Agile Transformation in Large Enterprises – Part 1

Theory of Transformation

Agile adoption enables companies to deliver products faster. Agile methods seek to satisfy customers through early and continuous delivery of value. Because product requirements change too rapidly to use Waterfall methods successfully, more and more enterprises see Agile as the best way to delight their customers.

According to Cottemeyer, by focusing on the fundamentals of agile delivery, while systematically and methodically breaking dependencies, enterprises can achieve true enterprise agility.

Cottemeyer’s approach is pragmatic and methodical way to start a transformation. However, it is a bit too linear and mechanical for our current environment. More organic models of emergent complexity are likely to offer more substantial long term benefits.

Aspire to be agile

Agility is the ability to be quick and graceful. To become agile, the architects of the transformation, and ideally everyone in the organization, must develop an understanding of the flow of value through the organization. Organizational agility will be impossible to attain if only the architects of the transformation understand the flow of value.

Align the organization

Iterative development helps an enterprise to develop proper organizational alignment and flexibility. The flow of value through the company becomes faster and more intricate with consistent practice yielding health, balance and agility. Lean practices illuminate proper organization.

Aim for smooth value flow

Lean Startups use their agility to outcompete others with fast market delivery mechanisms. The enterprise exhibits a connected flow of value throughout the organization. From procurement to delivery there are no gaps in the value flow, which is unified, smooth, fluid, and continuous. The enterprise aims for flexibility across all units, departments, and teams.

First walk, then run

Before implementing complex practices, however, the firm must master the basics. In both thinking and culture, the company should produce a continuous delivery of value. The firm can only realize its potential when its value is full and balanced, with no ‘weak links in the chain.’ Development of an enterprise capable of flexibility and connection requires training teams to deliver value in a continuous manner. Enhancing the delivery of value requires iterative practices designed to train select teams separately before rolling out the initiative across the organization. Sometimes, however, due to dependencies it may not make sense to train only select teams.

Theory of transformation according to Mike Cottemeyer

  • Agile transformation begins by defining a rational system of delivery.
  • True agility comes from breaking dependencies between teams.
  • Every dependency limits the ability to adjust to business requirements. Coordination points restrict freedom of movement.
  • Healthy culture and solid practices emerge within a rational delivery framework.

Corollary 1: Lean techniques can be used to eliminate everything except what is essential to Agile [modified]

Corollary 2: Agile can mean different things to different companies and not all agile approaches will work well for every organization

Corollary 3: Organizational change can be mapped out in such a way that outcomes are measurable and predictable and economically justified

Corollary 4: Organizational constructs, governance models, metrics and controls can be established without violating the principles of agile

Corollary 5: Organizations can adopt agile safely and pragmatically by iteratively and incrementally introducing structure, governance, and metrics and maturing practices and culture over time

What do you think?

What theory of transformation guides your organization? What heuristics guide your understanding?

See also:

Agile Transformation… (2/4) – Ways to drive the transformation
Agile Transformation… (3/4) – The fundamentals of Agile transformation
Agile Transformation… (4/4) – Develop an Agile transformation roadmap
References:

Cottemeyer, Mike, 29 October 2014, Why Agile is Failing in Large Enterprises & What You Can Do About It, Tampa Bay Agile Meetup presentation, hosted by Valpak Manufacturing Center, St. Petersburg, FL.

About Dan & Agile and Beyond:

Dan Feldman is the creator and host of the Agile and Beyond podcast. With Agile practitioners, design thinkers, team builders, organization designers, entrepreneurs, and visionaries, he explores the future of work, education, and society. With the digital age demanding greater collaboration, enhanced creativity, and heightened agility, he examines avant-garde, responsive, collaborative team and organization designs as well as the shifts in our individual and collective perception of experience and purpose. Tune in!

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