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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

CARE PROGRAM MANAGEMENT CaPM Diploma Program Milan, Italy

DEVELOPMENT OF INTEGRATED CARE FINANCIAL MANAGEMENT TOOL

Edsel Paglinawan CaPM, Globe Telecom Account Philippines

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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

INTRODUCTION
Brief Summary of Thesis and Certification Proposal CaPM Diploma Pilot 2008 Individual Plan Participant
Name CT CBT Region

EDSEL PAGLINAWAN GLOBE SINGTEL / ASIA-SOUTH APAC DEVELOPMENT OF INTEGRATED CARE FINANCIAL MANAGEMENT TOOLKIT A Java-based program developed to aid Care Program Managers in performing key task of P/L planning. With the absence of official financial tool, this provides the best planning tool for CaPMs both neophytes and experienced ones. Jussi Makkela; Mikael Birgegrd

Thesis
Thesis Subject Short Description

Benefits for the participants and the company Subject Matter Expert

External Certification
Certification Reasons why selected

Estimated costs

Six Sigma Black Belt Certification The Six Sigma Black Belt is the key change agent for the Six Sigma process - leading teams to organizational and financial improvement where it is needed most. Six Sigma Black Belt Certification Training is an intensive training program in quantitative and qualitative analytical skills, project management, group dynamics, team building, and change management. 2000 EUR

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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

CHAPTER 1
SUBJECT IDENTIFICATION AND BACKGROUND INFORMATION

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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

A. BACKGROUND INFORMATION

Care Program Managers are Business Managers. On top of the usual Operational tasks, CaPMs are expected to run the Care business in the most profitable manner. CaPM Handbook defines Care program managers responsibilities as follows: 1. Customer Relationship Management in Care phase including improvement of customer satisfaction and loyalty, and, 2. Care Business Management related to care contract negotiation and renewal process, care business planning, analysis, sales and profitability development as well as identifying upselling opportunities, and 3. Operational Management including provision of Care services and monitoring how NSN meets the service levels agreed with customer as well as acting upon the results.

Business Management - Drive the Care business within the CT and business lines; planning, sales and installed base marketing,

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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

tender process, service development, contract scope/renewal, profitability management. Deliver operational excellence to the customer Care Planning - Collaborative Care activity planning ensures effective and efficient service delivery. The Care Plan documents roles/ responsibilities, interfaces, meeting/ reporting practices as well as specific plans of care activities. Transfer to Care - After the network or solution has been built, they become operational, responsibility moves from customers project to O&M team and in Nokia Siemens Networks from Project to Care. Operative Management of Care Round the clock support to customer to maintain network and solution availability and improve performance with related processes and competencies. Care Reporting Provides customer with comprehensive information on the performance of the network, solution and the Care Services provided to support it. Also describes the current status of the customers network and provides options to customer on how improvements could be

Care Business Management tasks are further elaborated as follows: Identify and develop new business and upselling opportunities, understand the customer needs and channel them to global service lines Participate in CT(s) team meetings and give leads to CT(s) team by monitoring customer's operations, business situation and competition Ensure the expansion and continuation of Care Agreement Participate in new tender activity ensuring that Care resourcing and margins are appropriately planned and executed Develop long and short term financial and action plan; establish Care specific objectives for the CT(s) and manage reporting as well as control customer invoicing regarding Care phase Ensure accurate Care demand figures for CT demand planning Responsible for accurate financial forecasting of Care phase services Sales and profitability (care gross margin) responsibility for Care business of the customer(s)

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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

Be the advocate for Care financial issues within CT management team

As business managers, CaPMs ensure that the Care Business is in a healthy condition by executing the above tasks from Customer Satisfaction, Business Management to Operational Excellence. However, coming from the CaPM community, I perceive, like many other CaPMs I was able to work with, that Business Management is usually the main waterloo of many CaPMs. As most of us are coming from engineering and technical background, Care Program Management role requires individuals who can adapt themselves into the financial world. This business management far extends from the business planning, cost and revenue forecast, cost control, upselling and execution of key financial initiatives that would ensure sustainability and growth of Care business.

B. THESIS IDENTIFICATION

My more than 2-year exposures in Care management role made me realize the one of the main pitfalls of CaPMs, i.e., the INABILITY TO EFFECTIVELY FORECAST CARE FINANCIALS. Business management mainly entails managing both revenue and costs. This goes from the Financial Planning to the evaluation of the success and financial contribution of all Care activities and the continuous review of service performance and outstanding issues against the plan. With this realization in mind, it is decided indeed to explore the different approaches being done by several Care Program Managers, with the consulation from F&C and Care Product Managers to come up with the automated tool that can be used by all Care program Managers in doing STP Care financial planning. While there are several good Care Financials trainings and a lot of planning and reporting tools (NELLE, NSN PRS, RM Tool, Insight, etc) - there is really

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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

no straight-forward integrated tool that aids CaPMs in planning cost (resources, 3rd party, HWS, GCC, etc) and sales forecast. This is forecast is the set of financial numbers provided by the CaPM to the CT F&C for NELLE input. As a result, CaPMs are using his own strategy in doing so - oftentimes, incorrectly done.

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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

CHAPTER 2
SUBJECT ANALYSIS

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CaPM Diploma Edsel Paglinawan Care Program Management

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A. THE EXPECTED OUTPUT

This thesis is intended to produce an intensive, extensive and automated CaPM's financial planning tool that encompasses all costs and sales components. CaPM will simply have to enter the forecasted costs and sales based on the Care Agreement and other upselling initiatives, and the tool will provide the STP latest estimates for all Care services, CSI services and the COO sales allocation of SW Updates. The tables below show what is expected out of this program.

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CaPM Diploma Edsel Paglinawan Care Program Management

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B. REVENUE AND COST PLAN

CaPM regularly executes the STP planning process which consists of targets with action plans and business measures. This usually takes place in May (for STP2) and

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CaPM Diploma Edsel Paglinawan Care Program Management

CaPM Financial Toolkit 09 October 2008, Ver1 For internal use

in November (for STP1) of each year. The STP plan serves as a budget against the actual performance measured during the half yearly period. A key output of this planning is the revenue and cost forecast of each service to be rendered to the customer, including the specific services related to CSI and other non Care BL revenue and cost inputs. The cost plan is derived from all cost components as follows: Time sheets and Work Time Register(WTR) filled in by local engineers Global Care Center internal allocations CSI Technical Support cost input Internal purchasing Visiting engineers Cross-usage of resources Service lab (test-bed) charges External purchasing Subcontracting Contracting 3rd Party Services HWS material and services

The revenue is also planned separately in NELLE, taking in account Sales for specific Care SBU services, CSI and COO Allocations.

Subject Analysis and Solution Proposal: Scope includes Cost management of HWS, 3rd Party, resources, etc. Coach: Jussi Makela and Mikael Birgegrd