John Deere: Paving a New Path with Scrum
In 2019, the Global IT group at John Deere, a name synonymous with robust agricultural machinery, initiated an Agile transformation, setting the straightforward yet ambitious objective of accelerating the achievement of outcomes. This transition marked a pivotal point in John Deere's history, reflecting its commitment to innovation not just in machinery but also in its approach to software development.
The transition, however, was not without its challenges. Despite previous efforts with scaled frameworks, the results weren't meeting senior leadership expectations. Recognizing the need for evolution, the leadership aimed to revolutionize all aspects of their operations, from application development to supply chain management.
Selecting the appropriate Agile framework was crucial, especially for effective scaling. "Scrum@Scale was chosen as it aligned well with our IT and broader business needs," says Ganesh Jayaram, Vice President of Global IT. This framework, combined with DevOps and technical upskilling, formed the backbone of their new Agile Operating Model.
The choice of Agile consulting and training was equally critical. Scrum Inc. was selected for its expertise and successful track record in large-scale transformations and offered industry-leading on-demand courses to expedite implementation.
Jayaram recalls presenting this significant investment proposal to the CEO and the Board of Directors. "It was a big gamble, but we were confident it would allow us to deliver more, faster, and at a lower cost." With the CEO's approval, the transformation began.
Reaping the Rewards
Just two years in, the bold move was already showing impressive results:
Output: The output of John Deere's Global IT group surged by 165 percent, surpassing the targeted increase of 125 percent.
Time to Market: The time to market was cut by 63 percent, exceeding the initial aim of a 40 percent reduction.
Return on Investment: John Deere's ROI from the transformation exceeded 100 percent.
Engineering Ratio: The organization achieved a 77.7 percent ratio of hands-on engineering contributors, including Scrum Masters, Product Owners, Agile Coaches, Engineering Managers, UX Professionals, and team members, surpassing the target of 75 percent.
Cost Efficiency: The group met its goal of reducing labor costs by 20 percent through strategic insourcing and hiring, despite adding Scrum and Agile roles.
Employee NPS (eNPS): The group's eNPS jumped to 65, from a baseline of 42, outperforming the 20-point improvement goal and indicating excellent team health.
Moving Forward
Despite the challenges the company faced, the shift to Scrum has had profound impacts on John Deere's software development to say the least. The enterprise also invested heavily and adopted a phased wave approach for large-scale training, integrating embedded coaches across the organization for effective learning with minimal disruption to daily operations. This has led to nearly 2,500 individuals having successfully completed their training across the organization.
Moreover, Scrum facilitated better collaboration and communication within teams. It fostered a culture where continuous feedback was not just encouraged but became a cornerstone of the development process. This led to higher quality software and more innovative solutions, directly impacting the company's products and services.
John Deere's transition from Waterfall to Scrum is a remarkable case study in how traditional companies can successfully adopt Agile methodologies. This journey highlights the importance of adaptability and the willingness to embrace change in a rapidly evolving technological landscape, proving that even established companies can reinvent their processes to achieve greater efficiency and innovation. And while the transforming will never end, each stride taken has already sculpted a more robust, adaptable company, a testament to its relentless pursuit of excellence and innovation in an ever-evolving world.