A notable hype surrounds the term ‘agile.’ However, practitioners believe that its successful implementation depends on your ability to adapt. The term became popular in 2001 when software developers embraced it to boost their performance. Driven by consumers’ fast-transforming needs, the agile transformation has become a catchphrase for all top industries. In this article at INSEAD Knowledge, Yves Doz explains why agile is not suitable for all organizations.
Agile endorses self-managing teams that have a clear vision to deliver what customers expect from them. They are efficient in making independent decisions to deliver quality as well as innovative results.
Risk of Investment
Often, organizations make the common mistake of adopting agile methodology without analyzing if it is suitable for their work culture. Thus, a majority of them suffer financial risks and disturb the previously easy work process. According to General Electric (GE), their years of futile attempts to implement an agile mindset cost them 30 percent of their market capitalization.
Enterprises planning to adopt agile must analyze themselves before investing money in it:
- Agile transformation is more expensive than the traditional Waterfall method implementation. It facilitates swift upgrading of services that only a few companies can afford in the long run. So, are you still open to investing that much?
- It is more appropriate for software developers, but other operational divisions are also gradually adapting it to address customers’ requirements. The process is complex and may not address daily operational challenges. It also may not be cost effective if your organization revamps products or services every five years. Is it still practical to invest money in agile transformation?
- Not all companies are compatible with agile transformation. Are your company’s core competencies efficient in maintaining the innovation pipeline? If not, can you afford to outsource agile?
- To stay upbeat, you must learn to balance the scope and flow of opportunities and people management. Furthermore, you must learn to utilize available resources without reaching the burnout state. Are you capable of managing everything at the same time?
Click on the following link to read the original article: https://knowledge.insead.edu/strategy/not-everyone-can-be-agile-16091