各行业敏捷组织现状+The+State+of+Agile+Organizations+Across+Industries

Thestate

ofagile

organizations

across

industries

ThelatestStrategy&

surveyshowsthatagile

transformationisstill

unfinishedbusiness

Contacts

Switzerland

Germany

Dr.MarkusWeiss

OliverBergius

ManagingDirector

Director

Strategy&Switzerland

PwCGermany

+41-79-878-2196

+49-1516-1356-471

markus.weiss@pwc.ch

oliver.bergius@

Abouttheauthors

Dr.MarkusWeissisManagingDirectorwithStrategy&SwitzerlandandbasedinZurich.

HeleadstheEuropeanagiletransformationofferingandadvisesclientsonITstrategyandlargescaletransformationprograms.

OliverBergiusisDirectorwithPwCGermanyandbasedinCologne.HeleadstheEnterpriseAgilityofferingandadvisesclientstoincreasetheirorganizationalagilityandvalueorientation.

Dr.ClaudioLamprechtisSeniorAssociatewithStrategy&Switzerlandandbasedin

Zurich.Headvisescross-sectoralclientsonITstrategies,agiletransformationsandtargetoperatingmodels.

KatrinWagnerisSeniorAssociatewith

Strategy&SwitzerlandandbasedinZurich.

Sheadvisesfinancialservicesclientson

marketentrystrategies,largescale

transformationsandESGstrategies.

ChristianMesiscaisAssociatewithStrategy&

AustriaandbasedinVienna.HeadvisesIT

andfinancialservicesclientsontargetoperating

modelsandlargescaletransformations.

PhilippDahlemisAssociatewithStrategy&

SwitzerlandandbasedinZurich.Headvises

retailandchemicalindustryclientsonIT

strategies,targetoperatingmodelsandlarge

scaletransformations.

Strategy&|Thestateofagileorganizationsacrossindustries3

SECTION1

Theageofagile

Itiswidelyrecognizedthattodayinstitutionsareoperatinginachallengingworld.Thisisthe

“VUCA”environment–oneofvolatility,uncertainty,complexity,andambiguity.TheVUCA

worldismarkedbyrisingcostpressure,rapidinnovationintechnologysuchasblockchain

andAI,rapidlychangingpreferencesofdigitalnativecustomers,andtherapidgrowthof

disruptivecompetitorssuchasfintechs.

Agileisanorganizationalresponsetothechangingnatureofthebusinessenvironment.

Itoriginatedinthefieldofsoftwaredevelopmenttofirstimprovetheflexibility,and

collaborationsinordertodeliverhigh-qualitysoftwaremoreefficientlyandthenalsobring

ITandbusinessclosertogether.Agilequicklyemergedasanalternativetotraditional,

plan-drivenmethodologies;insteaditbuildsoniterativeandincrementaldevelopment,

emphasizingfrequentcommunication,continuousfeedback,andadaptiveplanningwith

crossfunctionalteams.

Allthiscanbetracedbacktoagatheringofindustryexpertsin2001whocreatedtheAgile

Manifesto–aformulationoftheprinciplesandvaluesthatformthefoundationofagile.

Sincethen,agilehasachievedwidespreadadoption.Ithasdevelopedbeyondsoftware

developmentandITapplications,evolvingfromasoftwaredevelopmentconcepttoan

overarchingbusinessorganizationtoolkit,suitableforlargescaleimplementationacrossall

domainsandallhierarchylevelsofanorganization.

