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A new way of demand management: Lean-Agile Journey
The document outlines the lean-agile journey of Migros, Switzerland's largest employer, led by Dr. Joël Krapf, focusing on transforming demand management and project delivery to meet changing market demands. It highlights challenges faced, such as a lack of prioritization and collaboration, and the shift from traditional demand management to a lean portfolio management approach using the Scaled Agile Framework (SAFe) for improved alignment and efficiency. The journey involves continuous evolution, with over 1,000 employees adopting lean-agile practices since its inception in 2019.
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A new way of demand management: Lean-Agile Journey
- 1. Lean-Agile Journey @Migros Dr. Joël Krapf Head Lean Portfolio & Agile Transformation A new way of «demand management»
- 2. largest employer inSwitzerland ~100k employees
- 3. 20.09.2021 | 3 Lean-AgileJourney @ Migros | Joël Krapf Migros is the largest employer in Switzerland Central Group IT within a ONE- company structure Central Group IT in a holding structure Shared Services partialy decentralized and centralized What do you think: how is our IT departement organized? A B C
- 4. 20.09.2021 | 4 Lean-AgileJourney @ Migros | Joël Krapf What do you think: how is the IT Departement organized? 8206 8838 Menti.com
- 5. 20.09.2021 | 5 Lean-AgileJourney @ Migros | Joël Krapf Facts & Figures about Migros Revenue (in Mio.) Revenue per Industry (in %) Employees Other facts
- 6. 20.09.2021 | 6 Lean-AgileJourney @ Migros | Joël Krapf My passion is enabling organizations becoming (more) successful At Migros since 3 years 10+ years of experience in transformation management (in consulting & industry) PhD in Organisational Agility www.linkedin.com/in/joelkrapf www.joel-krapf.com Dr. Joël Krapf Head Lean Portfolio & Agile Transformation About me
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- 8. 20.09.2021 | 8 Lean-AgileJourney @ Migros | Joël Krapf We all know it …
- 9. 20.09.2021 | 9 Lean-AgileJourney @ Migros | Joël Krapf Employees & Budget Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. Idea, Project, Requirement etc. … push without prioritization
- 10. 20.09.2021 | 10 Lean-AgileJourney @ Migros | Joël Krapf How can you relate to this situation? 8206 8838 Menti.com
- 11. 20.09.2021 | 11 Lean-AgileJourney @ Migros | Joël Krapf Better Value Sooner Safer Happier
- 12. 20.09.2021 | 12 Lean-AgileJourney @ Migros | Joël Krapf Retail market is changing significantly – leading to new challenges even for a giant such a Migros External Challenges New competition (online & offline) Decreasing market share New customer expectation
- 13. 20.09.2021 | 13 Lean-AgileJourney @ Migros | Joël Krapf Our organisation and collaboration did not fit market needs Internal Challenges Low innovation focus Low collaboration Low customer orientation
- 14. Planning Context 20.09.2021 |14 F.A.I.L First Attempt in Learning (2018 - 2020)
- 15. 20.09.2021 | 15 Lean-AgileJourney @ Migros | Joël Krapf Since we did not have any clear demand processes, we implemented a traditional demand management Project Portfolio Management IT Service Delivery (business-as-usual) Financial Planning Monitoring & Controlling Assess & Initiate Projects Strategy IT Program & Project Mgmt Initiation Realization Scoping Closing Project Finalization & Closing Portfolio Steering Demand Entry Demand Management Demand Priorization Demand Triage
- 16. 20.09.2021 | 16 Lean-AgileJourney @ Migros | Joël Krapf We introduced Business Partner Manager in order to own and streamline our demand management process Customer (actually internal partners on business side) Service Delivery Manager Business Partner Manager Project Manager Service Desk . Incident / Request Mgmt. Change Requests Project Management Business Relationship Mgmt. Demand Management
