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Identifying the True Potential of Agile Business Transformation

"The consumer market is consistently pursuing the notion of continuous innovation. Presently, almost every sector deals largely with a faster influx of products. Businesses which are able to introduce their products early to market could score promising levels of competitive advantage effectively. The notion of agile practices started with software development and has now encompassed various companies and teams.

Agile practices focus attention on:

• Responsiveness to changes as compared to the plan

• People and communication between them as compared to processes and tools

• Client collaboration rather than negotiating contracts

• Professional software as compared to detailed documentation

The advantage of agile practices for productivity of modern enterprises is one of the commonly discussed topics in enterprise ecosystems. Let us find out whether agile practices can truly work in favor of improving business productivity.

Defining Agile

Before proceeding towards an understanding of how agile practices work and benefit businesses, it is important to know it perfectly. What is agile? The agile methodology basically refers to the approach for management of a project by breaking it up into different phases. Agile methodology is uniquely distinct in the fact that it enables constant collaboration among stakeholders with scope for continuous improvement.

So, what are the specific reasons for which agile practices are popular in the enterprise landscape?

• Agile practices present the opportunity for team members to learn with every repetition or draft.

• Agile practices help in effective prioritization of features and work tasks.

• Agile practices help teams in prototype development alongside ensuring continuous improvement with each cycle.

• Agile methodology helps teams in obtaining faster feedback for each iteration or draft.

• Agile practices present favorable opportunities for regular troubleshooting with collaboration of team members.

One obvious solution is to implement long term visa but that has its Geo-Political lifecycle so other alternatives are up-skilling current workforce (making them relevant in today's world), Outsourcing and opening satellite offices in parts of the world which specialize in such human capital.

Why People and Businesses Choose Agile Practices?

What do the numbers have to say about the reasons for adopting agile practices? Here are some estimates regarding reasons for which teams adopt agile methodologies and practices.

• 71% of businesses use agile for faster software delivery

• 63% of businesses use agile for improving the ability for management of changing properties

• 51% of businesses use agile for better productivity

• 47% of businesses depend on agile for better business-IT alignment value

• 42% of businesses using agile achieved the benefits of better software quality

Popularity of Agile Practices

In addition to the perceived benefits of agile practices, it is also important to reflect on existing state of agile. How is agile one of the top project management methodologies in 2021? Here are some numbers which could provide evidence.

• According to Harvard Business Review, almost 60% of companies reap the benefits of growth in revenue and profits after using agile methodologies.

• According to Capterra, around 71% of companies worldwide implement Agile in some form or the other.

• According to VersionOne, agile adoption has been helpful for almost 98% of businesses in some way.

• According to a Standish Group Chaos Study, the success rate with agile practices is around 42%. Interestingly, the success rate with agile surpasses that with other methodologies like the waterfall model.

This is probably one of the reasons for which agile methodologies have become common choices for software development and project management. The existing state of agile methodologies presents them in a favorable picture. However, it is also reasonable to reflect on the best practices for implementing agile practices for transformation of an organization.

The Approach to Agile Transformation

You know the benefits of agile and the objectives banking organizations want to achieve with them. It seems like a simple foundation to start learning about the approach to the transformation of banking organizations, isn’t it? So, let us take a look at the distinct phases of using agile practices in a banking organization use case.

Framing Stage
The framing stage can be easily considered as the preparatory stage for implementing agile practices. The primary highlight of the framing stage refers to the assessment of the agile maturity of team members. In addition, the framing stage also deals with the development of a business case for every team’s transformation. Some of the details included in the business case were team size, team budget prediction, and existing and desired team structure alongside others.

1. Transformation Stage
After the approval for the business case for transformation, coaches appointed for the agile transformation can work for implementation of the target state. The target state is an outcome from a Target Organization Operating Model playbook. It showcases the appearance and interaction of teams, chapters, leagues, tribes, and guilds in the project. Most important of all, the transformation stage in agile practices relies on certain underlying objectives or precedents. The underlying objectives of the transformation stage include,

• Funding for business processes in comparison to projects and applications

• The flexibility of scope for allowing freedom to businesses for negotiating, prioritizing, and refining backlogs on the basis of value and not the budget

• Stability of capability in a tribe, thereby ensuring the sustainability of feature teams

2. Sustenance Stage
The final stage in the agile transformation of a banking organization refers to the sustenance stage. The agile champions would work towards sustaining agility in the tribe in this stage. Agile champions have to take care of managing major incidents as well as the impact of notable events on IT production. For example, communicating and collaborating in response to incidents or regulator and compliance monitoring with continuous improvement.

Conclusion

It is clear that agile practices have an organized approach for improving the productivity of organizations. Apart from bringing in the value of collaboration and continuous feedback sharing in project management, agile practices have many other advantages. Now, agile practices are not selected only for the cost-reduction benefits.

On the contrary, agile practices are preparing the groundwork for organizations to cope with the emerging technological advancements. IT solutions are undoubtedly a preferred answer for digital transformation. However, it is also reasonable to wonder about the effectiveness of existing workforce in coping with new technologies and practices. Agile can be helpful in resolving such concerns without affecting organizational performance.

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