Digital Dollars: How Ahold Delhaize USA Rewrote Its Financial Playbook

The Tipping Point: When Excel Just Doesn’t Cut It Anymore

Ahold Delhaize USA found itself at a crossroads. As the digital innovation hub for one of America’s largest grocery retail groups, they were pushing the boundaries of Agile practices. However, their financial management was stuck in the past, relying heavily on manual processes, siloed data, and the ubiquitous spreadsheet.

“We had absolutely no system in place to support the transition,” recalls an Ahold Delhaize USA team member. The pain points were clear:

1. A disconnect between agile execution and financial tracking
2. Time-consuming manual updates across multiple platforms
3. Lack of real-time visibility into resource allocation and utilization
4. Difficulty in demonstrating value to their more traditional parent company

Moreover, the company was determined to move away from time writing, a practice they found subjective and often inaccurate. They needed a solution that could bridge the gap between their Agile aspirations and financial realities.

Crafting a Custom Solution: More Than Just Software Implementation

Cprime consultants were brought in to craft a tailored approach to Ahold Delhaize USA’s unique challenges. The solution centered around implementing Apptio Targetprocess, but it went far beyond simple software deployment. Here’s how they tackled Ahold Delhaize USA’s complex needs:

1. Value Stream Alignment: Configured the system to allocate work directly to value streams, supporting the org’s lean budgeting structure.
2. Automated Cost Modeling: Developed a system that ingests Jira work items and allocates costs based on team assignments, running parallel to existing time tracking for a smooth transition.
3. CapEx and OpEx Automation: Implemented role-based automation for capital and operational expenditure splits, dramatically reducing manual management.
4. Two-Way Integration: Created seamless data flow between Jira and Targetprocess, supporting quarterly planning and standardizing estimation practices.
5. Custom Financial Reporting: Built custom reporting capabilities within Targetprocess to meet the client’s specific needs.
6. Capacity and Demand Management: Developed features to analyze and forecast at both team and value stream levels.

“We hit many key pain points across planning, capacity and demand for resource management, estimating and managing budgeting from a portfolio perspective, supporting their transition to lean budgeting, and then giving them a no-pressure way to potentially adopt an automated cost model,” explains Mohammed Attieh, a Cprime consultant and Senior Apptio Solutions Architect on the project.

The Ripple Effect: Transforming More Than Just Finances

The impact of this transformation extended far beyond streamlined spreadsheets. Ahold Delhaize USA experienced a seismic shift in how they approached financial management and decision-making:

1. Unprecedented Portfolio Visibility: Ahold Delhaize gained real-time insights into their entire $160 million portfolio, thanks to an automated system that updates every 15 minutes.
2. Stronger Organizational Influence: The company enhanced its ability to demonstrate the value of agile practices to its parent company, potentially shaping larger organizational strategies, through comprehensive reporting and measurable outcomes.
3. Enhanced Cross-Team Collaboration: Program managers at Ahold Delhaize now enjoy improved collaboration and alignment, leveraging new tools that facilitate priority setting and budget sharing across value streams.
4. Data-Driven Strategic Decision-Making: The company now makes more informed strategic decisions, powered by improved roll-up reporting that connects team execution directly to portfolio-level insights.
5. Agile Resource Allocation: Ahold Delhaize achieved remarkable flexibility in resource management, with the ability to make allocation changes throughout the year and see immediate portfolio-wide updates, thanks to the integrated, responsive system.

“They’re in love with the fact that they can make allocation changes throughout the year,” notes Mohammed. “Within fifteen minutes, the entire system recalculates… So tremendous reporting synergy.”

“Since implementing Targetprocess and the accompanying automation, we’re seeing vast improvements across the org in terms of time savings, greater visibility into the data, and a more strategic, data-driven approach to decision-making.” — Grant Williams, Senior Finance Director TBM

Looking Ahead: The Road to Continuous Improvement

While the transformation has been significant, Ahold Delhaize USA isn’t resting on its laurels. The organization is now poised to:

• Potentially deprecate time writing in favor of their new automated cost model
• Expand the use of the new system across more stakeholder groups
• Further mature their cost model for even more accurate financial tracking
• Standardize the use of story points across the enterprise for improved estimation

And, of course, Cprime experts will be there to guide and assist.

The Bigger Picture: Lessons for the Industry

Ahold Delhaize USA’s journey offers valuable insights for other organizations grappling with similar challenges:

• Alignment is Key: Ensuring that financial practices support rather than hinder Agile methodologies is crucial for digital innovation.
• Automation Drives Accuracy: Reducing manual processes not only saves time but also improves the accuracy and reliability of financial data.
• Visibility Enables Agility: Real-time insights into financials and resource allocation allow for more responsive and data-driven decision-making.
• Change Management Matters: Successfully implementing new systems requires careful attention to cultural shifts and user adoption.

As the digital retail landscape continues to evolve, Ahold Delhaize USA’s story can guide organizations looking to harmonize their financial management with Agile principles. It’s a testament to the power of innovative thinking, tailored solutions, and the willingness to embrace change.

Would you like to see similar results for your organization? Explore our flexible Enterprise Technology and Financial Management solutions.