing process quality and rectifying inherent
and project staff (e.g., purchaser, system en-
weaknesses. The results thus benefit all the
gineers, testers, quality assurance officers,
projects of an organization equally.
etc.). Those involved in the assessment do
not need any special preparation, although All results are confidential and responsibility
it is important that all participants are avail- for their use lies with the organization.
able and keep strictly to the schedule. In order to ensure effective implementation,
A complete MPM assessment usually takes CT SE will participate in this process on re-
three weeks from the kick-off event to the fi- quest and offers Improvement Workshops
nal presentation. The organization partici- and individual consulting for this.
pates directly for about 1 week; the rest of A MPM Assessment should be repeated at in-
the time is used for evaluation and process- tervals of one to two years in the interests of
ing of the recommendations for action. a systematic continuous improvement proc-
In separate interview sessions with those in- ess (CIP).
volved, the assessors determine a strengths Contact for planning, arranging dates and
and weaknesses profile for the defined and implementation (worldwide):
practiced project management processes.
CT SE 4, Karl Lebsanft
([email protected])
http://intranet.ct.siemens.de/de/tech/
abteilungen/se/fachzentren/se4/
index.html

188
 Illustration of results in the MPM Assessment

The graphic illustration of the assessment The illustration shows comparisons between
concurs with the five stages of the CMMI© the basis for defining goals – i.e., what is
assessment basis. Maturity levels are shown documented and specified – and their actual
for the individual project management top- implementation.
ics and overall process control.

Maturity level profile

of the process Siemens Level
Detailed areas 5
4,5
results 4
5
Detailed (II) 4,5
3,5
3
results 4 2,5
5 3,5 2
(I) 4.
4
3 1,5
3. 2,5 1
3
2. 2 Process Documented Practice
2 1,5 Process
1.
For Sales, a project file structure based on 1 1
calender years and offer number is defined Process Practice Theory
P S P P C A S IT P D T M
and used 1.75
L3: Project Organization, Project responsibilities
PM has no access to the Sales file structure
L2: Task Planning
The complete project L2:results
Methods incl.for
theestimating
project plan costs/scheduling
do not always resideL2: onProject
a shared Controlling
hard drive.
It mainly is stored on L2:theManagement‘s
Project Manager‘s Role in Project Controlling
L2: Risk Management
Individual PC
L3: Claim Management AC
[1.4:06, L2, T/P] Define and doc.implement
procedure a master practice 0% 20% 40% 60% 80% 100% PQ
file structure for all projects. Apply this file
structure in order to store .............................. PI SE Need for
....................................................................... P
IT action
PC
List of actions CE PM matrix
IT T
M
No Prioritized Task P E T PA IM

Project Acquisition
Importance
1 Adjusting of process description to requirements
managements for to the redundancies and fix the C M L A
points of intersection between organization
2 Further systematizing of project planning procedure
B M L A
through an use of methods (e.g. target)

PM Assessment Fig. 10. 3

189
 Assessment planning

The following two processes have been intro-

duced for planning and the agreement of firm
deadlines in order to ensure smooth imple-
mentation of MPM Assessments.

Assessment planning process based on FY

Group/
Regional
Coordinator
GC/RC
Assessment
Planner
(CT SE)
Senior Mgt.
(Group)

PM@Siemens

Send up-
Prepare Enter Agree Send file to Initiate Check file
dated
assessment data in data with PM@Siemens regular and agree
calendar to
calendar calendar CT SE 4 checking with CT SE 4
PM@Siemens

PM@Siemens GC/RC coordi- GC/RC GC/RC sends PM@Siemens GC/RC checks GC/RC sends
sends assess- nates assess- agrees on the completed sends the that file is up updated cal-
ment calen- ment planning schedule on file to assessment to date and endar to
dar to the on FY basis with FY basis PM@Siemens calendar to agrees on the PM@Siemens/
GC/RC the Senior Mgt. with CT SE 4 with copy to GC/RC 2 x planning data copy to CT SE 4
of the Division/ planners CT SE 4 per FY with CT SE 4
Subdivision/
Region
Enters the
required data
in the list responsible involved in process
Checks all data

PM Assessment Fig. 10.4

190
Responsibilities in Assessment
Planning
PM@Siemens is responsible for: The CT SE Assessment Planner is responsi-
ble for:
Preparing the assessment calendar
Checking the planning data supplied for
Initiating updating twice per fiscal year
feasibility
(FY)
Making suitable resources available for
Processing the data supplied
implementation of the assessment by
Sending the complete, up-to-date file to CT SE.
CT SE Assessment Planner
Reporting the status to PM@Siemens
Steering Committee (STC).

The Group/Regional coordinator is respon-

sible for:
Entering correct, up-to-date data in the
assessment calendar
Agreeing the planned data with the CT SE
Assessment Planner
Updating twice per FY
Sending the file to PM@Siemens.

