What does it mean for the enterprise to be agile?

What does it mean for the enterprise to be agile?Closely allied to establishing the business objectives in adopting agile practices, an understanding of what it means for an enterprise to be agile should be clear to everyone in the enterprise. This post summarizes what it means for an enterprise to be agile from the perspective of the senior executives and stakeholders.

“Agile” is a set of behaviors that help a business achieve its objectives. The most prevalent agile practice, Scrum, defines a set of project management-based behaviors that help practitioners (especially software practitioners) achieve those objectives. However, little is said in Scrum about how to be agile outside of the immediate environment of the Scrum teams. Team agility does not automatically engender enterprise agility.

Deciding where a so-called value chain starts and ends is going to vary according to the individual enterprise considerably, according to factors such as size, business area, degree of specialization, vendors and suppliers as part of the larger value chain (or even ‘ecosystem’). However, this is a bit like a “5 WHYS” analysis, you have to recognize where it makes sense to stop the analysis at. Mostly, a company’s corporate boundary makes a natural place to stop (though ideally the whole external supply chain would be synchronized and agile). However, this may be too great a challenge for many organisations to begin with, so smaller organizational units and business units within the enterprise may have to suffice for the initial vision and implementation.

As a reference point, for a hardware-based product company, the groups that might be considered for inclusion in the scope for enterprise agility could look like: Sales, Marketing, HR, Executive Management, Software Engineering, Hardware Engineering, Product Definition, Product Releasing, Product Testing, Technical Documentation, Project Management, Programme Management, Quality Assurance. Where any of these groups are excluded, there will probably be a detrimental reduction in overall agility.

Here are some of the major characteristics that an agile enterprise will typically exhibit, at the ‘manager’ and ‘senior executive’ levels (some apply more to some groups than others):

  • Commitment through close involvement and engagement with agile teams
  • Removal of organisational impediments and issues
  • Flexibly determining release content and being responsive to change: based on sustainable organisational capacity and economic value (including cost of delay); taking into account (test) results and feedback
  • Be Servant Leaders: inspire, motivate, lead by example: including: allowing teams to self-organise - “Self-organisation does not mean that workers instead of managers engineer an organisation design. It does not mean letting people do whatever they want to do. It means that management commits to guiding the evolution of behaviours that emerge from the interaction of independent agents instead of specifying in advance what effective behaviour is.” – Philip Anderson, The Biology of Business
  • Demonstrating trust, especially in avoiding delving into (and controlling) the detail: but note also that trust is engendered by successful delivery
  • Focusing on throughput of (valuable) work rather than on 100% Resource Utilization
  • Recognizing the differences between repeatable and highly variable knowledge work (avoid purely “widget engineering”)
  • Evolving legacy practices into new (e.g. by evaluating and challenging old Ways of Working): powerful corporate forces can be afoot, so this is not easy.

Leffingwell’s Scaled Agile Framework provides a suitable structure for scaling Scrum to enterprise levels and fills in on many of the executive roles and functions required for success in agile at the enterprise level.

Some useful links: