Developing an Agile Company Culture

Developing an Agile company culture can be a major obstacle to successfully implementing an Agile development approach; however, it doesn’t have to be that difficult. Some people make the mistake of thinking that you have to change the entire culture of a company in order to adopt an Agile development approach. I don’t believe that is either necessary or appropriate in many cases; a company’s culture should be designed around whatever business they are in and that may or may not be well-aligned with implementing an Agile development approach. See my previous blog post on “Agile and Corporate Culture” for more discussion on this:

http://managedagile.wordpress.com/2013/03/30/adapting-an-agile-development-process-to-a-corporate-culture/

Agile works best in companies that are in the business of developing products or where software product development is somehow very directly related to their primary business. In other companies where the relationship is more indirect, it can be much more difficult to implement an Agile development approach because it may not be as well-aligned with the company’s primary business objectives. An example is Walmart…Walmart’s primary business is driven by reducing costs. I’m sure that software development plays some role in that but it is much more indirect than a company like Amazon.com whose business is very directly leveraged by software development. It should be very easy for a company like Amazon.com to implement an Agile development approach and far more difficult for a company like Walmart to do the same thing.

The key point is that since Walmart’s primary business is through conventional brick-and-mortar retail stores, they have to develop a culture that is well-aligned with squeezing costs out of every area of their operations and managing a large number of retail stores very efficiently and effectively. Those are the primary drivers of their business and that may not align very well with an Agile development approach. If you were to set out to implement an Agile development process inside of a company like Walmart, would you try to get them to give up their entire corporate culture and adopt a different corporate culture that is more suitable for hosting an Agile development process? I don’t think so, but there are some fundamental aspects of any company’s culture that can be dysfunctional are most critical to adopting an Agile development approach. Here are a few of what I think are the most important factors:

  • Transparency and Trust – In many large corporations, there is somewhat of a contractual relationship between the business users and the people who deliver Information Technology solutions. The business users may be under intense pressure to reduce costs and want to get firm commitments from the solution providers on the costs and schedules of projects. That is one of the major factors that has can be a big obstacle to implementing an Agile development approach – sometimes it even creates somewhat of an adversarial relationship between the two organizations. The key to getting past that obstacle is:
    1. Companies need to realize that this is not an “all-or-nothing” proposition to totally give up all control of projects to become Agile. There are many ways to blend traditional project management principles and practices with Agile principles and practices to develop the right balance of agility and control. See my blog post on a Hybrid Agile framework here:http://managedagile.wordpress.com/2013/07/22/a-hybrid-agile-development-framework/
    2. Developing a spirit of trust, partnership, and collaboration between the two organizations can require some strong executive-level leadership to break down some of the traditional barriers that exist inside of companies. The strongest driving force for making that happen is that it requires a more collaborative partnership approach to focus on rapid innovation.
  • Focus on Continuous Improvement and Innovation – A focus on process improvement and continuous innovation is certainly not new to Agile. It has been around a long time and many companies have successfully adopted continuous improvement approaches based on Six Sigma and other methodologies. I published my first book in that area called “From Quality to Business Excellence” in 2003. What I found was that in the companies that did Six Sigma well, it may not even be noticeable that it was Six Sigma. They may not have a lot of the hoopla like black belts and green belts that are normally associated with Six Sigma and it was so deeply engrained into the way the company did business, that it may not even have been called Six Sigma.The companies that did it well took a systems thinking approach to adapt it to their business while the more superficial companies simply did it mechanically “by the book” and treated it as just another “Program du jour”. I think a similar thing is happening today with Agile. Companies who take the time and effort to understand Agile at a deeper level and adapt it to their business are probably more likely to do it successfully.
  • Respect for People and Self-organizing Teams – This principle is also not new to Agile. It was a key element of Dr. Deming’s principles that form the basis of the Total Quality Management (TQM) approach and I can remember a strong focus on this when I worked at Motorola in the early 1990’s. It’s another thing like Six Sigma that some companies forget about when the pressure gets intense to deliver business results. They sometimes take a superficial, brute-force approach to try to drive business results rather than taking a systems-thinking approach to understanding the factors that drive business results and the role that people play in achieving those goals.

If you only focus on those three things about a company’s culture, I think you will have a pretty good foundation for implementing an Agile development approach and those three things are somewhat common to all companies regardless of what business they’re in.

By the way, here’s an interesting footnote to this article: Walmart has recognized the importance of e-commerce to their business and has formed a new division called “Walmart Labs” to address that challenge. Here’s an interesting article on that topic:

http://www.technologyreview.com/news/429589/walmarts-new-high-tech-labs-youre-not-in-arkansas-anymore/

2 thoughts on “Developing an Agile Company Culture”

  1. Hat dies auf markusernsten rebloggt und kommentierte:
    As there are so many variables in companies and their cultures the least important is that the Management has the willingness to look into Cultural Change (or even to develop a productive Company Culture) ….

Leave a Reply

Your email address will not be published. Required fields are marked *