Ouragiletrendindexprovidesevidenceofthisshiftbyassessingthelevelofpublicinterest

in“agile”.Thefindingsunequivocallydemonstratearemarkableupsurgeininterestanda

notablechangeintheperceptionofagileinrecentyears.Agilehastranscendeditstraditional

boundariesandconventionalnotionasameresoftwaredevelopmentconceptandinstead

hasemergedasavitalapproachthatembracesacomprehensiveandholisticoperating

modelfororganizationscomplementedbythequestionofwhatisrequiredfromacultural

andleadershipperspective(seeExhibit1,nextpage).Theproliferationofagileisalsofueled

bytechnologicaladvancementsandtheemergenceofnewworkpracticesduringthe

COVID-19pandemic.Businesses,astheyrelymoreontechnologytofosterinnovationand

staycompetitive,alongwiththenecessityofadoptingnewworkmodelstobeanappealing

employer,haverecognizedtheessentialityofagilemethodologies.Ontheonehandto

effectivelynavigateandadapttoarapidlychangingenvironmentandontheotherhandto

movefromdoingto“BeingAgile”.

1’000

800

600

AgileSmartWorkingDevelopment

EXHIBIT1

Agiletrendindex

Searchtrendsshowthatinterestinagileisconsistentlyhigh:inrecentyearstherehasbeenasignificantriseininterestinapplyingagilebeyondIT

AgileFramework

900

AgileOrganization

700

AgileMindset

500

AgileLeadership

400

300

AgileTools

200

0

2011201220132014201520162017201820192020202120222023

Level1:AgileWayofworking

Level2:AgileGovernance

Level3:AgileLeadershipandCultureAgilesearchterms

“BeingAgile”

Trendtowardsagilewithabroader

scopebeyondIT

andtools

“DoingAgile”

Constanttrend

around“traditional”agileunderstanding

1Googletrendanalysisfrom01/2011until05/2023withaworldwidescopecalculatedbasedonafive-monthmovingaverage

forselectedsearchitemsperlevelindexedto2011(=100)

Source:Google,Strategy&analysis

Assuchagilehasbecomeapreoccupationatboardlevel,challengingseniorexecutivesto

thinkthroughhowtheconceptcanhelptheorganizationtoachieveitsstrategicgoals,such

asshortertimetomarket,increaseddeliveredqualityofproducts,highercustomer-centricity,

andstrengthenedattractivityasanemployer.

Agilehastranscendeditstraditionalboundariesand

conventionalnotionasameresoftwaredevelopmentconcept

andinsteadhasemergedasavitalapproachthatembracesa

comprehensiveandholisticoperatingmodelfororganizations.”

Strategy&|Thestateofagileorganizationsacrossindustries4

EXHIBIT2

Theagileoperatingmodel

AgileLeadership

andCulture

Visionandgoals

Values

Principles

Buildingastrongvalue-basedvisioncross-functionalityandtransparency

principlefortheoperatingmodel

AgileKPIs/OKRs

andembrace

asguiding

AgileGovernance

Team/scaledstructures

Interdependencies

Portfolioandplanning

Archetypes

Decentralizationofdecisionprocessestoenablespeed,scaledvaluecreation

making

flow,

Scarceresources

Roles

Budgeting

AgileWayofWorking

SCRUM

DesignThinking

Trello

SCRUMXP

Applicationofsuitablemethodsandtoolsto

KANABAN

Jenkins

Miro

Lean

Jira

focusoncontinuous

valuecreation

GitLab

SCRUMBAN

Azure

BTX

X-TremeProgramming

Source:Strategy&analysis

Aligningonthegoalsandachievingthesameunderstandingisoftennoteasy.Depending

onwhatgoalstobeachieved,itiscrucialtounderstandthatthetransformationscopeand

pathisgoingtolookdifferent.Andevenifbenefitsareclear,implementingagileatscale

isunfortunatelydifficultandtakestime.Itdemandsmorethanimplementingwell-known

frameworksandchangesonteamlevel:itrequiresfindinganindividuallytailoredagile

operatingmodelthatconsistsofinnovationsincultureandleadership,governance,andways

ofworkingacrossthefullorganization(seeExhibit2).

Hardestofallisdevelopingagileleadershipandculture:thisdemandsanin-depthand

sustainablechangeoftheoverallcorporatemindsetandleadershipstylewhichtakes

significanttimeandeffort.Benefitsofagileareonlylimitedwithoutleadershipandculture

thatalignwithitsprinciplesandvalues.Agilemethodologiesrequireashiftinmindsetand

asupportiveorganizationalculturethatencouragesautonomy,trust,andcollaboration.