- 17. 20.09.2021 | 17 Lean-AgileJourney @ Migros | Joël Krapf We followed a traditional V-Model in order to implement our projects – with the common impediments organisation face with it 1 Not considering the operating costs in the business cases 2 Scope often not clearly defined 3 Project Manager not (or too late) involved in project initiation 4 Too much administration for small projects 5 Neglecting project controlling and closure
- 18. 20.09.2021 | 18 Lean-AgileJourney @ Migros | Joël Krapf Due to the mentioned issues with the traditional V-Model we introduced also a methodology for agile project management
- 19. 20.09.2021 | 19 Lean-AgileJourney @ Migros | Joël Krapf Who has implemented agile project management? 8206 8838 Menti.com
- 20. 20.09.2021 | 20 Lean-AgileJourney @ Migros | Joël Krapf Why didn’t we get better – even though we implemented agile project management? 8206 8838 Menti.com
- 21. 20.09.2021 | 21 S.A.I.L SecondAttempt in Learning (since 2020)
- 22. Bes More Transparency regardingresources and dependencies 01 Better Time-2-Market 02 Clear Priorization of initiatives over all departements 03 Improvement of Delivery Reliability 04 Harmonization and Simplification of our Planning and prioritization Processes 05
- 23. 20.09.2021 | 23 Lean-AgileJourney @ Migros | Joël Krapf In order to achieve these goals we had to fundamentally change the way we do demand and portfolio management Traditional Project Portfolio Management Lean Portfolio Management Temporary project teams, teams form regularly new based on temporary projects Steady, fixed lean-agile Teams secure a continuous value delivery 1 Complex planning, financing and controlling at project level Funding at portfolio level 2 Many projects at the same time, one-time prioritization & capacity planning, overload Ongoing prioritization - implementation As soon as capacity 3 Speculative business cases and ROI, rare review Lean business cases and MVP, focus on business benefits and quick feedback 4 Progress by phase gates and milestones, measurement via tasks Progress „reporting“ through system demos 5
- 24. 20.09.2021 | 24 Lean-AgileJourney @ Migros | Joël Krapf Scaled Agile Framework for Lean Enterprises (SAFe) is our framework to achieve these new way of working
- 25. 20.09.2021 | 25 Lean-AgileJourney @ Migros | Joël Krapf The lean portfolio enables alignment with strategy and a focused implementation of the strategic themes Boards Strategic Portfolio Review Portfolio Sync Unit B Unit A Strategic Themes Strategic Steering Budgeting (incl Adjust) Target Goals/OKR Cadence: Quarterly Forecast: 1-3 Years Unit C Unit D Unit E Unit F Strategy Strategic Themes Financial Planning BPM Demand Handshakes 2 1 3 4 5 6 Tactical Steering Epic initiation Epic prioritization Epic steering Cadence: all 2-4 weeks Forecast: 6-12 months LPM Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Portfolio Epics Executive Board
- 26. 20.09.2021 | 26 Lean-AgileJourney @ Migros | Joël Krapf The Lean Portfolio Kanban is one of the essential tools in order to steer the projects in a lean-agile way Do not Implement ▪ Epics that have been canceled or stopped 6. Done ▪ Epic is done and has delivered its benefit 5. Re-Cap ▪ Review if Lean Business Case and DoD of Epic are fullfilled 4. Implement ▪ Epics are pulled by team / ART ▪ Epics wait in this state till finished 3. Backlog ▪ Epics are ready to be implemented ▪ Epics wait in this state till a team / ART has free capacities and pulls it ▪ Prioritization based on WSJF 2. Analyse ▪ Analysis based on Definition of Ready ▪ Create Lean Business Case ▪ Prioritization based on WSJF 1. Funnel ▪ (All) new ideas that need ~6-12 months to implement ▪ Epic Hypothese as a lean way of scoping investment and benefit ▪ Prioritization based on WSJF
