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Agile Transformation in Large Enterprises

This article explores the competitive advantage of agility in businesses, focusing on how it helps companies adapt to changing markets. It discusses the importance of agile transformation beyond tools, emphasizing the need for leadership, cultural shifts, and a clear company purpose to drive successful change.

By Artur Stil, freelance Agile Transformation Specialist
(guest writer)

I am absolutely convinced that agility can be a significant competitive advantage because it helps companies better and faster adapt to new changes. This will be crucial for future companies to keep up with the dynamics of global developments and meet market demands.

The core elements of markets will remain the same, but the factors influencing these markets will change. Through agility, even large enterprises gain the ability to adapt.

In recent years, agile transformation has become a key strategy for large enterprises, particularly in markets like Germany. However, what is often underestimated is that agility involves much more than just implementing a new project management tool.

The transition to agile ways of working requires profound changes on multiple levels—structurally, culturally, and especially in the mindset of the involved leadership and employees.

 

Even though the methodologies may not work uniformly across industries, the potential of agility is undeniable.

Artur Stil

 

Agility: More than just a trend

The growing demand for Scrum Masters and Agile Coaches, particularly in the German market, has indicated the recognition of the advantages of agile approaches.

However, recent trends, particularly in the U.S., Scandinavia and Germany, show a reversal. The demand for Scrum Masters and Agile Coaches is decreasing for the first time, leading some to speak of a "de-agilization" of companies.

Many organizations have experienced failed transformations, where the expected impact and outcomes from adopting agility have not materialized. The blame often falls on poorly trained Scrum Masters and Agile Coaches.

Despite this, I remain deeply convinced that an agile mindset provides a long-term competitive advantage in an ever-changing world. Even though the methodologies may not work uniformly across industries, the potential of agility is undeniable.

This is why we need even more capable Scrum Masters and Agile Coaches—professionals who can evaluate both the opportunities and limitations of prescribed frameworks.

In recent years, agile transformation has become a key strategy for large enterprises.

Even though the methodologies may not work uniformly across industries, the potential of agility is undeniable.

From my experience, the applicability of frameworks tends to diminish with the immobility of the product. Software or services, being non-physical, can be easily adapted, transferred, or relaunched.

On the other hand, industries like real estate face significant challenges when applying agile methods. For example, once a building blueprint has been approved and construction is underway, adapting the structure becomes nearly impossible.

Agile principles can still be applied in real estate, though typical frameworks often fall short.

Leadership: The decisive factor

A central aspect that is often overlooked is the role of leadership in agile transformation. Many companies expect their teams to work in an agile way without the leadership questioning their control mechanisms.

Agility does not mean the absence of leadership; instead, it requires leadership based on trust and support. Another critical factor is ensuring leadership remains true to why the company chose to go agile in the first place.

The "why" behind the decision is more important than selecting a specific framework. It must align with the company's overall purpose; otherwise, the transformation risks becoming just another organizational change with limited impact.

In large enterprises with clear hierarchies, leadership often blocks change—consciously or unconsciously. Overcoming these structures is a crucial part of a successful transformation.

In a company I worked with, a shift in leadership style ultimately enabled teams to act autonomously. Instead of giving constant instructions, the leaders created an environment where the team could fully unleash their expertise.

This change led to faster decision-making and increased motivation and innovation within the teams.

 

The "why" behind the decision is more important than selecting a specific framework.

Artur Stil

 

The balance between framework and flexibility

Frameworks like Scrum, SAFe, or Kanban provide a structured approach that helps integrate agility into everyday work. However, a framework alone is not a guarantee of success.

In many cases, rigid adherence to a specific model leads to frustration, especially in large organizations where various teams have different requirements. A key consideration here is to avoid the complexity that can arise from scaling agile processes too far.

In fact, it is often better to "de-scale" agile efforts to minimize overhead and maintain flexibility.

A project I managed highlighted the importance of flexibility when applying frameworks. The company had opted for a scaled agile framework that was not adequately adapted to its specific circumstances.

Rather than taking advantage of agility, the teams worked within a rigid framework that did not meet their needs. After loosening the conditions and giving the teams more freedom, the benefits of agility – such as faster decision-making and flexible responses to changes – were finally realized.

Performance reviews and employee evaluations must reflect the company's purpose and each employee's actual value to the business.

In many cases, rigid adherence to a specific model leads to frustration, especially in large organizations where various teams have different requirements.

Agility and career goals: The reality in large enterprises

A particular challenge in large enterprises is the tension between agile principles and employees' individual career ambitions. While agility emphasizes that employees take responsibility and focus on team development, other factors often play a crucial role in large organizations.

Relationships and networks – called "Vitamin B" – are key to climbing the corporate ladder, securing better financial conditions, or moving into specific positions.

One often overlooked aspect of agile transformation is the involvement of HR. Performance reviews and employee evaluations must reflect the company's purpose and each employee's actual value to the business.

Skills, behaviour, and value creation should align with the company's "why" and be integral to shaping the organization's culture and leadership approach.

This factor influences corporate culture and inevitably impacts transformation. Employees trapped in rigid structures think not only about the success of the project but also about their personal position within the company.

Therefore, an agile transformation can only succeed if this reality is acknowledged. A key component of any transformation project must be to provide impulses for cultural change, and this transformation starts with leadership. When leadership models trust and promotes autonomy, it creates a culture in which agility can thrive.

When leadership models trust and promotes autonomy, it creates a culture in which agility can thrive.

A key component of any transformation project must be to provide impulses for cultural change, and this transformation starts with leadership.

