Agile went from buzzword to keyword in under 10 years. But what lies ahead for one of the most effective project management tools around?
Almost 25 years ago, the Agile manifesto revolutionized IT project management. Initially created for software development endeavours, Agile quickly grew to other business areas and industries.
Where nearly 70% of IT and the software development and delivery teams use Agile, nearly half of engineering, product, and R&D teams also use it. It then drops to 28% of business operations and 20% of marketing teams which have adopted Agile principles. Engineering/R&D are the fastest growing adopters of Agile, up 16% over 2022.
What is the reason behind such growth?
As workers and companies around the world have concluded, it actually works and continues to provide significant value, such as improved collaboration, better alignment to the business needs and better quality software delivered. For example, Agile is used 71% in the software development lifecycle (SDLC). Scrum continues to be the most popular team-level methodology as it is used by 63% of Agile users, where the Scaled Agile Framework (SAFe) remains the top choice at the enterprise level at 26%.
Organizations choose Agile mainly to prioritize, deliver and measure customer/business value as well as to accelerate time to market, but also to include digital transformation and increase delivery predictability.
Is Agile at risk?
The global feeling about Agile seems to fade out as in 2022, 71% of Agile users were either very or somewhat satisfied with Agile in their organizations, but dropped to 59% in 2023. Let’s dig a bit deeper to understand the reasons behind this decrease.
At this moment in time, it feels like Agile is having difficulty adapting and that the benefits from Agile vary depending on the organization size. In the 17th State of Agile Report, we can learn that, in 2023, “small, nimble organizations continue to report that Agile is a powerful productivity and organizational framework showing obvious benefits, including increased collaboration, improved software quality, and better alignment with the business. Medium-sized and larger companies, however, are less satisfied with what Agile can do for them, see substantive barriers to organization-wide adoption, and are far more likely to embrace a custom software development strategy that incorporates a number of different frameworks including, but not limited to, Agile.” From AI to developer burnout, hybrid work environments and unrelenting demand, change is happening in every organization in every industry.
It is clear that small companies benefit most from Agile implementation, as “74% of small companies (versus 62% at large companies) said at least 50% of their applications were delivered on time and “with quality,” 71% of their organizations (compared to 53% at large companies) have complete visibility into what’s being developed and delivered across the SDLC and 61% have product managers who can oversee the entire pipeline and measure value to the business (compared with just 43% of large companies).”
Another difficulty might be felt inside the organization, as business leaders might define the framework in a substantial different way than practitioners use it, and this creates disconnection across the enterprise when scaling Agile adoption.
It is getting clearer that business teams might highly impede the Agile adoption as a “generalized” resistance to organizational change or “culture clash” is increasingly being felt, as well as because business teams simply don’t understand what Agile is or what it can do, or feel there is not enough training. Adding to that, not enough leadership participation and inadequate management support or sponsorship also explain why Agile adoption is difficult.
How to resolve this conflict?
To resolve this conflict, companies should focus on outcomes (customer expectations) instead of outputs (deliverables), building customer-centric cultures, and clearly defined business value.
For the organizations understanding the cruciality of providing business value to customers, they choose to prioritize their software development and delivery goals mainly towards customer satisfaction, time to delivery and competitive advantage, as well as market expansion goals and new customer acquisition.
AI in Agile?
AI is revolutionizing our lives and is having a huge impact in the software development world, however we know it will take time to assimilate all the new processes and practices it brings.
“Among Agile adherents, almost 30% of respondents are actively exploring how to best use LLMs and code assistants in their organizations or are actually integrating them into their products or services. Roughly 22% of survey takers acknowledged some AI experimentation in their companies but said there’s no widespread mandate for use at this point, while 17% are in the initial stages of exploring the role AI could play. Just 13% don’t think anyone is using AI in their companies, and 8% said they’ve been explicitly told not to use it at this time.”
What is Agile
Agile is a project management and software development methodology that focuses on being flexible, collaborative, and responsive to customer feedback. Its essence is working in short, manageable cycles called iterations or sprints, where you constantly check in with your team and your customers to make sure you’re on the right track. It’s all about being able to respond to changing requirements quickly and continuously delivering high-quality software to your users.
Agile is an iterative approach to work that helps teams deliver value faster and deliver work in small, consumable increments. There exist various agile methodologies, such as Scrum, SAFe®, and Extreme Programming.