Strategy&|Thestateofagileorganizationsacrossindustries5

Executivesummaryoffindings

1.Stateofagiletransformation

Agileisakeythemeforcompaniesacrossindustries–regardlessofwhethertheyoperate

inatech-savvyandhighlydigitalizedindustrysuchastelecommunication/tech,orinhighly

regulatedindustriessuchashealthcareandpharmaceuticals,orinhardwaredominant

industriessuchasmanufacturing.

2.Agileoperatingmodel

Onlyaround30percentofcompaniesleveragethefullpotentialofagile.Wefindthereisa

fundamentaldifferencebetween“DoingAgile”and“BeingAgile”,andthatbenefitsmostly

comefrom“BeingAgile”.

3.Agileleadershipandculture

Topmanagementcommitmenttotheagiletransformationisnotperceivedequally

acrosshierarchicallevels.However,successfulagiletransformationrequiresstrong

leadershipcommitment.

4.Agilegovernance

Establishinganagilegovernanceiscrucialtogetfrom“DoingAgile”to“BeingAgile”,yet

itispreciselythislayerthatfrequentlyfallsshortandposessignificantchallengesfor

manyorganizations.

5.Agilewayofworking

Thebenefitsofagileareverylimitedifstandardizedtoolsareimplementedwithouttailoring

themtoanorganization’sneedsandnotsupportedbyatechnologyfoundation.Unfolding

fullagilepotentialrequirestechnologytransformationincludingtheadoptionofmodern

architecturessuchasdeliverypipelines,automatedtestingandmodularcloudplatforms

orcontainerizedapplications.

Agile

Strategy&|Thestateofagileorganizationsacrossindustries6

TheStrategy&studyonthestateofagileorganizationsacrossindustries(Methodology)

Weembarkedonarollingstudyofthestateofagileorganizationsacrossindustries.Inearly

2023wecompletedasurveyofover200corporationsinGerman-speakingcountriesdesigned

toassesswhetheragileisakeythemefororganizationsofdifferentsizesandsectors,andto

identifytheextentofadoptionofagileoperatingmodelsaswellastoidentifywhatisworking

wellandwhatisnot.Wealsocontinuetodrawinsightsfromourannualagilepanelwhich

thisyeardiscussedthestateofagileorganizationsacrossindustrieswithpanelistsfromthe

insurance,retailandconsumer,andhealthcareindustries,aswellaswitharepresentative

fromacademia.

EXHIBIT3

Thestudyataglance

200+participantsfocusingonGermany,SwitzerlandandAustria(fromNov2022toJan2023)

Thestudywassupplementedbyselectedexpertinterviews

Acrosstopmiddleand

lowermanagement

12%15%

10%42%21%

C-levelorBoardMember

DivisionC-SuiteorBusinessUnitLeaderVicePresidentorDirector

Manager

Other

Acrossall

sectors

6%

6%

7%

10%

11%

14%

24%

22%

ProfessionalServices1

FinancialServices

Chemicals,MetalsandEnergyTelecommunication/Tech

Manufacturing

Consumer

Automotive

HealthandPharma

Acrossall

companysizes

32%

48%

20%

Small(<2’000)

Medium(2’000-10’000)

Large(>10’000)

1Includingothers

Source:Strategy&survey

Strategy&|Thestateofagileorganizationsacrossindustries7

Thestateofagiletransformation

Takeaway

Agiletransformationisvisibleacrossthesurveysamplebutinmost

casesprogressisfarfromcomplete,withslowerprogressinlarger

companies.Companiesshouldrecognizethatagiletransformation

isalwaysanongoingprocess.

Agileisakeythemeforcompaniesacrossindustriesregardlessofwhethertheyoperate

inatech-savvyandhighlydigitalizedindustrysuchastelecommunication/tech,orinhighly

regulatedindustriessuchashealthcareandpharmaceuticals,orinlessdigitized/hardware

dominantindustriessuchasmanufacturing.

