Back to the roots of agility

Agile methodologies such as Scrum and Kanban have become increasingly popular in recent years, especially in software development. These methodologies focus on improving service/product, collaboration and flow so that companies can respond quickly to changing market conditions and customer needs. One factor that has contributed to the growth of agile methodologies is low interest rates.

In a market where capital is abundant, companies have more resources to invest in new projects and technologies. This has led to an increased focus on innovation and a greater willingness to experiment with new methodologies and approaches. According to a study by McKinsey & Company, the availability of low-cost capital has enabled companies to invest in innovation and digital transformation, leading to increased adoption of agile methodologies. The study found that organizations that had implemented agile methodologies had a higher success rate in achieving their digital transformation goals.The increased adoption of agile methodologies and frameworks has led to an increase in the number of roles such as Scrum Master, OKR Master, Agile Coach, Release Train Engineer, Product Owner, Chief Product Owner, Technical Product Owner and others.

However, this has also contributed to confusion in management circles as companies struggle to understand and integrate the different roles and methods. A study by Gartner shows that "57% of executives see the complexity of Agile as a challenge and 39% of respondents have difficulty applying Agile methods in practice" (Gartner, 2021). An article in Forbes also points out that the growth of agile roles and frameworks can lead to unnecessary costs and that companies should examine which roles are actually necessary (Forbes, 2022).According to the article, the excessive growth of agile methodologies and roles has led to an increased demand for skilled employees, which has driven up the cost of these roles.

This can be a significant burden for companies in a market where capital is scarce. As if that wasn't bad enough, interest rates have risen over the past year, leading to a shortage of available capital. This has made it more difficult for companies, and start-ups in particular, to get the capital they need to invest in new projects and technologies. As a result, companies are now focusing more on generating direct business value. In other words, either becoming cash flow positive or expanding their margins, but more on that in another article.

To summarize, there is a tendency for agile methods to become more complex and diverse, making them more prone to misapplication. It is therefore important that agile methods return to their roots and focus on the value creation of innovative products and services. It is important to respect the core values and principles of the agile manifesto and not complicate them by creating additional unnecessary roles and meetings that could potentially affect team dynamics and collaboration.

If you'd like to see what this looks like, you can check out my recent post on Meta's restructuring.

Article in Forbes: https://www.forbes.com/sites/forbestechcouncil/2022/03/03/the-true-cost-of-agile-why-excessive-growth-of-agile-roles-is-too-expensive/?sh=14ebe87660ba

‍Study by McKinsey & Company: https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/agility-its-not-enough-to-just-scrum-anymore

‍Study by Gartner: https://www.gartner.com/en/documents/3999351/avoid-these-common-agile-transformation-mistakes