Stop Doing Agile Transformations That Don't Work. Transform Your Business Instead.

It’s probably not pumping my own tires to say that (lowercase ‘a’) agility has become a cornerstone of success in the last 15-20 years. Organizations that can swiftly adapt to change, respond to customer needs, and not flinch at emerging opportunities are the ones thriving. And many have gotten there by embracing (uppercase ‘A’) Agile methodologies. However, merely adopting Agile practices isn't enough. You can’t Daily Scrum your way to success, that’s not a thing. Organizations both big and small that attempt to transform through practices alone often create a frustrating environment and see little in terms of the value of agility. So instead of focusing on practice-driven Agile transformations that don’t work, consider transforming the entire business to align with an agile mindset and principles.

So fancy…

I don’t use the word milieu very often, probably because I’m never exactly sure what it means. Even if I did, I don’t enjoy sounding like a pretentious a-hole. I think it’s a fancy word for atmosphere, and I think it’s appropriate here. Environment, backdrop, setting, context, conditions. All those things matter to an Agile transformation. Success depends not just on practices, but on the milieu in which they are applied. If your organization is not changing its foundation, you’re building your Agile transformation on unstable ground.

I believe there are five key organizational hurdles to be cleared, which are critical to Agile success (and ultimately, agility). They are presented here in no particular order. Although every verb intentionally starts with the letter “E”, so maybe I should copyright “The Five E’s of Agile: Embrace, Encourage, Enact, Enable and Evolve.

I’m totally copyrighting that. Someone get me a lawyer.

  1. Embrace Learning: Creating a culture of innovation within organizations involves encouraging a fearless approach to learning, celebrating "failure" as a means of gaining insights, and granting autonomy to teams in their work methods and project choices. Innovation thrives in an environment where teams feel empowered. This shift towards embracing learning necessitates leaders who exemplify the test-and-learn mindset and trust their teams as the experts. The transformation is evident when experimentation takes precedence over merely seeking immediate "solutions."

  2. Encourage Continuous Improvement: A cousin of embracing learning is adopting a relentless focus on continuous improvement. Not just on the processes, but on the products and services you provide. To do this you must establish continuous feedback loops, both within teams and from customers, to gain insights and iterate. An annual customer survey or quarterly retrospective is not relentless, it’s lazy. You’ll know you’re there when you see high employee engagement, such as regular feedback, open communication channels, and active involvement in problem-solving and decision-making. If your teams aren't engaged in those things, they probably don’t give a s**t about your Agile transformation either.

  3. Enact Common Sense Governance: Stop killing your people with bureaucracy. Nothing sinks an Agile transformation faster than red tape. Traditional hierarchical structures impede progress. Businesses need to establish Agile governance frameworks that provide clear guidelines, foster collaboration, and remove unnecessary bureaucratic hurdles. Leadership holds the key to empowering teams, aligning the organization's vision with agile principles, and driving the necessary changes. You’ll know you’re there when your Product Owners and teams are collaborating to derive meaningful metrics specific to their own teams.

  4. Enable Cross-Functional Collaboration: Silos can be a major roadblock to agile adoption. Breaking down departmental barriers and encouraging cross-functional collaboration is essential to create a cohesive and agile organization. Start small. Embrace the idea that organizational structure should emerge naturally from how work is accomplished, rather than rigidly adhering to the org chart. You’ll know you're there when individuals identify themselves as members of their cross-functional teams rather than merely defining their department or role.

  5. Evolve Beyond Development: Agile methodologies, often linked to software development, offer advantages that reach far beyond IT departments. To unleash the full potential of agility, businesses must embrace this mindset across all functions, including marketing, finance, operations, and customer support. Implementing agile principles in these areas enables increased adaptability, quicker decision-making, and improved customer experiences. You'll know you’re there when your CFO seeks empirical data and performance metrics from Agile teams to make well-informed financial decisions.

Practices alone are not enough. To achieve successful Agile adoption, organizations must undergo a comprehensive transformation. Prioritizing the embrace of learning, continuous improvement, sensible governance, cross-functional collaboration, and adopting an agile mindset throughout the organization will unlock its full potential for success. Agile is more than a methodology; it represents a way of thinking and working that empowers businesses to flourish amidst uncertainty. If you focus on these 5 E’s (copyright pending), I’ll bet a paycheck your Agile transformation will be a success.