Asignificantmajorityofthecompaniesinvolvedinthestudy(76percent)saidthattheywere

undergoinganagiletransformationprocess,butonly6percentofparticipantssaytheyhave

completedtheirtransformation.Additionally,18percentofcompaniessurveyedhaveanagile

transformationontheiragendabuthavenotyetbegunthework.

Largecorporationswithmorethan2,000employeesmaketheslowestprogress(seeExhibit4):

nonesaytheyhavecompletedanagiletransformation,althoughthemajorityhavestarted

theprocess.Somecompanieswithfewerthan500employeeshavecompletedtheiragile

transformationbutsmallercompaniesarealsolesslikelytohavebeguntheirtransformations.

Thehighercompletionrateexhibitedbysmallercompaniesisnotentirelyunexpected,and

thiscanbeattributedtoseveralfactors.Firstly,smallercompaniestypicallypossessless

complexorganizationalstructuresandprocesses.Secondly,theytendtohaveabetter-

definedtransformationscope.Lastly,smallercompaniesoftenfacelesstimepressure,

EXHIBIT4

Agiletransformationstatusbysize

<500

500-2,000

2,000-10,000

10,000-100,000

>100,000

17%49%34%

3%

73%

23%

8%

92%

94%6%

87%13%

Notstarted

Ongoing

Completed

Source:Strategy&survey

Strategy&|Thestateofagileorganizationsacrossindustries8

Strategy&|Thestateofagileorganizationsacrossindustries9

allowingthemtoexecutetheirinitiativeswithgreaterprecisionandthoroughness.Incontrast,

largerorganizationstendtooverlycomplicatetheirprocessesandstruggletoestablishan

appropriatescopefortheirtransformationefforts,slowingthepaceoftransformation.

Overall,ourstudyresultsshowthatagileisanimportantconceptandrelevantindependent

oftheindustryandcompanysize.Moreimportantlyagiletransformationis,inthewordsof

onesurveyparticipant,“anever-endingprocessthatcontinuesastheorganizationevolves”.

Agiletransformationstaketime–typicallylongerthanexpected,especiallyforfully

scaledtransformationmodels.Cultureandleadershipchangeinparticulariscriticaltoagile

transformationandisalwaysaslowandchallengingprocess.

Companiesneedtomanagetransformationexpectations

Thesuccessofanagiletransformationdependsinpartonanunderstandingofthedepthofthechallengeand

thetimenecessarytomakeprogress.Companiesexpectingrapidtransformationarelikelytobedisappointed

andmayendupabandoningtheprocess.Ourstudyshowsthatagiletransformationstypicallyexceedthe

anticipatedtimeframe.Inoursurvey,companieswithongoingtransformationsareonaveragealreadymore

thanfouryearsintothetransformationprocess.Wealsofindthatmosttransformationsstartedonlyrecently:

themajorityofcompaniesembarkedontheagilejourneyafter2017.Progressisfastestwhereorganizations

focusonspecificprocessesandfunctionsfirst,beforeattemptingtoscale.

EXHIBIT5

Agiletransformationstatusbyindustry

Telecommunication/Tech

17%

74%

11%

FinancialServices

14%

70%

16%

ProfessionalServices1

3%

76%

22%

Automotive

92%

8%

Chemicals,MetalsandEnergy

82%

18%

ConsumerMarkets

80%

20%

HealthcareandPharmaceuticals

78%

22%

Notstarted

Manufacturing

72%

28%

Ongoing

Completed

1Includingothers

Source:Strategy&survey

Agileisbecominganintegralpartoftheoperatingmodelforcompanieswithambitions

tocompetewiththebest.Companiesinallindustriesareexposedtoagile(seeExhibit5),

however,theimpactofexternalsectoralfactorscaninfluencetheextenttowhichagile

approachesareadoptedandimplementedwithinanorganization.Companiesinmost

sectorshaveembarkedonagiletransformationsbutevenintelecommunication/tech

businesses–thesectormostfaralonginagiletransformation–only11percentofcompanies

reportacompletedagiletransformation.Overall,infiveoutofeightsectorscoveredbythe

survey,nocompaniesreportacompletedtransformation.

