Engineering Agility: How Net Engineering Reinvented Its Processes and Culture Empowering Teams (Ecosystem Case Study)

NET Engineering, Italy, https://www.net-e.it/en

Congratulations to the NET Engineering for being nominated at the 2024 Haier ZeroDX Awards! Net Engineering was recognized for reinventing Its Processes and Culture in the construction industry.

As part of our collaboration with the Haier Model Institute (HMI), we proudly supported the 2024 Haier ZeroDistance Excellence Awards by nominating outstanding organizations, individuals, and case studies from around the world. We want to extend our deepest recognition to all participants, who are true pioneers in embracing new management models and fostering ZeroDistance with their customers, suppliers, and communities. Your innovative spirit is shaping the future of business!

I’m incredibly proud of Net Engineering, one of our nominees by the LAP Alliance, has truly earned this recognition through their progressive work!

Discover more about Net Engineering and their Ecosystem Success Story through an insightful interview with their CEO Silvia Furlan.

If you’re new to Ecosystems and the New Economical Engine read the linked blog post first.

Image source: Net Engineering

This case study details Net Engineering's extensive journey through an agile transformation initiated in early 2021. The company, driven by a need to address critical organizational challenges such as unclear roles, leadership gaps, and improved project management, embraced SCRUM and Scrum@Scale methodologies. Under the leadership of CEO Silvia Furlan and with the expert guidance of Paolo Sammicheli, a Registered Scrum Trainer and Business Coach, Net Engineering embarked on a comprehensive overhaul of its processes and corporate culture.

The transformation involved the entire organization, including approximately 100 employees across 9 teams, later expanded to 11. Analog tools and digital platforms like Trello, Miro, and Microsoft Teams empowered teams to manage projects more effectively. Implementing modern engineering tools such as BIM was seamlessly integrated with the agile framework, further enhancing project outcomes.

A critical component of the transformation was the focus on continuous learning and development. Extensive training was provided not only to Product Owners and Scrum Masters but also to all developers through customized materials tailored to the company’s needs. Management received specialized coaching, and the organization adopted facilitation techniques like Delegation Poker to improve decision-making and delegation.

The impact of this transformation was far-reaching, leading to quicker resolution of impediments, enhanced team collaboration, and a more robust feedback culture. Additionally, a collaboratively written company manifesto helped to solidify a shared sense of purpose and identity among employees. The agile practices also positively influenced relationships with external vendors, some of whom have become trusted partners due to the direct and transparent interactions fostered by the new approach.

Overall, this case study illustrates how Net Engineering successfully leveraged agile methodologies to overcome its initial challenges and create a more dynamic, responsive, and strategically aligned organization.

Image Source: Linkedin

Interview with Silvia Furlan, CEO Net Engineering

This interview was conducted as part of the Haier ZeroDX Awards assessment, with Silvia Furlan CEO, interviewed by Mirko Kleiner and Paolo Sammicheli.

What was the problem? How was it identified?

In 2020, Net Engineering recognized the need to improve its organizational structure and project management processes. The initial signs of the problem were identified through a company-wide inquiry, during which we asked critical questions such as "What and how can we do better?" and "What are the most critical issues in our organization?"

The feedback revealed significant challenges: unclear roles, organizational redundancies, a lack of kick-off meetings for new projects, and frequent personnel shifting between projects. Additionally, there were concerns about leadership, particularly regarding the experience of Project Team Leaders (PTLs) and Project Managers (PMs) and the lack of strong, charismatic leaders who could foster team spirit and innovation.

These insights highlighted the need for a structured, agile approach to address these issues, leading us to adopt SCRUM as the framework for our agile transformation.

Who led the change?

The management team spearheaded the change initiative at Net Engineering under the leadership of Silvia Furlan, our CEO. With her strategic vision and commitment to organizational improvement, Silvia was pivotal in driving the transformation. To ensure the success of this initiative, we brought in external expertise by hiring Paolo Sammicheli, a Registered Scrum Trainer and Business Coach. Paolo's extensive experience in agile methodologies and his deep understanding of SCRUM were invaluable in guiding our teams through the agile transformation process.

Image Source: NET Engineering

How many teams/individuals were involved?

The agile transformation at Net Engineering involved the entire organization, encompassing approximately 100 individuals. These individuals were organized into nine cross-functional teams. Each team comprised members from various departments, ensuring diverse skills and perspectives were brought into the process. The collaboration between teams was carefully coordinated, with each team focusing on specific projects while aligning with the broader organizational goals. This structure facilitated effective communication and knowledge sharing and ensured that the transformation was comprehensive and inclusive of all key functions within the company.

What systems and tools were employed?

To successfully implement our agile transformation, we utilized a combination of methodologies, systems, and tools that supported collaborative work and the specific needs of our engineering processes. Central to our approach was the adoption of SCRUM and Scrum@Scale methodologies, which provided a structured yet flexible framework for managing projects and scaling agile practices across the organization.

