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The Agile Experience: A Success Stroy by Staufen AG

Markets and environmental conditions are changing so quickly today that companies with traditional structures are no longer able to respond effectively. The consequence: Internal structures and processes can no longer keep up with external complexity and dynamics.

Markets and environmental conditions are changing so quickly today that companies with traditional structures are no longer able to respond effectively. The consequence: Internal structures and processes can no longer keep up with external complexity and dynamics.

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THE AGILE

EXPERIENCE


2 STAUFEN. | BMW


The BMW journey to an

agile culture of collaboration

Markets and environmental conditions are

changing so quickly today that companies

with traditional structures are no longer able

to respond effectively. The consequence:

Internal structures and processes can no

longer keep up with external complexity

and dynamics.

Companies often focus on their internal processes to

create order. As a result, routines are established over

the years and enterprises become more sluggish, losing

sight of their customers as well as their requirements

and needs. They no longer primarily focus on

the value-creation process, but are rather characterized

by silo thinking and inefficient processes, which

inevitably leads to an increase in complexity. Agile

companies, in contrast, strive for change in their organizational

structures. They want to free themselves

from unnecessary, paralyzing structures and processes

in order to adapt more quickly to new markets and

environments. Agile companies want to revive their

original founding mentality. They are able to recognize

changes at an early stage and adapt accordingly, using

the most effective and efficient form of organization.

With this spirit, a change program was established

in 2018 in a department at BMW and Staufen AG was

awarded with the project "EG-5 goes agile."

STAUFEN. | BMW 3


What is BMW EG-5?

PORTRAIT

The Forschungs- und Innovationszentrum (FIZ) in Munich

has been the center of BMW Group's worldwide

research and development network since 1986. The

department EG-5 "Product Lifecycle" is situated in the

FIZ and is part of overall vehicle development. EG-5's

mission statement is: We ensure sustainability and

reliability in the vehicle lifecycle and thereby form the

foundation for a premium customer experience. The

area of responsibility covers the topics of operational

stability, corrosion resistance, product sustainability

and materials and their integration into all series. In

the department, 200 employees work on nearly 65

simultaneous projects. The department comprises 4

sub-departments and 13 teams.

Initiating and driving

material innovations

Material selection, consulting,

specification and approval for

series development projects

Concept and

method development

EG-5 Vehicle life cycle

We ensure sustainability and reliability.

We thereby form the foundation of our customers'

BMW premium experience.

Operational stability testing

& test rig development

General responsibility for corrosion

resistance and water-induced

overall vehicle stress

Overall responsibility for product

sustainability, indoor air quality

and evaporative emissions

4 STAUFEN. | BMW


Material laws,

material data

Design & safeguarding

of operational stability

STAUFEN. | BMW 5


Where did we come from?

INITIAL

SITUATION

Among BMW employees, the department EG-5 was not considered very

attractive for ambitious and talented employees who were looking for more

design influence.

There were fewer interactions between employees within EG-5 than with

external process partners. Instead of increasing the department's potential,

it increased silo thinking and heterogeneity.

The result was a lack of communication, transparency and adaptability. A

survey of employees showed that a high workload combined with failure to

achieve goals led to a high level of dissatisfaction. In addition, the requirements

of related areas increased.

Old fashioned,

outdated, not very

interesting area

Problems with adhering

to schedules

Disproportionately

rising costs

Strong

silo thinking

The dynamics of product innovations, shortening of development cycles as

well as increasing complexity and numerous unpredictabilities made changing

to agile working methods and structure absolutely necessary.

We need to change the way we

think to prepare for a flexible,

collaborative and rapidly changing

environment.

6 STAUFEN. | BMW


OBJECTIVE

Where were we headed?

One of EG-5's main goals was to increase customer focus

– BMW internal departments in product development

– and improve customer satisfaction. This also

included improving their own adaptability to dynamically

changing environmental and customer requirements.

Work processes should become more effective,

efficient and faster. Freed up capacities should

offer employees more freedom to innovate and better

develop their own potential. The focus should always

be on meaningful and motivating work that is appreciated

by employees, generates satisfaction and is fun.





