Agile transformation refers to the process of transforming an entire organization into a responsive, agile approach that is based on agile principles.

Understanding agile transformation starts with understanding what it isn’t: adopting agile Software Development Methodologies. Any organization going through this transformation will likely embrace agile, Scrum and Lean. However, agile transformation goes beyond just changing the way software is built.

This is not just about product development. It’s about a total transformation of the entire organization. It is intended to give life and energy to the company by creating an environment that encourages creativity and innovation, empowers employees and reduces unnecessary layers of management.

This could lead to cross-functional and self-organized teams as well as a renewed focus on customer satisfaction, a reduction of processes and plans in favor of action and improved levels of internal communication.

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What is an Agile Transformation Process?

The agile transformation begins with the creation of a leadership team and setting goals. It is essential that the project remains on track and realistic by regularly reviewing progress against the roadmap.

To ensure that the whole organization understands the objectives, and is kept informed of any progress towards them, a communication plan should be included with the tactical one. Because this is a complex undertaking, small pilots are often conducted prior to an entire organization-wide rollout.

It is important to form cross-functional groups. This creates teams of 5-10 people who have enough talent and expertise to handle projects from conception to completion. These units can be self-contained and eliminate the need for handoffs as well as the inevitable problems that may arise during these transitions.

The team approach to project assignment shifts also from the individual to the group. Evaluations of the team are done for all projects. Individual staff members are not selected for specific engagements.

This can be achieved by reducing the use of organizational silos and bureaucracy to foster agile transformation. Some of these tasks can be completed in one go, but the majority of it is continuous, ongoing assessment and improvement to foster an agile-friendly environment. Changes in office layouts may be necessary to accommodate team members in the same space.

To make the most out of agile transformations in organizations, employees will need to be provided with ongoing coaching and professional development. These are new ideas and best practices that will be beneficial to most employees. Therefore, it is important for the company to invest in mentoring and training. This involves empowering employees to solve problems on their own and educating managers about how to reward and evaluate them in this new paradigm.

To facilitate new workflows, new processes need to be created. Each one will require ownership, training, as well as dissemination across the company.

10 STEPS TO A AGILE TRANSFORMATION

It is important to know how to plan in order to deliver business value at regular increments during the Transformation. It is important to change the way you work. The goal is to transform the way you work.

Although every Agile Transformation is unique, we see most organizations go through these steps:

STEP 1: BUILD a Leadership Collaboration

Agile Transformation will require that every department of the company is changed and supported from the top. It is important that executives understand the changes and are fully on board.

STEP 2: DEFINE AN END STATE PROVISION

It is important to know where we are going before we begin. However, the plan will likely change. The plan also includes a working hypothesis about structure, governance, metrics, which will be further developed throughout the Transformation. It is easy to understand how to create teams at scale and how those teams can do their work.

STEP 3: BUILD A TRANSFORMATION ROADMAP

Which team, capability, or group is the first? Second? Third? Third, we need to inform the organization about what we are going to do, the time it will take and the benefits we expect to achieve from our investment. The groups that transform together are called Expeditions. Basecamps are the intermediate outcomes they achieve.

STEP 4: MAINTAIN A ROLLING 90 DAY PLAN

The Transformation Leadership Team meets regularly to plan, evaluate progress and adjust as needed. A rolling 90-day plan is required that gives a clear view of the future. The 90-day plan should be similar to an Agile release or PI. This plan will list all items in the organization that will have an impact on the next 90 days.

STEP 5: CONDUCT A 30-DAY CHECKPOINTS

Like the sprint cycle, we will periodically evaluate the progress of the Transformation work, look back, and adjust.

STEP 6: ADAPT AND LEARN

Based on how our understanding evolved over the course of the Transformation, reassess your end-state vision.

STEP 7: CONNECT ACTIVITY TO EXPECTS

We do this because we want to improve business outcomes. The first step in justifying an investment is to create hypotheses, conduct experiments, demonstrate outcomes, and then pivot based on the lessons learned. Although all the activities will not be known beforehand, we aim to be able to sequence the results and ensure that they tie back to the desired business outcomes.

STEP 8: CONNECT OUTCOMES WITH BUSINESS OBJECTIVES

We want to be in a position to show the executives the progress made against business metrics and trace the improvements to the system. It is our ultimate goal to link the dollar invested with the measurable results achieved.

STEP 9: MANAGE COMMUNICATION

It will generate excitement and energy by providing regular, transparent communication from the leadership about progress and any impediments. This can often take the form of Executive roundtables and Town Halls.

STEP 10: CREATE SECURITY FOR ALL PARTICIPANTS

Everyone should see the benefits and how they can fit into the new organization. Everyone can see the benefits of clarity, accountability, as well as measurable progress.

What are the common problems in agile transformation?

It is not easy to successfully complete an agile transformation. There may be turf battles as power structures are thrown off the table.

Agile transformation can take years and sometimes fail to be fully implemented. These efforts could fail to reap the full benefits of the transformation if there is not enough executive buy-in.

Leadership changes can also cause disruption or undo some of the work that was done. New leadership might not believe in the merits of the system, disagree with it, or be willing to dedicate the time and resources required. These efforts will likely die if there isn’t a commitment to the transformation and urgency.

It is difficult to communicate the benefits of agile transformation with every employee, as the transformation goes beyond product development. Accounts Receivable may not embrace customer-centricity as much as Customer Service.

Conclusion

Agile transformation allows organizations to be more responsive, do more with less and serve their customers better. An agile transformation is difficult to achieve without significant support, resources and time.

An agile transformation can transform the way a company manages its projects, responds to customer needs and grows its business. This is why many organizations are prepared to put in the effort to make it happen.