In the fast-paced energy industry, companies must continually adapt to meet evolving customer demands and streamline their operations. Let’s call the company ‘The Energy Company’ embarked on a transformational change management program, aiming to restructure its business and enhance the customer experience throughout the value chain. This blog explores The Energy Company’s journey toward adopting an Enterprise Value Streams model, highlighting the role of Agile Management Office (AMO) in supporting their transformation. Along the way, we’ll also share valuable insights from AMO’s expertise in agile portfolio management, as described in their article “How Agile Portfolio Management Helps Organisations Respond Better to Changing Business Needs.”

Understanding Value Streams

Before we jump into the details of the case study, let’s start with the basics around value streams. What exactly are value streams? In simple terms, a value stream represents the sequence of activities or processes that take place within an organisation to deliver value to customers. These activities can involve everything from product development and production to distribution and customer support.

Now that we have a general idea of what value streams are, let’s dig deeper into their purpose and how they function. At its core, a value stream provides a visual representation of the steps involved in delivering a product or service, highlighting the flow of materials, information, and activities from start to finish.

Value streams enable organisations to identify and eliminate wasteful activities, streamline processes, and ultimately deliver more value to their customers. By mapping out the value stream, businesses gain a holistic view of their operations, allowing them to identify bottlenecks, inefficiencies, and areas for improvement.

Implementing Value Streams

So, now that we understand the value and benefits of value streams, how can organisations implement them effectively?

Implementing value streams starts with creating a current state map, which depicts the existing processes and activities. This map helps identify waste, non-value-added steps, and areas for improvement. Once the current state is understood, organisations can define their desired future state, incorporating lean principles and best practices.

From there, it’s essential to establish key performance indicators (KPIs) and regularly measure progress towards the desired future state. It’s also crucial to involve employees at all levels in the process, as they possess valuable insights and experiences that can contribute to meaningful improvements.

A Case Study

Understanding the Need for Change:

The Energy Company recognised the importance of reimagining their business to be future-ready for their next growth phase. They sought to improve their customer experience and create a streamlined approach across their value chain. After two unsuccessful attempts at establishing an Enterprise Value Streams model, The Energy Company turned to AMO for assistance. AMO’s Agile Management Office, known for its expertise in transformative change, was tasked with designing and implementing a model that would effectively align the organisation’s efforts.

Leveraging Agile Portfolio Management:

As highlighted in AMO’s article on agile portfolio management, organisations can respond better to changing business needs by adopting agile principles and practices. By embracing agile portfolio management, organisations can achieve improved visibility, transparency, and adaptability across their projects and initiatives. This approach empowers organisations to make informed decisions, prioritise effectively, and allocate resources efficiently, ensuring alignment with strategic objectives.

Collaborative Design and Implementation:

AMO began by conducting a thorough review of The Energy Company’s existing landscape, followed by interviews with key personnel. This helped them gain insights into the challenges faced during the previous unsuccessful attempts. Under the guidance of AMO’s Managing Director, the team worked closely with General Managers and their teams to define the purpose and role of the transformation. Leveraging Agile methodologies, AMO integrated their unique the AMO Way® model into the process, fostering a shift in mindset and demonstrating incremental value and key capabilities.

Executing the Transformation:

AMO’s engagement with The Energy Company involved carefully designing new ways of working, defining roles and responsibilities, and establishing a collaborative environment for the transformation journey. Through facilitated workshops and the utilisation of various tools and techniques, AMO fostered co-creation among the large team encompassing business, technology, and delivery. The expertise and practical experience of AMO allowed for effective recommendations and successful delivery within the assigned timeframe and significantly under budget.

The Role of the EPMO:

While focusing on value streams, The Energy Company realised the need for its Enterprise Project Management Office (EPMO) to transform as well. The EPMO played a crucial role in supporting the overall organisational transformation, aligning project management practices with the value stream approach. This integration ensured that projects and initiatives were in sync with the organisation’s strategic goals and customer-centric focus.

Benefits of Value Streams:

The adoption of value streams brought several benefits to The Energy Company. Firstly, operational efficiency was improved by identifying and eliminating wasteful activities. By visualising the entire value stream, the organisation could identify bottlenecks, reduce lead times, and enhance productivity. Value streams also facilitated better communication and collaboration across teams and departments, breaking down silos and fostering a shared understanding of goals. Additionally, the organisation gained agility in responding to market demands, enabling innovation, and staying ahead of the competition.

Tips for Implementing Agile Portfolio Management:

  • Start with a Clear Strategic Vision: Clearly define your organisation’s strategic objectives and ensure alignment across projects and initiatives. This vision serves as a guiding light for decision-making and prioritisation.
  • Foster Cross-Functional Collaboration: Break down silos and promote collaboration between teams and departments. Encourage open communication, knowledge sharing, and a shared understanding of goals and priorities.
  • Embrace Agile Principles: Adopt agile principles and practices, such as iterative development, continuous improvement, and regular feedback loops. This enables flexibility, adaptability, and a focus on delivering value to customers.
  • Prioritise Based on Value: Implement a value-driven approach to project selection and prioritisation. Identify initiatives that align with strategic objectives and deliver the most significant value to customers and the organisation. Regularly reassess priorities based on changing business needs.
  • Establish Cross-Functional Teams: Build cross-functional teams that possess the necessary skills and expertise to deliver end-to-end value. Encourage collaboration, shared ownership, and a customer-centric mindset within these teams.
  • Implement Agile Portfolio Governance: Establish a governance framework that supports agile portfolio management. This includes regular portfolio reviews, metrics tracking, and decision-making processes that enable flexibility and responsiveness to changing business needs.
  • Emphasize Continuous Improvement: Foster a culture of continuous improvement by encouraging teams to reflect on their processes, identify areas for improvement, and implement changes iteratively. Regular retrospectives and feedback sessions help drive ongoing growth and learning.
  • Invest in Training and Coaching: Provide training and coaching to equip teams and individuals with the necessary skills and knowledge to adopt agile practices successfully. This investment will help build a culture of agility and empower teams to drive their own continuous improvement.
  • Encourage Experimentation and Risk-Taking: Foster an environment where teams feel safe to experiment, take calculated risks, and learn from failures. Encourage a mindset of innovation and creativity and celebrate both successes and lessons learned along the way.
  • Emphasize Stakeholder Engagement: Engage stakeholders throughout the portfolio management process. Regularly communicate progress, involve stakeholders in decision-making, and seek their input and feedback. This collaborative approach ensures alignment and buy-in from key stakeholders.

Conclusion

The Energy Company’s transformation journey toward value streams, supported by AMO’s expertise in agile portfolio management, demonstrates the power of embracing agile principles and practices. By prioritising value, fostering collaboration, and continuously improving processes, organisations can respond better to changing business needs, enhance customer experiences, and drive overall success. The Energy Company’s successful transformation serves as an inspiring example for other organisations seeking to embrace agility and maximize their potential in an ever-evolving industry.

Want to find out more about how AMO can help with your project management capability? Have a look here (https://agilemanagementoffice.com/consult/) how our team can help yours reach their full project management potential. If you want to know more, contact us on contact@agilemanagementoffice.com