Origins of Agile
The origins of Agile can be traced back to the late 90s when a group of developers realized that traditional project management methods just weren’t cutting it for software development. They were tired of rigid plans that took forever and didn’t allow for any changes along the way. So, in 2001, seventeen of these developers got together at a ski resort in Utah to brainstorm a better way to manage projects.
Over a few days, they hashed out a set of values and principles that emphasized flexibility, collaboration, and delivering small, working pieces of software quickly. This meetup resulted in the Agile Manifesto, a document that laid the groundwork for the Agile methodology we know today.
The Agile Manifesto
This manifesto is pretty straightforward. It has four big values:
Individuals and interactions over processes and tools: basically, this principle prioritizes people and how they communicate over processes and tools. It’s about focusing on teamwork and talking things out.
Working software over comprehensive documentation: instead of spending ages writing documents that no one reads, Agile teams prioritize getting actual software up and running. The idea is to show something that works and improve it from there.
Customer collaboration over contract negotiation: rather than just sticking to what’s written in a contract (or scope), Agile encourages ongoing collaboration with customers. It’s about working together throughout the project, not just at the beginning and end.
Responding to change over following a plan: plans are great, but things change. Agile is all about being flexible and adapting to new information or changes in the project as they come up.
Agile 12 principles: understanding the core values
These values were supported by 12 principles, all aimed at helping teams be more effective and responsive.
Customer satisfaction: The top priority is to make customers happy by delivering valuable software early and continuously. It’s like giving them little pieces of the puzzle as you go, so they see progress and get value right away.
Welcome change: Don’t be afraid of changing requirements, even late in the project. Agile embraces change to give customers a competitive edge.
Frequent delivery: Deliver working software frequently, usually every few weeks to a couple of months. It’s like having regular check-ins where you show what you’ve done and get feedback.
Collaboration: Developers and businesspeople must work together daily. It’s all about teamwork and making sure everyone’s on the same page.
Motivated teams: Build projects around motivated individuals. Give them the environment and support they need and trust them to get the job done.
Face-to-face conversation: The best way to convey information is through face-to-face conversation. In other words, talk to people directly whenever you can – it’s faster and clearer.
Working software: The primary measure of progress is working software. Forget about all the fancy reports and charts; if the software works, you’re making progress.
Sustainable development: Agile processes promote sustainable development. The team should be able to maintain a constant pace indefinitely.
Technical excellence: Continuous attention to technical excellence and good design enhances agility. It’s doing things right from the start to avoid headaches later.
Simplicity: Maximize the amount of work not done. Essentially, keep things simple and don’t overcomplicate. Focus on what’s really necessary.
Self-organizing teams: The best architectures, requirements, and designs emerge from self-organizing teams. Let your team figure out the best way to work together and solve problems.
Reflection and adjustment: At regular intervals, have your team reflect on how to become more effective. Then, to behavior accordingly
Agile frameworks
Agile frameworks offer different ways to put Agile principles into action, each with its own set of practices and strengths. Choosing the right one for your team can make a big difference in how smoothly your projects run.
Scrum is one of the most widely used Agile frameworks. It breaks projects into manageable chunks called sprints, typically lasting 2-4 weeks. During each sprint, the team works on a set of prioritized tasks from a product backlog. Scrum emphasizes roles like the Product Owner, Scrum Master, and Development Team, and includes regular meetings such as daily standups, sprint reviews, and retrospectives.
When to use: If your project benefits from a structured approach with clear roles and frequent progress checks, Scrum might be a great fit.
Kanban, for managing workflow
Source: Wikimedia
Kanban focuses on visualizing work and managing flow. It uses a Kanban board to track tasks through various stages, from “To Do” to “Done,” and emphasizes limiting work in progress (WIP) to prevent bottlenecks. Kanban is flexible and allows for continuous delivery, making it ideal for teams needing to manage ongoing work or those with varying priorities.
When to use: If you’re looking for a method that’s less about fixed iterations and more about maintaining a steady flow, Kanban could be the way to go.
Extreme Programming (XP), for technical excellence
[Source: LinkedIn]
Extreme Programming, or XP, is all about technical excellence and frequent releases. It includes practices like test-driven development (TDD), pair programming, and continuous integration. XP aims to improve software quality and responsiveness to changing requirements.