191
 Scheduling process for the start of assessment

Group/
Regional
Coordinator
GC/RC
Assessment
Planner
(CT SE)

Assessors

Assessment
Coordinator
(Org. Unit)

Senior Mgt.
(Group)

PM@Siemens

Fill in Appoint Deadline Post Appoint Prepare Exe-

assessment Assessment confirmation schedule Assessor MPM Execute cution
calendar Coordinator Change of on the Assess- assessment acknowl-
intranet ment edge-
deadline ment

GC/RC agrees Management Assessment CT SE 4 CT SE 4 CT SE 4 CT SE 4 CT SE 4

on the assess- of the opera- Coordinator updates appoints Assessors Assessors Planner
ment plan on FY tive unit ap- agrees on the sche- Lead prepare the implement reports
basis with the points Assess- deadline dule on the Assessor assessment MPM Assess- completion
Senior Mgt. of ment Coordi- with CT SE 4 intranet and Co- together ment of the
the Division/Sub- nator Planner Assessor with Assess- Assessment assessment
division/Region Informs GC/ Deadline is Information ment Coordinator to GC/RC
CT SE 4 Planner RC of name confirmed to Assess- Coordinator is involved
receives copy of of appointee in writing ment Coordi- in support
up-to-date by both par- nator with role
assessment cal- ties copy to GC/RC
endar from GC/
RC, personal con-
tact if necessary responsible involved in process

PM Assessment Fig. 10. 5

192
Responsibilities for
scheduling
The Group/Regional Coordinator is respon- The CT SE Planner is responsible for:
sible for: confirming the agreed date for the start
keeping the assessment calendar and providing information about the
updated basic conditions
coordinating planning with the updating the deadline list and publishing
management it on the intranet
assisting management with the selection reporting implementation of the
of the Group Assessment Coordinators. assessment to the Group Coordinator
giving the agreed data to PM@Siemens.
The Assessment Coordinator of the
Organizational Unit is responsible for:
agreeing firm dates for the start of the
MPM Assessment with the
• Management of the Organizational
Unit
and
• CT SE 4 Planner (Changes of date:
with information to GC/RC)
confirming the agreed date in writing
(e.g., mail to CT SE Planner)
helping plan the contents of the assess-
ment and involvement in the assessment
process.

193
» Project procurement is the way
to increase the hit rate and
improve project results
«

Project Procurement
t
en
oc ct
em

Module 11
Pr oje
ur
Pr
 Project procurement is the way to increase
the hit rate and improve project results.

Project Procurement

Stringent customer-specific requirements while safeguarding innovation and minimiz-

and an ever-increasing share of external ing other risks.
value added are characteristic for pur-
Apart from reducing the material costs this
chasing in projects business. Since exter-
also boosts the success rate in the bidding
nally procured material and services gen-
process.
erally account for 40–60% of project costs,
procurement plays an important role in Continuous integration of procurement over
achieving a positive project result and a the entire project term from project acquisi-
sustained increase in cost productivity. tion through to the end of the warranty peri-
od is required for optimum project control-
By raising awareness of the market and sup-
ling. The Project Manager also benefits in no
plier situation, the systematic integration of
small measure from a significant reduction
procurement results in improved quality,
in workload.

Potential savings resulting from involvement of

procurement at an early stage

Impact on life cycle costs

New Old

∆ Exploitation OEC
of potential
by Project
Procurement

t
Bid
Pre- Project preparation
Execution Warranty
acquisition acquisition Contract
negotiation

Project Procurement Fig. 11.1

197
The Project Procurement module describes ing Committee Global Competitiveness)
how the Purchasing function is integrated in have approved it as binding within Siemens.
the principal process steps. The following
As an aid to implementation, the services, in-
recommendations are mandatory for all
formation and input needed from the Pur-
Category A and B projects.
chasing function are described in the particu-
They have been devised jointly by procure- lar project phases (see publication in the
ment experts from the Groups and Regions Global Procurement Web at
participating in the PM@Siemens initiative https://intranet.gpl.siemens.com/
and the Global Procurement and Logistics projekteinkauf).
Corporate Center. The relevant bodies (Glo-
bal Procurement Board, PM@Siemens, Steer-

Recommendation framework for successful Project Procurement

In summary, the following recommendations can be made for
successful Project Procurement:

Recommendation 11.1:
Integration of the Purchasing function in the process must be ensured at an early
stage continuously from acquisition through to the warranty period. This enables
the potentials offered by the procurement market to be exploited permanently.

