Transforming Philips EMR: Achieving Over 23-Point EBITDA Growth Through Scaled Agile Leadership

Industry

Technology

Challenge

Prior to the transformation, Philips EMR confronted significant operational challenges stemming from a previously unsuccessful SAFe® implementation. The organization managed over 50 parallel projects with limited ROI visibility, suffered from unpredictable release schedules, and lacked strategic cohesion. Deep-rooted resistance to change, accentuated by a 135-year legacy of traditional practices, further hindered agile adoption. These conditions created an urgent need for disciplined portfolio management, streamlined execution, and a cultural shift toward enterprise agility.

Results

By implementing a renewed transformation approach under Michael Renna’s leadership and with support from executive sponsors, SPCs, and cross-functional leaders, Philips EMR achieved a unified strategic vision and operational excellence. The enterprise realized a 25% increase in sales and order intake, a 23% rise in EBITA, and an EBITDA improvement exceeding 23 points. Portfolio health advanced by 5–10%, team engagement became widespread, and agile maturity was embedded across the organization, setting a new benchmark for sustained enterprise agility.

Agile Transformation

www.philips.com

~23%

EBITDA Improvement

25%

Sales and Order Growth

60%

Parallel Work Reduction

>95%

Release Predictability

Properly implementing SAFe and, in particular, Lean Portfolio Management was a game changer for Philips EMR.

Ruti Avitan

PMO and Transformation Leader @ Philips

About your Customer

Philips is a global leader in health technology with a legacy of over 135 years, known for driving innovation in electronic medical records (EMR) and health systems.

The Challenge

Philips EMR was facing a critical inflection point. Despite significant investment in prior agile initiatives, the organization remained encumbered by legacy processes, fragmented strategic efforts, and a proliferation of over 50 active projects, many lacking clear business value. Release timelines were consistently delayed and unpredictable, eroding stakeholder confidence and market responsiveness. The absence of a unified portfolio strategy, combined with resistance to change rooted in a long organizational history, resulted in inefficiencies and stagnating business performance.

The Solution

Recognizing the magnitude of the challenge, Philips secured committed executive sponsorship and engaged Michael Renna as Agile Transformation Business Leader, supported by a coalition of SPCs and cross-functional leaders. The renewed transformation effort centered on Lean Portfolio Management, transparency, and systematic alignment of initiatives to strategic outcomes. Through comprehensive SAFe® training, hands-on coaching, and rigorous portfolio governance, Philips reduced active initiatives from 50+ to approximately 20, instituted cadence-based release planning, and fostered a compelling narrative for sustainable change. As Michael Renna noted, “The transformation delivered not just financial impact, but a more engaged and aligned organization, setting a new standard for enterprise agility at Philips.”

The Results

The transformation yielded measurable operational and financial benefits. Sales and order intake increased by 25% from 2021 to 2023, driven by strategic prioritization and value-focused execution. EBITA grew by 23% as a result of robust revenue growth and disciplined cost control. Portfolio health improved by 5–10%, evidenced by higher throughput and enhanced quality behaviors. Most notably, EBITDA rose by more than 23 points, reflecting the profound impact of scalable agile practices. Team engagement and agile maturity advanced from sporadic adoption to an embedded, organization-wide standard, positioning Philips EMR for sustained market leadership.