Insurance Company Cuts Cycle Time by 20% and Saves Nearly $5 Million Using Agile Project Management PracticesProject durations have been reduced by 20%, for a net savings of nearly $5 million. The percentage of projects coming in on time and within budget increased by 40%. As a result, management has broadened the scope of the initiative to implement agile practices across the organization.Company

A US-based Fortune 100 company providing insurance products and services to clientsin North America.

Challenge

With a billion dollar project portfolio numbering in the hundreds of projects, the clientneeded to decrease time-to-market in response to competitive pressures and its expanding product line.They set aggressive goals to reduce average project duration by approximately 50% and improve internalcustomer satisfaction by 25% over a three-year period. The client's project management environment atthe time was rigid, depending almost entirely on traditional phase-based deliverable schedules, with aheavy development methodology.

Solution

The client adopted the Scrum framework and other agile product development techniques,hoping to benefit from the shorter project durations promised by an iterative approach. In adopting agilepractices and techniques as part of this initiative, the organization was set to introduce radically newmanagement practices to a traditionally trained project management community, with an emphasis onearly and frequent delivery of value to end - users.

During the beginning stages of this initiative, PM Solutions became an integral part of an internal groupthat provided agile coaching to teams employing agile development practices, coupled with training tailored to their specific environment.

PM Solutions also mentored the client's project management organization through the various changes these new practices required ofan organization schooled in traditional approaches.

Results

After 18 months of mentoring and coaching, a number ofsignificant results were realized:

• Average project duration (cycle time) was reduced byapproximately 20%, for a net savings of nearly $5 million
• Customer satisfaction improved nearly 30% (exceeding thegoal of 25%), 18 months ahead of projections
• Project startup duration decreased from an average of 10weeks to 3 weeks
• Time-to-first-solution implementation decreased from anaverage of 20 weeks to 7 weeks
• 90% of projects adopting agile practices and techniquesnow deliver the desired value to end-users on-time andwithin initial budgets - by contrast, with traditionalapproaches, only 50% of projects delivered desired valueon-time and within initial budgets.

Approximately 15% of the client's portfolio of projects hasnow adopted some form of agile project management. Dueto demonstrated successes using a combination of agileproject management and development practices, the clienthas established strategic goals that formalize the intent to"go agile" across the organization. As a result, managementhas now mandated a doubling of the percent of projects usingagile methods.

PM Solutions continues to help lead coaching and mentoringefforts that will further ingrain agile practices into thecompany's business operations.

Please I need to Know As per the above Case Study :

1. List 2 Major results they were able to achieve because of adopting Agile?