Process phases
1 2 3 4 5 6
Pre- Project Bid Contract Project Purchasing, Commis- After
acquisition acquisition preparation negotiation handover, dispatch & sioning & Sales
Warranty
opening & construc- acceptance
planning tion

PM010 PM020 PM040 PM070 PM200 PM550 PM650 PM700

Acquisition Bid Bid Project Approval of Con- Customer End of
Go/No-Go decision approval won/lost detailed struction/ acceptance warranty
decision planning installation
completed
Involvement points

Project Purchasing Fig. 11.2

198
Involvement of the Purchasing function in and Regions worldwide; the Groups and Re-
the PM@Siemens process is guaranteed by 6 gions must take organizational measures to
defined involvement points supplementary ensure this.
to the descriptions in the tables in Module 1.
These must be implemented by the Groups

Involvement PM@Siemens Phase Function

points

1 Pre-acquisition Regularly updated information about impending

projects by Sales & Marketing will be made
available to Purchasing.
2 Project acquisition Purchasing appoints a Project Procurement
Manager (PPM).
The Project Management ensures that the PPM
is tied into the project as a permanent team
member.
3 Bid preparation Cost budgets for external material and external
services in customer bids are approved as
binding by Purchasing.
4 Contract negotiation Binding approval and agreement of the cost
budget for external material and external
services in order entry calculation between
Project Management and PPM.
5 Project handover, Participation by the PPM in the project kick-off;
opening and specification of the cost budget for external
planning material and external services under the terms
of a target agreement between Project Manager
and PPM.
6 Purchasing, Continuous controlling of the material costs in
dispatch & the current project (concurrent costing) with
construction the PPM.
Project Procurement Fig. 11.3

199
Recommendation 11.2:
Every project must be supported by a Project Procurement Manager (PPM);
this is mandatory.

A Project Procurement Manager (PPM) must The PPM is also the interface to the Siemens
be appointed by Purchasing in the project ac- procurement network, in other words to
quisition phase and actively incorporated in centralized entities, use of skeleton agree-
the project as a permanent team member by ments, award of orders to preferred suppli-
the Project Management. ers and the involvement of the Procurement
Engineer.
The PPM is responsible for analyzing the pro-
curement market and assessing the risks on
this market, as well as for cost calculation
for materials and implementing global pro-
curement strategies.

200
Activities and performance of Purchasing in each project phase
Incorporation PM@Siemens Phase Function
points

1 Pre-acquisition Purchasing incorporates key technical innovation

from the procurement markets in this phase
through the Procurement Engineer (PE).
2 Project acquisition The Project Procurement Manager (PPM) is respon-
sible in a key capacity for drawing up a rough
assessment of the procurement market risks and
approximate costing of the project material costs.
3 Bid preparation The PPM takes responsibility for:
Invitations to bid based on descriptions of
customers’ requirements/performance
Evaluation of bids according to total cost of
ownership aspects
Deployment of strategic Material Group
Managers (MGM) for the use of preferred
supplier agreements/skeleton agreements
Development of new procurement sources
(second source)
Assessing of delivery risks
4 Contract negotiation Ongoing assistance for the Project Manager on
questions of procurement
5 Project handover, Binding clarification of the scope of delivery
opening and and performance (project requirement)
planning Definition of resources and responsibilities
in Purchasing
Implementation of the procurement strategy
within the Siemens procurement network
(e.g., use of preferred suppliers, existing
pooling models)
6 Purchasing, PPM prepares the negotiations
dispatch & PPM awards order to suppliers in consultation
construction with the Project Manager
Inclusion of changes in the scope of delivery
and performance (project requirement)
Assistance with concurrent costing
Project Procurement Fig. 11.4

201
Recommendation 11.3:
Compliance with Group-defined Procurement Processes including
Change Management (utilizing available operative ordering systems)
must be assured.

Procurement activities must be handled Necessary measures must be taken in the

within the scope of a stipulated process that procurement process to ensure that pay-
clearly regulates and communicates respon- ments are only made to external suppliers
sibilities (e.g., approval strategy, signature after reliable confirmation of perform-
authorization, ordering system, etc.). ance/provision.
Orders other than those processed through (Detailed information can be found in C-
the purchasing processes intended for this Circular No. 12/2002 “Correct Procurement”
purpose are not permissible.
(http://infodirector.siemens.com/circular/
rsroot/htdocs/mitteilung/Z/2002/Z-RS-12-
2002.pdf) and in the Purchasing Guideline
applicable for your Group.)

Recommendation 11.4:
Customer contract contents in supplier contracts (back-to-back)
must be consistently secured in cooperation with Contract Management.

The essential customer contract contents The PPM is supported in this function by a
must be transposed onto the relevant suppli- Contract Manager in the Group, a Contract
er contracts (back-to-back) in order to avoid Manager directly in Purchasing or, for com-
divergences that work to our disadvantage, plex questions, also by Legal Services. The
e.g., in performance characteristics and pay- aim of Contract Management in Purchasing
ment periods (see following illustration). is to continuously identify and assess suppli-
Fulfilling these requirements is one of the er contract loopholes and to eliminate them
core functions of the Project Procurement (see Contract Management module).
Manager (PPM).
This security mechanism (feedback) also ap-
plies to Claim Management in Purchasing. In
this case, the purpose of Claim Management
is to pass on additional expenditure that has
not been calculated to suppliers as fully as
possible and to avert unjustified claims by
suppliers

202
 Claim Management aims primarily to pre- The assertion and negotiation of any
vent a deterioration in the calculated project project claims concerning suppliers is han-
results arising from demands made by sup- dled by the PPM in coordination with the
pliers. Contract/Claim Manager applicable (analo-
gous to the descriptions in the Contract
Management module).

