Harnessing Agile Transformation at John Deere: Implementing Agile IT Manufacturing
John Deere was facing some significant challenges in 2019, and so decided to launch an agile transformation initiative.
John Deere's Global IT function operated with isolated Agile teams using various frameworks in an ad hoc manner. Projects were funded for fixed periods, limiting flexibility and customer-centricity. Outsourcing was common, leading to delays and reduced control over deliverables. Manager roles were primarily directive, hindering team development and engagement.
To tackle these challenges John Deere undertook an extensive agile transformation, with the key goal of improving speed to outcomes.
Additional goals focused on improving:
Employee engagement
Time to market
Productivity
Technical expertise
For their new Agile Operating Model (AOM) John Deere selected Scrum and Scrum@Scale frameworks to unify Agile practices across the organisation. Emphasis was on in-house technical expertise, modernising technology, and reorganising around Agile value streams.
A Foundry and Coaching Model was established, with the Foundry’s being a Centre of Excellence (CoE) for training and coaching, promoting self-sustaining Agile practices. It emphasised context-specific training and coaching to ensure alignment with organisational goals. It utilised a phase approach to training at scale, focusing on immersion, preparation, and continuous improvement.
There were some significant results. Internal training capacity increased significantly, with a focus on customised courses. Over 295 teams completed full wave training, with approximately 2,500 individuals trained. Increased demand for Agile training demonstrated success and adoption across the organisation.
Significant results included:
Time to market: Increased by 165% exceeding goal of 125%
Cost Efficiency: Reduction in labour costs of 20%
ROI: Greater than 100%
John Deere shifted from traditional project-based management to Agile product and portfolio management. They moved to categorise products based on value delivery and market feedback, implementing rapid feedback loops and total product ownership to support Agile principles.
Overall, John Deere's Agile transformation led to improved speed, efficiency, and customer focus across its IT function, fostering a culture of continuous learning and innovation.
If you’re interested in what Scrum training and implementation can offer you and your team, contact us to discuss the wide range of Scrum certifications and coaching options that we offer.
To find out more about John Deere’s Agile Transformation, we recommend checking out the following: