A comprehensive guide to successful agile management

What is agile management? 

Agile management is a flexible management approach in which companies design their processes, structures and management systems in such a way that they can react quickly and effectively to changes. The goal is to enable teams to work in a self-organized manner and to focus on the customer perspective and benefit. Unlike traditional management methods, which are often geared towards long-term planning and stability, agile management focuses on adaptability, transparency and collaborative decision-making. 

However, agile management is not always the best choice. In stable, clearly structured projects, a classic approach may make more sense. The trick is to choose the right approach depending on the situation. 

Advantages of agile management for organizations 

Agile management offers numerous advantages that help companies to position themselves sustainably and competitively in dynamic markets: 

• Flexibility: companies can react quickly to market changes, introduce technologies and adapt their product strategy, responding to unexpected market trends without long decision-making processes. 
• Customer focus: Customers are involved in the development process to ensure that products and services meet their needs. Agile practices such as customer journey maps help to keep the eye on the customer. 
• Efficiency: Iterative working methods reduce project lead times. Teams work in short cycles, which ensures early feedback so that errors or misunderstandings can be identified and rectified in good time. 
• Collaboration: By breaking down silos and promoting network structures, teams become better connected, which increases knowledge sharing, collaboration, innovation and productivity. 

Experience from the project business of EFS agility-experts: Agile methods are not just tools for structuring processes, they can and need a new way of assuming responsibility within a team. The EFS agility-experts often see in their projects that in introducing agile methods, decisions that were previously made centrally are shifted to the teams. This decentralization speeds up the decision-making process, as waiting times are eliminated and decisions are made where the necessary competence and expertise lie. This also has the advantage of strengthening employees’ personal responsibility and enables them to contribute their specialist knowledge in a targeted and effective manner.  

This is particularly evident in the clarity that agile management brings to the communication of goals and strategies. At best, the “why” behind the work becomes more tangible for everyone: Employees not only understand the corporate strategy but also recognize their individual contribution to the big picture. This understanding promotes their self-efficacy, and it is noticeable that the assumption of responsibility paired with a clear direction often leads to employees working with more commitment, initiative and motivation. They identify more strongly with their tasks, make well-founded decisions within their sphere of influence and drive implementation forward with a higher degree of personal responsibility and quality. 

Challenges in the implementation of agile management 

Despite the many advantages, the introduction of agile management also brings with it some hurdles that need to be overcome: 

• Cultural change: traditional hierarchies and rigid processes have characterized many companies for decades. Changing mindsets and introducing an open, trust-based and self-organizing culture requires targeted change management measures as well as a strong commitment from the management level and a corresponding adjustment of the incentive structure and targets to the new processes. 
• Lack of consistency: Agility does not mean abandoning long-term goals. The challenge lies in combining short-term flexibility with long-term strategy. Companies need to develop mechanisms that harmonize both approaches while setting clear priorities that are in line with a clear vision for the product. 
• Complexity: In globally operating companies, geographical distribution, cultural differences and different regulatory requirements often lead to difficulties in implementing uniform agile practices. Effective communication and targeted adjustments are crucial here to ensure that everyone understands what the change is intended to achieve. 

Experience from the project business of EFS agility-experts: The biggest challenge was often taking people along on the journey. Questions such as “Have we worked badly so far?” or fears of new processes and the worry of becoming redundant were often present. Resistance should not be met with the expectation that agility is a the solution to every problem. Instead, it is important to clearly communicate the “why” of the change and to accompany the change process with empathy. 

Prerequisites for successful agile management 

In order for agile management to be successfully established, important basic prerequisites must be created: 

• Clear vision and mission: A clearly defined vision provides teams with orientation and helps them to align their work with the company’s strategic goals. Without a clear direction, agility can end in uncertainty and chaos. 
• SMART goals: Small, achievable goals must be derived from the high-level vision, otherwise teams are lost with an over-galactic task – A vision alone is not enough! 
• Open communication: Feedback mechanisms such as peer reviews and retrospectives promote continuous improvement and create transparency in collaboration. Teams can thus reflect on their working methods and optimize them in a targeted manner. 
• Leadership and training: Agile coaches and managers as change managers are key to communicating and exemplifying the values, principles and methods of agile working to employees. A cultural change – which is necessary for the switch to agile management – goes far beyond the introduction of methods, tools and processes. For example, it is not only who makes decisions that changes, but also how decisions are made. The handover of decisions is also accompanied by a shift and distribution of responsibility. This type of change must be actively supported by managers. 