Inourstudywefoundthatthetelecommunication/techandfinancialservicessectorshave

emergedasleadersinachievingcomprehensiveagiletransformationscomparedtoother

industries.ThiscomesasnosurpriseconsideringthattheAgileManifestooriginatedwithin

thesoftwaredevelopmentindustry.Furthermore,boththetelecommunication/techand

financialservicessectorsareheavilydigitalizedandpossessadeepunderstandingofthe

benefitsassociatedwithadoptingagilemethodologies.

Theautomotive,resources/energyandconsumersectorsarecurrentlyundergoingagile

transformations,whilehealthcareandpharmaceuticalbusinessesaswellasmanufacturing

companiesaremorelikelytoreportthattheyhavenotyetembarkedonthejourney.

Strategy&|Thestateofagileorganizationsacrossindustries10

Strategy&|Thestateofagileorganizationsacrossindustries11

Intheautomotiveindustry,technologyanddigitalassetsnowcontributethelargestshare

oftheproductandarealsoincreasingtheircontributionwithinothersolutionsinthemobility

ecosystem.Thecycletimeforsomeoftheseproductsissignificantlyshorterthanthatofthe

caritself,andshorterdevelopmentcyclestogetherwithastrongend-customerfocusare

makingagileincreasinglyrelevantinautomotiveR&D,marketingandsales,andIT.

Healthcarefacessignificantchallengesduetoitsintricateregulatorylandscapeandthe

bureaucraticprocessesassociatedwithproductapprovals.Thesefactorshinderthe

widespreadadoptionofagilemethodologieswithinthesector.However,weseeagile

deployedinthedeliveryorganization,salesandmarketing.

Inthemanufacturingindustry,thereisgenerallyalowerlevelofdigitizationthanaverage

andlesswidespreadadoptionofagilepractices.Thisisprimarilyduetothenatureof

manufacturingprocesses,whichofteninvolvesequentialandinterdependentsteps.Akey

focuswithinthisindustryisfindingeffectivewaystocombineandsynchronizehardware

andsoftwarecomponents,emphasizingaholistic“systemsthinking”approach,whichmay

encouragefutureadoptionofagile.

Theagileoperatingmodel

Takeaway

Onlyaround30percentofcompaniesmanagetoleveragethefull

potentialofagileasthereisafundamentaldifferencebetween

“DoingAgile”and“BeingAgile”.Companiesshouldbeawarethat

benefitsmostlycomefrom“BeingAgile”.

Theagiletargetoperatingmodel(TOM)consistingofthreeessentiallevels:agileleadership

andculture,agilegovernance,andtheagilewayofworking.Theseinterconnectedlevels

formthebackboneofanorganization’sagiletransformation.

Inoursurvey,wefoundthattheoverallmaturitylevelsofanagileTOMvarysignificantly

(seeExhibit6,nextpage).Mostfirms(around70percent)fallintothecategoryof“Doing

Agile”wheretheyhaveadoptedsomeagilepracticesbuthavenotfullyintegratedtheagile

mindsetintotheirorganizationalDNA(typicallybyonlyimplementingtheagilewayof

working).Onlyasmallerpercentage(around30percent)cantrulyclaimtobe“BeingAgile”

meaningtheyhaveachievedaholistictransformationandembodythecoreprinciples

ofagilityintheirday-to-dayoperationsthroughagilegovernanceandagileleadership

andculture.Thistransitionfromoneleveltoanotherisaprocessthatrequirestime,

commitment,andperseverance.