For collaborative planning and brainstorming, we used analog tools like Post-its and markers, which were particularly effective during in-person sessions. On the digital front, we employed Trello for task management, Miro for virtual whiteboarding, and Microsoft Teams for communication and collaboration across the organization, ensuring that all teams were aligned and informed in real time.

In parallel, we leveraged modern engineering tools like Building Information Modeling (BIM) to maintain precision and efficiency in our engineering processes, seamlessly integrating them with agile practices. The combination of SCRUM, Scrum@Scale, and these tools allowed us to foster continuous improvement, transparency, and effective coordination throughout the entire transformation process.

What decisions did the team need to make?
Several critical decisions were made to ensure the initiative’s effectiveness and success throughout the agile transformation process. We began in January 2021 with nine teams, each focusing on different aspects of our projects. As the transformation progressed, it became evident that adjustments were necessary to optimize team performance and overall efficiency.

In October 2022, we strategically decided to balance skills across the teams to improve their composition, ensuring that each team had the necessary expertise to meet their objectives. Additionally, recognizing the need to scale our efforts further, we launched two additional teams, expanding our total to 11.

To manage this increased scope and maintain coherence across the teams, we introduced two Team of Teams structures, each led by a Chief Product Owner. This decision was pivotal in coordinating efforts across multiple teams and ensuring alignment with our organizational goals.

Furthermore, we restructured the roles of our Technical Director and BIM Manager, moving them externally to serve as resources for all teams. This shift allowed us to leverage their specialized knowledge more effectively across the organization, providing consistent technical support and guidance.

These decisions were driven by our commitment to continuous improvement and the need to adapt our structure to meet evolving challenges and opportunities within our agile framework.

What resources were they given?

To ensure the successful agile transformation at Net Engineering, we allocated a comprehensive set of resources to equip every level of the organization with the necessary tools and knowledge.

All Product Owners and Scrum Masters were given specialized training by Paolo Sammicheli, a Registered Scrum Trainer, to ensure they deeply understood the SCRUM framework and could effectively lead their teams. Additionally, every developer received training through customized materials specifically created for our context, titled "Scrum in Net," which helped align all team members with SCRUM principles tailored to our operational needs.

The management team also received targeted coaching from Paolo Sammicheli to further support the transformation. This coaching was crucial in aligning leadership with agile methodologies and ensuring management could effectively guide and support the teams through the transformation. This included training in Scrum@Scale, which is essential for scaling agile practices across the entire organization.

Furthermore, Paolo conducted extensive team coaching sessions and personalized one-on-one meetings during the transformation process. These sessions provided ongoing support and addressed specific challenges as they arose, ensuring that everyone, from team members to senior management, was fully equipped to embrace and implement the agile methodologies.

These extensive training and coaching resources were vital in empowering our teams and leadership to drive the agile transformation successfully.

Did they collaborate with external parties?
Collaboration with an external expert, Paolo Sammicheli, significantly supported our agile transformation at Net Engineering. Paolo is a Scrum Trainer for Agile Education by Scrum Inc. and the author of Scrum for Hardware. His expertise was instrumental in guiding our teams through the agile transformation.

Paolo's contributions were multifaceted: he provided comprehensive training for our Product Owners, Scrum Masters, and developers, tailored specifically to our organization's needs. He also delivered coaching sessions for our management team, ensuring that leadership was aligned with agile principles and equipped to scale these practices across the organization.

Paolo's deep knowledge of SCRUM and his specific focus on hardware environments were particularly valuable in helping us adapt agile methodologies to our engineering processes. His involvement ensured that our transformation was not just a theoretical shift but a practical, hands-on implementation of SCRUM that addressed the unique challenges of our industry.

What were the most significant challenges and how did the team overcome them?
One of the most significant challenges we encountered during the agile transformation was the external environment's reliance on a traditional waterfall process. As we implemented an internal agile process, we faced criticism and objections from stakeholders accustomed to the waterfall approach’s more linear and predictable nature.

To overcome this challenge, our strategy was to adopt a pragmatic and results-oriented approach. Instead of enforcing the agile methodology outright, we began by experimenting with the method on a smaller scale within the organization. By focusing on specific projects, we were able to demonstrate the tangible benefits of agile practices, such as increased flexibility, faster feedback loops, and improved team productivity.

As these initial experiments yielded positive results, we used them as evidence to address the criticisms and objections. By showcasing real-world examples of how agile processes could enhance our project outcomes, we gradually built support for the broader adoption of agile methodologies within the organization. This approach not only mitigated resistance but also fostered a culture of continuous improvement and openness to new ways of working.

One of the most significant challenges we encountered during the agile transformation was the external environment's reliance on a traditional waterfall process. As we implemented an internal agile process, we faced criticism and objections from stakeholders who were accustomed to the more linear and predictable nature of the waterfall approach.

To overcome this challenge, our strategy was to adopt a pragmatic and results-oriented approach. Instead of enforcing the agile methodology outright, we began by experimenting with the method on a smaller scale within the organization. By focusing on specific projects, we were able to demonstrate the tangible benefits of agile practices, such as increased flexibility, faster feedback loops, and improved team productivity.

