Fuelling Success: How ADAPTOVATE’s Agile at Scale implementation transformed an energy company

Home » Fuelling Success: How ADAPTOVATE’s Agile at Scale implementation transformed an energy company

Authored by:

Maciej Gawarecki

Olaf Laszewicz

Our exploration of the effects of implementing the Objectives and Key Results (OKR) frameworks (discussed in Discover the untapped benefits of implementing OKRs in the energy industry) shed light on the substantial benefits they provide for energy companies. The feedback and success stories shared by our readers are evidence of the transformative power of the OKRs to drive exceptional organisational growth. To counter the effects of a global recession and uncertain market conditions, businesses in the whole sector must adapt and innovate to remain competitive and resilient.


Energy companies can enhance their resilience by employing various business agility tools in addition to OKRs. In this article we dive into another enabler – Agile at Scale operating models – an approach that has immense potential to help energy companies respond to the rapidly changing market landscape.


The challenges for the energy sector in 2023

The global energy sector is experiencing a period of significant transformation caused by rising energy demands and shifts to more sustainable sources. A booming global population, rapid urbanisation and technological advancements, all contribute to energy consumption levels that are higher than ever before, especially in developing countries. The shift in mobility patterns due to electric vehicles, car-sharing services and smart transportation systems, is creating new demand dynamics. Simultaneously, the energy mix is undergoing significant change, transitioning from traditional fossil fuels towards renewable and clean sources, primarily driven by environmental concerns and climate change mitigation policies. The increasing adoption of solar, wind and hydroelectric power, along with advances in energy storage, has forced energy companies to rethink their strategy and embrace sustainable alternatives.


This rapid development presents both opportunities and challenges to the industry. Companies must adapt and respond quickly to remain competitive in an increasingly complex market. By adopting Agile at Scale, organisations can respond effectively to changing market demands, improve operational efficiency and foster innovation. The ability to respond rapidly to shifts in customer demand, technology and regulatory environments will ultimately determine the success and competitiveness of organisations within this sector.


Unlocking benefits for energy clients: Harnessing the power of Agile at Scale

ADAPTOVATE has worked with a number of energy companies. In one case we supported a capital projects department that had been seriously affected by many of the factors mentioned above. Our primary goal was to overcome these challenges by utilising business agility to bring tangible improvements in performance and benefits to the department.


A few challenges quickly became evident. The company’s project delivery time was longer than competitors so it struggled to adapt to the evolving market. This was primarily caused by a level of isolation between projects and phases, resulting in prolonged waiting periods and transitions. Furthermore, we noticed some ambiguity in ownership of projects, which contributed to slow decision-making and a reduced sense of accountability. Also, the alignment between the project delivery teams and the strategic objectives was suboptimal in some instances, resulting in occasional misalignment between strategy and delivery. Finally, we noticed that senior employees in the company were focused on retaining their managerial positions instead of developing the organisation’s expertise in specific areas. This had resulted in the departure of talented individuals with the specialised knowledge needed to successfully handle complex projects.

With the support of ADAPTOVATE, the company implemented Agile at Scale to solve these problems.



Spotify Model in a nutshell

ADAPTOVATE collaborated with the client to ensure that all necessary changes were implemented and that their specific context was preserved while adhering to the core principles and mindset underlying Agile at Scale. The operating model’s crucial components were tailored and aligned to cater to the needs of the capital projects department, including:

The project delivery methodologies

The project delivery in the capital projects department required different Agile frameworks for each phase of a capital project. The initial assessment of financial and competitive validity of projects is conducted using the Scrum framework. Scrum’s short iteration cycles and frequent stakeholder engagement during bi-weekly status reviews facilitated incorporation of valuable feedback and timely pivoting, if needed.

The Kanban framework was employed for the design phase. Based on lean manufacturing principles, Kanban enabled continuous-flow work by limiting work in progress and optimising delivery flow.

During the construction phase, lean construction methodology was utilised instead of the traditional waterfall approach. This shift allowed teams to promptly adapt to changes rather than adhering rigidly to a predetermined plan. By employing these techniques, both cost of delivery and waiting time were reduced.


Agile frameworks vs project phase
The structures to support scaling of Agile

While following the standard structure of the Spotify model, some adjustments were made to align with the specific needs of the capital projects department. Within this context, tribes were formed by grouping project teams in every project phase responsible for delivering work that shared a similar functional domain (e.g. infrastructure project tribe). This approach enabled the department to develop faster and more efficient ways of delivering projects. Furthermore, the end-to-end accountability for project delivery from design to construction was established at the tribe level.