Transposition of customer contract contents

onto supplier contracts (back-to-back)

Project Specifications
Contract/Claim Management
Risk Management
Change Management

Project Supply Siemens- Account

Management Management Customer
Supplier(s) Project Management
(Buy Side) (Sell Side)

Project Specifications
Contract/Claim Management
Risk Management
Change Management

Project Procurement Fig. 11.5

203
Recommendation 11.5:
A project-specific supplier evaluation must be performed to reduce costs and improve
quality at both internal and external suppliers.

Within the scope of a project analysis and in The results of the evaluation will be incor-
order to further develop the supplier base, a porated in a regular assessment. This forms
cross-functional evaluation of strategic the foundation for the selection and further
project suppliers must be performed by the development of preferred suppliers to en-
project team (PPM and Process Partners in sure that the best suppliers are engaged for
Logistics and Project Management) in ac- project requirements for future awards of
cordance with a method that is uniform orders.
throughout the Groups.
Long-term improvements in efficiency
The evaluation is carried out in the company
resulting in mutual cost benefits can be
tool click4suppliers (c4s) and is initiated by
brought about by consistently further devel-
the PPM.
oping preferred suppliers within the frame-
work of supplier target agreements and
supplier development activities.

Summary
Due to its particular characteristics (batch
size 1, low repetition rates, etc.), projects
business places high demands on
Procurement.
The nature of the procurement activity in
projects business is such that the very close
interaction between Project Management
and Procurement (Project Procurement
Manager), especially in the project acquisi-
tion phases, has a key influence on the suc-
cess of a project.
The binding recommendations in
PM@Siemens described in this module en-
sure close interlinking and involvement of
the Purchasing function in projects business
at an early stage.

204
» Small Projects –
compact Project Management «

Small Projects
Module 12

ts
all jec
Sm Pro
 Small Projects –
the compact approach to Project Management

Introduction to and
Einleitung und Definition
Definition of Small
Kleine Projects
Projekte

Introduction Each project must have a standardized classi-

fication/categorization. Since the number of
The previous modules of PM@Siemens
Small Projects handled every year is a six-
are primarily tailored to suit large-scale
digit figure, the project category needs to be
projects. However, the overall success of
determined very quickly and easily. This re-
many Siemens Groups and Regions also
quirement cannot be met using a copious
depends to a large extent on the success-
catalog of questions with very diverse
ful handling of Small Projects.
response options.
The Small Projects module provides a
Some Groups will have to further subdivide
mandatory Siemens-wide framework for
Small Projects into several categories so that
the realization of Small Projects. It covers
authority to sign can, where necessary, be
a project's complete life cycle from the
linked to categorization.
pre-acquisition to the warranty phase. It
specifies the minimum standards for The need for Small Projects to be catego-
Small Projects in terms of the rized quickly and easily can be met by scal-
PM@Siemens modules 1 through 11. ing the relevant questions in accordance
with the volume, risk, and complexity of the
This framework is not only a collection of
project concerned.
guidelines and recommendations, but al-
so includes, in its Appendix, concrete best- This means working through five initial ques-
practice solutions for the implementation tions (see Fig. 12.1) that can be answered
of harmonized processes in connection with a straightforward Yes/No.
with Small Projects. These links were ob- ’Yes’ to all questions will mean it is a Small
tained from the Groups which participat- Project. ’No’ as the response will trigger a set
ed in the working group. of more in-depth questions defined on a
Group-specific basis analogous to the cate-
Definition of Small Projects gorization, described in the Module Over-
In order to determine when to apply the view. 'No' responses will not necessarily re-
streamlined procedure for Small Projects, we sult in an A, B, or C category.
must first define what a Small Project actual-
ly is.
Small Projects must be differentiated from
larger or riskier projects as well as from
other types of business (classified as non-
projects). The content described in this mod-
ule is valid for Small Projects in the plant
and solutions business as well as for Small
Service-Projects*.

* according to the decision

of the Service Council

207
 Initial question Response
1. Volume Yes/No
Is the volume less than the limiting value? (Group-specific)
2. Agreement Yes/No
Is it a standard or framework agreement?
3. Solution/Technology Yes/No
Is it a standard solution or familiar technology?
4. Customer Yes/No
Have any economically or technically successful projects been carried
out for the customer recently?
5. Organizational and time-related risks Yes/No
Can the solution be provided within the required timeframe?