Oursurveyalsoshowsthatmanycompaniesover-estimatetheextentoftheiragile

transformation.Despiteclaimingtohavecompletedatransformation,manycompaniesstill

havemuchgroundtocovertofullyexploitthebenefitsof“BeingAgile”.Companiesthat

believetheiragiletransformationiscompletehaveonlyfullyimplementedagileleadership

in75percentofcasesandhaveonlyachievedagilegovernancein50percentofcases.

Thishighlightstheimportanceofcontinuousimprovementandongoingeffortstoalignthe

organization’spractices,culture,andmindsetwithagileprinciples.

Itisalsothecasethatsomecompaniesmayunderestimatetheirengagementwithagile.

Evenamongcompaniesthathavenotyetembarkedontheiragilejourneyasmallnumber

arealreadyembracingagileprinciplesinsomecapacity:almostaquarterofcompanies

whoconsidertheyarenotundergoingagiletransformationhaveinfactadoptedtypicalagile

methodssuchasstand-ups,scrumsandsprints.Itisclearthatagilehascaughttheattention

offorward-thinkingorganizations,promptingthemtoexploreandadoptagilepractices

evenbeforeformallyinitiatingtheiragiletransformation.

Insummary,theagileTOMservesasa“northstar”fororganizationsseekingtoharnessthe

powerofagility.Itiscrucialtogobeyondtheinitialstageofsimply“DoingAgile”andaspire

totruly“beagile”.Whilemanycompaniesmayfindthemselvesstuckatthe“doing”stage,

itisessentialtoprogressbeyonditinordertofullyreapthebenefits.Althoughthejourney

maypresentchallenges,therewardsofenhancedadaptability,innovation,andcustomer

valueorientationmakeitaworthwhilepursuit.Inthesubsequentsectionswewilllookmore

closelyatthethreelevelsofanagileTOMandhighlightkeyinsights.

Strategy&|Thestateofagileorganizationsacrossindustries12

EXHIBIT6

AgileTOMandtransformationstatus

“DoingAgile”

“BeingAgile”

1

1

94%

Agileway

ofworking

.Agileteamstructuresandroles

.Agileprocessesandtools

79%

3

2

1

LevelCategoriesTransformationstatus

44%

75%

12%

3

Agileleadership

andculture

.Agilecultureandleadership

.AgileKPIs/OKRs

2

Agilegovernance

.Agilebudgetingand

planning

.Scaledagilestructures

10%

22%

50%

22%

Ongoing

Completed

Notstarted

61-80%

41-60%

21-40%

0-20%

81-100%

Overall

~30%

“Being

Agile”

~70%

“Doing

Agile”

Source:Strategy&analysis

Strategy&|Thestateofagileorganizationsacrossindustries13

Agileleadershipandculture

Takeaway

Topmanagementcommitmenttoagiletransformationisnotperceived

equallyacrosshierarchicallevels.Successfulagiletransformation

requiresstrongtopmanagementcommitment;companiesmayneedto

“lookinthemirror”andaskwhetherleadershipisdelivering.

Transformingtoanagileorganizationdemandsafundamentalredesignoftheoperating

model.However,themostcrucialelementinthistransition,oftenoverlooked,isculture

andleadership.Itiswidelyacknowledgedthattopmanagementplaysapivotalrolein

exemplifyingthischangeandencouragingtheappropriatebehaviorsneededtotransition

from“DoingAgile”to“BeingAgile.”

Ourstudydemonstratesarevealingdisparityinperceptionregardingtopmanagement

commitmentacrossdifferentmanagementlevels(seeExhibit7).Almostthreequarters

(74percent)oftopmanagementrespondentstothesurveyreportahighcommitmentto

agiletransformation–yetthisbeliefmaybeunfounded.Fewerthan40percentoflower-

levelmanagementrespondentsreporthighsufficientcommitmentandadaptedleadership

fromtopmanagement.

Thereasonsforthisdisparitymaybecomplexbutitappearsthatwhilecorporateleaders

mayhavepositiveattitudestoagiletransformationtheseattitudesarenotbeingembodied

incorrespondingtargetsandmeasurements.Asthesayinggoes,“whatgetsmeasuredgets

done”.Onlyonequarterofrespondentssaythatleadershavesetagiletransformationgoals

andtrackingprogress.

