The IKEA vision To create a better everyday

The IKEA vision To create a better everyday life for the many people 1

IKEA Values 2

IKEA group at a glance 3

We continue on our growth direction WORLD'S LEADING MULTICHANNEL HOMEFURNISHING RETAILER 2030 MULTICHANNEL RETAILER Multichannel Transformation Programme A Better IKEA MAIL ORDER RETAILER 4 CASH & CARRY RETAILER Shopping Center acquisition WE ARE HERE 6

Keep the Metabolism in the company high 5

Before PPM tool implementation Five progressive Levels of the Gartner PPM Maturity Model • We lacked a overview of the large initiatives active/planned across IKEA group • We did not understand how initiatives contributed to reach our goals • We lacked a method to prioritize initiatives • We lacked a method to assess the impact and capacity needs for our initiatives • We did not understand overlaps and dependencies between initiatives • We did not use a common terminology to define initiatives: programs, projects, cost frames etc. 6

IKEA PPM Process Change in Decision Model 7 Centralized portfolio of new and ongoing change initiatives delivered as programs, projects and continous improvements

IKEA PPM project Why did we need to change? Current situation Inconsistent reporting Target situation One common and integrated solution for project & portfolio performance reporting Objectives The project performance reporting was being done in different ways across IKEA with some inconsistencies in content, KPI definitions and solutions. • • • PPI - Group Functions and Range & Supply Retail Dashboard - Retail & Expansion PTT - IKEA IT No or little aggregation There was no or very little aggregation of initiative performance reporting in the BP&IT portfolio. • Establish a common standard and Common and integrated way of working • Increase portfolio and project Increase transparency Missing link between reports and governance None of the existing reports had any link to current governance and BP&IT portfolio, which contain the data source for what had been approved in the Tertial reviews and the projects baseline. processes for reporting project performance. transparency for key stakeholders & decision makers. • Improve the overall decision support Aggregation of information material by enabling an aggregated report view. • Enable one common solution and Consequences IKEA had limited initiative performance information, which complicates decisions and prioritization. 8 One solution report format for project performance reporting.

Current Maturity IKEA High performing organizations • Staff know the strategic goals and priorities and the process for project selection is well communicated • Project selection combines scoring/analysis with business judgement • Portfolio status is communicated monthly • PMs understand the contribution their project makes to the portfolio • PMs/BNs and Portfolio management work together to resolve problems 9

IKEA PPM project Key success factors 10 • Identify and establish the driving force • Commitment from sponsor and management (in our case CFO) • Determine organizational maturity level and adjust implementation accordingly • Work with small empowered team • Introduce gradually and grow accordingly • The best tool provider is your business partner rather than a vendor • Shared objectives and transparent communication • Focus on both daily administration and new improvements to further increase the value in the organization

IKEA Next steps • Continous PPM process and tool development • Implementing AMS and CAPA to enhance solution from a support and learning perspective • Benefit management • Demand management • Governance meets agility approach to shorten the leadtime between strategy and execution 11

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