Project categorization for Small Projects

Small Projects Fig. 12.1

Small Projects are handled increasingly in a mandatory standards and requirements (e.g.
process-oriented fashion in accordance with standard forms and templates).

Other business Project Delimitation in accordance

types, e.g., pyramid with Group-specific
delivery business, project classification
product business Classification criteria,
e.g., risk, volume,
complexity
Lowest classification
class(es) are Small Projects
(e.g., SBS „I“, IS „C“,
SBT „D, E, F“)
“Delimitation
to top” Customer-specific solution
Small Projects Not pure catalog pro-
ducts or standard services

Small Projects are projects of the lowest classification level(s)

Small Projects Fig. 12.2

208
 Recommendation framework for successful Small Projects
In summary, the following recommendations can be made for
successful Small Projects:

Recommendation 12.1:
Introducing processes and roles for Small Projects

Minimum Standard
The relevant standard reference process de- The milestone designation is the same as for
scribed in Module 1 is also applied for Small large projects, but the scope of the work re-
Projects in all of their phases and with the sults to be supplied is smaller. The illustra-
defined milestones. However, in order to tion below represents the reduced process
make allowance for the lower complexity of model compared with the overall model.
Small Projects, individual phases have been
combined.

1 2 3 4 5 6 7 8 9 10 11 12 13 14
Bid Project Purcha- Construc-
Pre- Project Contract opening sing & tion,
prepara- Project Detailed Commis- Accep- Project
acquisi- acquisi- negotia- Dispatch installa- Warranty
tion handover & clari- planning Manu- sioning tance closure
tion tion tion fication facture tion

1 2 3 4 5 6 8
Purcha-
12 13 14
Project
Pre- Project
Bid
Contract kick-off sing & Manu-
prepara- Project and clari- facture Accep- Project
acquisi- acquisi-
tion
negotia- Dispatch 9 tance closure
handover fication Construction
Warranty Minimum standards were defined
tion tion tion for each phase in terms of:
Detailed Commis- 10 • Documents
schedule sioning
• Responsibilities
7 11

Small Projects Fig. 12.3

209
Contrary to Large Service Projects, the mobi- A minimum standard was therefore defined
lization, ramp up and operations phase is on the basis of the project process (Module 1).
not as emphasized and hence some process This minimum standard, which is required for
phases do not even exist. The processes to every project, defines the work results re-
be pursued for Small Service Projects are quired for each project milestone.
quite similar to the ones for Small plant and
solution Projects and therefore to be han- The work results defined here:
dled accordingly. Necessary national adapta-
are considered minimum requirements
tions to the minimum standard are shown in
the reference table below. must be attained in each project
Effective March 2006, the PM@Siemens must be documented adequately and
Views displayed in the Siemens Reference verifiably.
Process House can be accessed via the fol-
lowing link: https://cio.siemens.com/rph The implementation, in particular the stipula-
tion as to the method to be used to perform
the work and document the work results, lies
within each Group's sphere of responsibility.

210
 The following reference table describes
the minimum standard for Small Projects
Phase Work results End Description Responsible
milestone
Pre- What does the customer want? PM010 Decision on whether Sales & Marketing
acquisition E.g., inquiry, invitation to tender, Aquisition bid preparation or
Statement of Work Go/No-Go project initiation is to
Likelihood of a project: L decision be considered
Documentation of go/no-go (optional)
Project Categorization of the project, e.g., D-I, escalation PM020 Decision on whether Sales&Marketing
Acquisition level I–IV+ => determining of the “Level of Authority” Bid a bid is to be prepared (for Proposal Factory)
project definition: e.g., project datasheet decision Involving: Proposal Fac-
Risk estimate tory or Proposal Manager
Documentation Bid/no-bid

Bid Bid on basis of standard contracts and the PM040 Decision on whether Proposal Manager/
preparation relevant General Terms & Conditions Bid to submit bid to customer Bid Manager
Costing approval Involving: Sales&Marketing,
Solution concept commercial functions,
Initial project plan Project Manager, if required
Updated risk estimate

Contract Review/update, new creation or archiving (where PM070 Customer’s decision Sales & Marketing
negotiation applicable) of work results generated in preliminary Project to accept/refuse bid
phases (in particular in phase 3) on basis of won/lost
negotiations with customer.