Experience from the project business of EFS agility-experts: Communicating change is essential. Training should be a priority right from the start, not only for employees, but especially for managers. The formation of a “transformation team” has proven successful – consisting of trained managers and employees who act as the engine of change and serve as a point of contact for the organization. 

Agile management methods

Agile methods enable the structured implementation of agile working and anchor principles such as adaptability, personal responsibility and continuous improvement in the corporate culture. Real success can be seen in the change in ways of thinking and working, not just in frameworks. Agility becomes a competitive advantage when employees make their own decisions and learn continuously. 

Here is a summary of the most important agile approaches: 

• Scrum: This framework is suitable for complex products with changing requirements. Teams work on clear goals in sprints, while the Scrum Master removes obstacles and the Product Owner maintains the customer focus. After each iteration, it is checked whether the development meets the requirements. 
• Kanban: By visualizing work packages and workflows on a Kanban board, bottlenecks and overloads in the process become visible. This allows teams to continuously improve their workflow without having to rework the entire process and shorten delivery times. 
• Holacracy: Holacracy is an organizational model based on self-organization and decentralized decision-making. It replaces traditional hierarchies with a structure of so-called “circles” in which roles and responsibilities are clearly defined. This creates a flexible, adaptable organization that enables teams to act independently and efficiently. Decisions are made where the most knowledge is available, which promotes agility at all levels. 
• Design thinking: This approach focuses on creativity and empathy in order to develop customer-oriented solutions. In iterative phases – understanding, observing, developing ideas, building and testing prototypes – it is ensured that the needs of the users are consistently taken into account. 
• Extreme Programming (XP): This method is primarily used in software development. The goal of Extreme Programming (XP) is to maximize software quality and customer satisfaction by focusing on short development cycles, continuous feedback and close collaboration between developers and customers. It promotes technical excellence through practices such as pair programming, test-driven development and frequent releases. 
• Scaled agile models: The methods mentioned above are each a basic form of agile collaboration for a team. As soon as several teams need to work together in a coordinated manner, there are also scaled models, such as SAFe®, Less or the Spotify model, to name a few of the most common. These models are very comprehensive and should be seen as a set of tools that you can use if you want to make your entire organization more agile. 

The 6 dimensions of agile management 

Agile management requires a holistic understanding and consideration of various dimensions. The following six dimensions presen guidelined for organizing more agile in a sustainable fashion. They range from the definition of a clear vision to customer-oriented team structures and processes through to an agile corporate culture. Each dimension helps companies to react flexibly to change, promote innovation and ensure long-term success. 

1. Dimension: The agile target scope 

A clearly defined vision provides orientation and gives the teams the necessary direction to align their work with the company’s long-term vision. This vision serves as a north star to align all activities with the company’s strategic goals. It helps to set priorities and creates a shared understanding of what success means – both for the company and for customers. 

2. Dimension: The customer-oriented corporate structure 

Customer-centricity requires a flexible corporate structure that replaces rigid hierarchies with agile network structures. Such structures promote collaboration across departmental boundaries and make it possible to focus on the customer journey map. By focusing on the value streams and considering the end-to-end processes, the focus is on holistic value creation, regardless of whether you serve external customers or provide infrastructure to internal customers, for example. By focusing on customer needs, companies can react more quickly to changes and develop products or services that create real added value. 

3. Dimension: The iterative process landscape 

Iterative processes are the foundation of agile management. Short work cycles and regular feedback enable continuous improvement. This approach minimizes risks, as customer or stakeholder feedback can be responded to at an early stage. Iterations also promote the company’s adaptability and help teams to react flexibly to new requirements or challenges. 

4. Dimension: An employee-centered understanding of leadership 

At the heart of agile management is an understanding of leadership that responds to the needs of employees. Agile leadership means giving teams autonomy while at the same time defining clear goals, roles and processes. Managers act more as supporters and coaches who remove obstacles and build trust. They help to create an environment that encourages innovation, commitment and high performance. 

5. Dimension: Agile personnel- and leadership-tools 

Implementing agile management requires targeted tools and methods that promote self-organization and personal responsibility. Agile management tools such as regular feedback mechanisms, an active error culture and customer focus help teams to work effectively and with a focus on results. Methods such as “disagree and commit” promote quick decisions, while clear goals and mission statements ensure a focus on the essentials. 

