Prioritization of IT projects
Flexibility through structure
We are using a new concept to improve how we are able to handle small, but important IT projects alongside long-term projects. Its name: agile budgeting. IT Business Partner Lead Michelle Martin (Global IT) explains how it works.
What exactly is agile budgeting?
Agile budgeting is a tried-and-proven method for structuring and controlling a project portfolio, i.e. various concurrent projects at the company. There are projects that have a long-term nature and lay the groundwork for KWS’ future, such as GLOBE, Digital Farming or S/4HANA (note: see the article on page 5 in the “News” section). Sufficient resources have to be allocated to these projects. Apart from this approved project portfolio, we currently have a large number of other possible activities – i.e. necessary ad-hoc projects that tie up resources we hadn’t planned. Basically, all these project requirements must be prioritized if we want to prevent our colleagues from being stretched to their limits.
So the aim is to save resources?
Yes, but mainly to deploy them in a focused way. It’s a big burden on our key asset – our employees – when they’re confronted with unplanned requirements. As a result, they constantly have to switch to and fro and are distracted from their planned strategic tasks. We want to reduce that.
How does structuring KWS’ project portfolio help?
Each project pursues a specific goal, or at least it should do that. We also use the term “project drivers” in portfolio management. There may be strategic drivers, for example from our strategic initiatives, or there are “burning” drivers that, because of their urgency, may cause great difficulties for KWS and/or our customers if we don’t tackle them. Project drivers might be the goal of improving processes, increasing revenue or complying with statutory requirements. Understanding these drivers and categorizing projects on their basis helps in the next step to create a project portfolio that is productive first and foremost.
Michelle Martin: We save resources and achieve our objectives sooner with agile budgeting.
And what is that next step?
Once we have understood all the projects, we need to prioritize them: We at Global IT want to ensure that, apart from the major strategic projects, we also supply personnel resources to other smaller projects, namely ones that are right and truly important.
And how exactly are they chosen?
The projects are chosen on the basis of the contribution they make to the company, their benefits and whether they can be technically implemented in three months. The process is repeated every quarter and will be initiated for the first time in April 2022. Anyone wishing to apply for a project should contact and submit their project proposal to the budget enabler. That is the Global IT team leader who is responsible for the main IT resources for the project application.
Can you give an example of that?
Let’s assume that the Global Function Finance (GFP) submits an application for a project to improve processes in general bookkeeping. The responsible budget enabler here would be the head of the Expert Hub Finance/Controlling/HR, Clemens Reimann, and his team.
What does such an application look like?
There are exact requirements that a project application must meet; for example, it has to state clearly why the project should be carried out and why that has to be done now, as well as what we expect the project to achieve and what its benefits are. In order to assess whether a quarter is enough to implement it, it is necessary to specify the possible work packages, the personnel resources required to handle it and, of course, the anticipated result. Basically, the aim is to make the budget enabler a champion of the project in question.
Agile budgeting
The project’s journey
What does “champion” mean in this context?
So that a decision can be made on what project can tap into GIT’s limited resources, we need well-informed project representatives, whom I like to call “champions.” Because they champion the project vis-à-vis the other budget enablers. And the more information they have on the project’s requirements, the better placed they are to do that. The better the project application, the greater the chances of success.
Isn’t there the risk that those with the greatest selling skills, and not the best project, will get the resources?
That’s generally a risk. However, we as IT Business Partners are on hand to provide support and advice during the process. We also accompany negotiations on resources. In portfolio management we speak of ensuring a portfolio balance. That takes into account as many project drivers as possible – not only revenue drivers, but also innovations. There’s always a certain aspect of insecurity that comes with innovations, and that doesn’t always look good in a conventional business case. Nevertheless, we at KWS want to be innovative. Portfolio balance ensures that.
The IT Business Partners therefore have a very responsible position.
That’s right. And that’s precisely how GLOBE envisages the position. IT Business Partners are the interface between the Business Units and the departments on the one hand and Global IT on the other. It’s not only obvious regional infrastructure issues that are addressed here. With their experience and qualifications, the IT Business Partners are ideally suited in particular for supporting project initiatives where experts such as global key users or ExH experts collaborate.
In one sentence: What does KWS gain from agile budgeting?
A method for focusing on the right projects and identifying the needs of departments and units more promptly so as to save resources and achieve KWS’ objectives sooner. |
You are welcome to give your feedback on GLOBE at any time by sending an e-mail to:
AskGLOBE@kws.com
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