When to use: If your project requires strong technical practices and frequent feedback loops to refine the product.
Lean Software Development, maximizing value and eliminating waste
Source: European Business Review
Lean Software Development borrows principles from Lean manufacturing, focusing on eliminating waste and maximizing value. It values practices like optimizing the workflow, delivering in small batches, and empowering teams to make decisions.
When to use: If your goal is to enhance efficiency and deliver high value quickly, Lean could be the framework to consider.
SAFe (Scaled Agile Framework), for large organizations
Source: Maya Jaber
SAFe is designed to scale Agile practices across large organizations. It provides a structured approach to coordinate multiple teams and align their efforts with organizational goals. SAFe integrates Agile with Lean and product development flow principles.
When to use: If you’re working in a large organization with multiple teams and need a framework that supports coordination and alignment at scale, SAFe might be the right choice.
How to make Agile work
Many teams struggle to transition from traditional methods to Agile. However, by following these key practices, they can make the shift effectively and thrive with structure.
Start with a clear vision and goals: to get Agile working smoothly for your team, begin by defining a clear vision and goals for the project. You need to know where you’re headed and what success looks like to keep everyone on the same page.
Pick your Agile Framework: the next step is deciding which Agile framework to use. Keep these factors in mind.
Project size and complexity: for smaller teams or simpler projects, Scrum or Kanban might be sufficient. For larger projects or organizations, frameworks like SAFe can provide the structure needed for scaling.
Team dynamics: evaluate your team’s size, experience, and preference. Teams comfortable with iterative work and clear roles may thrive with Scrum, while those needing flexibility might prefer Kanban.
Technical requirements: if your project demands rigorous technical practices, XP could be beneficial. For continuous delivery and efficiency, Lean might be the best fit.
Flexibility: some frameworks offer more flexibility than others. Kanban, for example, is less prescriptive and can be adapted easily compared to Scrum’s structured approach.
Build cross-functional teams: assemble teams that bring a diverse mix of skills and expertise to the table. Encourage collaboration and make sure everyone shares their knowledge openly to maximize the team’s effectiveness.
Adopt iterative development: embrace iterative development by breaking the project into smaller, manageable portions, typically lasting 2-4 weeks. Each iteration should produce a working piece of the product, allowing you to gather feedback and make improvements as you go.
Prioritize customer feedback: make customer feedback a priority by engaging with your customers and stakeholders regularly. Continuous feedback ensures that the product aligns with what the customers actually need.
Maintain a product backlog: keep a product backlog that lists all the tasks and features you need to work on, prioritized by what’s most important. This acts as your project’s to-do list. Regularly review and refine the backlog to reflect changes in priorities or new insights.
Hold regular meetings: organize regular meetings to keep everyone aligned. Daily standups are great for quick updates on progress, roadblocks, and plans for the day. Sprint planning meetings help you decide what to tackle in the upcoming sprint, while sprint reviews are your chance to showcase what you’ve accomplished and gather feedback. Don’t forget sprint retrospectives, where you review what went well and what could be improved to tweak your approach for the next round.
Promote transparent communication: keep communication open and transparent. Use tools and practices that support clear information sharing among team members.
Foster a collaborative culture: create a collaborative culture where teams feel empowered to make decisions and solve problems on their own. Encourage innovation and be open to experimenting with new ideas. A supportive environment helps team members feel more engaged and invested in their work.
Emphasize technical excellence: prioritize technical excellence by adopting best practices like coding standards, automated testing, and continuous integration. Regularly refactor code to keep it clean and adaptable. This ensures that your software remains high-quality and can evolve smoothly over time.
Manage change effectively: be prepared to handle changes effectively; agile thrives on adaptability, so be ready to adjust to shifts in requirements or market conditions; communicate any changes clearly to minimize disruption and keep the team on track.
Measure and track progresso: use metrics like velocity, burn-down charts, and cycle time to keep an eye on progress and team performance. These metrics help you gauge how well the project is going and identify any areas that need attention. Use the data to make informed decisions and adjust your practices as needed.
Invest in training and development: invest in training and development to keep your team up-to-date with Agile practices and tools. Provide opportunities for learning and offer mentorship and support to help everyone grow and adapt. Continuous learning ensures that the team remains skilled and effective.
