Enterprise Agility
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The values and principles of Agile

While this book is about agility, it is important to briefly define what Agile is. Agile was formally born in 2001, as an abstracted set of values and principles. 17 people, who were practicing their individual methodologies came together to define the manifesto and principles, which they believed to be common to all the underlying methodologies.

The Agile Manifesto

"We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:

Individuals and interactions over processes and tools

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

That is, while there is value in the items on the right, we value the items on the left more." [ii]

The creators of the Agile Manifesto also specified 12 principles that address areas such as incrementally delivering the highest value, welcoming change, self-organizing teams, and seeking continuous improvement. [iii]

Agile is a resounding success in IT

Given that the origins of Agile are rooted in ways to address the challenges arising out of the waterfall methodology for software development, which was failing to enable businesses to deal with a fast-changing environment, it was obvious that Agile would be adopted almost exclusively by IT delivery teams. There is now consensus that Agile's success in IT has been resounding. There is plenty of empirical evidence available which suggests that the success rates are three times higher for Agile-driven projects when compared with waterfall projects and are even higher for large and medium-scale projects. [iv]

According to a global survey, 98% of the respondents said that their organizations have realized success from Agile projects [v]. The survey stated the following top five benefits which the respondent enterprises had realized from adopting Agile:

"Ability to manage changing priorities

Project visibility

Increased team productivity

Delivery speed/time to market

Team morale"

Agile has also made a difference to the business world

One of the biggest impacts of Agile, and something which is its primary differentiator, is that it has helped to bring the business and IT departments closer to each other, if not bringing them on "same side of the table," through specific working practices. On account of this, businesses have seen meaningful benefits such as increased speed to market, resulting in higher ROI, lower cost of change, and lower risk due to fast feedback loops.

Issues with Agile adoption and scaling

Impressed by Agile's success at the team level, several enterprises saw the potential for Agile to be adopted in a broader way, that is, at program, portfolio and even enterprise levels. Companies that took an interest in Agile include IBM, GE Suncorp, ING Bank, Barclays Bank, and others like Salesforce.com, PayPal, John Deere, the BBC, Universal Credit, and so on. A common term, which has been used for Agile adoption at enterprise level, is Agile transformation. However, studies indicate that very few enterprises have derived, or are on the path to deriving, meaningful and sustainable enterprise-wide benefits from Agile. This is due to a variety of reasons, some of the prominent ones being as follows.

Focus on "doing" Agile

As stated earlier, Agile has its roots in IT. The Agile Manifesto, the 12 principles, and the practices within the methodologies are all oriented toward optimizing the delivery of software. It is therefore not surprising that many enterprises have not only kept Agile adoption limited to IT delivery but have also limited the adoption of Agile by merely applying the list of practices. This is because Agile is seen as something to "do," rather than something to "be." The difference between "doing" and "being" Agile has major implications at the enterprise level, as will emerge throughout this book. For the average enterprise, the benefits of Agile relate largely to the benefits derived from Agile practices only.

Moreover, differences in ways of working, and the approach to "managing" people in parts of the enterprise which have adopted Agile versus those which have not, create unhealthy friction. The tensions arising from such friction are usually addressed by diluting Agile to render it a mere "checkbox" exercise.

Adoption without addressing systemic issues

Enterprises that limit the adoption of Agile to only a part of their business have often seen the changes made quickly regress to their original state, thereby losing all, or most, of the benefits derived from Agile adoption. This happens due to Organizational Inertia [vi]. The unaddressed systemic issues appear to overpower the "green shoots" in the Agile-adopted part of the enterprise. This behavior is akin to antibodies overpowering a newly entered virus in a human body.

Examples of systemic dysfunctions include the business and IT sectors having different measures of success, KPIs which encourage and reward individualistic behaviors, and a culture of pleasing the boss, because the boss is the sole decider of the salary and career progression of subordinates.

According to Steve Denning, author of multiple books including The Leader's Guide to Radical Management:

"Single-fix changes at the team level may appear to make progress for a while, but eventually the interlocking elements of the organizational culture take over and the change is inexorably drawn back into the existing organizational culture. This isn't like fixing a car where if you fix a tire, the tire stays fixed. Instead the organization acts more like an ingeniously morphing virus that steadily adapts itself to, and ultimately defeats, intended fixes and returns to its original state, sometimes more virulent than before." [vii]

Adoption for wrong/unclear reasons

The benefits accruing from Agile adoption are now well recognized [viii]. Many enterprises, not wanting to be left behind, jumped on the Agile adoption bandwagon without truly understanding how to derive value from Agile.

Agile has become a "buzzword" for many, and therefore no enterprise wants to be seen as not having adopted Agile. Some businesses adopted Agile for merely optimizing their software development process, without much regard for business-driven outcomes such as an increase in customer satisfaction. Worse still, some others adopted Agile simply because "others are doing it."

