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Paul Greenwell | Propel Ventures Co-FounderJul 18, 2023 10:55:35 AM3 min read

The Tragedy of Large-Scale Agile Transformations: Losing Sight of Outcomes over Output

Agile methodologies like Scrum, Kanban, and the Scaled Agile Framework (SAFe) have been adopted worldwide and permeated not only software development but various facets of business, helping teams to deliver high-quality products faster, iterate on feedback, and adapt to change.

Yet, as more companies initiate large-scale agile transformations, many are failing to realize the promised benefits. The culprit often isn't the agile methodologies themselves, but a misunderstanding and misapplication of their principles. As Christian Idiodi says at the 12 minute mark in the below video, "It fails because we fail to empower people - it fails because it becomes an exercise in exercise. They think that all the ceremonies equals agile."

The Essence of Agile

The Agile Manifesto, penned in 2001, proposed a revolutionary way of thinking about software development. It emphasized individuals and interactions over processes and tools, working software over comprehensive documentation, customer collaboration over contract negotiation, and responding to change over following a plan.

At its core, Agile is about accelerating the rate of learning by breaking down large problems into smaller, manageable parts. Scrum, for instance, employs a series of short iterations or "sprints" aimed at continuous improvement and adapting to change. Similarly, the Scaled Agile Framework (SAFe) focuses on applying agile principles at an enterprise scale, emphasizing alignment, collaboration, and delivery across multiple agile teams.

The idea is to increase cadence, foster collaboration, get products into customers' hands early, and relentlessly focus on business and customer outcomes. The focus is on customer value, team empowerment, and continuous improvement rather than rigid planning and control.

Misguided Intentions

The problem arises when executives misunderstand or distort these principles. Often, agile transformations are initiated with the expectation of "doing more with less" - increasing productivity and speed at a reduced cost. This mindset betrays a profound misunderstanding of agile, effectively reducing it to a mere productivity tool.

Agile is not merely a magic wand that makes teams work faster and more efficiently. It is, fundamentally, a shift in how teams approach their work, emphasizing learning, adaptation, and customer-centricity.

The Process Over Outcomes Paradox

The focus on productivity often leads to an overemphasis on the mechanics of agile methods, such as sprints, backlogs, and process tools like burn down charts and velocity. The actual business and customer outcomes recede into the background. Teams become so engrossed in sticking to the process that they lose sight of the bigger picture - delivering value to the customer.

This narrow focus on processes can result in the tragic irony of agile transformations: Teams may be working at an incredible pace, but without generating any meaningful impact.

The Empowerment Fallacy

Another misstep in many agile transformations is treating teams as "order takers," merely executing directives from above. This approach flies in the face of the agile principle of empowering teams to self-organize and make decisions.

Instead of merely adopting agile rituals, organizations need to imbibe the spirit of agile: empowering teams to solve problems creatively. Without this empowerment, agile transformations can become a hollow exercise, and teams can become disillusioned, leading to failed transformations.

Final Thoughts

Large-scale agile transformations fail not because agile methodologies are flawed, but often due to the misinterpretation and misapplication of agile principles. Agile is not a panacea for all organizational woes; it is not merely about going faster or squeezing more from less.

Instead, agile transformation should be viewed as a paradigm shift, a new way of thinking and working that prioritizes customer value, collaboration, adaptation, and team empowerment. Executives should approach agile transformation with these principles in mind, focusing not just on the velocity but on delivering value to the customer, fostering a culture of learning, and empowering their teams to become problem solvers, not just order takers.


Paul Greenwell | Propel Ventures Co-Founder

Accomplished product & technology leader with 20+ years’ experience delivering innovative solutions in industries including accounting, safety & defence.