How agile KPIs optimize project work at Porsche
Agile working enables companies to adapt to changes quickly and dynamically. But does adaptability really bring advantages? For project work at Porsche, this question can be answered thanks to our colleague Sylvia Gaiser. Sylvia has investigated the framework conditions of organizational agility for employees as part of her doctorate at Porsche in cooperation with Prof. Dr. Philip Yang’s — Chair of Strategy and Organization at the University of Tübingen. Through her research, she answers how agile workflows can be measured in key performance indicators (KPIs) and maturity. The findings were recently shared in the Porsche Newsroom. Since then, she has received many questions about more insights into her KPI evaluation and future steps, which will be answered here.
The starting point of every analysis is to determine the status quo. In order to be able to assess fully how far we stand in terms of organizational agility compared to other companies and industries, Sylvia Gaiser took on the research project Agile KPIs — “Agile maturity and transformation status of Dr. Ing. h.c. F. Porsche AG”. For this project, she analyzed the agile maturity level of Porsche based on 31 identified maturity criteria within six agility paradigms. Moreover, a variety of agile and traditional-based teams at Porsche were analyzed based on a set of 72 identified agile KPIs. Their result: Porsche scores very well in many criteria and has great potential in some learning areas as an international company with over 30.000 employees.
Involve all relevant people
Compared to other industries, we measure that Porsche is on the fast track of organizational agility. However, we are still learning the grand scope of agility from its original industries — IT and Telecommunications. Based on this knowledge, the view from the outside was followed by the analysis from the inside. We asked a number of members of agile teams, from product owners, agile coaches to scrum masters, about their learning areas and challenges when working in agile teams. Here, the fields of decision-making structures, low understanding of agile project work and insufficient capacity for working in sprints were identified.
To be able to measure how agile work compares to traditional project work at Porsche, the research project identified 72 key performance indicators (KPIs), grouped them into eleven clusters and divided them into four dimensions: performance, process, teamwork and individual. Using the KPIs, which were intended to be both scientifically valid and practical, it was possible to compare the success and risk factors of agile and classic project work and identify areas of potential for agile work. For example, thanks to the measurement of 7 KPIs in the product performance cluster — initial design effectiveness, product quality, product evaluation by stakeholders and customers, interaction, satisfaction, and quality of results — it was found that product performance was 31% higher through agile project work. Agile teams also performed significantly better in the overall results: project performance was 29 % better, process efficiency 36 %, team effectiveness was 25 % higher, and individual performance increased by 21 %.
These targets cannot be transferred to every project. Therefore, it is always a case-by-case decision at the beginning of a project whether the classic or agile working method provides the greatest advantages.
Analyzing agile project work
The KPIs thus enable teams to no longer evaluate their product lifecycles based on intuitive sentiment, but to make improvement based on the measured parameters. Therefore, many agile teams will be measuring their project work by the end of this year. Due to the variety of KPIs, each team can find the appropriate ones according to their needs. During the implementation of the KPIs, the contact persons of the Agile@Porsche initiative, for example Anna Roizman, as well as other agile coaches, support the employees. There is also close coordination with those responsible for the SAFe and LACE teams.
Our agile journey still has some way to go. Sylvia’s KPIs are one of our toolsets to use for further improvement,” Anna Roizman emphasizes. In addition to actual measurability, potential analysis, and the resulting opportunity for further development, the KPIs also support the positive connotation of agile. Based on the comprehensive analysis of the KPIs and the identified learning areas, it was possible to design a clear requirement analysis and, based on this, a roadmap for advancing the agile transformation. Dr. Steffen Wütz, Head of the New Work Initiative at Porsche and co-initiator of the project, confirms: “The great interest in the results of our studies shows how much suitable models have been lacking up to now. They are very well received across all industries and confirm our decision to initiate the research work as part of the doctorate.
Enable exchange of experience
Based on our consistently positive experience with agile KPIs, we want to enable more agile teams to use them in the future. In addition, we will regularly track our status-quo on agile transformation using the KPIs. If possible, we will supplement traditional project work with agile elements to support positive effects on teamwork. Overall, we want to raise awareness of agile projects with communication, coaching, leadership & culture initiatives. Together, we are shaping the agile transformation journey at Porsche and we hope to set new standards for the automotive industry.
Sylvia Gaiser worked during her studies in HR Strategy & Organizational Development at Porsche AG.
About this publication: Where innovation meets tradition. There’s more to Porsche than sports cars — we’re tackling new challenges, develop digital products and think digital with a focus on the customer. On our Medium blog, we tell these stories. It’s about our #nextvisions, smart technologies and the people that drive our digital journey. Please follow us on Twitter (Porsche Digital, Next Visions), Instagram (Porsche Digital, Next Visions, Porsche Newsroom) and LinkedIn (Porsche AG, Porsche Digital) for more.
