How to mess up your agile transformation in seven easy (mis)steps (2022)

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You have to give it to Silicon Valley: it sure knows how to disrupt industries. It has left its mark on every facet of our life—from how we socialize and interact, to how we travel, how we earn, and how we pay. The scale of impact has led to traditional companies in the ecosystem asking themselves, How do we get our large organizations to adapt and move as quickly as these nimble start-ups? The answer in many cases has to do with being more agile.

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Agile principles have been one of the key drivers of Silicon Valley’s ability to innovate, learn, and adapt rapidly. Agile started as a set of principles for software development to write and release code iteratively without waiting for months (or years) to release functionality. The term “agile” has now expanded to many facets of solution development with the same underlying principles—develop iteratively, release frequently, focus on the customer, and collaborate through a cross-functional team—always prioritizing test-and-learn methods over detailed planning. Beyond solution development, we are designing and implementing enterprise-wide operating models based on these principles.

While many traditional heavyweights have embarked on agile transformations, most have faced real challenges in achieving their desired objectives. Based on our experience across numerous transformations, we see the following as common missteps on an agile journey.

Misstep 1: Not having alignment on the aspiration and value of an agile transformation

Agile, fundamentally, is a redesign of the operating model of (parts of) the enterprise. We have often seen organizations embark on such transformations without first ensuring alignment among the leaders of the organization on the aspiration and value of the transformation. Further, even when there is such alignment, we often see companies that, in the spirit of adopting some agile principles—such as experimentation and empowered teams—end up creating a burning platform, as different leaders across the organization choose different approaches to implementing agile, while others dig in their heels to maintain the status quo.

While we don’t encourage attempts to design an end state in granular detail, the depth and breadth of an agile transformation requires aligning at a high level on the aspiration, the value it would deliver, and a plausible plan for achieving it. The identified value drivers are then used throughout the transformation, from guiding the design of the operating model to ensure value delivery, to designing metrics to monitor value capture during rollout. Not doing so can constrain the impact the transformation might have.

For example, a large global company initiated a bottom-up agile transformation without first aligning on the end-state aspiration and the value the transformation would create. The transformation ended up having limited impact, as teams in different parts of the organization applied agile principles to varying degrees and in multiple flavors, which led to a significant increase in the overhead of managing across teams. Further, the lack of alignment on the value of the transformation meant that teams spent little time thinking through and tracking the value their efforts would deliver.

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Misstep 2: Not treating agile as a strategic priority that goes beyond pilots

Too often, companies find themselves limiting agile to pilots within a small part of the organization, with a small set of leaders. While the pilot is typically successful, its impact is restricted to a few teams or a bunch of technologists. The limited nature of the pilot often prevents the CEO and executive team from grasping the far-reaching impact and strategic value a broader agile transformation could have. Companies often end up carrying a series of such pilots, before they’re eventually killed once the need to reallocate funding for new initiatives arises.

While it is completely OK to start the agile transformation within, say, a small part of the organization, it is important not to stop there and to treat it as a strategic priority for the enterprise. Taking agile beyond small experiments is where the real benefits arise. For example, a large North American company was trying to implement agile in its technology organization, which encompassed 1,000-plus people. Every time business executives were asked about agile, they had a limited understanding and simply referred to it as “that project the technology team is trying to implement—we know nothing about it.” The impact was limited, until 18 months into execution, when a massive change came about because one of the senior vice presidents started to take interest, understand, adopt, and make changes to his business practices to match the more agile technology organization. This led to an enterprise-wide transformation, with agile being identified as one of the top five enterprise priorities.

Misstep 3: Not putting culture first over everything else

Words cannot emphasize the cultural implications of an agile transformation. Ignoring the cultural and change-management implications of agile is one of the biggest mistakes large organizations make. Successful transformations require not only bottom-up change in the way of working at the team level but also a change in the way the executive level operates, as this has a disproportionate influence on the culture of the organization. “Culture is the king,” as a senior executive appropriately said when referring to the recipe for success for an agile transformation. Conversely, an agile transformation can help drive significant cultural changes where desired, helping increase customer centricity, collaboration, learning, and more. These gains often require giving up some preexisting ways of working. A senior executive who has led multiple agile transformation puts it aptly: “The first question I ask leaders considering an agile transformation is, ‘How much are you willing to give up?’”

