Modern organizational methodologies: Agile

Among the latest trends in the field of organizational management principles, the methodology of a flexible organization or agile methodology occupies a prominent place. It is an approach to project management that emphasizes flexibility, collaboration, and rapid iteration. This methodology originally originated in the field of software development. However, later it began to be successfully applied in other areas. The reasons for the popularity of the methodology are that it allows organizations to quickly respond to changing business needs and customer demands.

Agile methodology can be applied to both small and large businesses because today, more than ever, businesses need to remain flexible, adapt quickly to change, and be customer-focused.

Small businesses often operate in fast-paced environments where flexibility is key to success. Agile methodology helps small businesses quickly respond to changing market conditions and develop products and services that meet customer needs.

Large companies can also benefit from agile principles by breaking down large, complex projects into smaller, more manageable components, and by involving clients and stakeholders in the development process. Using the agile methodology, it allows large companies to overcome the shortcomings of hierarchical bureaucratic organizational structures that slow down their development and business expansion.

AGILE PRINCIPLES

The Agile approach is based on the Agile Manifesto https://agilemanifesto.org/iso/ru/manifesto.html, a set of values and principles for software development that are also applicable in other areas.

The values of the Agile Manifesto include the following principles:

• People and interactions are more important than processes and tools
• A working product is more important than comprehensive documentation
• Cooperation with the customer is more important than agreeing on the terms of the contract
• Willingness to change is more important than sticking to the original plan

A team working according to the principles of the Agile Manifesto is cross-functional, self-organizing and self-managing. It works in short cycles to create a final product or service, called sprints. The team works closely with the customer or stakeholders to ensure that the product being developed meets their needs. Agile also emphasizes continuous improvement through regular retrospectives where the team reviews its work and identifies areas for improvement.

Overall, Agile methodology is a flexible and adaptive approach that allows organizations to quickly respond to changing business and customer needs, while also promoting collaboration and innovation among team members.

In Agile methodology the value “People and interaction over processes and tools” emphasizes the importance of people and their interactions over strict processes and tools. This value is based on the belief that the best solutions arise from the collaborative efforts of motivated and skilled people, rather than from following rigid procedures.

This principle emphasizes the importance of communication, collaboration and teamwork in Agile. The organization creates a work environment that encourages team members to work together and share their knowledge and experience to achieve common goals. It also fosters a culture of trust and mutual respect where team members feel comfortable sharing their ideas and concerns.

In practice, this means that Agile teams are cross-functional and self-organizing, with team members representing different disciplines and working together to develop and release a product. The team has the freedom to make decisions and adapt the plan as needed, rather than following a predetermined set of procedures.

Additionally, Agile promotes face-to-face communication rather than written documentation, which helps ensure that everyone is on the same page about their tasks and that any problems are resolved quickly. The methodology also implies regular formats of interaction between all participants in the process, such as daily meetings, sprint reviews and retrospectives. This ensures team members stay informed and their actions are effectively coordinated.

Thus, Agile methodology places a strong emphasis on people and interactions rather than processes and tools, recognizing that the best solutions come from the collaborative efforts of motivated and skilled people working together in a supportive environment.

Principle “A working product is more important than comprehensive documentation” emphasizes the importance of delivering a functioning product to the customer as quickly as possible, and reducing the time and effort required to create detailed documentation. The idea is that a customer can see and use a working product, provide feedback on it, which can then be included in the next iteration of development. And previously prepared documentation will require processing. This approach provides greater flexibility and the ability to quickly respond to changing requirements, and also helps to focus on creating value for the customer.

In Agile methodology the meaning “Cooperation with the client instead of contract negotiations” emphasizes the importance of working closely with the client to understand their needs and preferences, rather than relying on project requirements set out in a rigid contract. This value is based on the belief that the best solutions come from close collaboration with the customer, and that customer feedback and input are essential to project success.

This emphasizes the importance of involving the client from the very beginning and using their feedback and suggestions throughout the project. This approach helps ensure that the final product meets customer needs and expectations.

"Reacting to change rather than following a plan" Emphasizes the importance of flexibility and adaptability in the face of changing demands and new problems that arise, as opposed to rigid adherence to a predetermined plan. This value is based on the belief that the best solutions come from the ability to respond to changing circumstances and customer needs, rather than sticking to a fixed plan that can quickly become irrelevant or ineffective.

This makes it a priority to be able to quickly respond to changes in the project and adapt the plan as needed. An agile approach encourages teams to be flexible and adaptable, and to continually evaluate and improve the project plan based on customer feedback and team progress.

Under this principle, teams use an iterative and incremental approach, where the team works in short cycles to make small, incremental improvements to the product being developed.

Thus, Agile methodology values responding to change rather than following a plan, recognizing that the best decisions are made through the ability to respond to changing circumstances and customer needs rather than following a fixed plan that may be irrelevant or ineffective.

The core principles and values of the Agile methodology can be adapted to the needs of different types of products and industries. The core concepts of Agile, such as flexibility, collaboration, and rapid iteration, can be applied to any project where the requirements and solutions are not fully known at the outset. Beyond software production, the Agile approach has proven its effectiveness in areas such as marketing, finance and construction.

For example, in the construction industry, the Agile methodology is called Agile Construction. In marketing, Agile methodology is used to develop and execute marketing campaigns. A flexible approach allows you to flexibly and adaptively plan, test and repeat campaigns, and create effective marketing programs that match the preferences of the target audience. In the finance sector, Agile can be used in the financial planning and budgeting process.

In general, the Agile methodology can be adapted to the needs of any type of product and industry, as long as the organization is willing to accept the values and principles of Agile and adapt them to the specific work context.

