how lean portfolio management disrupts the traditional way of demand management. shown with the use case of Migros

1. Lean-Agile Journey @ Migros
Dr. Joël Krapf
Head Lean Portfolio & Agile Transformation
A new way of «demand management»

2. largest employer in Switzerland
~100k employees

3. 20.09.2021 | 3
Lean-Agile Journey @ 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-Agile Journey @ Migros | Joël Krapf
What do you think: how is the IT Departement organized?
8206 8838
Menti.com

5. 20.09.2021 | 5
Lean-Agile Journey @ Migros | Joël Krapf
Facts & Figures about Migros
Revenue (in Mio.) Revenue per Industry (in %)
Employees Other facts

6. 20.09.2021 | 6
Lean-Agile Journey @ 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

7. Why lean-agile?

8. 20.09.2021 | 8
Lean-Agile Journey @ Migros | Joël Krapf
We all know it …

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Lean-Agile Journey @ 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-Agile Journey @ Migros | Joël Krapf
How can you relate to this situation?
8206 8838
Menti.com

11. 20.09.2021 | 11
Lean-Agile Journey @ Migros | Joël Krapf
Better Value Sooner Safer Happier

12. 20.09.2021 | 12
Lean-Agile Journey @ 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-Agile Journey @ 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)

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Lean-Agile Journey @ 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-Agile Journey @ 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-Agile Journey @ 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-Agile Journey @ 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-Agile Journey @ Migros | Joël Krapf
Who has implemented agile project management?
8206 8838
Menti.com

20. 20.09.2021 | 20
Lean-Agile Journey @ 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
Second Attempt in Learning (since 2020)

22. Bes
More Transparency regarding resources 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-Agile Journey @ 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

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Lean-Agile Journey @ 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-Agile Journey @ 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
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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
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Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
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Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
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Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Portfolio
Epics
Executive
Board

26. 20.09.2021 | 26
Lean-Agile Journey @ 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-Agile Journey @ 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-Agile Journey @ Migros | Joël Krapf
Who has also implemented a lean portfolio management?
8206 8838
Menti.com

29. 20.09.2021 | 29
Lean-Agile Journey @ Migros | Joël Krapf
Where do we face difficulties in implementing LPM?
8206 8838
Menti.com

30. Lean-Agile is a Journey

31. | 31
Transformations are disruptive
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-Agile Journey @ 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 we learned?

35. 20.09.2021 | 35
Lean-Agile Journey @ 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?

36. Q&A