Petra Kamper
09/02/2024
Agile Mindset: The Engine of Every Agile Transformation in Companies
Some articles on the topics of change management, agile project management and agility start with the words: “The world is changing rapidly, and we have to adapt to it!“. Everyone agrees on it, but not everyone wants to look forward to change. This article explains why the agile mindset is the engine of every agile transformation in companies and how an agile mindset can be learned and implemented successfully.
What is an agile mindset?
The general term “mindset” refers to people’s ways of thinking or inner beliefs. The agile mindset describes the attitude of people. The expression explains that you can change and develop in every phase of life and that you can consciously deal with the constant change from the outside (politics, environment, market, customer needs, etc.), as well as react quickly and efficiently to it.
The rigid structures and processes of traditional thinking, on the other hand, are often difficult to break down, making it impossible to react quickly to changes most of the time.
The connection between agile mindset and agile behavior
The positive change of people in transformation processes can be seen in the growing willingness to try new things and the openness to transformation. This is formed among the employees and can be deeply anchored in the company due to the advanced know-how about agile working and numerous reflection loops. Agile thinking therefore leads to agile action and lays the often-unconscious connection between agile mindset and agile behavior.
The Importance of the Agile Mindset: Benefits for Companies
The advantages of a successfully implemented agile mindset in companies that have adapted quickly and efficiently to changes can be determined by the following factors:
- Faster time to market: Iterative processes enable efficient and rapid development and sale of products.
- Confirmed customer satisfaction: Increased focus on customer needs increases customer satisfaction.
- Increased ability to innovate: Creative impulses and solutions from within your own organization set new standards.
- Increased employee satisfaction: Self-organized teams and an open communication culture promote employee loyalty and motivation.
The principles of the agile mindset
- Common goals and mission statements: A company is as strong as the common vision. The focus on the common vision and goals
- Customer focus: The continuous adaptation of all activities. Tailoring products and services to the needs and expectations of customers promises long-term success.
- Iterative development: Short, manageable cycles (iterations) simplify the review and adaptation of work packages.
- Transparency and feedback: Teams communicate openly, reflect and learn together and from previous mistakes.
- Self-organized teams: Responsibility is left to the experts. Teams organize themselves autonomously and independently.
- Continuous improvement: Working methods, processes and products are continuously optimized.
The value system for orientation
In complex systems, it is no longer possible to have a clear regulation ready for every case. A common orientation towards values and principles replaces a rigid system of rules.
The following five values ensure a stable agile basis for every company. They create orientation and give the organization stability and security in complex and uncertain times.
- Commitment: The company, the department and the teams commit to a common goal and pursue the clear direction with determination.
- Respect: The basis for functioning teams is respectful interaction with each other. This is the only way to build trust and live a culture of error in the company.
- Openness: Open communication and regular feedback are essential components in a functioning team.
- Focus: Teams share their progress and focus on their own tasks in a resource-efficient manner.
- Courage: Due to a new learning culture in the company, mistakes are seen as learning opportunities. Help can and should be asked for to overcome obstacles in the team quickly.
Development of an agile mindset in companies
In many companies, there are employees who already have an agile mindset but are not aware of it. Others have the chance to change and learn. The goal of implementing an agile mindset is to gently involve all employees in the change of the corporate culture .
5 actions for successful development
With the following measures, a step-by-step transition towards an agile mindset can be implemented in a company:
1. Training and workshops
The management team and, in meaningful training stages, the remaining employees are to be sustainably introduced to agile thinking and working methods as well as to the use of agile tools. A training plan should be designed by the HR department and the management committee with a good mix of internal training staff and external agile training courses and workshops in order to constantly adapted to individual training needs.
2. Start pilot projects
Small projects and quick successes according to John P. Kotter (8-step model “Leading Change”) should provide motivation for the next steps. Pilot projects in individual departments that achieve goals that can be implemented quickly can be used to create a pull for further implementations in the company.
3. Leadership coalition as role models
Exemplifying the agile mindset makes every manager a role model. At the same time, through personal experience on the way to an agile mindset, the management team recognizes where the difficulties occur in their own as well as their employees learning process. It is important to empower managers and use them as drivers in transformation.
4. Live feedback loops
Implementing a continuous learning culture also means accelerating retrospectives and feedback loops in the company and integrating what has been learned in the long term. Agile project management uses some agile rituals such as the daily syncs, the sprint retrospective or the system demo so that teams get to know each other more intensively, start to live the agile values, turn mistakes into learnings and celebrate their achievements; both are part of the change process and an agile mindset.