As these initial experiments yielded positive results, we used them as evidence to address the criticisms and objections. By showcasing real-world examples of how agile processes could enhance our project outcomes, we gradually built support for the broader adoption of agile methodologies within the organization. This approach not only mitigated resistance but also fostered a culture of continuous improvement and openness to new ways of working.

Image Source: NET Engineering

What were the impacts?
Impact on User Experience

The agile transformation at Net Engineering had a positive impact on the end-user experience. By adopting agile methodologies, we increased our responsiveness to unexpected requests and unplanned changes, which significantly improved our ability to meet user needs more effectively and efficiently.

The shift to agile allowed us to take on greater responsibility for the projects, leading to more proactive management and quicker adaptations to user feedback. As a result, our users experienced improved usability and greater satisfaction, as their requirements were addressed more promptly and accurately. The overall user experience has benefitted from the enhanced flexibility and responsiveness that agile practices have brought to our workflows.

Impact on Ecosystem Parties

The agile transformation at Net Engineering positively influenced various parties within our ecosystem, including suppliers, partners, and customers. By empowering each Scrum Team to manage its own vendors independently, we streamlined vendor relations and enhanced responsiveness. Teams received support from the central function to onboard new vendors and resolve issues, ensuring smooth operations across all projects.

One significant outcome was the introduction of an enterprise backlog, which provided greater clarity on future needs. This not only helped in better planning and resource allocation but also strengthened our relationships with suppliers and partners by giving them a clearer understanding of our long-term requirements.

Additionally, proactive partner onboarding reduced the need for Scrum Teams to rely on work packages from other teams, minimizing dependencies and simplifying the overall process. This autonomy allowed for more direct and effective communication between teams and external vendors, which, in turn, fostered stronger, more loyal partnerships. Some vendors have evolved into trusted partners thanks to the close collaboration and mutual trust built through these direct interactions.

Impact on Employees

The agile transformation at Net Engineering had a significant positive impact on our employees, influencing morale, productivity, and engagement. One of the most notable changes was the ease of onboarding new employees. The structure and clarity provided by Scrum Teams made it simpler and faster to integrate new hires into the organization, allowing them to become productive members of their teams quickly.

With an increasing number of remote employees, teamwork became even more crucial. The agile framework emphasized collaboration and communication, which not only helped remote employees stay connected and engaged but also enhanced overall productivity. By working closely within their teams, employees developed a stronger sense of belonging and camaraderie, which has been instrumental in improving talent retention.

Moreover, the transformation process fostered continuous improvement in skills across the organization. For instance, we recently conducted training sessions focused on holding effective meetings. This enhanced our meeting efficiency and reinforced our commitment to ongoing professional development. By equipping employees with these new skills, we have created a more dynamic and innovative work environment where continuous learning is valued and encouraged. The Agile approach, fostering greater engagement from individual team members, has driven substantial enhancements in both team-level management and operations as well as overall organizational efficiency.

Image Source: NET Engineering

Impact on the Overall Organization

The agile transformation at Net Engineering has had a profound and positive impact on the overall organization, enhancing operational efficiency, strategic alignment, and overall responsiveness. One of the key improvements has been the streamlined flow of impediments across the organization. Issues are now identified and addressed more quickly, thanks to the agile processes in place, leading to faster resolutions and minimizing disruptions.

Additionally, the role of Scrum Masters has been pivotal in ensuring that the needs and concerns of employees are promptly addressed. This focus on employee well-being and support has contributed to a more engaged and satisfied workforce, which in turn drives productivity and morale.

The introduction of facilitation techniques like Delegation Poker has also significantly improved delegation within the organization. By encouraging structured and thoughtful delegation, these techniques have empowered teams to take ownership of their tasks and responsibilities, fostering a culture of trust and accountability.

Overall, these changes have not only enhanced operational efficiency but also strategically aligned the organization to be more agile and responsive to market demands. The improvements in communication, delegation, and problem-solving have positioned Net Engineering to maintain a competitive edge and continue its growth trajectory in a rapidly changing market.

Impact on Corporate Culture

The agile transformation at Net Engineering has brought about a significant shift in our corporate culture, fostering a more collaborative, feedback-driven, and purpose-oriented environment. A key aspect of this cultural shift has been our emphasis on effective feedback. We invested considerable effort in training everyone in the organization, including newcomers during their onboarding, on the importance and practice of giving and receiving constructive feedback. As a result, feedback has become an integral part of our culture, driving continuous improvement and open communication across all levels of the organization.

Another major cultural milestone was the collaborative creation of our company manifesto. This manifesto, which encapsulates our purpose, identity, vision, and mission, was developed with input from across the organization, ensuring that it truly reflects the collective values and aspirations of our team. The process of writing the manifesto together not only strengthened our shared sense of identity but also aligned everyone around a common vision and set of goals.

These efforts have transformed our corporate culture into one that values collaboration, continuous learning, and shared purpose, making Net Engineering a more cohesive and motivated organization.

Get in touch

To get in touch with NET Engineering visit their website for more informations or reach out to us to get a direct contact with Silvia.

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