{"id":6028,"date":"2018-11-28T09:00:41","date_gmt":"2018-11-28T08:00:41","guid":{"rendered":"https:\/\/www.red-orbit.com\/blog\/?p=6028"},"modified":"2018-12-04T10:49:10","modified_gmt":"2018-12-04T09:49:10","slug":"speed-innovation-real-businesses","status":"publish","type":"post","link":"https:\/\/www.red-orbit.com\/blog\/speed-innovation-real-businesses","title":{"rendered":"Speed of Innovation in Real Businesses"},"content":{"rendered":"

How by Implementing Agile Methods a Consumer Electronics Retailer Saved 1,780 h of Managerial Work a Year and Optimized Work Schedules in Just 6 Weeks<\/h2>\n

Changes; the speed of implementation; why employees don\u2019t improve operations as agreed with management; why they don\u2019t see what needs to be done; why so many projects are not implemented correctly and don\u2019t bring incremental sales or optimization.<\/p>\n

These can be daily topics on weekly management meetings and are a source of frustration for management in real-time businesses; moreover, it is also a source of frustration for all employees and the whole business culture.<\/p>\n

For improving the speed of innovation, you need to have a clear vision<\/strong> of where you want to lead your company, a clear focus<\/strong> on where innovations and changes are needed, the resources<\/strong> (human, IT, knowhow) and a project management mindset<\/strong> which is focused on last mile implementation.<\/p>\n

In this last part involving project management, Agile approaches<\/strong> are very useful. The term Agile comes from Agile Software Development, which was introduced and written by 17 software developers in 2001 in \u201cThe Manifesto for Agile Software Development\u201d<\/a>. This is an approach to\u00a0software development<\/a>\u00a0wherein requirements and solutions evolve through the collaborative effort of\u00a0self-organizing<\/a>\u00a0and\u00a0cross-functional<\/a>\u00a0teams and their\u00a0customers and users.<\/p>\n

The Agile approach was mostly used in software development, while in our case we need greater speed of innovation. Agile can also be implemented in other branches of business, but leaders must be realistic because not every function needs to be organized into Agile teams. Agile methods aren\u2019t suited for certain functions in companies where strict compliance is needed, where repetitive processes exist, and where strict hierarchy is needed.<\/p>\n

But with regard to speed of change, Agile methodology and Agile teams are best suited to innovation. And you need innovation in all types of business. In retail, the changes are huge. The business models are changing, while the internet, social media, shopping malls, online platforms, payless retail, online loyalty programs and startups are disrupting the traditional Brick & Mortar and Multichannel retailers. And companies who don\u2019t implement changes are lagging behind in the eyes of end consumers.<\/p>\n

With organized Agile teams, which are focused on improving products and services, processes or business models, traditional hierarchies can be adapted to more agile enterprises that are more suitable for the VUCA<\/a> world.<\/p>\n

Agile teams can be implemented in any kind of business; they are small and multidisciplinary, and confront complex problems (as defined in the CYNEFIN framework<\/a>). When an Agile team is empowered and has a vision of which problem can be improved, then the team breaks down a complex problem into modules, develops solutions to each component through rapid prototyping and tight feedback loops, and integrates solutions into a coherent whole. The essence of an Agile team is to provide a solution, even if it has to change the plan<\/strong>, and the team is accountable for outcomes (such as growth, profitability, process improvement, production line improvement, customer loyalty).<\/p>\n

What does Agile look like in the traditional business of Brick & Mortar shopping? First, there is always a vision. An Agile manager had a vision that the work schedules for 300 employees who work in 18 different cities should be standardized, made transparent with a clear work process, and fair to all employees. There was one more additional requirement \u2013 the work schedule should have automatization with an HR system for automatic payroll calculations. This is a basic process which should be standardized in a company with a turnover of 100 mio+, but unfortunately each of the 18 store managers has his\/her own process of preparing work schedules for employees. On average, each store manager used 10 working hours per month to compile a monthly schedule and used 5 working hours to do all the payroll calculations in a huge Excel file which was sent to the HR department.<\/p>\n

In the past, when Agile methods weren\u2019t in use, this optimization would be done through the IT department, and it would look like this: The manager who applied for optimization would speak to the IT department. The IT department would then take 3 weeks to figure out when it could squeeze this optimization into its busy workflow. Then it would take up 2 months to brainstorm, develop and innovate a solution, and after 3 months this solution would be presented to the manager who came up with the idea. The solution would be totally different from what the manager had imagined, because the manager didn\u2019t specify the requirements properly, and because the business and its IT department don\u2019t use Scrum as a working method for writing requirements and delivering statuses and milestones. In the end, a lot of resources would have been used, and a solution would have been prepared.<\/p>\n

But there is another option and it\u2019s called Agile methodology<\/strong>. Here are the steps taken by an Agile manager to improve the work schedules for 18 store managers and 300 employees:<\/p>\n

Week 1:<\/strong><\/p>\n