Satisfied customers

Improvement in efficiency

Full development

of potentials

More innovative strength

through freedom

Desired jobs (meaningful

work, promotion of interaction)

Increase in intrinsic

motivation

What were the

guiding principles?

EG-5 wanted to re-orient itself towards the value stream

and customers, strengthen its self-organization and

promote end-to-end communication and interaction to

break down silos. Therefore, EG-5 decided to transform

itself into an agile and learning organizational unit that

enables a good culture with practiced values.

∙ ∙

How?

What?

Value stream orientation

Learning organization /

self-organization

Living values

Having fun at work

The project with Staufen AG was based on existing

structures, such as a matrix organization and Integration

Module Managers (IMM). By strengthening the

IMM role and introducing cross-departmental teams,

the first step towards better collaboration was taken.

Support from top management, manager training

and early involvement of employees through various

workshops also prepared the department in the best

possible way for the planned change.

STAUFEN. | BMW 7


How did we proceed?

PROCEDURE

The transformation to an agile culture of collaboration resembles

an organizational learning journey in which an organization gradually

acquires new knowledge and skills.

Methodological agility

Change in mindset and attitude

Organizational agility (anchoring)

After the managers of EG-5 developed and defined the project

goals and the procedure together with consultants from

Staufen AG, implementation began.

The path to an agile

culture of collaboration

Improved performance and agility

Cultural change by working

on mindset and attitude

Organizational agility through

agile organizational structures

Further target

image 2020

Target image

of agile work

Methodical agility through

agile Shop Floor Management

BestPractice visit

4 / 2018 6 / 2018

12 / 2018

6 / 2019

12 / 2019 Time

8 STAUFEN. | BMW


BestPractice visit and

strengthening the leadership model

It was first important to generate enthusiasm, courage and drive with regard

to the upcoming changes. According to the motto "Learn from the best"

Staufen AG organized a BestPractice visit for the EG-5 executives to see agile

work in practice, thereby making it more tangible. These impressions helped

sharpen the target image regarding agile working at EG-5 and develop a new

understanding of leadership and cooperation as well as to record it in a joint

leadership mission statement, which among other things understands leadership

as servant leadership (leadership as support instead of command

and control).

Involving employees

In the next step, all employees were brought up to speed by a large-scale

information event and integrated into the transformation process.

STAUFEN. | BMW 9


Methodological agility

Project view

Line view

In order to demystify agility, it was initially

crucial to make agile work tangible in daily

work through new methods, changed behavior

and leadership styles. It was therefore

necessary to establish an integrated com-

Multi-project

Networked

working

in projects

and in the line

through the

Performance U

Department

munication system at EG-5 that coordinated

and linked the cooperation between projects

and departments (line). This uncovered

weaknesses and strengthened the matrix

organization. "Performance U" formed the

basis for the networked work, which provid-

Individual projects

Sub-department

ed transparency and commitment through

boards and activity / task control. In addition,

the first agile methods, including Scrum,

were introduced for handling creative work

and CIP topics in order to deal with complex

issues quickly and efficiently and achieve

Task control

on team level

concrete results.

Through support and coaching from Staufen

consultants, significant changes in leadership

behavior and in the mindset of managers and

employees were quickly noticed.

Agile methods enable an even workload in

the team. At the same time, they allow each

individual to take responsibility and develop

his or her own personal potential.

Classical hierarchical thinking lost its importance.

Team spirit and self-organization gained

the upper hand. EG-5 was now working in an

agile manner in the matrix organization with

focus on customers and their requirements.

10 STAUFEN. | BMW


Working on mindset

and attitude

Attitude and mindset are more important than any method. Without changing

the way people think and their attitudes, any method – even an agile

method – will never develop its full benefit. A tool for creating transparency

with regards to improvement can quickly become a tool for controlling if the

corresponding attitude behind it does not match. For this reason, one of the

most decisive factors was working on and with people in addition to introducing

agile methods. Team development, management training and largegroup

formats such as open-space events made it possible to work on these

topics. The company has always relied on the willingness of its employees to

work voluntarily.

For me, agile work is a completely new

way of working, offering greater flexibility,

higher efficiency and faster response times.