For example, a large North American company had embarked on an ambitious agile transformation and hired several agile coaches to support teams. However, leadership in one of the businesses continued to work within the paradigms of the old culture: they were hesitant to empower teams, wanted detailed designs of the end product, and asked for project-management-office-style status reports on a weekly basis. Within the same organization, leadership in another business took a completely different approach and worked on changing the culture. Leaders empowered product owners and minimized bureaucracy. After one year of effort, the former business had little progress to show for any of its projects, whereas the latter had released multiple minimum viable products.

Misstep 4: Not investing in the talents of your people

One of the things that has made Silicon Valley start-ups successful has been their emphasis on finding and hiring the best talent. That talent is the fuel that powers the agile machine. This allows companies like Amazon to create truly cross-functional, empowered teams, with high-caliber, experienced talent embedded in them.

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For many traditional organizations, talent strategy is an afterthought of an agile transformation. In the process, some crucial questions that merit careful consideration, such as the following, remain unanswered:

  • What are the intrinsic skills required to be successful in the agile organization?
  • Where will talented individuals with these intrinsics be sourced from?
  • How will these employees be supported as they transition to an agile way of working?
  • How will career paths change to a more expertise-based model?
  • How will performance be managed in the new organization?
  • What will happen to individuals who might not be required in the new agile organization?

The result: lack of excitement about taking on the new agile roles or joining agile teams due to lack of clarity on the career path, leading to teams that still require senior leadership to be deeply involved in decision making. For example, a midsize global company wanted to emphasize customer centricity as part of the agile organization. To achieve the goal, the client wanted to create a “design function” from zero people to more than 25 designers in various roles across multiple customer journeys. Such an endeavor required an up-front talent and recruiting strategy, diligent follow-up and interviews, and a careful scale-up approach to attract talent and excite them about the role and career opportunities. Because of a lack of detailed planning through these steps, seven months through the agile transformation, the client had not only struggled to recruit new designers to the function but also faced attrition among existing designers because of a lack of role clarity and excitement. This led to a significant amount of leadership time being spent on solving for these challenges. A similar situation occurred with a European company, where 11 out of 12 product owners in the first tribe set up as part of the transformation left for their old roles as they lacked coaching for transitioning to their new roles.

Misstep 5: Not thinking through the pace and strategy for scaling up beyond pilots

It is one thing to pilot agile in small pockets of an organization, where one can deploy resources from across the enterprise to support the pilot and make it successful. However, scaling across a broad cross-section is another story and requires up-front planning. One must think through the readiness of the organization, resourcing constraints, leadership bandwidth, and consequently the pace of the transformation, among other things. These plans need to be adjusted based on learnings through implementation.

For example, a midsize global company had planned its agile transformation around five waves. However, it had not spent enough time thinking through the scale of leadership bandwidth that would be required and the effort that would go into recruiting for the new agile organization. After completing the first two waves, the company was forced to reconsider the pace of its agile transformation and extended it to seven waves.

Misstep 6: Not having a stable backbone to support agile

Too often, agile is taken as an approach to managing projects. It is important to recognize that for teams to operate using agile methodology requires changes to core management processes and the supporting tools that a team has access to, among other things.

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For example, iterative development also requires iterative funding. This is a concept that is hard to grasp for many traditional businesses. A large North American company wanted detailed estimates of every project with respect to investment required and benefits expected when the project was complete. While initial and early estimates are beneficial, a dogmatic approach made product owners panic, led teams to fight over hypothetical financials, and caused massive enterprise-wide confusion.

Agile teams also require the ability to deploy technology assets rapidly. For example, a large North American company required around six to eight weeks to provision environments, which meant that the team had to spend considerable time planning to compensate for the time lag.

Absent these changes to core management processes, teams may find it hard to execute rapidly, which hampers innovation, increases time to market, and so on.