Chapters were introduced to foster development of the capabilities necessary to support delivery of initiatives. Each employee was assigned to a chapter (e.g. automation chapter), allowing them to acquire and enhance the skills required to successfully deliver work. Additionally, the chapters enabled a collaborative environment where team members could share solutions to common or uncommon project challenges. The implementation of chapters also facilitated effective resourcing, ensuring that the right individuals were available to join newly formed project teams. Finally, chapters enabled meaningful careers for experts who preferred to grow within a functional area and did not want to evolve into managerial positions.

The roles introduced through the transformation

The effectiveness of business agility in capital projects relies on collaboration and coordination among key stakeholders. To support the new model, three roles were introduced: Tribe Lead, Product Owner and Chapter Lead.


Tribe Lead provided strategic guidance and coordination across multiple teams working on related projects. They ensured synchronisation of efforts, resolved dependencies and promoted knowledge sharing. The Tribe Lead was also responsible for the end-to-end delivery of every capital project within the tribe across all phases.


Product Owner resembled a project manager in some ways. However, the Product Owner was responsible for defining the project vision, prioritising features and aligning with strategic goals. They owned the delivery of a phase of the project. They ensured clear communication, managed expectations, and were accountable for what was delivered, not how it was delivered. The ‘how’ was defined by the specialists working in the project team.


Chapter Lead played a vital role in building and nurturing high-performing teams. They focused on developing the skills and capabilities of individual team members, creating an environment conducive to continuous learning and growth, and ensured effective collaboration and alignment with the Product Owner to ensure the teams had the right capabilities to deliver work.

Successful project delivery relied on the effective collaboration of the three roles. It was crucial to establish regular communication channels to maintain transparency, share project updates, address risks, and resolve conflicts or obstacles. These roles worked collectively to ensure alignment with the organisation’s strategic objectives. Empowering the teams with autonomy and support enabled them to make informed decisions and adapt to evolving circumstances. Furthermore, these roles cultivated a culture of continuous improvement by conducting regular retrospectives and feedback loops. These practices facilitated learning from past experiences to identify areas for enhancement and implement necessary corrective actions.

Successful project delivery relied on the effective collaboration of the three roles. It was crucial to establish regular communication channels to maintain transparency, share project updates, address risks, and resolve conflicts or obstacles. These roles worked collectively to ensure alignment with the organisation’s strategic objectives. Empowering the teams with autonomy and support enabled them to make informed decisions and adapt to evolving circumstances. Furthermore, these roles cultivated a culture of continuous improvement by conducting regular retrospectives and feedback loops. These practices facilitated learning from past experiences to identify areas for enhancement and implement necessary corrective actions.

Realizing tangible benefits: The advantages of Implementing Agile

ADAPTOVATE’s close collaboration with the client resulted in a customised Agile at Scale model specifically designed to support the delivery of capital projects. The partnership allowed for a targeted approach, moving away from traditional frameworks and creating methodologies and structures perfectly suited to the different phases of capital project delivery.

Journey to Agile At Scale

By scaling the Agile framework across all projects and project functions, the energy company achieved remarkable results, such as a 45% reduction in overall project delivery cycle time, when compared to traditional methods of project delivery. This significant improvement is attributed to several key factors that allowed the capital project department to operate in a more efficient and streamlined manner.


Firstly, the collaboration with ADAPTOVATE resulted in better prioritisation of projects, aligning them more closely with portfolio priorities and pushing low-value initiatives further into the backlog. This ensured that critical projects received the necessary resources, allowing for faster, more efficient project delivery.


Secondly, the customised Agile at Scale model allowed for more effective resource allocation, leveraging the pool of talent across the portfolio to its fullest capacity. This not only ensured the right people were working on high-priority tasks but also maximised overall productivity across the department. Faster risk-escalation played a significant role in improving project delivery as well, ensuring that potential issues were identified and addressed more quickly than in the past. This initiative-taking approach minimised delays and allowed for quicker, more informed decision-making.


Lastly, the empowerment of individuals within the capital project department led to higher productivity levels across teams. By granting more autonomy and responsibility to Product Owners and team members in problem-solving and decision-making, the energy company capitalised on their skills and expertise, resulting in more significant contributions from each individual.


Breaking it down: The client’s key achievement

If you have any queries or wish to delve deeper into Agile at Scale, please don’t hesitate to get in touch with ADAPTOVATE. Collaboratively, we can uncover the hidden advantages of Agile at Scale and promote enduring growth and success for your business.


If you’re interested in discussing the potential impact of Agile at Scale on your business, please feel free to send a brief message to Nick Forde.


Our European Leadership Team:


Nick Forde

Growth Partner,

London

David Storrie

Partner & Office Lead,

London


Piotr Mocny

Partner & Office Lead,

Warsaw




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