"Good decisions arise from experience. Experiences are the result of bad decisions. Decisions are learned and earned." (Bernd Ettelbrück)

Numerous companies are already working according to agile methods. However, only in the rarest of cases do they actually apply agile principles consistently. In this article, experienced project manager Bernd Ettelbrück shows some examples of well-known companies that have switched to agile working methods - and whether and how they have achieved success. The examples range from best practice to failure.

Note from the TCI editorial team: Click here to go directly to part 1 of the series "Agile methods in SMEs: basics, challenges and recommendations for action"

The pitfall of examples and references - why best practice cannot simply be copied

Examples and references are usually easy to read. The correlations presented are clear and easy to understand. It is much more difficult to transfer the knowledge gained from the examples to your own company. There is a big difference between a concept and its implementation. Another reason is often overlooked: An example always consists of two parts, a normative part with the principles from which the "learnings" are derived and a prescriptive part that describes the circumstances, contexts, external factors and conditions. The two belong together; in a reference, the prescriptive part is almost always omitted and only the normative set of rules is reported. This is then simple, descriptive and usually easy to understand.

Best practice examples for agility

In the media, we usually only read about the success stories of large companies - but agility success stories can now be found across the entire corporate landscape: from start-ups to dioceses to the US Navy, organizations are successfully changing management structures and processes (more on this in part 2 of this article Agile methods in SMEs: Basics, challenges and recommendations for action).

Agile values and their implementation in practice

The four Values of the Agile Manifesto are:

1. Individuals and interactions have priority over processes and tools.
2. Functional products have priority over comprehensive documentation.
3. Cooperation with customers takes precedence over contract negotiations.
4. Responding to changes has priority over strict adherence to the plan.

These four principles are understandable and a new paradigm for many companies. However, "having priority" should not be confused with "instead of". Both are important, both adherence to plans and the flexibility to pay attention to changes in the environment and adapt plans. This flexibility does not mean working haphazardly and falling into a kind of "fire-fighting mode" in which only what appears urgent and current is done.

Best practice: Implementing agility in a practical way

The following examples show how well-known companies have successfully adapted the principle of agility for themselves. This much in advance: it is not a question of implementing all principles as dogmatically as possible. Rather, it is about establishing practicable solutions that streamline processes and make work more efficient and easier for people.

The Scaled Agile Framework SAFe®

Large companies such as Accenture, Intel, Sony and Siemens use the Scaled Agile Framework SAFe®. The Scrum approach is scaled to several areas or an entire company and the work is aligned with lean-agile principles. The most frequently reported added values are shorter delivery times through improved processes and better alignment with the goals of the company or business unit. The first principle of the manifesto is ignored in SAFe® as processes are placed above individuals.

Adidas: Faster product innovations through agile methods

Adidas wanted to become faster and more innovative and began to work in an agile way. The leadership and management structure became agile. The company consciously decided against a digital lab, i.e. an outsourced organizational unit dedicated to innovation and digitalization, and instead focused on implementing agile working throughout the company. Adidas is a very successful sports brand; it is better than most of its competitors at picking up on trends and turning them into new products, especially for young female buyers. The extent to which this can be attributed to agile working remains unclear. Adidas continues to work with guiding principles and clearly defined competencies, thereby primarily serving the fourth principle from the manifesto.

Holtzbrinck Group: Kanban in the legal department

The Holtzbrinck Group uses Kanban quite successfully in the legal department. The basic idea was to achieve more customer-oriented solutions by increasing the transparency of the cases processed and sharing the knowledge and approaches of the individual legal experts. For the legal department, the move away from individual case processing resulted in a greater increase in knowledge for everyone and more "model solutions" for legal challenges. This implements the first value of the manifesto.

Spotify: Agile working with squads and tribes

Agile working with squads is a term coined by Spotify. Squads are scaled Scrum teams, i.e. several Scrum teams working side by side. The challenge is to coordinate these teams. To do this, teams work in parallel and independently of each other. Coordination meetings take place at previously defined milestones - and then a new iteration phase begins. Several squads form a "tribe". Many large companies have introduced the term tribe and have heads of tribes - a kind of department head who leads individual teams. The aim is to build a more agile team organization. The example of Spotify is often cited, but the company is still not making a profit and now wants to go public. Monetary success has yet to materialize. The revenue from paid subscriptions has not yet covered the GEMA fees. The example shows: Agile working does not fix inadequate business models.

Swisscom: Implementing agility in individual areas

Some medium-sized management consultancies and individual business units at Swisscom rely on autonomous teams that make and implement individual decisions. The idea is that experts who understand the topic make decisions together with those affected by the decision - individually and independently of each other. However, if other groups in the company or the management notice that a decision has a negative impact, it is improved or a new decision is made. The company no longer pursues fundamental planning, but continuously improves its decisions. This management tool is known as holacracy. The term comes from the Greek - "holos" means "whole, complete", "kratía" means "rule". The example of Swisscom shows that this agile approach can also be implemented in individual areas, while other parts of the company still work in the traditional way.

Conclusion: Best practice is characterized by pragmatism rather than dogmatism

There are only a few companies that are completely committed to agility and implement it in all areas; the values of the agile manifesto are not implemented consistently. However, the successes of agile working in the examples listed are not always convincing and can only be clearly attributed to agile working methods to a limited extent. Other aspects are therefore also crucial: Consideration of the framework conditions and triggers that led to the decision to adopt agile working (more on this in part 3 of this series) as well as suitable control systems and criteria for measuring success (more on this in part 4 of this series) of agile working methods.

Source cover image: © photon_photo | Adobe Stock