Addressing Systemic Issues in Agile Organizations

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5 minute read

Organizations often struggle to address the root causes of inefficiencies, particularly when adopting Agile practices. Instead of tackling the core issues within their systems, they focus on surface-level problems. This blog post will explore these systemic issues and provide insights on how to make meaningful changes that lead to greater effectiveness and agility.

Facing the Real Problems

Many organizations are too afraid to address the underlying problem—the way their system works. Instead, they focus on the little bits and pieces around the edges. It’s common to see companies pushing responsibility down the hierarchy for some things but not for others. They implement rituals like daily stand-ups, thinking it will fix everything.

Daily Rituals vs. Real Change

Organizations often fall into the trap of believing that following Agile rituals will magically lead to transformation. They think that if they just run daily stand-ups, plan sprints, and follow ceremonies, everything will change. But in reality, these are just mechanisms—not the outcome you’re trying to achieve.

You’re measuring the wrong things if you believe that simply having these rituals will lead to success. 🛑 It’s essential to shift your focus to the right metrics—those that genuinely reflect your organization’s progress.

What Should You Be Measuring?

To create meaningful change, organizations should focus on key metrics that drive effectiveness. Here are some important metrics to consider:

  • Return on Investment (ROI) 💰

  • Profit per team member

  • Cost to deliver

  • Meantime to repair (MTTR)

  • Time to learn 📚

  • Closing feedback loops 🔁

  • Identifying market opportunities

These are the critical measurements that can guide your organization toward true improvement.

Understanding Market Opportunities

One key area that organizations fail to address is what they don’t know—the opportunities they’re missing. What does your product not do that it could do? What new markets could you tap into? And how do you find this information? These are the tough questions that many organizations shy away from because they’re hard to answer.

In fact, 70% of startups fail within the first few years. Even more ideas fail to convince anyone to back them financially. Understanding your market and being prepared to pivot when needed is crucial to surviving and thriving.

Courage to Change: A Lesson from Consulting

As an Agile coach, one of my biggest regrets stems from a consulting engagement nearly ten years ago. I was working with a CEO who had just led a major reorganization of the company into silos. The CEO asked me a critical question:

“Should we throw out the changes we’ve made and reorganize differently?”

I gave what I thought was a reasonable answer at the time: “No, you can change slowly and iteratively toward the outcome you want.”

In hindsight, that was the wrong answer.

The Band-Aid Approach: Rip It Off!

The right answer should have been, “Yes, rip off that Band-Aid!” 🩹 Reorganizing into even more silos was a step in the wrong direction, and the CEO should have been encouraged to take faster and more decisive action. Reorganizations are expensive, and incremental changes often lead to ongoing pain and hemorrhaging of money.

Sometimes, the best approach is to make the big, bold moves upfront, even though they’re uncomfortable. It’s about having the courage to admit that the current system isn’t working and making the necessary changes to ensure long-term success.

Overcoming Agile Atrophy

One of the most common challenges I see in organizations is Agile atrophy. Teams become disengaged with Agile practices because the system around them hasn’t changed. They start saying things like, “I can’t be bothered with Agile anymore.”

This happens because Agile isn’t just a set of ceremonies or rituals. It requires fundamental changes in the way you do business at every level of the organization. If you don’t address the deeper structural issues, Agile won’t work.

Agile Isn’t a Magic Fix

Agile doesn’t magically make your organization better. It’s about systematic and continuous improvement—taking small steps in some cases, but also being willing to make big jumps when necessary.

The question is, do you have the courage to make those changes? 🚀

The Role of Agile Coaches: A Personal Reflection

As an Agile coach, I’ve learned that my role isn’t just about helping teams adopt Agile rituals. It’s about helping organizations face the tough decisions and embrace the changes they need to make.

I’ve seen too many organizations hire Agile coaches without truly committing to the transformational changes that are required. Agile coaches can guide teams and leaders, but ultimately, the organization must be willing to change its system.

Consulting Challenges and Lessons Learned

Reflecting on my past consulting experience, I’ve learned the importance of speaking up and recommending the right course of action, even when it’s difficult. The CEO I worked with years ago could have benefited from more direct advice—ripping off the Band-Aid instead of slowly trying to change.

These are the types of lessons that shape us as coaches and consultants. It’s not always easy to tell leaders they need to change, but it’s essential if we want to create lasting improvements.

