Topic: Multiple Business Units

Introduction

One of Europe’s largest passenger airline groups, Air France – KLM operates up to 2,200 flights daily and carries over 93 million passengers annually. The company’s five airlines—Air France, KLM Royal Dutch Airlines, Transavia, HOP! Air France and Joon—cover 320 destinations across 114 countries.

An Agile Adoption Empowering Business Domains and Teams

After the successful launch of three ARTs in the Commercial Digital business domain in late summer 2016, the company decided to leverage this success and create a broader-scale adoption. Pieter Bootsma, Executive Vice-President Commercial Strategy at Air France – KLM, noted: “We can all benefit from Agile in the whole group and not only at Commercial Digital.”  So, in late 2016, the company chose to foster and accelerate the adoption and scaling of Agile practices.

Prior to launching the broad adoption, a small group of transformation leaders spent several months defining the scope of the deployment, the way the adoption would be conducted, and preparing for adoption on a larger scale. The leaders decided to adopt Lean-Agile principles and values in the way the program would be set up and run. The goal: demonstrate the mindset and practices, and see the benefits of this approach in a Change Management context.

Aligning the Stakeholders on a “Definition of Awesome”

Prior to kickoff, all business domains and Transversal Track groups aligned on a common definition of awesome with four themes:

Agile Enterprise – In the Air France – KLM enterprise, the autonomous, stable, and cross-functional teams are the cornerstones of the organization for driving innovation and continuous improvement. The Transversal processes support and stimulate an Agile way of working and mindset at all levels. This allows the company to focus on continuously maximizing quality and delivering value to the customer.

Value Creation – The Agile adoption aims to create more value—for customers and employees. Quality as well as effectiveness go up. The company succeeds by driving down the time-to-market, and increasing the Net Promotor Score.

Leadership – Air France – KLM develops servant leaders who empower Agile teams and value streams. They engender trust, work with a clear purpose, and provide direction to all levels of the Agile Enterprise. They are recognized for their Agile leadership, enabling others to succeed and drive the organization for continuous improvement. They focus on goals instead of tasks.

Employee Engagement – The organization is recognized as a best place to work. As a result, it attracts talented people. It works closely with customers. People feel responsible and autonomous for their products and results. Employee satisfaction is high and demonstrated by EPS (active promotors).

Big-Room Kickoff in Paris: PI Planning Event #1

Team members from France and the Netherlands came together, bringing distinctive cultures and very diverse states of Agile: some were new to Agile principles and some brought several years of experience

“Although this approach and the PI Planning event was new for most people, everyone was really driven and motivated to share experiences, learn from each other, try and experiment, and work toward results,” Lavielle says.

Yet despite that excitement, many were hesitant to break out of their own groups and talk with those they had never met. Thus transformation leaders requested that anyone adding yarn to the program board—indicating dependencies—discuss it directly with the individuals involved.

As the first PI progressed, teams achieved about 60 percent of their stated objectives, on average. In leading up to the second PI, they applied the lessons learned and set more accurate, quantifiable objectives.

At the start of the second PI, Air France – KLM began a new practice of having each business domain and Transversal Track share its business results with the entire group as a PI begins. At the same time, this served as an opportunity to Inspect and Adapt what worked and what didn’t.

By the third PI, in the fall of 2017, Air France – KLM had grown to 208 product teams and eight ARTs across Commercial Digital, Cargo, Commercial, and AF Flight Ops. The KLM HR division and the AF Ground Services have both organized Value Stream workshops to either launch new trains or reorganize their current Agile teams into an ART. The same applies to Digital Commercial. Following on the continuous Inspect & Adapt, Commercial Digital will also reorganize its current ARPs to allow for more alignment on the business objectives and improve its delivery model.

Lessons Learned and Best Practices

Along the way, they learned a number of lessons to improve their efforts going forward:

• Have an approach for dealing with the diversity across domains, both in their Agile maturity and in their specific context and constraints (operational, security, and regulations)

• Establish strong ownership in each business domain via an individual adoption team

• Since most of the dependencies lie between Transversal Tracks (HR or Finance impediments) and business domains, co-create solutions for Transversal topics that facilitate exchanges and encourage learning from each other

• Actively address the challenge of changing the managerial mindset and leadership styles

• Understand that setting realistic goals for the next 15 weeks will be difficult for most, as is learning to set smaller, more realistic goals

• Encourage individuals to ask for help from someone in a Transversal Track or the Core Team

• Ensure that the team members who are not 100% dedicated and co-located commit to objectives and organize in a way to still be able to work together and produce results

• Ask for regular feedback to respond to uncertainties and come up with valuable results

• Leave personal egos at the door and achieve common objectives