Pivoting from projects to outcomes-based models for funding - Sainsbury's Retail
The Situation
Sainsbury’s needed a better way to focus their portfolio of annual spend, maximising the opportunity to deliver growth on their investments.
The Task
I was tasked with leading the pivot of how the Digital and Technology (D&T) division spent ~£150million on capital investments annually. Their investment process was bloated, time-consuming and overall yielded no benefits to the organisation – over a 5 year period with spend totalling ~£1.5billion, Sainsbury’s made an overall loss on their investments. It was critical to the success of the business that a better way was found.
The Action / Approach
After an initial assessment of the funding process, several key recommendations were provided and acted upon:
– Pivot away from a ‘project-based’ funding model to a business outcomes-based approach
– Streamline and simplify governance of investments
– Provide more opportunities to understand progress (both from a business and technology perspective)
– Increase alignment around business priorities
The Result
– NPV has increased from -£125m to +£10m – an increase of £135m
– 30% increase on change activities (year on year)
