Procurement on disruption, lean-agile procurement

1. REVOLUTION
MirkoKleiner
How to improve Time-to-Market by 400%
with Lean-Agile Procurement
© All rights reserved

2. AGILE
SALES &
PROCUREMENT
Source: twimg.com

3. Lean / Agile - WTF !"#
Traditional Sourcing Approaches are still valid, just know where to apply it!
Agile
(Explore)
Source: Lean-Agile Procurement Alliance, 2019. Inspired by Alexander Osterwalder
Lean
(Exploit)
uncertain certain
Focus
Culture
Sourcing Approaches
People / Skills
Commodity Sourcing Cases
Efficiency, Cost cutting
Linear execution, functional
organisation, failure not an option
Self-service, Rfx, Reverse Auction
Specialists, process-driven,
detail oriented
Complex Sourcing Cases
Effectiveness
Iterative search, cross-functional,
experimentation
Lean Startup, Design Thinking,
Lean-Agile Procurement
Collaborators, value-driven,
customer centric
Agile

4. Source: ge.com, 2016
the first shoe made almost entirely by robots
Adidas
3D-printedAircraftEngine

5. FullProduction2018
Source: ge.com, 2016

6. –Marc Benioff, CEO Salesforce
Speed is the new
currency of business
“
„
© All rights reserved

7. Time
Investment
(Cost)
Return
(Profit)
?
Traditional Sourcing doesn’t work in a complex Environment!
Start thinking like an Investor - Would you do a 100 Mio. Investment at once?
Risk
© All rights reserved

8. Time
Investment
(Cost)
Return
(Profit)
Source: Lean-Agile Procurement Alliance, 2019
earlier Goto Market
Potential Profit
(Cost-of-delay)
Agile@Sourcing - Business Value over Cost
Start thinking like an Investor - More iterative Investments if Return is feasible
Risk
© All rights reserved

9. Procurement on Disruption
Learnings from the field applying lean-agile Procurement
Mirko Kleiner, co-founder flowdays
© All rights reserved
© All rights reserved 9 9
Judges’comments,Oct2018
ThisProjecttook averyinnovative
ApproachtoAgileSourcing

10. 10
CKW
The situation @ CKW on 1st of April 2018
The CKW Group is a Swiss energy company with 200’000
customers, 1700 employees an annual revenue of $850
million. It is still in the early stages of transitioning to
business agility.
• 1.1.2018 - 31.3.2018: The board approved the project
«SOLER» that should introduce a new collaboration and
communication software suite for their 1700 employees
• 31.04.2018 - 30.06.2018: A solution and supplier
should be found
• 01.07.2018 - 30.09.2018: In this time space a project
should happen
THE CHALLENGE

11. 11
The overall challenge
Time without creating Value for the Customer is Waste
Value
Time-to-Market
~6-12Months
SPECIFICATION
OFFER
CONTRACT
AGILE DELIVERYIDEA
Start Mar2019
WTF !"#
Start Mar2018 GoLive Oct1,2018
© All rights reserved

12. 12
Lean Agile Procurement
Agile from the Start, eliminate Waste & increase Time to Market
Value
Time-to-Market
Vision
AGILE DELIVERY
6Months
Start Mar2018 GoLiveR1.0 Oct1,2018
© All rights reserved

13. RADICAL MINDSHIFT
PAST TODAY
Cross-functionalCollaboration
Acceptuncertainty
1313
© All rights reserved

14. 14
LEAN PROCUREMENT CANVAS
Partner
(Supplier)
Focus Customer
(Buyer)
Why
WhatHow
Who
© All rights reserved

15. Lean Agile Procurement
An end-to-end Approach to build & manage adaptive Partner Ecosystems
DaysinsteadofMonths
15
Business Model
Canvas
1 Initialization 3 BigRoomDay/s2
Lean Procurement
Canvas
Preparation
✓
4 PeerFeedback
© All rights reserved

16. NOW
Setup anagile,cross-functionalTeam
EmpoweritwithmainStakeholders
© All rights reserved 16 16
1 Mar 22

17. Quelle CKW, public Review / Pocathon 2018
GatherNeedswithrealUsers
Preparefor BigRoomEvaluationWorkshop
© All rights reserved 17 17
2 Mar26

18. Alignwith Peoplethat willdotheJob
Start CooperationevenbeforeaContract
© All rights reserved 18 18
InviteshortlistedCompetitorsinthesameRoom
3 Apr 25

19. 19
EricChaumette ManagedDeliveryCentersProgramManagementAirFrance
Insteadof eliminating thelesspromising
offersweendedupimprovingeachproposal
andchoosingthebestone!
© All rights reserved
19

20. Co-createanAgileContract
RunaProof-of-Concept
© All rights reserved 20 20
3 Apr25

21. Co-createthebestLicenseModel
© All rights reserved 21 21
3 Use theexpertise intheroom

22. Co-createanAgileContract
RunaProof-of-Concept
© All rights reserved 22 22
3 Jan30
ResolveRisks&openQuestionsimmediately
3 Apr 24+25
© All rights reserved

23. Source: CKW, public Review / Pocathon 2018
PrivateSessionswhereneeded
3 Apr 24+25
© All rights reserved

24. DemoResults
GetPeer-Feedback
Team-Decision
© All rights reserved 24 24
4 Apr26

25. 25
EXPECT THE UNEXPECTED!
© All rights reserved

26. 5weeks(leadtime)
INVITATION
SENT TO 3
VENDORS
CONTRACT
SENT (Draft)
© All rights reserved
Improved Time to Market
From Idea to 1st Value delivered in just 5 Weeks, being faster would be possible!
26
WORKING DAYS DAYS WITH VENDORS
1 Mar22
2 Mar26
3 Apr25
3+4 Apr26

27. * Comparison to anothercasefromthepastwithasimilarcomplexity
Our Results
Faster, cheaper, better
4xfasterfromIdea to1stValuedelivered
1/2Effort
80%SavingsthroughFocus
90%recommendtheApproach
65%Budgetleadto
120%BusinessObjectives
© All rights reserved

28. CapacityofTeamMembers
Handling3vendors simultaneously
© All rights reserved 28
CONCLUSIONS
Legalasksforatemplate
28
Challenges
Yes we also had challenges and still have!-But now those are transparent and get solved.
StayintheDriver-seat
Mindshift-Wearealljusthuman

29. Next workshops
Alliance
In Cooperation Latest early Adopters
© All rights reserved
29
London

30. THANK YOU!
Mirko Kleiner
+41796011990
mirko@flowdays.net
FREE download
www.lean-agile-procurement.com
© All rights reserved