Thought Leadership Article
Agile transformation: what, where, why?
Almost everyone nowadays speaks about Agility in the enterprise context. But what does it mean? Where are we heading – and why? An article by Nuno Furtado da Silva, Practice Manager VISEO Portugal.
While Agile principles reportedly had its inception in the 1990’s, about 20 years ago the Agile Manifesto [1] started to produce significant impact in software development.
As complexity, size and quantity of initiatives involving software delivery largely increased over the years, it became clear that traditional approaches were not enough. Demand and pressure on IT departments raised (numerous projects, more and better services, deeper expertise in multi-technological fields), human capital was scarce (still is) – and no single “formula” or method could help satisfying different (sometimes, conflicting) expectations from distinct enterprise stakeholders. Especially while seeking customer-centric products (constantly requiring adaptation), at the same time maintaining stability of operations, in less dynamic systems, like core, financial, compliance, etc.
What does Agility mean?
The boundaries of Agility have been extending, from the software development and IT teams, potentially to all the areas within an organization. On the other hand, to cope with the demands of both rapidity and innovation, at the same time preserving operations stability, the space for a “dual” operating system emerged, with distinct focuses: one on value streams and market dynamics, while the other more focused on efficiency, repeatability and compliance.
Nowadays, Agility means “Business”. Literally. Both in terms of acumen and swift perception of market change, clearness of vision, as well as ability to adapt fast, seizing market opportunities.
To achieve this Business Agility, several capabilities grounded on solid competencies are required. Yet the most well-recognized ones, relate to cross-functional/ self-organizing teams and technical agility, as well as to product delivery (in a context of continuous understanding and exploration of customer needs), based on Agile values and principles [1] – oriented towards short time-to-market, valuable delivery of products and services. At scale, it also requires teams of agile teams (including external providers) to be aligned and coordinated, to deliver programs within an enterprise portfolio, possibly involving complex cyber-physical systems [2].
Current landscape
While many related methods and frameworks exist [3], Agile practices are still largely associated to Software Development, IT and Operations. With it, more importance is given to DevOps processes and tools, as agile maturity increases. At the same time realizing that alignment and coordination is required among all areas of an organization [4].
While the main reason to adopt Agile is still related to accelerating software delivery, next to it are ability to manage changing priorities and increase productivity [4], a continuous concern of practically any area of an enterprise.
Unsurprisingly, the concept of Agility started to extend across teams. From this “organizational agility” perspective, modern industries like the ones related to technology and software, consider themselves above average, whereas more established industries, like retail and consumer durables, utilities and energy, manufacturing and automotive, evaluate themselves less agile [5].
Where are we heading?
Businesses are required to progress increasingly faster, as technology enables new ways, as well as new businesses [6]. The enhanced network effect of connecting people, devices and businesses profoundly changes their nature [7] and promotes new ideas, that may become new products and services.
But it takes a lot more than technology and effective software related processes to be sustainable in the long term. It especially requires, fresh ideas and innovation to flourish, as well as to craft and delivering it to the market – and all this requires motivated, aligned, and committed knowledge workers across practically all areas of an organization to accomplish.
In short: ahead of us and as far as we can predict, Agile values and principles will continue providing important principles, mindsets, practices, and methods beyond software development, for businesses to compete and succeed. Business Agility will be valuable for any industry.
How to make it happen?
Reaching Business Agility at scale, means to develop an organization to reach a higher state of maturity based on Agile principles across several competencies, both of execution (related to technical and product delivery by agile teams, based on enterprise solutions) and of strategy development (portfolio management, organizational agility and continuous learning), while keeping focus on customer / market needs [2].
First, people across an organization independently of their functions and expertise, must realize there is a need for change, and why this change should be promoted and adopted. Whatever the reasons – more strategic, to more operational in nature – this need should be grounded in objective, specific indicators that strongly suggest and support the case for change.
In the so-called age of the 4th Industrial Revolution, the need for change is strongly grounded on competition of highly disruptive nature – among other, rising from startups that do not require significant material resources/ tangible assets to impact markets. Agile by nature, they combine recent technologies (further allowing them to scale fast), develop new business models, refine ideas through exploration and iteration, to address the needs of markets and customers, providing compelling new experiences and value propositions.
After recognizing the need for change, companies identify and assess the competencies to be improved to reach a desirable, competitive state in terms of Business Agility. Key people to drive this Agile Transformation, starting with leadership, are mobilized; the core team is assembled. Training starts; communication plans are prepared and activated. A baseline roadmap is produced to orientate change journeys and activities, that in turn develop the required competencies. New means of work, practices, and tools are progressively deployed – including suppliers and respective contract terms (requiring more flexible approaches within such an agile context). Impact is measured, adjustments are made as necessary. Adoption advances and culture evolves. Outcomes are achieved and value is delivered to customers, markets and ultimately, to the company.
Obviously, no transformation is simple nor free of challenges. When deploying agility at scale, at the top appear resistance to change, not enough leadership participation, and inconsistent processes/ practices across teams and organizational culture [4].
How may VISEO help?
Digitalization of processes, personalization of customer experiences, breakthrough innovations are shaping the new landscape of business life. To give your organization all the tools it needs to win the digital competition, it is now necessary to place agility at the heart of its operation.
By offering advice, training and coaching, we initiate or accelerate your Lean and Agile transformation. Our coaches have expertise in managing cultural and organizational change and implementing technical prerequisites. They are involved at all levels of your ecosystem (team, program, portfolio, architecture, process, sourcing, purchasing, legal, finance, governance, human resources...).
We can mobilize enterprise frameworks such as SAFe®, LeSS, Nexus, SSwS, DaD, RAGE, eScrum, etc., to bring out new ways of collaboration, new ways of producing and selling. Finally, we provide a structured and objective assessment of the level of agility achieved by your team or organization.
Want to make your organization more agile? Contact us!