Misstep 7: Not infusing experimentation and iteration into the DNA of the organization

If you ask practitioners about the traits of an agile organization, you’re likely to hear most of them mention iterative development. While this comes naturally to a start-up, which doesn’t have an established product and needs to test and learn to develop one, it is more complex to grasp for an organization that has not one but many product lines that have a reputation of excellence in the market. This also applies beyond product development—consider how your organization prepares, for example, business strategies, recommendations to the leadership team, and product-launch strategies. All too often effort is wasted by teams operating in a vacuum, second guessing what stakeholders might want to see, or perfectly executing the wrong plan rather than engaging stakeholders throughout the process to get input regularly and ensure the team is focused on what really matters.

Another aspect that often limits experimentation is the rigid application of scaled agile frameworks. Too often, companies end up shifting the focus of an agile transformation away from minimizing processes and changing mind-sets and behaviors to enable innovation, toward putting in place the right framework. While frameworks can be valuable in providing structure to the transformation, it is important not to be rigid in their adoption, and to always think of how they can be adapted to suit the needs of the organization. After all, one of the pillars of the original agile manifesto was to favor “individuals and interactions over processes and tools.”

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For example, while a North American company embraced iterative agile development in theory, management stuck to a rigid framework it had developed that required high-fidelity mock-ups of the end product and detailed business plans before product development had even commenced. An agile organization would have done just enough to get a version of the product out to market quickly and gather feedback from customers to guide future developments, seeking input from the real end users of the product. This rigid application of the framework ended up limiting the impact of the agile transformation.

There are undoubtedly many other examples of missteps that have derailed agile transformations. In our experience, these missteps are largely preventable but too often result in agile being written off. Becoming armed with the right level of understanding for how to drive an agile transformation, and respecting the complexity of such a transformation, is a first step toward a successful journey—and based on the impact we have seen with companies that have undergone successful agile transformations, a very worthwhile investment to make.

FAQs

Why do Agile transformations fail? ›

Agile transformation demands that the concerned teams focus on the customers and the deliverables. Instead, organizations sometimes focus too much on productivity and technology, which is why agile transformations fail. Since the focus is vague, products don't get adequately defined.

What are the major barriers to transforming into an Agile organization? ›

7 common barriers to agile adoption – and how to overcome them
  • 1) Lack of wider buy-in around agile. ...
  • 2) Resistance from people who feel they don't need to change. ...
  • 3) Lack of open communication. ...
  • 4) Being too risk-averse. ...
  • 5) Attempting to preserve legacy mechanisms of control.
5 May 2016

What should you not do in agile? ›

Read on for 10 agile project management mistakes to avoid.
  • Trying to boil the ocean. “It's a mistake to try to turn everything into an agile sprint or micromanage every sprint. ...
  • Resistance to culture change. “The greatest challenge or roadblock for the data team is culture. ...
  • Not enough team planning. ...
  • Too little flexibility.
14 Oct 2019

How does agile fail in practice? ›

One of the biggest causes of Agile failure is trying to hold onto traditional ways of doing things. When you shift to Agile you have to commit to it. You can't try to hold onto the old way of doing things. Trying to pick and choose certain legacy processes, or tools, and fitting them into Agile processes won't work.

Why agile implementations fail? ›

According to VersionOne, the top three reasons for agile project failure are: Inadequate experience with agile methods. Little understanding of the required broader organizational change. Company philosophy or culture at odds with agile values.

Why agile is failing at large companies? ›

Possibly the biggest reason why agile projects fail in large enterprises is the fact that people just don't have experience with the methodology or how to integrate it. In fact, it was the top cause of agile project failure, cited by 44 percent of participants, according to the VersionOne survey.

How should an agile team view failure? ›

Leaders must allow vulnerability

When leaders become vulnerable, they earn the trust of those they lead. Leaders must begin to admit failure if they want their culture to make this critical change. And at the very least, they should not shy away from the word “fail” by substituting “learn.”

What is an agile transformation roadmap? ›

An agile transformation roadmap is a high level plan that helps to communicate the vision and the steps an organization wishes to take towards their agile transformation.

Why do we use transformation in agile? ›

Agile transformation enables organizations to be more reactive, do more with less, and better serve the interests of their customers. To do it well, an agile transformation requires significant support, resources, and time, not to mention the commitment to stick it out when things get bumpy.

