What makes Agile companies stand out?

This article is a translation of an interview I gave nearly a year ago for a Bulgarian magazine. In the interview, we discussed various aspects of Agile adoption within companies, the challenges they face, and the benefits they gain. It was a rich conversation that delved into the practicalities of embracing Agile methodologies and how it sets companies apart in today's dynamic business landscape.

For those who are interested in the original dialogue in Bulgarian, you can access the full interview on the Economy.bg website via the following link: Original Interview

Mladen Tomov for economy.bg

Would you explain to us what the idea of agile is?

Embracing the dynamic nature of our living and working environment requires more than just a change in techniques—it requires a transformation in our way of thinking. The constant flux around us challenges our stability and certainty, making the prediction of outcomes and decision-making a complex endeavor. The interplay of various factors can accelerate these changes, further compounding the complexity.

This isn't just the reality for the software industry—traditionally the bastion of agile and flexible methodologies—but is extending into various other sectors where predictability is waning. The work itself is evolving from merely complicated to truly complex. Solving problems in this new terrain demands not just specialists, but teams of specialists collaborating towards a common goal. The traditional paradigm of management—one all-knowing person at the helm directing how every job should be done—is no longer tenable in our increasingly intricate reality.

In this tempest of change, it's simply unrealistic to create a detailed blueprint spanning several years and follow it without question. When we're venturing into the innovative and unfamiliar—especially in an ever-shifting environment—our blind spots only come to light when we take meaningful action and open ourselves up to feedback we receive.

What's vital here is not a rigid plan, but a resilient framework—a mix of beliefs, values, principles, and practices—that empowers teams to collaborate fruitfully. Our aim should be pioneering solutions that are nimble enough to pivot with the market demands and finely tuned to the needs of the stakeholders. To this end, work often unfolds in brief iterations or incremental deliverables, not in grand leaps. This approach fosters faster and more regular delivery of value, enables ongoing feedback, and increases confidence that we're charting the right course.

What do companies typically want to change when they approach you and want to start implementing agile?

Companies typically approach me for a shift towards Agile because they're seeking a few key changes.

Many organizations are recognizing the need to deliver value to their customers at a faster rate so as not to miss out on market opportunities. The right idea might be there, but if it's realized too late—when trends have shifted—it's a lost cause. And this speed must not compromise quality. Delay has already cost some organizations their business.

Another aspect is the ability to make timely and coordinated decisions based on clear priorities and act in consensus. Progress should be transparent, with everyone moving in the same direction. This transparency also applies to obstacles and risks. It's often one of the first things stakeholders mention when they approach me.

Companies want to enhance their understanding of customer needs and the market. Without this knowledge, it's impossible to make decisions or create products that satisfy these needs or meet market expectations, which are key to improving financial results.

This applies to any company that aims to be adaptive and competitive, regardless of the industry. Can every company use Agile?

Over recent months, there has been a surge in enquiries for training and consulting from various sectors. They're all just seeking ways to thrive in this fast-paced environment. As I mentioned, it's getting increasingly challenging to predict the future or stick to an initial plan because it may not remain relevant. So, my answer is—yes.

I see increasing interest from companies outside the IT sector too. I receive queries from various industries—from manufacturing firms to sales teams, even recruitment agencies. Ultimately, every company needs to add more value, manage its projects more successfully and confidently, and maintain consistency between strategic plans and execution.

However, it's essential to note that each company requires a personalized approach, based on its size, specific operations, and the improvements it seeks. A clear method is followed, but practices are adapted to fit the company's context and operations, as well as the particular problem they're looking to solve.

Fortunately, over the years, a core team of experts with varied experiences has been formed. The company's expertise includes technology, product, and marketing experience, professional coaching, training, and organizational psychology.

This allows us to offer far more value to the client than a single Agile consultant could. We can assist at an organizational level, not just at the team level. We also partner with international firms, continually expanding our knowledge base.

What are companies that implement agile known for?

Companies implementing agile are typically characterized by their adaptability and swift decision-making. They manage to take advantage of the opportunities the environment offers, while maintaining focus on their standard operations.

These organizations operate cohesively at both strategic and operational levels, periodically reviewing their priorities. They have clear, motivating goals, and everyone in the organization understands and contributes to their realization.

Agile companies have a deep understanding of their customers' needs and the market as a whole. They frequently seek feedback and use it in planning their future actions.

Experts in these organizations are involved in decision-making and are committed to their implementation. They propose improvements in the process and way of working. People feel confident and secure, including being able to point out problems and propose and implement solutions and improvements themselves. The roles are clear, and people interact in the process of creating value.

Objective parameters exist – like for example

• How much time passes from the generation of an idea to its market launch?

• How satisfied our customers are and whether they would recommend us?

• How do the people working in the company feel and how engaged are they?

• What part of our revenue is based on products and solutions introduced recently?

• etc

This flexibility helps organizations not only to be more successful operationally but also makes it easier to attract talent, which in turn ensures future success.

Today, there is almost no IT company that does not claim to implement agile. What are your observations? Is that really so?

I can certainly confirm that IT colleagues do it. If we broadly divide IT companies into product and service companies, it's especially important for both types of companies to be fast and efficient.

