Acquire. Expand. Consolidate. This is a familiar drumbeat for many global brands. How do organizations rise above to the complexity and develop and manage project and product portfolios that not only advance growth but support the business as a whole? Volvo Group recently shared their success story, in the Volvo Trucks division, in published case study and webcast.
This blog provides a summary of the recent case study and shares the challenges they were facing, their approach to improvement, and some of the benefits realized after improving portfolio management processes and overall project execution.
Listen to their story in their own words by registering for the on demand webcast “Transforming Volvo: Creating a Single Source for the Enterprise Portfolio”.
The Volvo Group Case Study
The Volvo Group (and Volvo Trucks) is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Volvo Group employs approximately 100,000 people, has production facilities in 18 countries and sales of products in more than 190 markets.
In the early 2000s Volvo acquired several brands and companies across the globe for scale, synergies, and geographical expansion. In 2012, the goal was to drive cost efficiencies and reposition Volvo by consolidating the various brands into one company, The Volvo Group. While the unification had its benefits, it also presented challenges with performance.
To become more customer-focused, simplify its portfolio, and speed its project execution, the company realized it must gain control of its investments. In 2016, the corporate goals shifted to maximizing investments through better prioritization and alignment of initiatives with the group’s strategies.
With such a large organization of many different business units, managing cross-portfolio dependencies was nearly impossible. The company wanted to improve the way it managed its portfolios across the enterprise while ensuring better data quality and accuracy for more informed business decisions.
Solution: Implement Planview Enterprise to Consolidate Portfolios with Full Transparency
The Volvo Group looked at four key capabilities including improve the yearly cycle, integrate real-time decision making and can re-balance, improve IT application rationalization, and ensure good data quality.
Based on these requirements, The Volvo Group chose Planview Enterprise. “Planview offered a safe SaaS environment that was quick to deploy, implementation readiness with a best practice library and a deployment plan, and strong enablement support for users. The Planview culture and responsiveness was impressive,” says Per Brändström, Senior Project Manager at Volvo Group Trucks Technology.
Brändstöm and his team positioned the tool to work mainly within strategic planning, portfolio balancing, portfolio execution, and application management. Planview Enterprise provides the group with a consolidated view of all its projects and organizes them based on how they will be executed in the different business areas. This transparency and consolidation of all ongoing and planned projects helps them measure project performance as well as re-balance and fine tune project portfolios.
Projects are prioritized based on budgets and alignment to corporate strategy, and decisions are now traceable.
Results: Decisions Based on Accurate and Complete Data
Since implementing Planview Enterprise, The Volvo Group has achieved:
- A common repository of all projects with complete transparency
- The ability to monitor budgets versus actuals
- Consolidation of the portfolio
- Breakeven on solution investment with the replacement of two legacy tools
- An improvement in the quality of reporting with standardization
I hope you found Volvo’s story compelling and inspiring. Achieving portfolio management success to drive innovation and business outcomes at such a grand scale is truly commending. Here’s a link to the full case study PDF and be sure to listen to the webcast “Transforming Volvo: Creating a Single Source for the Enterprise Portfolio”.
I’d like to hear from you. What challenges are you currently facing when it comes to managing your portfolio investments? What measures are you taking to improve? Share by leaving a comment below.