What are goals of agile transition? ›

The essential long-term goals of an Agile transformation process revealed in the presented research study are: reduction of the time-to-market, a higher overall project efficiency and productivity, a growing predictability of customer deliveries and increasing transparency of project planning ( Figure 5).

What was or is your biggest challenge with transitioning to agile? ›

Expectations from Agile

This is the most common and often the biggest challenge while implementing Agile. It is very important to know what the expectations from Agile are or why your organization has decided to implement Agile.

What are the barriers of agile approach? ›

Barriers to Agile Adoption
#PercentageBarrier
152%Ability to change organizational culture
241%General resistance to change
335%Trying to fit agile elements into non-agile framework
433%Availability to fit personnel with right skills
6 more rows

Why Agile Adoption is difficult? ›

The process of adopting Agile in any organization is challenging in many ways. It is especially challenging in larger organizations because of complex infrastructures, numerous legacy systems and mature organizational cultures. These larger organizations often underestimate the difficulty of getting Agile right.

What should you not do in a daily scrum meeting? ›

7 Mistakes To Avoid In The Daily Scrum Meeting
  • Not a status meeting. ...
  • Avoid micromanaging the team. ...
  • Not meant solely for the scrum master. ...
  • Not a planning meeting. ...
  • Not to be used for carrying out technical discussions. ...
  • Not to be held away from the place of work. ...
  • Not including the three basic questions.
13 Sept 2018

When should we not use Agile? ›

If you have laid out all the advantages of the Agile methods for the given project and the customer is reluctant to follow you, do not try to use Agile methodology against his will. Without your customer's continuous feedback and high involvement in the development process, your project will be doomed to fail.

Which of the following could be the biggest cause for failure in an agile project? ›

Inadequate Experience In Using Agile Methods

According to the results of surveys on agile projects and their implementation, the lack of sufficient knowledge and experience in applying basic agile techniques, is one of the primary reasons for failure of agile projects.

Where does Agile doesn't work? ›

Agile isn't universal. Some products, companies, and teams simply cannot work effectively within Agile frameworks. These may include healthcare, financial, or other types of strictly regulated organizations.

Is Agile development a failing concept? ›

There are many stories of companies that have benefitted from going agile. However, agile is failing to meet expectations in larger organizations; in many cases, it is failing because established strategic planning conflicts with the notion of a lean enterprise and agile planning (with very short time horizons).

Why do scrum projects fail? ›

Many Scrum Teams still work in silos, building parts of the product that only work when put together. This violates the purpose of Scrum. Without inspection and adaptation, without empiricism, a Scrum Team has no clue if they build something of value. With that, the team is heading for failure.

What percentage of agile projects fail? ›

So the best data we have shows 41.62% success and 46.92% late, over budget, with unhappy customers, and 11.46% failing completely and delivering nothing. So I see 47% failed Agile Transformations as actually, a conservative number.

Why does Agile not fit well for large projects? ›

Massive enterprise software development teams fall apart using Agile because of the lack of human coordination and cooperation. They've relied too much on cold, unfeeling frameworks, tools and processes. Implementing changes quickly and flexibly requires collaborative understanding and team harmony.

Is Agile going away? ›

The agile movement revolutionised the way technology companies operated and was a key driving force behind successes like Google, Facebook and Airbnb. But, two decades after it started, the movement is now dead with the final blow dealt by McKinsey recently promoting an “agile transformation office”.

Are agile projects more successful than others? ›

Agile Projects Succeed More Frequently.

The Standish Group data shows that Agile projects are 3X more likely to succeed or 1/3 less likely to fail than waterfall approaches.

What is the optimal number of members for an agile team? ›

More about that in a moment. Second, for those of you who demand a prefer an answer upfront, here it is – the optimal number of members for an agile team is 5 or 6 people. That is 5 or 6 team members and excludes roles like Scrum Master, Product Owner, and God forbid, Project Manager.

What are the agile values? ›

Four values of Agile

individuals and interactions over processes and tools; working software over comprehensive documentation; customer collaboration over contract negotiation; and. responding to change over following a plan.

Why agile is popular? ›

Why is Agile so Popular? Agile methodology overcomes the risk of spending a lot of time if there are any changes required. It allows teams to work directly with clients, instead of working with other teams. This provides a clear outcome with a focused goal and in an incremental way.