Agility and Compliance: Navigating conflicting objectives

Corporate compliance exists to protect a company from legal risks of all kinds, and as such, it is intentionally strict and narrowly defined.

On the other hand, an agile mindset seeks to promote openness, transparency, and flexibility—objectives that often conflict with strict compliance goals. This tension can become a significant obstacle during an agile transformation.

Agility thrives on collaboration, especially within cross-functional teams. This collaboration often extends beyond the company's internal boundaries, involving suppliers or partners.

However, particularly in countries like Germany, legislation is sometimes very stringent, and in certain situations, cross-company collaboration is outright prohibited.

Companies must protect themselves from potential legal action, so the conflict between agility and compliance tends to affect large organizations more acutely than smaller ones.

Resolving these conflicting objectives—finding a balance between maintaining legal safety while fostering agile collaboration—is a vital part of the work of an Agile Coach during an agile transformation.

Solutions should not be imposed unilaterally but must be developed in close collaboration with the legal department. Only by working together can companies achieve the right balance, ensuring compliance is maintained without stifling the benefits of agility.

Cultural change as a prerequisite

One of the most significant challenges in introducing agile working methods is the necessity of cultural change. It is not enough to introduce new processes and tools – the mindset of the people within the company must also change.

Agility demands openness, trust, and the willingness to take responsibility. This is often the most challenging step for many organizations. 

A healthy corporate culture is the best foundation for a successful agile transformation. When employees work in a culture characterized by trust, openness, and mutual support, it becomes easier for them to embrace agile working methods.

In one of my projects, I observed how a team operating in a highly hierarchical environment became significantly more agile and innovative through a targeted cultural shift.

The change started with leadership and gradually spread throughout the organization. 

 

Agility demands openness, trust, and the willingness to take responsibility.

Artur Stil

 

How to identify great Scrum Masters and Agile Coaches

As a consulting firm specializing in agile and digital transformations, one of the central questions we constantly face is: What makes a great Scrum Master or Agile Coach?

While there is no single definitive answer, there are a few key traits that serve as solid indicators:

  • Agile values:
    The best Scrum Masters use agile values as their compass to evaluate their own work. Frameworks don't always fit perfectly, and this is where the true magic of a great Scrum Master begins. Are they deeply familiar with the Agile Manifesto? If so, that's a good sign.
  • Transparency & no compromises:
    A good Scrum Master understands the value of openness. They will immediately flag any issues or concerns. This often becomes apparent in job descriptions. Suppose you ask a Scrum Master to handle both Scrum Master and Product Owner responsibilities or to take on testing or other operational tasks. In that case, the feedback should be that such a dual role isn't conducive to team success. Only the most seasoned professionals can handle multiple roles successfully; even then, it should be an exception.
  • Listening over speaking:
    While this is hard to assess in an interview, as candidates need to present themselves, the best Scrum Masters excel at listening. They are curious, ask many questions, and do not feel the need to dominate conversations with their knowledge.
  • Empathy:
    This trait can be developed, but some people are naturally more empathetic than others. I started as a Process Engineer and had the privilege of stepping into a Scrum Master role shortly after obtaining my PSM1 certification. Initially, I worried whether I had the technical expertise to support the team, but my natural empathy proved far more valuable. CIA Officer Andrew Bustamante describes empathy as stepping away from your "perception of the world" and instead embracing someone else's "perspective of the world." Testing for empathy in recruiting is complicated, but we use emotional brainteasers. In simulated scenarios, candidates must respond to sensitive situations, such as a team member disclosing the anniversary of a personal loss.A good Scrum Master should not be surprised by such moments and must respond empathetically.
  • Certification vs. Value:
    Great Scrum Masters know why they want to foster agile practices and love the role. Those chasing the hype can complete a certification in two days and declare themselves ready. However, the real value lies in understanding the "why" behind the framework, not just possessing a certification. I've seen exceptional Scrum Masters who entered the role without formal certification. I've also encountered certified Scrum Masters whose work needed to be undone due to the damage they caused.
The agile transformation of a large enterprise is a complex process that requires profound changes in leadership, structure, and corporate culture.

The best Scrum Masters use agile values as their compass to evaluate their own work. Frameworks don't always fit perfectly, and this is where the true magic of a great Scrum Master begins.

Conclusion: Agility is a continuous process

The agile transformation of a large enterprise is a complex process that requires profound changes in leadership, structure, and corporate culture.

It is not just about implementing a framework or changing work processes – it is about the willingness to continuously learn, adapt, and grow.

Leaders must be willing to relinquish control, and teams must be given the space to act autonomously.

If companies genuinely want to benefit from agility, they must desire change and be ready to be part of the change. The role of Scrum Masters and Agile Coaches is just a lever—it can work without them, but in my experience, it's much more difficult.

Ultimately, an agile transformation will only succeed if companies change their processes and culture. Agility flourishes in an environment built on trust and support – and this environment begins with leadership. Additionally, ensuring that all leaders and employees understand the "why" behind the transformation is critical.

The "why" often determines whether the change will succeed or fail.

Read more about emagine's Agile - transformation & readiness

Artur Stil

Artur Stil is a German Agile Transformation Specialist with over seven years of experience in real estate, automotive, and consulting.

Artur Stil - Agile

Stil specializes in digital transformation, agile transformation, and strategic consulting. His expertise includes process automation, project management, agile coaching, and strategic leadership, with a proven track record in enhancing operational efficiency and achieving business goals.

He has a background in consulting and coaching, guiding teams through agile adoption and transformation, providing strategic guidance, and managing large-scale projects.

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