Project Handover checklist on work results previously PM080 Handover to Sales&Marketing

handover achieved and information in order to check Start of project project execution Involving: designated
completeness and quality Project Responsible
Appointment of Project Coordinator, e.g., also on
basis of a Project Manager agreement

Project Open- Official detailed planning (time, resources, scope PM100 Project implementation Project Responsible
of supplies, expenditure) Order receipt may begin, all conditions
ing and Organization clarified fulfilled
Clarification, Accounting framework PM200
Detailed Claim and CR strategy Approval of
Planning detailed
planning

Purchasing & List of open points and known deficits PM300 From the viewpoint of Project Responsible
Manufacture Proof of performed services, work results and Dispatch approval project implementation,
products, e.g., delivery dockets; PM400 Material all those aspects of the
Dispatch provision of forms for acceptance and resources scope of the contract
Construction at site; which are relevant for
Installation/ PM550 Construct./ acceptance have been
Install. completed submitted or delivered
Service* PM600 to the customer, or have
Commis- Release for cus- been otherwise rendered
sioning tomer accep-
tance

Acceptance Acceptance protocol PM650 Customer’s acceptance per- Project Responsible

List of open points and known deficits Customer formed, final invoice can
Final invoice acceptance be issued, start of regular
operation

Project List of open points and known deficits for the PM670 Completion of project Project Responsible
closure project are rectified and accepted Project activities
Lessons Learned (optional) closure
Post costing (final) Compiling of project
Recorded handover to service** information for the
Archiving warranty period

Warranty Rectification of defects under warranty PM700 Expiration of the Service/Project

End of warranty period Responsible
warranty

Small Projects Fig. 12.4 * for service projects

** for plant and solution projects

211
Explicit Implementation Recom- Link to:
mendation: Process Guidelines for Sales & Marketing,
Based on the above referenced table, each Project Implementation (Small Projects)
Group / each Region creates an overview of and Service
the actual templates and tools with which http://intranet.sbt.siemens.com/top-plus/de/
the work results are to be achieved and docu- browsertree/index.asp
mented, and which roles are responsible. Guide for Small Projects
This overview is then declared as binding https://chestra.mch.sbs.de/chestra/index.
throughout the entire Group/Region. htm?portalview=Small-Projects
Consequently, the contents in the columns Intranet-based Workflow Project
Phase, Work results, End milestone and De- Management
scription must be taken over as is. The https://dms-02.erlm.siemens.de/en/livelink.
Group-specific roles are then entered in the exe?func=ll&objId=162285&objAction=bro
Roles column, while the templates and tools wse&sort=name
which have to be used to achieve the work
results for each phase are entered in their ap- Services – Processes/Project Management
propriate column (see Fig. 12.5). https://intranet.siemens.com/ptd-se-prozesse
Group-specific templates
Templates of the Groups I&S, PTD, SBS and
SBT are an integral part of the above links.

Phase Work End Description Responsible Templates

results milestone and Tools

Take over Take over Take over Take over Enter roles Enter group
group specific specific

Small Projects Fig. 12.5

212
Project Controlling Explicit Implementation Recom-
Project Controlling is an essential basis for mendation:
managing projects successfully. Ultimately, The meetings should cover at least the
the success of a project is measured in terms schedule, additions, deletions, risks and
of profit and customer satisfaction. costs. The results of the project meeting
Because of the reduced project manage- should be documented.
ment budget in Small Projects, the expenses
for controlling and reporting should be limit- Link to:
ed to a standardized minimum. Process Policies for Project Controlling
Therefore, the four-eye principle must be (including Costing), Risk Analysis and
maintained. The Project Controller role will Authorization
be organized to handle multiple projects. http://intranet.sbt.siemens.com/
con_guidelines/de/
At a minimum, regular documented project
meetings with the project's Business Respon- http://intranet.sbt.siemens.com/top-plus/de/
sible must be held. This person does not nec- browsertree/index.asp
essarily have to be the line manager. (see Project Implementation, Process Guide-
line, Monitoring & Controlling)

213
Operational Project Procurement
Quality Management A professional procurement function is as im-
Professional Operational Quality Manage- portant for Small Projects as it is for large
ment is as important for Small Projects as it ones. However, due to budget constraints, it
is for large ones. Operational Quality Man- cannot be generally implemented in a
agement is usually performed by the Project project-specific manner. As a result, Project
Manager, who must have access to support Procurement is performed by a regionally or-
from a certified regional Quality Manager ganized purchasing function.
when necessary. The main task of the regional purchasing
Quality assurance measures such as reviews, function is supplier management. Focusing
tests and acceptance procedures must be on a few preferred suppliers can generate a
taken into account and documented in the pooling effect for Small Projects as well, ide-
Project Plan. ally even across Group and regional borders.
The purchasing function should negotiate
The regional Quality Manager (QM) selects framework agreements with the preferred
sample projects and checks their compliance suppliers from which the Project Managers
with the minimum standards for Small then request their requirements.
Projects. Process improvements are then ini-
tiated on the basis of the error analysis. Qualifying the preferred suppliers also reduc-
es the project risks with respect to schedules
In addition, Customer Satisfaction Surveys and costs.
are initiated by the QM, either for multiple
projects or project specific.
Link to:
Process Guidelines for
Project Procurement
https://intranet.gpl.siemens.com/einkauf
http://intranet.sbt.siemens.com/gpl/en/
guidelines.asp