How do you convert agile to waterfall? ›

8 ways to ease the transition from waterfall to agile
  1. Train staff. Springing new ideas and practices on staff members is a recipe for disaster. ...
  2. Emphasize change of thinking. ...
  3. Communicate regularly. ...
  4. Foster collaboration. ...
  5. Integrate tools. ...
  6. Stay Flexible. ...
  7. Concentrate on the End-Product.

How long does an agile transformation take? ›

While one might argue that an Agile Transformation is never complete, most experts believe that the transformation of the culture of an organization takes 3 to 5 years. Most organizations won't give it that long.

How are agile transformations measured? ›

While there are ways to quantify progress – particularly with regard to speed and revenue – not every change can be put into data and figures.
  1. 5 success metrics for Agile transformation. ...
  2. Changes to culture. ...
  3. Improvements to efficiency and speed. ...
  4. Focus on customer-centricity. ...
  5. Increased innovation and creativity.
2 Mar 2022

What is agile mindset? ›

The agile mindset is a thought process that involves understanding, collaborating, learning, and staying flexible to achieve high-performing results. By combining the agile mindset with processes and tools, teams can adapt to change and deliver incremental value to their customers.

When should clients be looking to go through an agile transformation? ›

Some organizations adopt Agile because they want to increase speed to market, meet customer demand, or increase team productivity. In other words, these organizations seek efficiency. They want to develop software better, faster, and cheaper. These organizations are potentially setting themselves up for disappointment.

How do you do change management in agile? ›

An Agile Approach to Change Management
  1. Declare your change vision. ...
  2. Empower the people who are best positioned to drive change from the beginning. ...
  3. Encourage self-organizing teams to supplement your efforts. ...
  4. Use internal social channels and influencers to drive employee awareness and engagement.
11 Jan 2021

What is enterprise agile transformation? ›

What is Agile Transformation? Agile transformation is the process of transforming the structure, strategy, people, processes, and technology of an organization based on enterprise Agile principles.

What is the highest priority of the Agile Manifesto? ›

The Key Values and Principles of the Agile Manifesto

Our highest priority is to satisfy the customer through early and continuous delivery of valuable software. Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage.

What the challenges I faced working in an Agile group? ›

The most common challenges faced by Agile teams include: Honoring the new processes / procedures. Communicating effectively with stakeholders and business owners. Adapting to changes in business requirements while minimizing wasted effort.

What are some challenges organizations can face when transitioning to Agile? ›

12 key challenges on an Agile transformation journey
  • 3rd party involvement influences ways of working. ...
  • Investment decisions require up-front certainty. ...
  • Stakeholders uncomfortable with loss of predictability and control. ...
  • Right Product Owner can't be found. ...
  • Governance processes remain slow.
28 Oct 2019

What are issues in Agile? ›

5 Key Disadvantages of Agile Methodology
  • Poor resource planning. ...
  • Limited documentation. ...
  • Fragmented output. ...
  • No finite end. ...
  • Difficult measurement.

How can the challenges of Agile be mitigated or overcome? ›

The number one way to overcome the challenges you will face throughout your adoption of Agile is through training. Often, any reservations that people may have about a topic or idea comes from fear. Adopting a new idea or way of managing projects can be scary and people may be anxious about the unknown.

How do you measure success in Agile? ›

Top 10 Tips for Measuring Agile Success
  1. #1 On-Time Delivery. ...
  2. #2 Product Quality. ...
  3. #4 Business Value. ...
  4. #5 Product Scope (Features, Requirements) ...
  5. #6 Project Visibility. ...
  6. #8 Predictability. ...
  7. #9 Process Improvement. ...
  8. Conclusion.
31 Mar 2015

Why do companies fail agile? ›

Agile transformation demands that the concerned teams focus on the customers and the deliverables. Instead, organizations sometimes focus too much on productivity and technology, which is why agile transformations fail. Since the focus is vague, products don't get adequately defined.

Why agile is failing at large companies? ›

Possibly the biggest reason why agile projects fail in large enterprises is the fact that people just don't have experience with the methodology or how to integrate it. In fact, it was the top cause of agile project failure, cited by 44 percent of participants, according to the VersionOne survey.