For product companies, it's crucial to align the ambitious vision for their product with reliable and timely delivery, and this should not be at the expense of the quality of the result or the atmosphere in the team. To create a successful product, you need to be really connected with the market and its needs. It requires attracting the necessary talent, but also, purely in terms of process and operation, these experts need to work together to bring value.

For service companies, clients at the very least expect reliability, transparency, and timely results. These companies face serious pressure to deliver more value to their customers to remain globally competitive. Otherwise, they enter a downward spiral if they start competing only on low price. For them, the benefits of reliable and predictable results are quickest, and the first results from investing in a team are practically immediate.

Could you talk about the steps if a company decides to start implementing agile and how it happens in practice?

When a company decides to start implementing Agile, the process typically involves the steps like:

• Understanding Motivation: First, it is important to clarify the motivation for the company to seek such a change. Working with the sponsors of the initiative is essential to clearly define the problems and the desired results.

• Leadership Buy-In: Having a clear understanding among the leadership team is key as these are the people who can make structural and process changes in a company. Without support from leaders, changes are very difficult, even impossible. So, an initial brief diagnosis begins with interviews and focus groups to better understand the context.

• Gradual Change Approach: Once we have a good understanding of the current state of the organization, a gradual change approach is taken. This involves working with the organization's leaders and directly with the people whose work is expected to change. It's important that they are included in the change process and that things are done with them, not for them.

• Agile Coaching and Guidance: The role of the Enterprise Agile Coach in this process is to facilitate these changes, working together with the people and guiding them towards the appropriate steps that move the organization towards the desired results.

• Training: Often, we might even start with some training to ensure everyone is aligned regarding the approach and understands what the goals are. Interactive and fun trainings not only help people grasp the specifics of Agile but also serve as a sort of mini team-building exercise.

• Engagement: People's engagement is key. They know best the specifics of their activities and what changes could yield positive results. Therefore, we rely on coaching for both teams and leaders. Seeing results from this work builds confidence in the process.

• Iterative Process and Culture Change: Through this collaborative work, the processes, ways of working, and often the structure are changed gradually and iteratively. This makes it easier for people who need to work together and create value to do so, leading to a change in the organization's culture and ultimately how it's managed.

It's important to remember that an Agile transformation isn't something that happens overnight. It's a gradual process that requires commitment, involvement, and a willingness to learn and adapt from everyone in the organization.

How long would it typically take for an organization to change the way it operates?

The duration of an organizational transformation towards Agile practices can vary greatly depending on a number of factors. It's important to understand that becoming an Agile organization isn't just about adopting a set of practices or processes. It's about a shift in mindset, a change in culture, and this can take time.

In a smaller company, the change can often happen fairly quickly, especially if the change is targeted to improve the execution of projects. Training and support over a period of time often leads to significant visible results.

For larger companies, the journey may take longer. After an initial diagnosis phase, a training stage is usually followed by selecting a pilot project to apply the new way of working. Significant value is often felt immediately, as people align around important topics, discuss key issues together, make decisions, and apply tools.

However, a common mistake some companies make is trying to implement a modern methodology across the entire organization at once, hoping to change everything very quickly. This approach often raises a lot of questions, leads to a lot of stress, and is rarely successful.

Instead, a gradual change approach, based on small steps and with active participation from people, concrete actions, and analysis of results, is typically more effective. This provides opportunities for continuous improvements, careful identification of potential difficulties, and adequate preparation for growth.

Enterprise Change Pattern, Adventures with Agile

People are also more likely to engage with a new way of working when the change is gradual and the initial results are visible. This approach can reduce anxiety about the new methods and processes, making it easier for the changes to be recognized and to avoid resistance.

Remember, every organization is unique and represents a complex adaptive system. So the chosen interventions should be applied according to the context, and may need to be tailored to suit the unique characteristics and needs of the organization. This makes it difficult to provide a precise timeline, but it's safe to say that the process will usually take months or even years, not weeks. And it's a continuous process - once an Agile mindset has been adopted, the process of inspecting and adapting continues indefinitely.

Based on your practice, what are the biggest challenges in this process?

Adopting Agile at an organizational level is arguably the most challenging shift a company can face. This is why it's crucial to have a clear motivation for change, buttressed by support from the leadership team.

There are specific practices and tools that can be instantly implemented, and their benefits quickly become apparent. Take for instance, shortening daily meetings to a maximum of 15 minutes, thereby freeing up more time for productive work. Or visualizing workflows to enhance synchronization, ensuring everyone is abreast of progress and obstacles. Such methods start paying dividends almost immediately upon implementation.

However, changes in work processes and management styles tend to take more time. They may encounter various hurdles along the way. Frequently, company leaders participate in a series of workshops on topics related to leadership roles, team management, meeting facilitation, effective communication, feedback, and change. These activities aim to support them during the transition. At the same time, efforts are made to build the company's internal capacity for training, facilitation, and practical application of newly acquired knowledge.

True agility is at the organizational level - it’s about the company as a whole being able to see what's happening in the market, learning what works and what doesn't, and capitalizing on opportunities in the most effective way. And this happens when such responsiveness is synchronized across different departments, including marketing, finance, and even HR.

Agile Onion by AWA, design Dandy People

Change and continuous improvement should become sustainable habits, part of an ongoing process of active experimentation, feedback, learning from experience, and optimizing results. Such habits form the foundation of enduring success and efficiency.