The more experiences companies create through agile transformation the importance of organizational culture becomes clearer. It is the number one challenge. It’s true, it could be the very reason why we can’t change, and subsequently why agile won’t work....

The more experiences companies create through agile transformation the importance of organizational culture becomes clearer. It is the number one challenge. It’s true, it could be the very reason why we can’t change, and subsequently why agile won’t work. However, working on our culture will also open the path forward. A closer look at agile organizations reveal that it is culture that builds the common ground and acceptance for agility.

Organizational development has always taught us that change is achieved sustainably when it starts with the people. Agile transformations are no different. On the contrary – the Manifesto for Agile Software Development already brings this focus to the surface. And the more we learn, the clearer it becomes, that organizational agility is a question of how people think and act; a question of organizational culture. Thus, it is not surprising, that agile organizations have little in common in terms of structure and governance (see e.g. Kimes, 2009; Aronowitz, De Smet & McGinty, 2015). Having the right culture helps us achieve organizational agility.

What is Organizational Agility?

Organizational agility is not Scrum at scale. It is not about individual agile methods at all. It also has little to do with table-soccer and couch-corners, nor with dogs-allowed-in-the-office.

Organizational agility is actually about one thing alone: adaptability. The market is changing. Technology offers new possibilities to produce the old things more efficiently, faster, more customer-specific and to develop the new things, demands on the organization or other circumstances that are changing. The organization reacts by adapting. Its strategy, products, processes and structures adapt. If we look at concepts of business agility (according to the Agile Alliance), or the concept of digital business agility (Global Center for digital Business Transformation; Loucks, Macaulay, Noronha & Wade, 2016), we need to add one more aspect to the definition of organizational agility: the ability to identify internal and external changes early on and to derive new opportunities to create new or greater value for customers.

Ultimately, it is about how people work, how individuals, teams and the organization as a whole behave. Do we plan on foresight and focus in on developments step-by-step to explore and learn along the way? Do we monitor what is going on outside? Are we willing to change direction to keep up with the trends? Can we react and execute quickly?

Corporate Culture as an Opportunity, Not an Excuse

How we work, how we behave, that is corporate culture. If an organization wants to become more agile, then it is either the biggest impediment or the most powerful lever.

“The importance of investing in culture and change on the road to agility cannot be overemphasized.” (Brosseau, 2019). Even if it is only about individual agile projects, an organizational culture that does not support agility is one of the most common reasons for failure, as the Project Management Institute (PMI) observes.

So Why Don’t we Tackle Culture?

This is often because culture is understood – or not understood at all – as a spongy, soft, feel-good concept. It’s also because, although we have a vague idea of what an agile culture looks like, somehow hip and start-up-like, it is firstly (and often) so far removed from our own reality and secondly, this image does not offer us any concrete starting points.

Often people in the organization react to the topic of culture with a resigned shrug of the shoulders as an expression of “That’s the way it is with us, it can’t be changed”.

Organizational culture is more often seen as an excuse than an opportunity. Culture is seen as a rigid mass, as a historically-grown, and fossilized skeleton. A culture came into being at some point – in its basic features – and has continuously developed, polished, deepened and specified. An inert mass, but a living one. Culture has to do with people, with the system, with circumstances and structures, but it is more than the sum of its parts. Culture is alive and what is alive develops, and therefore can change.

Culture is a result of collective learning.

The Pandemic Crisis as Opportunity to Tackle Culture

Today, facing a global pandemic that throws us into crisis, we learn very quickly to adapt to new ways. We also learn a lot about ourselves and about the way we work together. We learn a lot about our culture, we learn where its strengths lie and what is holding us back or slowing us down in becoming the best possible company to deal with today’s challenges. We learn new things. Learning is developing.

Let’s reflect on and build on those learnings and allow them to allow us to shape our culture.

For a company’s culture to support agility, three elements are needed which are illustrated in the “Agile Culture Code”, the TEC model (Puckett, 2020) Three Company Culture Elements Increased Agility Can’t Go Without: Transparency, Empowerment and (conditionless) Collaboration.

Please don’t change your mindset!

We humans do not have to change. Actually, we usually behave “TEC-compliant” when we want to solve a problem or achieve a goal privately:

We need to know what is going on and measure our impact. We need to be empowered not only to do things right but to do the right thing. We need to be able to connect and team up with others to focus on contributions rather than roles.

So, no, we don’t need to change. But change has to happen in the organization. To create an environment that inspires us and allows us to bring all our talents to the table and be at our best. 

Image by Gerd Altmann from Pixabay

Sources:

Aronowitz, S., De Smet, A. & McGinty, D. (2015). Getting organizational redesign right. McKinsey Quarterly. June 2015.
Brosseau, D., Ebrahim, S., Handscomb, C. & Thaker, S. (2019). Accessed February 2019. The journey to an agile organization. McKinsey & company. May 2019.
Jurisic, N., Lurie, M. Risch, P. & Salo, O. (2020). Doing vs being: Practical lessons on building an agile culture. McKinsey.com. August 4, 2020.
Kimes, M. What admired firms don’t have in common. Fortune. Released: March 2009. archive.fortune.com
Loucks, J., Macaulay, J., Noronha, A & Wade, M. (2016). Digital Vortex. How Today‘s Market Leaders Can Beat Disruptive Competitors at Their Own Game. DBT Center Press, Plano/Texas.
Manifesto for Agile Software Development. agilemanifesto.org
Puckett, S. (2020). The agile culture code – A guide to organizational agility. BusinessVillage.

Contributing Author

Dr. Stefanie Puckett has lived and worked globally for several consulting firms, in management and global roles for a Fortune 500 company and ran her own business. She is a psychologist that turned to agile once she saw that decades of organizational psychology research are basically summed up in the agile manifesto. Since then, agile transformation has become her passion as a consultant and executive coach. Stefanie is author of “The agile culture code – a guide to organizational agility” (BusinessVillage, 2020) and co-author of “Agile Leadership – leadership competencies for the agile transformation” (BusinessVillage, 2020).

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