What is an important responsibility of an agile leader? ›

Agile Leaders must promote and facilitate a work environment in which employees thrive and allow them to be proud of their work. Agile Leaders support their teams and guide them in the execution of experiments. They create a secure environment where teams can learn from mistakes, experiments, and testing.

What makes an Agile transformation successful? ›

Agile transformations are more successful when top management expresses a deep understanding of why it wants to work with Scrum and Agile and commits to the removal of impediments that make this difficult. Furthermore, they can increase success by acknowledging the role and autonomy of teams.

What was or is your biggest challenge with transitioning to Agile? ›

Expectations from Agile

This is the most common and often the biggest challenge while implementing Agile. It is very important to know what the expectations from Agile are or why your organization has decided to implement Agile.

What is an Agile transformation? ›

Agile transformation is the process of transitioning an entire organization to a nimble, reactive approach based on agile principles. Understanding agile transformation begins with understanding what it is not: adopting agile software development methodologies.

How do you lead a successful transformation? ›

Four Ways to Lead a Successful Transformation
  1. Make the transformation meaningful. Whether employees buy into a change effort can spell the difference between success and failure. ...
  2. Be the change you want to see the mindsets and behavior you want to see. ...
  3. Build a strong and committed top team. ...
  4. Relentlessly pursue impact.
22 Sept 2011

What are the 3 pillars of Scrum? ›

If you carefully scrutinize scrum, you will find again and again the three pillars of empirical process control: transparency, inspection, and adaptation.

What are some common challenges and mistakes faced by agile teams? ›

The problems include issues with (1) communicating; (2) managing day-to-day operational problems; (3) gaining buy-in from management, customers, and team members; (4) changing culture and mindset; and (5) gaining experience and making it work.

What are some common challenges teams have with implementing an agile way of working? ›

Agile challenges and how to beat them
  • Clashes with finance. “You don't scope everything out to the -nth degree. ...
  • Lack of planning. ...
  • Change resistance to agile. ...
  • Legacy HR practices. ...
  • Taking a waterfall approach to agile rollouts.
24 Oct 2019

How should an agile team view failure? ›

Leaders must allow vulnerability

When leaders become vulnerable, they earn the trust of those they lead. Leaders must begin to admit failure if they want their culture to make this critical change. And at the very least, they should not shy away from the word “fail” by substituting “learn.”

Which of the following could be the biggest cause for failure in an agile project? ›

Inadequate Experience In Using Agile Methods

According to the results of surveys on agile projects and their implementation, the lack of sufficient knowledge and experience in applying basic agile techniques, is one of the primary reasons for failure of agile projects.

Why big companies are not agile? ›

Massive enterprise software development teams fall apart using Agile because of the lack of human coordination and cooperation. They've relied too much on cold, unfeeling frameworks, tools and processes. Implementing changes quickly and flexibly requires collaborative understanding and team harmony.

What is agile transformation roadmap? ›

An agile transformation roadmap is a visual plan that guides an organization on how to transform to an agile workflow for faster innovation and enhanced customer experience. The roadmap usually contains clear goals, success metrics, product vision, as well as initiatives to be taken by key team leaders.

How long do agile transformations take? ›

While one might argue that an Agile Transformation is never complete, most experts believe that the transformation of the culture of an organization takes 3 to 5 years. Most organizations won't give it that long.

How long does the average agile transformation take? ›

How Long Does an Agile Transformation Take? Every Agile Transformation takes exactly 42 months!

Videos

1. Developing an Agile Mindset and Culture in the Workplace with Dave Howden and Campbell Such
(The Human Edge Show)
2. What is Agile?
(Mark Shead)
3. Scaling "agiLE”: Agile in the Large Enterprise (2/6/20)
(UCI Division of Continuing Education)
4. Your Complete Puppy Training Schedule By Age
(McCann Dog Training)
5. Scrum master pre-interview practice & feedback- Listen till the end to get my feedback
(SAFe Scrum CHATROOM)
6. Enterprise Agile and Leadership Transformation Stories
(Temenos+Agility)

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