Feedback and an interactive approach are essential building blocks in product development, but above all in transformation.
5. Adaptable Processes, Structures & Tools
Due to intrinsically motivated employees and cross-team collaboration, processes, structures and tools are constantly adapted, reviewed and used to meet one’s own needs.
Challenge and Resistance in the Mindset Shift
The transition to an agile mindset is a huge challenge. Resistance can come from different levels of the organization. It is important to identify and address these at an early stage:
- Cultural barriers: An established company culture cannot be changed overnight. A step-by-step approach and the involvement of all employees help here.
- Lack of trust: Trust is the basis of agile ways of working. Leaders need to have confidence in their teams’ abilities and decisions.
- Lack of resources: There is often a lack of time and money for the necessary transformation. Clear prioritization and step-by-step implementation can remedy this.
How agile is the mindset of a company really: Determine the roadmap and point of view
Creating a comprehensive assessment of the corporate culture, practices and mindsets within the organization helps to determine the prevailing agile mindset in an organization. Here are some methods and approaches for a possible roadmap to evaluate the agile mindset:
- Surveys: Individual and group surveys on team cohesion, teamwork, flexibility, customer focus, self-assessment
- Trainings and workshops: Bringing agile content closer and becoming familiar with the feedback culture
- Shadowing (observing the activity) and peer groups (working on topics together): Giving opportunities to watch, participate, moderate and form small groups to discuss agile content in agile ceremonies such as Daily Syncs, Sprint Retrospectives and Sprint Reviews
- Metrics: Review of prevailing policies and introduction of key performance indicators or KPIs, feedback loops also result in improvement measures
- Leadership coaching: improved leadership behavior leads to a role model effect
Continuous implementation of these methods and approaches to the implementation roadmap of the agile mindset guarantee the sustainable anchoring of this philosophy in the company.
EFS agility experts in conversation: 3 questions about the agile mindset
Can a company become agile without an agile mindset?
John P. Kotter’s 8-phase model explicitly points out that every stage in a company must be passed through to achieve an agile transformation and the desired change in the company. This change requires a change to an agile mindset.
The change in processes and ways of working goes hand in hand with a new pattern of thinking that is only intended to help people become more resilient to rapid external influences. As Aristotle said:
We can't change the wind, but we can set the sails differently.
Sticking rigidly to old patterns of thinking and working is more likely to throw employees off track in our fast-paced world of change. Agile-thinking, resilient people in companies, however, can adapt more easily, reflect better on themselves, in the group and in the company and immerse themselves in the new working age with motivation.
How do you generate intrinsic motivation and enthusiasm for agile transformation processes among employees?
Generating real intrinsic motivation for agile transformation among employees is not an easy task. You may not be able to create them, but you can provide the appropriate framework conditions. As soon as the decision to introduce agile work processes has been made by management, or the desire to bring agile thinking into the company has been formulated, the next step would be to establish a team that drives the agile transformation in the company. People who have made it their task to help shape change and drive it forward in a positive and motivated way are essential role models. They motivate, empower and possibly support others in their private and professional change processes and on the way to an agile mindset. As drivers, they remind their colleagues of the positive successes (quick wins) and constantly confirm them in their actions. This is the only way for intrinsic motivation of employees to slowly develop and multiply.
If my company decides to embark on an agile transformation, what are the benefits for employees?
Often, employees are not prepared for what it means for them when management announces, “We are now becoming AGILE!” These or similar statements can cause unrest in the company without good internal communication. There may be fears of more negative changes, such as staff reductions, restructuring and job changes. What wording is needed for employees to be able to look forward to changing positively?
Harrison Ford said that “big changes in our lives can be a second chance.” This inspiring and courageous attitude can be a helpful approach to change, and it is now time to seize the new opportunity in life!
It turns out that employees with a positive, reflective agile mindset associate change with the following advantages and opportunities:
- The opportunity to learn about new agile frameworks, new ways of working, and tools.
- The chance to fill numerous new agile roles.
- Coaches, trainers, possibly external service providers and consultants make their expertise available, from which employees can benefit and learn.
- By empowering people in the company, more responsibility can be taken on in the respective role and more say can be gained.
- You can work creatively and across teams and you get the chance to openly exchange ideas with colleagues about the changing corporate culture and to see mistakes as possible solutions.
Conclusion
An agile mindset is a fundamental and profound change in mindset and corporate culture. From the moment this change in employees is successfully initiated in a company, the company adapts to changes faster and more flexibly and drives innovation, customer centricity and continuous improvement in a competitive manner in the long term.
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Agility