- 27. 20.09.2021 | 27 Lean-AgileJourney @ Migros | Joël Krapf Epics are implemented by Agile Release Trains resp. Agile Teams that plan their Product Increments every 12 weeks Sprint 1 Sprint 2 Sprint 3 Sprint 4 Sprint 5 Innovation & Planning Sprint Monday Tuesday Wednesday Thursday Friday Monday Tuesday Wednesday Thursday Friday Thursday Monday Tuesday Wednesday Friday Monday Tuesday Wednesday Thursday Friday Sprint Sprint Sprint Planning Demo / Review & Retro Sprint Sprint Sprint Sprint Sprint Sprint Sprint Sprint Sprint PI Planning Learning, Innovation & Puffer PI-Planning PI-Planning 2 weeks 2 weeks 2 weeks 2 weeks 2 weeks 2 weeks Learning, Innovation & Puffer Learning, Innovation & Puffer Learning, Innovation & Puffer Planning Readiness, Pre- Planning Inspect and Adapt Sprint Puffer
- 28. 20.09.2021 | 28 Lean-AgileJourney @ Migros | Joël Krapf Who has also implemented a lean portfolio management? 8206 8838 Menti.com
- 29. 20.09.2021 | 29 Lean-AgileJourney @ Migros | Joël Krapf Where do we face difficulties in implementing LPM? 8206 8838 Menti.com
- 30. Lean-Agile is aJourney
- 31. | 31 Transformations aredisruptive changes (for an organisation) They only are successfull if people change their way of working This is why Transformations are only possible in small steps
- 32. 20.09.2021 Lean-Agile Journey |Joël Krapf | 32 Right now we have over 1’000 people from Business & Technology using lean-agile ways of working In Abklärung Im Aufbau Etabliert No Line Portfolio (Sep 20) Core Technology Solutions (Jun 20) Corporate Solutions Finance Solutions (Mrz 21) Dept. 0 + 1, QM, Gesundheit, Kultur & Soziales, Nachhaltigkeit, Kommunikation & Medien, Freizeit, Klubschulen & Stiftungen HR Solutions (Jan 21) Industry / Production Solutions (Mai 21) In Abklärung Im Aufbau Etabliert Lean Portfolios Agile Release Trains Kein ART geplant. Einzelne agile Teams ART M-Hub (Okt 20) ART Retail Core (Mrz 21) ART Customer & Product (Mrz 21) ART M-Transform (Jun 20) ART Core Technology (Mrz 22) ART Digital Workplace & Collaboration (Mrz 21) ART Retail POS (Mrz 21) ART Finanzen (Dez 21) Einzelne agile Teams
- 33. 20.09.2021 | 33 Lean-AgileJourney @ Migros | Joël Krapf Our journey started in 2019 and it will continue to evolve Key Activities ✓ (Introduce (business) agility "holistically" in first organizational units / value streams ✓ Establish further agile teams & teams of teams (e.g. Agile Release Trains) ✓ Coach Agile Teams & Teams of Teams, focusing on the "Why". ✓ Increase leadership support ✓ Collect and communicate more success stories & journey reports, so that the "Why" inspires more people. Phase 3 (2021) Agile Value Streams Key Activities ▪ Introduce (business) agility "holistically" in further organizational units / value streams ▪ Further increase leadership support ▪ Collect and communicate more success stories & journey stories so that the "why" inspires more and more people ▪ Establish (business) agility as an organizational competence and continuously develop it further Phase 4 (2022+) Organisational Agility Key Activities ✓ Establish first agile teams & team of teams (e.g. agile release trains) ✓ Coach Agile teams to evolve step by step, focusing on the "Why". ✓ Increase Leadership Support ✓ Collect and communicate more success stories & journey reports, so that the "Why" inspires more and more people. Phase 2 (2020) Agile Teams & Team of Teams Key Activities ✓ Develop case for change and change vision (together) ✓ Establish LACE and Agile CoP ✓ Awareness (or support) of (relevant) leadership teams ✓ Communicate the "why" of the Lean-Agile Journey ✓ Basic training of all employees ✓ Realize and communicate first success stories Phase 1 (2019) Awareness und Basics
- 34. What have welearned?
- 35. 20.09.2021 | 35 Lean-AgileJourney @ Migros | Joël Krapf Start with a pilot where you have (1) organisational support, (2) a real problem to solve and (3) a good success case for a subsequent scaling Ensure the 3 fundamental drives of change: Leadership support, grassroots movement and transformation team Shu Ha Ri: First learn an established framework before you evolve to your own adapation of lean-agile principles Learning capacity determines the change speed: Start slow and with small steps Invest enough time in defining and communicating the why 5 4 3 2 1 What have we learned?
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