Managementhastounderstandthatitisexpectedthattheyleadbyexampleandan

agiletransformationentailsalsoachangeofleadershipbehavior,decisionmakingand

communicationstyle.

Itiscrucialtorememberthatagileitselfisnotameanstoanend,butratherameansto

achievespecificstrategicgoals.Leadersmustanswerthefundamentalquestion:“What

arethestrategicgoalstobeachievedthroughagiletransformation?”Communicating,

measuring,andtrackingthesegoalsisessentialforsuccess.

EXHIBIT7

Topmanagementcommitment

Topmanagement

Perceived

commitment

Allstaff

74%

<40%

perceivetop

reportedhightop

managementcommitment

managementcommitment

Source:Strategy&survey

Strategy&|Thestateofagileorganizationsacrossindustries14

Agilegovernance

Takeaway

Establishinganagilegovernanceiscrucialtogetfrom“DoingAgile”to“BeingAgile”,yetitispreciselythislayerthatfrequentlyfallsshortandposessignificantchallengesformanyorganizations.

Localagile,evolutionarytransformationandagilerevolutionarethreewaysdifferent

transformationpathstoanagileorganization(seeExhibit8foranoverview).Noapproach

issuperiortoanotherbutdependsonthespecificsituationoftheorganizationandonthe

goaltoachieve.Regardlessofhowagileisimplemented,ourstudyshowsthatimplementing

thegovernancelayerlagsbehind(seeExhibit6,page13wherelayer2–“AgileGovernance”

–hasbyfarthelowestpercentages).Acrossallparticipatingcompanies,ourdatashows

that79percenthaveimplemented“Level1–Agilewayofworking”butstruggletotackle

thenextstepofimplementingthegovernancelayer.However,anagilegovernanceiscrucial

togetfrom“DoingAgile”to“BeingAgile”.Transformingtoanagilegovernancemeans

introducingagilebudgetingprocessesandestablishingscaledportfoliomanagement,

aligninggoalsettingtothe“newworld”ofagile,andupdatingrewardandincentiveprograms

tosuitthenewwayofworking.

Especiallyweseecompaniesstrugglingwithintroductionofagilebudgetingandportfolio

management,whichinessencemeansthreethingsthatarecrucialforascaledagile

organizationtofunction:

1.Flexibilityand

alignment

Agilebudgetingallowsforgreaterflexibilityinresourceallocationandfundingdecisions.Itrecognizesthatprioritiesandneedsmaychangethroughoutaninitiative.Therefore,italignswiththecoreprinciples

ofagileprincipleslikecustomercollaboration,respondingtochange,anddeliveringvalueincrementally.

2.Transparencyandaccountability

Agilebudgetingpromotestransparencybymakingbudgetallocation

andspendingvisibletoallstakeholders.Italsoencouragesaccountabilityamongteamstoensurethatmeansareusedeffectively.

3.Value-driven

approach

Deliveringvaluetocustomersoverfollowingpre-definedbudgets.Thatapproachallowsforregularreassessmentofprioritiesand

fundingdecisionsbasedontheexpectedvalue.

Strategy&|Thestateofagileorganizationsacrossindustries15

1

1

2

3

1

EXHIBIT8

Threepatternsofagileimplementation

Dependingonthegoaltoachievelocalagile,evolutionarytransfransformationandagilearethreewaysofimplementation

1.Local

agile

2.Evolutionary

transformation

3.Agile

revolution

Delivery

Operations

ITrun

ITchange

Product

Transferprojects

Enabling

Financeand

accounting

…

1

1

Servicecenter

Service

…

Branches/reg.center

Sales

Businessbanking

…

Development

Functional

Functional

3

Functional

ofagile

organization

organization

1

2

organization1

Agileorganization

Agileorganization

Agile