6. Dimension: an agile organizational culture 

An agile corporate culture is based on values such as transparency, trust and continuous improvement. It promotes personal responsibility and innovation and becomes part of the company’s DNA through practiced principles. 

Agile management and New Work 

New Work stands for a far-reaching structural change in the world of work, which is characterized by megatrends such as digitalization and globalization and has its origins in the 1980s. The term was coined by social philosopher Frithjof Bergmann, who in his book “ New Work, New Culture” developed the basic idea of a working world that is more strongly oriented towards people’s individual needs. The focus is on the changing needs of employees who strive for greater independence, personal freedom and active participation in decision-making. These changes are reflected in modern working models that emphasize flexible working hours, remote working and flat hierarchies. 

Agile management and New Work complement each other perfectly when it comes to meeting the challenges of a modern working world. While agile management emphasizes process orientation, flexibility and customer focus, New Work provides the necessary structural and cultural framework to implement these principles sustainably. Together, they promote a collaborative, innovative and meaningful way of working that makes companies more competitive and adaptable. By integrating agile management with the principles of New Work, companies can not only increase their productivity, but also boost the satisfaction and motivation of their employees. The combination of both approaches creates a future-oriented working environment that strengthens innovation and customer orientation in equal measure. This leads to more sustainable results – for both the company and its employees. 

EFS agility experts in conversation: 3 questions about agile management 

Can agile management be combined with other management approaches? 

Yes, in practice, agile management can be combined very well with other management approaches. The Stacey matrix helps to choose the right approach depending on the complexity and uncertainty of a project. It shows that the choice of method depends heavily on the complexity and novelty of a project or topic. The more complex or uncertain the requirements are, the more flexible and adaptable the approach should be – this is where agile methods come into play. If, on the other hand, the requirements are clearly defined and the resource and time requirements are stable, classic project management methods are often the better choice. It becomes particularly exciting when classic and agile approaches are used in hybrid form. However, this only works if a few important requirements are met:  

• Firstly, the resources and schedules used must be as independent of each other as possible in order to avoid conflicts. Nevertheless, clear interfaces should be defined that connect the two “worlds” – for example, if a supplier service from a traditional area serves as input for an agile area.    
• It is also crucial that everyone involved knows exactly what their roles and responsibilities are. If these points are taken into account, a hybrid approach can combine the advantages of both approaches and lead to a very effective way of working. 

What challenges arise when applying agile management in a globally distributed company? 

One of the biggest challenges is synchronizing teams in different time zones. This not only affects communication, but also the coordination of everyday processes such as stand-ups or iteration planning. There is often a lack of common time slots, which requires a high degree of flexibility from everyone involved. 

Another important aspect is cultural differences in working styles, communication patterns and expectations reagrding leadership and collaboration. These differences can lead to misunderstandings and affect team dynamics. Intercultural sensitivity is required here. It is important to build trust and promote a uniform way of working without neglecting regional differences. The targeted use of digital tools such as collaboration platforms is also important. A “systemic” perspective is also crucial. Every team member should understand the overarching goals in order to work together in the same direction. At the same time, local adjustments must not be neglected. 

What role do agile coaches and change managers play in successful integration? 

Agile coaches and change managers play a key role in the introduction and anchoring of agile approaches. They support teams and managers in the implementation of agile practices and act as mentors and role models. Their goal is to promote an agile mindset and initiate cultural change. A central component of their work is the establishment of regular feedback mechanisms. These make it possible to continuously optimize work processes and ensure that teams continue to develop. Agile coaches help teams to reflect on their working methods, solve obstacles and work together more effectively. They promote cross-departmental collaboration, clear structures and self-organization – essential for a successful agile transformation. 

Conclusion 

Agile management empowers companies to stay flexible, customer-focused, and competitive in dynamic markets. The interplay of agile principles and tailored methods lays the foundation for long-term success. At EFS Consulting, we place great emphasis on meeting business owners, leaders, and employees exactly where they are on their individual transformation journey. Our agile experts deeply immerse themselves in the client’s world—understanding their unique challenges and building on their existing strengths. Together with our clients, we co-create a customized toolbox of agile practices and a suitable change management concept to guide and support the organization throughout the entire implementation process.