Systematic and Continuous Improvement

At the heart of Agile is the concept of systematic and continuous improvement. Whether you’re making small, incremental changes or taking big leaps, the goal is always to improve your organization’s effectiveness.

🔄 Continuous improvement isn’t just about tweaking your Agile ceremonies. It’s about improving your entire business system so that Agile can truly thrive.

Key Takeaways:

  • Agile isn’t a magic fix—it requires fundamental changes at every level of the organization.

  • Don’t focus solely on rituals and ceremonies; instead, measure ROI, profit per team member, and other meaningful metrics.

  • Be willing to make the big, bold changes necessary for long-term success.

  • Agile coaches can guide you, but real change starts with organizational courage.

Personalized Assistance and Learning

If you’re ready to address the systemic issues in your organization and make meaningful changes, I’d love to help.

Organisations and people are too scared to address the real problem, which is the way the system works. Right, so they’re focusing on the little bits and pieces around the edge. Oh, let’s push responsibility down the organisation for some things but not other things. Let’s, uh, what else do they do? Let’s have people run these ceremonies, right? Uh, we’re going to do a daily, we’re going to have a daily, that’ll fix everything, right? But these are the mechanisms, not the thing that you’re trying to achieve. You’re measuring the wrong thing if you think that having those things is going to result in a different way of doing things. You should be measuring return on investment. You should be measuring, uh, um, a profit per team member, right? Uh, you should be looking at your feedback loops and your cost to deliver and your meantime to repair and things, your time to learn, right? Closing those feedback loops. You should be measuring, um, what you don’t know, right? What does your product not do that it could do? That is a market opportunity. And where do you go looking for that information? How do you, as a business, find that? This stuff is hard, and 70% of all startups, right? 70% of all ideas that people have are going to fail. Easy. 70% of ideas are going to fail. In fact, 70% of startups, I bet it’s a much higher percentage of ideas because not all ideas manage to convince somebody to give them the money to start the idea in the first place, right? Ideas are the most nebulous one, and if you’re building products and you’re trying to capture market, you have to be focused on what helps us as a business be as effective as we can be within the context of those markets. And that doesn’t come, um, from not having the courage to admit that you need to change more things.

So the common one that I see in organisations is that an agile coach, uh, comes in. I’ve been, I’ve been, this, this, I wasn’t an agile coach at the time, uh, but my biggest regret, this is my biggest regret in consulting. It’s from years ago. I was still wet behind the ears. I wasn’t, uh, a very sophisticated, uh, consultant at the time. Um, this was probably nearly 10 years ago, and a CEO pulled me aside and basically said, “Look, we’ve just gone through a major reorganisation.” Um, and they’d reorganised into silos, by the way, just different sort of silos. And he said, “Um, all the things that you’re talking about, I was talking about DevOps, seem to be different from the way we’ve organised ourselves. Do we need to throw all of that out?” Because it was very expensive, right, to do that reorg. Reorgs are expensive, or else don’t do reorgs, it’s expensive. Um, and do we need to change the way we do things completely? And I said, “No, you can change slowly and iteratively towards the thing you want to achieve.” And that was a bad answer. The right answer would have been, “Yeah, rip that Band-Aid off, disinfect the wound that you just created by changing your organisation to even more silos, right, in the wrong direction, and move faster and with less constant pain and suffering and haemorrhaging of money to a resolution to a different system that enabled you to be more successful.”

And that is the difficulty, the difficult call that lots of organisations have is that fundamentally, the reason you can’t take advantage of agile, the reason agile is so difficult, the reason you’ve got agile atrophy in your organisation, that people are just like, “I can’t be B, what? Don’t mention agile to me anymore,” that kind of attitude is because you’ve not addressed the changes that need to happen in the way you do business in order for agile to be successful. It isn’t just magically successful. You need to fundamentally change the way you do business at every level in your organisation in order to move towards what people are calling agility, right? This agile movement, big A agile or little a agile, but really it’s about your organisation systematically and continuously improving its effectiveness in sometimes small jumps, but sometimes you need big jumps to improve that effectiveness. And do you have the courage to make that change? If you want to have a discussion about your unique needs or situation, then please book a call or visit us at Naked Agility dot com. Uh, we also have our immersive and traditional public classes on our website, and we’d love to hear from you.

Resilience and Change Business Agility People and Process Agile Strategy Agile Frameworks Change Management Agile Leadership Agile Philosophy Enterprise Agility Scaling Agility

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