Making Agile work for your business is a real challenge. There is widespread knowledge that exists about almost every possible aspect of how to optimize an Agile development process at a team level; however, the knowledge about how to make Agile work at an enterprise level is much more limited. There have been numerous failures in trying to make Agile work at an enterprise level and I believe that there are some significant misconceptions behind these failures:
Agile versus Waterfall
At the project management level, there is a big misconception that there is a binary and mutually-exclusive choice between an Agile approach and a traditional plan-driven project management approach (or what people many times refer to loosely as “Waterfall”). The result of this misconception is that people often try to force-fit projects to one of those extremes when a much better solution is to fit the approach to the project and sometimes a hybrid of the two approaches is the best fit. (See my online training course “Learning the Truth About Agile versus Waterfall” for more on that)
Aligning Agile With a Business Strategy
Another big misconception is that whatever is good for the development process must be good for the company as a whole and that is also not necessarily the case. At the business management level, the approach should be designed around what makes the most sense for the company’s business and that may or may not be exactly the same as the approach used to manage projects at the development level. The people designing the enterprise-level strategy need to be able to understand the business strategy as well as the development strategy and fit the two together. It isn’t necessarily just a matter of forcing the entire company to become more agile.
- An Agile development process is easiest to apply in companies whose primary business is developing software products (Such as Intuit QuickBooks and TurboTax) or companies where software development has a very direct and significant leverage effect on the company’s business (Such as Amazon.com). In those companies, there is a fairly direct alignment between a company’s overall business management goals and an Agile development process.
- In companies where that is not the case, the alignment may be less direct. For example, it may or may not be totally realistic for a company to adopt a complete, top-to-bottom Agile approach for their entire business and a more traditional, plan-driven approach may be appropriate at the higher levels (at least as an interim solution). However, that doesn’t preclude implementing a totally Agile or hybrid Agile development process. The Managed Agile Development process is an example of a hybrid Agile approach that can be used in that kind of environment.
Enterprise-level Agile Transformation Strategies
There are a number of different potential strategies at an organizational level for implementing an Agile transformation:
- Some organizations may choose to implement a relatively complete top-to-bottom Agile transformation for their business – Dean Leffingwell’s Scaled Agile Framework (SAFe) is an example of such a model. However, that can be a very ambitious and gut-wrenching change for many organizations and it also may not be the best solution.
- Fortunately, there are other alternatives companies can select to fit an Agile approach with their business
Organizations typically have different layers of management as shown in the diagram below; and, at each level, there is a choice of taking more of an Agile approach or more of a traditional, plan-driven approach:
The important thing to recognize is that this is not a “one size fits all” decision. What is the right approach for one company may not be the best approach for another. It’s kind of like a chess game to choose the fit the right strategy to each level of the organization as shown in the diagram below:
It should be apparent that making Agile work at an enterprise level isn’t necessarily as simple as it might seem and requires a broad understanding of both the business strategy and the development strategy to fit the two together. For more information on this subject, check out my online training course on “Making Agile Work for Your Business”.