Adopting Agile without linking it to a broader purpose, and without taking a systemic view, often results in unintended anti-patterns. An example of this is that in the quest to speed up delivery, teams have created technical debt, which, over a period of time, has been quite damaging. Another problem with merely "doing" Agile, that is, adopting Agile without the right mindset and culture change, is the wrong use of Agile practices. For example, story points are being used to measure and compare the productivity of teams. This, again, can create serious anti-patterns, as teams learn ways to "game the system" and thereby create a false sense of achievement, which can last only temporarily.

The "Cookie cutter" approach

The While Agile methodologies may be prescriptive to a certain extent, for example, Scrum prescribing the five "ceremonies," a one-size-fits-all approach does not work even for Agile practices, as the practices have multiple maturity levels. Adoption of Agile practices, without customizing for context, is a guaranteed recipe for failure.

The need for customization to context has tremendous significance for Agile adoption. It implies that both experience and expertise are needed to decide upon and facilitate the adoption of the appropriate practices. Moreover, Agile works on the principle of "inspect and adapt" and hence the adoption needs to be monitored closely and adjustments made swiftly as necessary.

Some enterprises have tried to save money by not engaging experienced coaches. Many have hired coaches who only appeared qualified. It is therefore not surprising that the benefits of Agile have been minimal or have not accrued at all for many companies. In many instances, half-hearted/incorrect adoption has caused serious damage to Agile's credibility and has also left teams in worse states than before they attempted adoption. The natural consequence is that leaders of such enterprises lost faith in Agile.

Early visibility of issues seen as a problem with Agile

One of the critical benefits of Agile practices is faster feedback. This implies that if something is failing, or not working well, it will become visible early. This is very valuable, as it provides an opportunity for early course correction. However, a lack of understanding of Agile has led to earlier visibility of issues, and even early failures, being seen as an impediment that slows down delivery. Ironically, a significant benefit of Agile has at times been erroneously seen as a problem with Agile, leading to Agile adoption being suspended or even abandoned.

Leaders feeling threatened

The problems that Agile helps to surface are not only related to what's broken in the delivery process, but also about systemic dysfunctions such as command and control culture, and silo-oriented optimization. These dysfunctions are almost always closely linked to leadership roles and behaviors.

When the dysfunctions related to their roles and behaviors start becoming visible, most leaders feel threatened and insecure. Such leaders, to protect themselves, have sabotaged and even stopped Agile adoptions, claiming that it is not meant for, or relevant to, their enterprise.

Wrong expectations

Agile, if implemented in the spirit of "being," brings positive outcomes early. Simple practices such as visualizing work in the pipeline, and daily stand ups, are highly impactful if used in the right way, even if they are implemented in the simplest form. The downside to this is that many enterprises have treated Agile like a "silver bullet" and expected it to act as a magic wand that can resolve all problems instantly. The reality is that Agile is not a problem solution framework, but a problem identification framework. Agile helps to surface problems early, through shorter feedback loops, as discussed in the previous point. Agile does not fix the dysfunctions in the system but helps to bring them out in the open early. Knowing the problems within the overall system is the fundamental step toward effectively enhancing agility in the enterprise.

Underestimating the extent and impact of change

A cardinal mistake, which most leaders and those helping enterprises to adopt Agile have made, is to underestimate and even ignore the breadth and depth of change and the ensuing impact of that change arising from Agile adoption. Agile, if adopted right, needs a significantly different mindset compared to traditional approaches. Change in mindset and behaviors is painful, for both leaders and teams. Change needs to be facilitated and steered, and that is a lot of hard work. Moreover, this type of intrinsic change almost always takes a very long time.

It took eight years for the insurance division of a large financial conglomerate in Australia, employing over 10,000 people, to achieve the mindset and culture change that began making a significant positive impact on its business.

In many cases, leaders have expected delivery teams to change their mindset while not doing much to enable that change. Even worse, many of them expect everyone to change but themselves. Consequently, many enterprises have ended up merely "doing" Agile and have either not attempted or have given up on a mindset and behavior change, that is, "being" Agile. Even merely "doing" Agile brings in benefits related to better visibility of the work pipeline, improved collaboration between delivery teams and business stakeholders, and so on, which puts teams in a much better position. Enterprises often miss out on bigger benefits by stopping at "doing" Agile, since they, albeit wrongly, believe that they have achieved the optimal benefits from Agile.

Even though agility is quite different from Agile, as explained in the following sections, the challenges encountered by enterprises in adopting Agile are very likely to be similar to those encountered when enhancing agility. Hence, it is important that enterprises draw lessons from these mistakes and avoid making them in the pursuit of enhancing agility.