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ASSIGNMENT NO. 2

ORGANIZATIONS THAT
WORKS ON AGILE
PRINCIPLES

Submitted To: By:

SIR. ASAD Adnan Khan
NAVEED Dip Proj Mgt.
PIM – 2022
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AGILE PRINCIPLES:

Netherlands-based Royal Philips is a $26 billion medical technology

CASE STUDY: company committed to making the world healthier and more sustainable
through innovation. Their goal is to improve the lives of 3 billion people a year
by 2025, so being able to achieve faster time to market has a direct impact
not just on bottom line, but on millions of lives as well. In 2014, the company
began exploring the use of Agile methods to improve processes and increase
efficiency across the organization.
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Over View of Philips Adoption of Agile
Approaches / Principles

PHILIPS: Vigorously Deploying Scaled Agile

Framework (SAFe) At Philips, the SAFe
initiative fell within a program called I2M
Excellence Idea to Market. The program is part of
Accelerate!, a multi-year, worldwide business-
transformation program designed to change the
way the company does business and unlock its
full potential. To that end, the company formed a
foundational core of Scrum, upon which it could
build SAFe practices.
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Driving Features

To date, Philips has 42 ARTs running

across various business units, making this
one of the larger-scale SAFe
implementations. With a focus on the
systems business, the company has
launched multiple ARTs there as well,
including the first ART in Philips China.
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The Results:

• Average release cycle time down from 18 months to 6 months

• A greater focus on the customer mindset
• Feature cycle time reduced from >240 to <100 days
• Sprint and PI deliveries on time, leading to “release on demand”
• Quality improvements—zero regressions in some business units
• 5 major releases per train per year on demand, each catering to
multiple products
• 3700+ people engaged in a SAFe way of working
• Around 1300+ trained and formally certified in Agile and SAFe
• Process and tooling alignment The results from the original
pilots caught the attention of and acted as catalyst for many
other business units in Philips.
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Offering Key Learnings:

Through this process, transition leaders at Royal

Philips learned what worked most effectively.
They found it important to embed the Agile
mindset and approach in other crucial areas of
work—not just R&D, but in areas such as HR,
Finance and Q&R—to ensure streamlined,
efficient processes and quicker turnaround times.
CASE STUDY:
Philips Royal recommends a number of 2/11/2022 7
organizational and cultural changes for any
company making this transformation:

• Create an environment that encourages proactive, feedback-seeking behavior

• Motivate teams and give them the autonomy they need to function well
• Engage in courageous conversations
• Enable cultural change in the organization
• Focus on building teams for the long run with emphasis on stability
• Trust the team to solve problems by “teaching them to fish” instead of fishing for them
• Enable teams and support them by removing impediments
• Differentiate between outcome (value generated) and output (velocity-productivity
improvements)
• Identify value streams and optimize around value to help the alignment and effective
collaboration across the team
• Gain stakeholder alignment, and leadership commitment and support
• Train and coach based on roles
• Have a deployment strategy and change leaders’ coalition to help accelerate scaled Agile
transformation
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THANK YOU