WHAT IS BETTER AGILE OR PLAN?

Agile methodology is suitable for projects where requirements and solutions are not fully known at the start of the project, and where flexibility and adaptability are required in the face of changing requirements and challenges. It is particularly well suited to software development, but in today's environment of rapid change can be applied to any other area.

Conventional hierarchical organizations, on the other hand, are more suitable for projects where the requirements and solutions are well understood at the beginning of the project and where there is a clear and fixed plan to follow. The traditional project planning and management method is particularly well suited to stable and predictable areas.

In a traditional hierarchical organization, decision making is centralized and there is a clear chain of command, with decision-making authority concentrated at the top of the organization. In contrast, Agile methodology is based on decentralized decision making and self-organizing teams, with an emphasis on collaboration and communication between team members and stakeholders.

Strengths of organizational agile methodology include:

Flexibility: Agile methodology allows changes and adjustments to be made throughout the project, making it more adaptable to changing requirements and unexpected obstacles.

Achieve results quickly: The Agile methodology emphasizes delivering workable products or features early and often, allowing organizations to see a faster return on investment.

Development of cooperation: Agile methodology promotes a collaborative environment in which all stakeholders can work together to achieve a common goal.

Improved communication: Agile methodology requires regular meetings and check-ins, which improves communication and keeps all team members informed and on the same page.

The disadvantages of the Agile methodology include:

Agile methodology not recommended for long-term planning. It is too chaotic for long-term projects, and is aimed at delivering work products or functions in the short term.

Limited documentation: Agile methodology emphasizes building a working product first, at the expense of generating comprehensive documentation, making it difficult for organizations to track progress or maintain an audit trail.

Dependence on team members: Agile methodology relies heavily on the skills and loyalty of team members, which can become a weakness if the team's competencies do not match the project's requirements or are not fully committed to the process.

Difficulties with budgeting and resource allocation: Agile methodology can be challenging to budget and allocate resources as it requires constant adjustment and flexibility.

Thus, as always, there are no clear recommendations and the organization should decide on its preferences and make the right choice that corresponds to the goals and objectives of its activities

There are many examples of successful implementation of agile organizational methodology in various industries. For clarity, I will list some of them:

Spotify: Spotify is a music streaming service that has successfully implemented Agile methodology in its development process. The company has organized its teams into small autonomous units called "squads" that work together to deliver new features and updates to the platform. Spotify credits its success to its agile approach, which has allowed it to quickly adapt to changing user needs and remain competitive in the marketplace.

ING Bank: ING Bank, a large international bank, has implemented Agile in its IT department to improve its digital services. The bank has organized its teams into small cross-functional units that work together to deliver new features and updates to its online banking platform. ING Bank believes its flexible approach has helped it improve customer satisfaction and efficiency.

NASA: NASA has successfully applied Agile methodology in its space exploration projects. The organization has organized its teams into small, autonomous units that work together to provide new features and updates to its spacecraft and launch vehicles. NASA believes its agile approach has helped improve its ability to manage risk and respond quickly to unexpected problems.

IBM: IBM is using Agile company-wide to improve the software development process. IBM credits its agile approach with helping improve the speed and quality of software development and increasing customer satisfaction.

Intel: Intel has introduced Agile methodology into its new product development processes. Scrum and Kanban methodologies (a variation of Agile), which allowed the company to speed up the process of releasing new products, improve collaboration within the company and improve communication.

While agile organizational methodology can be successful in many cases, there are also times when it may not be appropriate and can lead to failure.

In some cases, organizations that have long history of using the traditional hierarchical approach to project management may encounter difficulties when transitioning to an agile methodology. Employees may find it difficult to adjust to cultural shifts and process changes, leading to confusion and decreased productivity.

The Agile methodology is designed to work with small and medium-sized projects, and may not be suitable for large scale projects with complex requirements and tight deadlines. In such cases, a more traditional project management approach may be more appropriate.

Agile methodology is often used in technology and software development, but can not suitable for highly regulated industries, such as healthcare. These industries may require a more structured and controlled approach to project management, as any mistake can have serious consequences.

There are also a number of circumstances that hinder the application of the Agile methodology. Although it should be noted that they also reduce the efficiency of traditional organizations. Among them I will list:

Lack of clear requirements. Without clear requirements, a team may struggle to make progress and create a working product.

Poorly defined roles: Agile methodology requires a high degree of collaboration and teamwork, but if roles are not clearly defined, it can be difficult for the team to coordinate their efforts and achieve their goals.

Limited resources: Agile methodology requires a high degree of flexibility, but if resources are limited, it can be difficult for the team to adapt to unexpected challenges and deliver a working product on time.

There are also examples of companies where the use of agile methodology led to failure.

US Department of Defense: In 2010, the US Department of Defense attempted to implement Agile in the development of the Defense Health Management System (DHMS). However, the project faced challenges due to a lack of clear requirements, poor communication between stakeholders, and a lack of experienced practitioners on the team. The project was eventually abandoned after a few years and hundreds of millions of dollars were spent.

UK IT services company T-Systems: In 2016, T-Systems attempted to use Agile methodology to develop a new IT system for a large telecommunications company. The project ran into problems due to a lack of clear requirements and poor communication. The project was ultimately canceled after a few months.

It is important to note that these examples do not mean that Agile has been incorrectly applied. There can be many reasons why a project fails. Agile methodology can be very successful with proper implementation, adequate training, planning and the right team with the right competencies. It is also important to note that Agile methodology is not a one-size-fits-all solution, and organizations must evaluate whether this approach is right for their project and organization.