The path to agile transformation is not a predefined project with a clear end for organizations, but an ongoing journey towards full agility. Depending on the initial situation and goals, this transformation can take a considerable amount of time, often months or even years. During this time, organizations face minor setbacks, which, however, offer opportunities for learning and course correction. A steadfast commitment to the main goal and strategy is just as indispensable as the willingness to make necessary adjustments. This also requires uncomfortable decisions that force leaders out of their comfort zone, but the reward comes in the form of amore efficient and successful company with increased efficiency. In this article, we will illuminate the most common hurdles on the path to agile transformation and offer practical solutions:
1. Changing Corporate Culture: Agility entails a profound change in the working culture, with values such as openness, trust, and teamwork at the forefront. Moving from traditional, rigid structures to a dynamic culture takes time, patience, and the openness of all to explore new paths.
2. Overcoming Resistance: People tend to cling to the familiar, and changes often meet resistance. Open communication and involving everyone in the change process can help dispel concerns and promote acceptance.
3. Building Agile Competencies: For a successful transition to agile working methods, it is crucial that the team possesses the necessary skills and knowledge. Training and education are therefore indispensable to lay a stable foundation for agility.
4. Changing Leadership Style: Agility demands a different approach in leadership – away from strict control towards more empowerment and support. Leaders must learn to trust their teams and enable them to work independently and creatively.
5. Scaling Agile Methods: What works well in small teams may not always be easily transferred to the entire company. Expanding agile working methods requires tailored planning. It is important to find the right agile framework that fits the company’s structures – there is no one-size-fits-all solution.
6. Integration into Existing Processes: Agile methods should not disrupt operational workflow but complement it. A gradual introduction that takes existing processes into account is often the key to success.
7. Measuring Success: Traditional metrics are not sufficient to measure the success of the agile transformation. New benchmarks are needed that capture aspects such as improved product quality, higher employee satisfaction, and faster delivery times.
A critical, often underestimated step in agile transformation is choosing the right agile method. The effectiveness of the transformation depends heavily on how well the chosen method fits the goals, culture, and specific working methods of the company.
1. Understanding the Needs: What overarching goals are being pursued through the agile transformation? This consideration is crucial to select a method that meets the individual needs of the company.
2. Gaining an Overview of Agile Methods and Frameworks: What agile methods and structured approaches exist, and how do they differ? Only when one has an overview of all possible agile methods like Scrum, Kanban, as well as agile frameworks like SAFe, LeSS, can the right choice for your organization be made.
3. Evaluating Organizational Structure and Team Dynamics: The size of the company and the way teams work are crucial for selecting a method and also frameworks. In smaller companies, direct communication paths and high adaptability facilitate the application of agile methods like Scrum or Kanban, which promote quick feedback loops and flexibility. Larger companies benefit from agile frameworks like SAFe or LeSS, which help scale agility across multiple teams and improve interdepartmental coordination. Regardless of company size, team culture is crucial: Open and communicative teams tend to derive more benefit from agile practices. For newcomers to the agile field, simpler methods are often the best starting point, while specific industry requirements should also be considered to ensure the most effective and efficient working method.
4. Maintaining Flexibility and Adaptability: Introducing the right agile method or framework is not the end but the beginning of a continuous journey of improvement and adjustment. Pilot projects and constant feedback can ensure that agile practices remain aligned with corporate goals.
Using the Stacey Matrix as an evaluation model plays a crucial role in choosing the right agile method. This tool helps understand the complexity of projects and the associated uncertainty regarding requirements and methods. By determining the positioning of the endeavor within the matrix, it becomes clear whether traditional methods suffice or agile approaches are appropriate. Especially in complex and chaotic environments, where requirements and solutions paths are unclear, agile methods prove their worth as they promote flexibility, quick adjustments, and iterative learning. The Stacey Matrix thus aids decision-makers in selecting an appropriate agile approach that optimally supports the specific needs, corporate culture, and working method of the company, thereby making the agile transformation successful.
Uncertainty (or ambiguity) of requirements: This axis moves from "clear" to "unclear". It measures how well the requirements and goals of a project are understood at the beginning.
Uncertainty of methods: This axis moves from "known" to "unknown". It measures how well the methods or solutions paths to achieve the goals are known.
Simple or Clear: In this quadrant, both the requirements and the methods are well understood. Traditional management and planning approaches like Waterfall and V-model work best here.
Complicated: Requirements might not be entirely clear, but through expert knowledge and analysis, the methods to achieve the goals can be determined. Here, detailed planning and specialized knowledge are required. A suitable method would be to work with the Kanban model.
Complex: The requirements are unclear, and there are no obvious methods to achieve the goals. In this area, agile methods such as Scrum or adaptive planning processes are most effective, as they allow for iterative learning and adaptation.
Chaotic: Both the requirements and the methods are unclear. In this extreme state, rapid experiments and decisions are required to create stability and figure out which steps should be taken next. With the help of a Design Thinking approach, quick simple prototypes can be built and tested. Once the project gains a bit more maturity, work can continue with a Minimum Viable Product and the Lean Startup method.
The agile transformation at the large bank, Barclays, with around 80,000 employees, demonstrated both challenges and impressive successes. Within the first year, over 800 teams were working agilely, leading to increased throughput, reduced code complexity, fewer production incidents, shorter deployment cycles, and increased team satisfaction.
Decision for Agile: Barclays faced the challenge of overcoming the traditional waterfall approach to establish a more agile, customer-oriented way of working. Connecting agile "islands of excellence" and creating a holistic transformation was crucial.
Framework Selection: Given Barclays' size and complexity, choosing the right agile framework was no small feat. Leadership had to find a system that provided flexibility and accounted for the organization's diversity.
Adjustment of Goals and Measurements: Transitioning to agile required a reevaluation of how outcomes are measured and funded. Traditional measurement methods no longer fit.
Holistic Agile Transformation: Barclays opted for a comprehensive transformation that extended beyond technology departments to include all stakeholders in the value stream. This approach aimed to maximize customer satisfaction and ultimately increase shareholder value.
Choice of Disciplined Agile: After evaluating various frameworks, Barclays chose Disciplined Agile for its flexibility, goal-oriented approach, and suitability for a large, heterogeneous company. Disciplined Agile allowed for the adaptation of practices depending on the context and supported diversity within the organization.
Redesign of Goal Setting and Success Measurement: Barclays adjusted its funding and measurement methods to promote iterative delivery and the achievement of tangible outcomes. This included separating management goals and team measurements and introducing agility levels to support teams in their development.
This transformation demonstrates how Barclays dealt with the challenges of a large-scale agile implementation and implemented solutions that not only improved operational efficiency but also laid the foundation for a lasting cultural change. The results speak for themselves: improved performance, happier teams, and a stronger market position through quick adaptation to customer feedback.
Agile transformation is a complex but rewarding journey. It requires not just the adaptation of processes and structures but also a shift in mindset for everyone involved. With the right approach and an open attitude towards change, however, the challenges mentioned above can be mastered, making your company more agile, responsive, and ultimately more successful.
After highlighting the various challenges and solution approaches on the path to agile transformation, we would like to provide you with an essential resource. Our Transformation Leader’s Roadmap - The Guide for Agile and Sustainable Change!
This guide serves as a practical manual to lead you through the various phases of change and supports you in strengthening agility and resilience in your team. It offers concrete steps and considerations that are crucial for successfully implementing the right agile methods and supports you in achieving your organizational goals and establishing a culture of continuous improvement.
