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Darrell Rigby - Doing Agile Right: Transformation Without Chaos

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Agile has the power to transform work--but only if its implemented the right way.For decades business leaders have been painfully aware of a huge chasm: They aspire to create nimble, flexible enterprises. But their day-to-day reality is silos, sluggish processes, and stalled innovation. Today, agile is hailed as the essential bridge across this chasm, with the potential to transform a company and catapult it to the head of the pack.Not so fast. In this clear-eyed, indispensable book, Bain & Company thought leader Darrell Rigby and his colleagues Sarah Elk and Steve Berez provide a much-needed reality check. They dispel the myths and misconceptions that have accompanied agiles rise to prominence--the idea that it can reshape an organization all at once, for instance, or that it should be used in every function and for all types of work. They illustrate that agile teams can indeed be powerful, making peoples jobs more rewarding and turbocharging innovation, but such results are possible only if the method is fully understood and implemented the right way.The key, they argue, is balance. Every organization must optimize and tightly control some of its operations, and at the same time innovate. Agile, done well, enables vigorous innovation without sacrificing the efficiency and reliability essential to traditional operations. The authors break down how agile really works, show what not to do, and explain the crucial importance of scaling agile properly in order to reap its full benefit. They then lay out a road map for leading the transition to a truly agile enterprise.Agile isnt a goal in itself; its a means to becoming a high-performance operation. Doing Agile Right is a must-have guide for any company trying to make the transition--or trying to sustain high agility.

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Contents Guide Pagebreaks of the print version Highly recommended A sparkling - photo 1
Contents
Guide
Pagebreaks of the print version

Highly recommended. A sparkling book that is not only easy to read and digest in one day but also packed with useful tips. Applicable to everyone, with clear dos and donts for all leadership styles. This book is a must-read for skeptics as well as believers that agile can lead to sustainable success.

CARLO VIVALDI, Co-Chief Operating Officer, UniCredit

No matter where your company is on its journey to agile, Doing Agile Right serves as a useful guidebook for senior management teams. The authors bring decades of experience and perspective to demystifying an often misunderstood topic.

RITCH ALLISON, CEO, Dominos Pizza

Business leaders responsible for leading transformative change will benefit greatly from Doing Agile Right. The specific examples and empirical evidence show how agile helps a company innovate and evolve.

PAUL SANFORD, Senior Vice President, Solutions Delivery, Cigna

Doing Agile Right lays out the steps organization-wide that allow traditional companies to perform software development like digital natives. CIOs and their business partners in the digital transformation journey will find this book an invaluable road map.

MICHELLE A. ROUTH, Chief Information Officer, CARE USA

Having experienced as a practitioner many of the challenges of large-scale agile transformation, I value this unfiltered view of the journey to agility. Every step has practical examples highlighting dos and donts.

PRAT VEMANA, Senior Vice President and Chief Digital Officer, Kaiser Permanente

Darrell RigbySarah ElkSteve Berez

BAIN & COMPANY, INC.

DOING

RIGHT Transformation Without Chaos HARVARD BUSINESS REVIEW PRESSBOSTON - photo 2

RIGHT

Transformation Without Chaos

HARVARD BUSINESS REVIEW PRESSBOSTON, MASSACHUSETTS

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Copyright 2020 Bain & Company, Inc.

All rights reserved

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to , or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.

The web addresses referenced in this book were live and correct at the time of the books publication but may be subject to change.

Library of Congress Cataloging-in-Publication Data

Names: Rigby, Darrell, author. | Berez, Steve, author. | Elk, Sarah, author.

Title: Doing agile right : transformation without chaos / by Darrell Rigby, Steve Berez, and Sarah Elk (Bain & Company, Inc.).

Description: Boston, MA : Harvard Business Review Press, [2020] | Includes index.

Identifiers: LCCN 2019054607 | ISBN 9781633698703 (hardcover) | ISBN 9781633698710 (ebook)

Subjects: LCSH: Agile project management. | Success in business.

Classification: LCC HD69.P75 R33 2020 | DDC 658.4/06dc23

LC record available at https://lccn.loc.gov/2019054607

ISBN: 978-1-63369-870-3

eISBN: 978-1-63369-871-0

To those who share our belief that great businesses should produce better peopleand to the colleagues and clients who make our own work and growth so fulfilling.

Contents
Introduction
THE UNBALANCED COMPANY

Agilethe business philosophy that relies on fast-moving, self-managing teams for innovationhas officially entered the mainstream of corporate management. Tour almost any large company these days and you will find scores of agile teams working to improve customer experiences and business processes. John Deere has used agile methods to develop new machines, USAA to transform its customer service, and 3M to run a major merger integration. Boscha global supplier of technology and services with more than 400,000 associateshas adopted agile principles to guide a step-by-step reshaping of the company. Digital natives such as Amazon, Netflix, and Spotify have incorporated agile methods into a wide range of innovation activities. Meanwhile, agile has virtually taken over IT departments, themselves the source of countless innovations. At last count, 85 percent of software developers use agile techniques in their work.

The reasons for agiles rapid spread are neither obscure nor surprising. Most big companies find it difficult to innovate. They are weighted down by the structures and procedures of bureaucracy. Agile liberates the innovative spirit that so many organizations stifle. It helps companies reshape both what they offer their customers and how they operate internally. It transforms the work environment, making peoples jobs more rewarding.

These are grand claims, but the data support them. Study after study find conclusively that agile teams are far more successful at innovation than teams that work in traditional fashion. Improvements come rapidly and at less expense. Satisfaction and engagement among employees rise. Moreover, companies can implement agile without the need to spin off separate business units or hide skunkworks from hierarchies. They can deploy agile teams in any business or function that might benefit from them, including corporate headquarters. Once they have learned the basics, they can scale agile, establishing hundreds of individual teams or teams of teams to tackle large projects. Saabs aeronautics business created more than one hundred agile teams operating across software, hardware, and fuselage for its Gripen fighter jeta $43 million item that is certainly one of the most complex products in the world. Military analyst Janes has deemed the Gripen the worlds most cost-effective military aircraft.

So agile is spreading, and agile teams are mostly achieving their objectives. It looks like encouraging progress toward an appealing vision. Is there anything wrong with this picture?

Certainly theres nothing wrong with the basic idea. We are business consultants, and we have seen the power and potential of agile in hundreds of companies around the globe. We have helped many of these companies implement agile. We count ourselves among its biggest fans.

But as with so many good ideas, the practice sometimes belies the promise. Agile has spread so rapidly that it threatens to spin out of control. Along with the companies that use it effectively are those that misunderstand or misuse the ideas. They may be egged on by some zealot who promises the world. They may sign on to an agile transformation before they know anything about what such an effort might entail. They may use agile terminology to camouflage distinctly nonagile objectives.

The outcome of these misuses in many companies is chaos rather than constructive change. But the damage is greater than any one companys experience. When agile is done wrong, it almost always leads to lousy results. Lousy results lead to nervous customers, dissatisfied employees, activist investors, and a push to replace the management team. Replacement managers are understandably skeptical of any strategies that got the prior regime fired. They are likely to clean house, disband agile teams, and (probably) launch a round of layoffs. Its a version of Greshams law: bad agile drives out good. If that happens too often, agile will be discreditedand the business world will be back where it started, with top-heavy bureaucratic corporations struggling hopelessly to keep up with brash upstarts and rapidly changing markets.

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