Organizational agility

The next logical step after learning agile ways of working through new methods

and a change in mindset and attitude is sustainably anchoring this in a

new organizational structure. The aim of being able to serve customer needs

even faster, more flexibly and in a more targeted manner required reorganization

into more self-organized teams.

Using a structured phase plan, the requirements for the organization were

recorded, design criteria derived, various design options compared and finally

one was selected and planned in detailed. EG-5 opted for an agile circle organization

in which employees work in partially self-organized teams with defined

roles. Accordingly, the traditional matrix structure was supplemented by an

agile circular structure.

STAUFEN. | BMW 11


Looking in the rearview mirror

OBSTACLES

The distinct silo thinking initially hindered the change process.

Many employees and also managers found it hard to come to

terms with a positive error culture, which sees errors as opportunities

and goes hand in hand with a very high level of transparency.

Some managers also had problems with delegating

responsibility and decisions to corresponding employees in

the value stream. The hierarchical mindset had to be broken

down to make room for a new agile and learning organization.

Agile work promotes the authenticity

of all employees in their professional

environment. The meaning of the term

"work" is documented and practiced

differently. It is a new philosophy.

Specifics

The consultants from Staufen AG met

with the highly motivated department

at BMW. Many multipliers of the project

already had a distinctive agile mindset.

Right from the start, the change process

had many supporters as well as the

full support from top management. The

strong involvement of all employees and

managers contributed to a cooperative

change process and resulted in impressively

fast change.

12 STAUFEN. | BMW


What did we achieve?

RESULTS

The "EG-5 goes agile" project has led to a high degree of commitment

and reliability in collaborations, created a self-determined

and thus motivating environment for employees, improved

leadership performance and leadership behavior, and reduced

throughput times in work processes, thereby increasing task

throughput with the same resources.

BC

Business circles

PG

PG

PG

SC

Central

service circles

CG

CG

CG

C

Coordination circles

Business area

BC

BC

SC

BC

SC

C

Owner

TC

SC

CG

SC

SC

BC

SC

BC

TC

CG

PG

Top circle

Colleague groups

Practitioner group

Direction of value

education

Leadership direction

BC

BC

Today, EG-5 can react faster, more flexibly and in a more adaptable

manner to requirements. The entire organization has

learn ed to change. And it will continue to do so. Because agile

work means much more than just introducing agile meth ods.

It changes mindsets and attitudes, first among those involved

and then throughout the company.

The transformation project won the BMW Performance Next

Transformation Award.

STAUFEN. | BMW 13


14 STAUFEN. | BMW


INTERVIEW

Interview with

Barbara Schweickert

Barbara Schweickert is Head of Department at BMW-AG for Integration,

Concepts and Methods. The transformation project "EG-5 goes agile" was

initiated and co-initiated by her.

What motivated you to steer the course towards agility?

At BMW AG, we gave off the impression of being a

very old, outdated and hierarchical area. We wanted

to change this.

What measures did you take to change this?

Our goal was not only to work more efficiently and

cost-effectively, but also to create more freedom and

give employees time to innovate. We wanted to develop

a different, better culture. Our goal was to move away

from a traditional matrix hierarchy and towards a circular

model. In the future more focus should be placed

on bottom-up, self-initiated and interdisciplinary work.

What have you achieved?

Much has changed. We save on budgets, work more

efficiently and deliver more on time. At the same time,

we sense that a cultural change is taking place.

What are the factors of success for this type of project?

Executives must stand behind it, otherwise there is no

use in starting such a transformation. External support

is also important. You cannot do it on your own.

STAUFEN. | BMW 15


ABOUT STAUFEN

Inside every company there is an even better one.

With this conviction, Staufen AG has been advising and qualifying

companies and employees for more than 25 years.

340

employees

69

Mio. € revenue

17

languages

> 90

BestPractice Partner

7.000

seminar participants every year

PUBLISHER

STAUFEN.AG

Consulting.Academy.Investment

Blumenstraße 5

D-73257 Köngen

+49 7024 8056 0

contact@staufen.ag

www.staufen.ag

CONTACT PERSON

Christoph Heine

Director Sales

+49 7024 8056 169

c.heine@staufen.ag

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