214
 Recommendation 12.2:
Ensuring Contract Management for Small Projects

Access to support provided by professional Minimum requirement: The Project

Contract Management (as per the Manager knows when to involve profes-
PM@Siemens “Contract Management” mod- sional Contract Management.
ule) is absolutely essential for Small Projects.
Contract Management is familiar with
However, due to their limited budgets,
the project practice (business)
Contract Management is usually not ar-
Since the professional Contract Manage-
ranged for specific Small Projects. Instead,
ment is supposed to provide direct sup-
they request help when needed from the
port to the Project Managers, it is essen-
professional Contract Management staff.
tial that the project-specific know-how is
The success criteria for Contract existing. In some cases, it may also be
Management in Small Projects are: advantageous to assign the Contract
Management role to an experienced
Locally organized
project employee, maybe even to support
When organizing the Contract Manage-
other projects as well. With Small Projects,
ment support, the most efficient compro-
involving Legal Services only makes sense
mise between the central collection of
in connection with pertinent major issues
know-how and local support must be
(liability, cancellation threats, etc.).
determined.
Change Order Management
Using standard contracts
The way of handling change orders must
To reduce the required effort (with
be defined in Group-specific standard
respect to proposals and/or contracts)
contracts.
and contractual risks, standard Siemens
contracts and standard proposal contents
(i.e. terms & conditions) should be used Explicit Implementation
wherever possible. Recommendation:
Training Project Managers in contract- Each organizational unit of a Group or a
related matters Region that performs Project Management
To convey basic Contract Management must nominate a professional Contract
knowledge and generate awareness of Management central function.
contractual risks (disadvantageous/
unacceptable conditions), the Project
Managers (including the commercial
project staff) should be trained in con-
tract-relevant matters.

215
Recommendation 12.3:
Implementing Personnel Management for Small Projects

Small Projects are part of the Project Man- PM4 (plus selected topics with focus on prof-
agement career path. The qualifications for it & loss) (see Module 5).
Project Managers are based on their practi-
Employees with this level of qualification
cal experience in project coordination, sup-
can then carry full responsibility for Small
plemented by corresponding basic training.
Projects (schedule, contents, costs), especial-
The experience as a Project Responsible for
ly with regard to the project budget.
Small Projects and the participation in basic
training for Small Projects correspond in es-
sence to the requirements of training level

Recommendation 12.4:
Implementing qualification for Small Projects

To ensure high quality of Project Man- Since the managers of Small Projects gener-
agement in Small Projects as well, all Project ally perform several roles and run multiple
Managers must undergo qualified training, projects simultaneously, the qualification
where they are taught the applicable program must offer comprehensive, yet com-
Siemens standards and learn to deal with pact process training.
the relevant local circumstances.
To this end, the following requirements have
Cost and acceptance considerations, as well been developed for the qualification pro-
as the fact that Small Projects are almost al- gram:
ways processed locally, require that this type
Joint training of all those involved in
of training be held on site in the respective
Small Projects (i.e. Sales & Marketing, Bid
local language.
Coordinators, commercial staff, Quality
Managers and Project Managers) must be
provided for specific Groups and on the
basis of the approaches, procedures and
directives applicable for that Group.
In order to ensure proximity to actual
work processes, adapting the training for
specific Groups (or parts thereof) on the
basis of a minimum standard is essential.

216
 The training must take into account the Explicit Implementation
fact that the parallel execution of projects Recommendations:
creates specific complexities and requires
a special methodology. Learning Campus develops the training
for trainers in cooperation with the partic-
In order to introduce the Siemens stand- ipating Groups
ard comparably worldwide, a “train-the-
trainer” concept must be implemented. The Groups/Regions select the trainers
Experienced Project Managers are select- who will participate in the training pro-
ed as trainers and undergo the same gram in accordance with the above
training at the PM@Siemens Academy, criteria
after which they are responsible for incor- The trainers are responsible for the provi-
sion of training materials in accordance
porating the Siemens standards into the with the Group-specific minimum stand-
local training programs. ards
Training should be provided in a compact The Groups/Regions make certain that all
fashion, in the local business language, project-relevant employees are trained as
and locally on site. per the above concept
The Group Coordinators are responsible The training progress must be document-
for initiating the training, while the ed (target: 80% of relevant employees).
Divisional and Regional Coordinators are
responsible for the execution and success-
ful completion of training programs.

