The Future is Agile

September 16th, 2022

Agile is the business buzzword of the moment. But it can mean different things in different contexts, and sometimes, even with the best intentions, it goes wrong. In this newsletter, we will be looking at five articles, all authored by the Infosys Knowledge Institute and our partners within Infosys, that will help both business leaders and front-line workers move the dial on their Agile initiatives.

Firstly, we lay out exactly why Agile sets the stage for the operating model of the future, a future where products and platforms reign supreme. This move towards products is also the center of a new way of delivering business value, which is the subject of our second article. Agile Radar 2021, a study of the Agile levers that drive business performance, gives you 7 concrete steps your organization can take to ensure the whole business is transformed from “doing Agile” to “being an Agile organization”. In our most popular paper on the subject, we also give you tips for “hybridizing” Agile to inform how practices, teams, interactions, and value streams should be designed. Finally, we look at the common missteps organizations make on their Agile journey and provide insights on how you can avoid these pitfalls.

• The future operating model

Operating models need to evolve significantly for enterprises to thrive in the digital future. The core construct is customer-centricity, product (not project) thinking, integrated teams, a culture of experimentation and innovation, and value measurement. Organizations should adopt a six-component framework to evolve to a future-ready operating model. While each component generates business benefits, true business agility requires an initial focus on customer journeys and product thinking before talent, platforms, and governance. Many firms we’ve worked with are instituting this new product- and platform-based operating model. This shift to product-centric Agile value delivery to drive digital journeys can deliver significant results, as early as within 18 months.

Figure 1. Six-component framework for future-ready operating model

• Product-centric value delivery

Product-centric delivery is less about products and more about the value that is delivered. In product-centric delivery, capabilities and services are delivered by a line of business or multiple lines of business together, which are often grouped around an end-to-end customer journey. This approach enables customer-centricity across the value chain and helps build products that are innovative and effective in the chosen market. Firms adopting product-centric delivery achieve business value faster and can course correct when necessary, further amplifying innovation. Depending on the business strategy, the approach might focus on client experience, customer journeys, or value streams.

• Agile Radar 2021

This cutting-edge report was written after extensive literature reviews, interviews with many experts, and a survey fielded to more than 1000 senior leaders at enterprises across 3 geographies and 9 industries. The major insights? Most firms are adopting product-centric value delivery models, and we prove that this way of conducting business leads to superior business outcomes. Other findings include the fact that though most senior leaders are worried about cultural change getting in the way of Agile initiatives, only a few are actually investing there right now.?

• Hybrid scaling of Agile

Often in Agile transformations, firms use off-the-shelf scaling frameworks. But these frameworks have limited success when deployed as-is and should be customized to cater for varying needs across people, processes, and technology. A hybrid scaling of agile approach, evolved and deployed iteratively, helps in adapting to these needs — informing how practices, teams, interactions, and value streams should be designed.

• Where Agile Goes Wrong

Many Agile teams overemphasize the rituals rather than embracing the mindset needed to survive in a VUCA world. There is also a lack of appreciation that the product owner is pivotal to Agile success. This is further exacerbated by the shortage of product owners with the right outlook and mix of skills needed to thrive. In this article, we discuss these problems and others that put the brakes on Agile scaling effectively in the enterprise. To help, we recommend instituting structural flexibility and the rigor of processes, practices, and tools with strong outcome orientation to achieve holistic Agile at scale.?

Figure 2. A framework to understand the balance between toolset and mindset in Agile

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