What is “business value” and how can agile improve it?
Business Value can mean a lot of different things for different people and companies. For some, creating business value is about quantifiable metrics, such as increasing revenue, cost savings, market share, or shareholder value. For others, it’s about reputation, brand image, social responsibility or sustainability. Whatever it is, Agile can help you achieve it by aligning product development with organizational goals, customer needs, and market trends. Here’s how.
Profitability and cost efficiency
Many Product Owners struggle to track the financial impact of their work on the company’s bottom line. Agile promotes empirical decision-making and evidence-based management, helping you make informed financial decisions. For instance, Product backlog, a key features of Agile, encourages teams to prioritize features that provide clear value, ensuring that development efforts are focused on impactful tasks.
Business agility and strategic adaptation
Business value is closely linked to an organization’s ability to make fast decisions based on customer feedback and market changes. Agile enhances business agility by empowering Product Owners to iterate on strategies and pivot when necessary. Take sprint planning, another key features of Agile; it encourages clear objectives and prioritizing high-value items for the company. So does Incremental delivery, another of Agile’s principles, that focus on delivering working software in short iterations. This allows for continuous feedback, reducing the risk of wasteful development.
Balancing business and customer value
Delivering value is not just about financial returns – it involves meeting customer expectations. While revenue-driven product goals are essential, focusing solely on profits can lead to poor product-market fit. The Agile methodology encourages a balanced approach, where customer satisfaction translates into long-term business success. Agile’s Retrospectives are regular reviews that help teams identify areas for improvement, fostering innovation and efficiency, thus promoting this delicate balance between business and customer value.
What about the future?
There is little doubt that it is currently one of the most effective project management frameworks around. It is, however, not impervious to change.
In the next few years, we are likely to see Agile project management shift towards even greater customer collaboration, with organizations involving customers and stakeholders throughout the project lifecycle to gather feedback and refine requirements in real-time. This customer-centric approach ensures that the final product meets the evolving needs and expectations of the end-users.
Agile methodologies are also increasingly incorporating DevOps practices, which enable continuous integration, delivery, and deployment of software. This integration allows for seamless collaboration between development and operations teams and improved overall efficiency and quality throughout the software development lifecycle.
There is a third avenue for growth, as the methodology evolves to address the challenges of scaling to larger projects and organizations. Various frameworks such as Scaled Agile Framework (SAFe), Disciplined Agile Delivery (DAD), and Large-Scale Scrum (LeSS) have emerged to provide guidance on scaling Agile, allowing organizations to coordinate and align multiple Agile teams working on interconnected projects.
These changes empower organizations to deliver value to customers faster, adapt to changing requirements more effectively, and improve overall project success rates. Still, culture plays a decisive role. To truly solve problems and be ready for quick shifts, you must first understand the culture and mindset behind this methodology. The practices behind Agile are just the system that sustains and supports agility in the long run.
How does Near Partner remain agile over time?
For all its advantages, many companies still face challenges in Agile adoption. Key pitfalls include unengaged leadership, unclear priorities, or just simply not understanding what it does (also reticence to change / closed mindset). The change in an organization needs to start from the top, and leadership needs to be the guiding light of that change.
Organization coaching, by giving internal training, is a great way to get your employees and organization more familiar and comfortable with Agile vocabulary and methodologies across all departments. At Near Partner, between May and September 2023, our 2 certified Scrum Masters (PSM I), Laetitia and Nelson, gave internal training to all our employees, from developers to marketing and sales departments, about Agile methodologies, more specifically Scrum and Kanban – which are the most used in our projects.
Laetitia and Nelson facilitating Agile training
Core concepts about Scrum – like Scrum foundations, values, team roles and ceremonies – and Kanban principles were presented during this training. Interactive group exercises enabled our Partners to confront their ideas and consolidate their knowledge and were highly liked. Sharing real-life project scenarios and explaining the topics from the basics helped everyone, especially those who have never been in contact with Scrum, to be on the same level at the end of the training.
The feedback collected was really positive as 96% of the respondents learned something new and 80% rated the session as useful, being able to apply the concepts they learned in their project or to enhance their way of working.
Is your organization ready to take the next step? At Near Partner, our teams undergo regular Agile training to be able to adapt and incorporate the latest changes in the methodology.