Siemens Academy
Qualified
Train- Selected experienced
the-Trainer Project Managers
phase from the Groups
Local
training
Project Coordinator
Sales & Marketing
Proposal Manager
Project Teams

Small Projects Fig. 12.6

217
Recommendation 12.5:
Implementing processes for the transfer and implementation of Small Projects

1 2 3
Actual Program Fit-Gap Adaptation
situation set-up Analysis Prioritization

4 5 6 7
Impact Continuous
Training Implementation Monitoring Analysis Improvement
Process (CIP)

Small Projects Fig. 12.7

The special challenge in the implementation Phase 1: The procedural model for imple-
of standardized processes for Small Pro- menting Module 12 has been communicat-
cesses lies in the spread of their application. ed. The general procedure has been agreed
Since most Small Projects are local business, upon.
the regional organizations worldwide must
Phase 2: The differences from the minimum
be addressed for the project harmonization
standards have been identified. This Fit-Gap
effort. This means not only the country
Analysis is conducted autonomously by a
headquarters, but the local branch offices as
Group or by the local management, e.g.
well.
quarterly. Scope is an entire organizational
To manage this resource-intensive task, we unit (e.g. local Branch), but not a single
must focus on the respective weak points. project.
The prerequisites and processes required for
Phase 3: The basic Group-specific adapta-
a successful rollout can be categorized into
tion of the minimum standards has been de-
seven phases.
veloped. Focus (weak) points have been
specified.
Phase 4: Trainers have been selected and
trained. Training materials and a training
schedule have been developed; training
courses have been conducted.

218
Phase 5: Agreed-upon process changes are The Group and Divisional Coordinators are
being implemented. The line organization in- responsible for the initiation and successful
cludes all the required roles. Project meet- completion of the rollouts.
ings/discussions are being held.
The links shown below guide you to Group-
Phase 6: Reporting of training progress, cov- specific solutions and adaptations of the
erage with project meetings and with the Small Projects module.
roles defined for the line organization.
Project results are measured with shotguns. Link to:
Phase 7: Degree of process improvement is Procedural models
known from repeated fit-gap analyses. https://projectmanagement.sbs.de
(see menu option PM@SBS)
For the measurements required for this ap-
proach, two mechanisms are best suited: http://intranet.sbt.siemens.com/top-
plus/de/process%20excellence/rollout%20
Shotgun diagrams process.asp
In its major points, the system for analyz-
ing Small Projects is the same as that for Measurement methods
Large Projects. One difference is that http://intranet.sbt.siemens.com/top-
with plus/de/process%20excellence/field%20
Small Projects only completed projects process%20assessment.asp
can be analyzed since an ongoing calcula- (Fit-Gap analysis)
tion is not always particularly informative
due to the short project duration. http://intranet.sbt.siemens.com/top-
plus/de/process%20excellence/shotgun.asp
Behavioral assessments (Shotgun)
These assessments analyze to what ex-
tent the processes being “lived” in the
regional units comply with the Group-
wide standard processes (fit-gap analy-
sis).

219
Recommendation 12.6:
Implementing PM Assessment for Small Projects

The success of a project, and consequently Quality Manager is to be included in

of a project management system, is reflect- these reviews.
ed in the results achieved – at the latest at
The Proposal/Project Manager quickly ex-
the end of the project.
plains the progression of the project, and
The PM@Siemens initiative intends to cre- any problem solutions and optimization
ate more clarity in the way projects are han- opportunities are analyzed. The partici-
dled. What is our project management sta- pants also make sure that the required
tus? How is it being put into practice? How minimum standards are complied with.
well-developed is our line organization? They check whether the work results are
These are the questions that can be ana- available and adequately documented for
lyzed with the help of assessments. the project milestones. If there are devia-
tions, they are analyzed, and corrective
Project reviews (mandatory):
measures are specified.
According to the minimum standard,
project reviews with the Business Self assessments (optional):
Responsible for the project must be held Due to the large number of projects
at regular intervals. This applies to propos- which have to be handled by a Project
al projects as well. The Groups/Regions Manager in parallel, the PM Assessments
may specify that the projects for such re- (PMA+) are not deemed practical in every
views be selected at random if the scenario. Therefore, self-assessments can
number of projects is too large. That way, be performed for all processed projects
each project will have a certain probabili- combined (for example, on a quarterly or
ty of being selected. Ideally, each project semi-annual basis) or in a more stream-
will be reviewed at least once, for exam- lined format for each individual project.
ple at its conclusion.
The aim is to improve the quality of pro-
ject management. To ensure compact
and low-cost quality management, the

220
 Self-assessments for Small Projects are Therefore the capability maturity assess-
optional, and their application is deter- ment of the line organization is of high
mined and governed individually by the relevance. Organizational assessments to
Groups. define the as-is situation and saving po-
tentials are optional
Organizational assessments (optional):
Because of the reduced project manage-
ment budget in Small Projects, various
functions (quality management, procure-
ment, controlling, contract management)
are not realized project specific, but inte-
grated into the line organization.

221
Siemens AG
Power Transmission
and Distribution
P.O. Box 32 20 Siemens AG
91050 Erlangen © 2006 by Siemens Aktiengesellschaft Berlin
and Munich. All rights reserved.
Germany PM-Guide V4
4th revised edition 02/06
http://projectmanagement.siemens.com For internal use only

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