In the first part of this article, I touched upon what is Agile methodology, which industry sectors use it and some dos and don’ts for Agile.
In this part I shall discuss top 10 frequently asked questions around Agile. By the way, these questions have been taken from my blog reader’s feedback which I regularly receive as direct messages or queries. If you too have questions, please hit the ‘Get-in-touch’ button at the bottom of this blogpost and send me your thoughts …
So, let’s begin with top 10 frequently asked questions on Agile business improvement methodology.
So, let’s begin with top 10 frequently asked questions on Agile business improvement methodology.
FAQ 1: Is Agile good for Startups?
Agile business process improvement methodology is a proven concept to transform or turnaround businesses. Its ability to unlock value has been pressure-tested in different industry sectors belonging to manufacturing as well as service-based setups. Agile is extensively beneficial to startups. A startup could be a new company or a new function or department within an existing company.
FAQ 2: Is Agile only for IT department?
Agile concept emphasizes team collaboration and flexible reassessment of plans based on customer feedback. Agile can be applied to all departments. Agile was first used in the software development and is popular within the IT sector. But since Agile offers fast return on investment, it is gaining popularity in other sectors as well.
FAQ 3: Can we introduce Agile in our organization?
The correct answer to that question is- May be. Because, although Agile can be applied in any industry, it must not be applied blindly. Agile must be applied only after a due diligence around how it would be applied, what benefits it shall bring-in for the organization etc is done. Further, there are several Agile methodologies. One must take cognizance of this and choose the Agile methodology most suitable for your workplace.
FAQ 4: Is there a difference between Agile and other process improvement techniques such as Lean, ISO, Kaizen etc.?
There are several differences. But the most striking difference is that Agile cannot/ must not be applied in the same way across the entire organization. Different sections of an organization benefit from Agile in varying ways. The benefits can be optimized or increased based on the results of blueprinting i.e. identifying the value streams and investigating how each section of the value stream can benefit from Agile, provides valuable input in Agile- based business transformation.
FAQ 5: Are Agile and Scrum same?
Agile is not same as Scrum. Agile is a wide concept, Scrum is a type of Agile method. Scrum is one of the many dynamic Agile methods and emphasizes team collaboration and flexible reassessment of plans for bringing about business transformation.
FAQ 6: Agile scale-up is costly and requires large teams.
Scaling-up Agile has similar challenges as scaling-up any other process improvement methodology. Simply having more teams or conducting more dry runs are not enough. Further, expenses towards Agile scale-up must be factored in the budget before embarking on Agile. My best recommendation is to never begin any process improvement campaign without first doing a cost-benefit analysis.
FAQ 7: How is Agile project management different from traditional Waterfall technique during product development?
There are several differences, but I shall highlight only two main differences here. Since Agile was initiated in software business, let me explain this question using software development as an example.
The first main difference is that- When Agile is used in product development, in this example a software, features of the software are delivered frequently, and the testing is done in parallel to development. As a result, testing time is shortened because only small features are need be tested at a time. On the contrary, in the Waterfall methodology, testing take place at the end of the development. As a result, testing time gets lengthy as the entire product must be tested.
The second difference is that- Waterfall methodology is a closed process where all stakeholders are not involved in the development activity. In Agile methodology, active participation of all stakeholders as well as customers is a must.
Although Agile is traditionally being used in software development, it can be applied for any product development be it- toys, food, chemicals, devices, cosmetics, apparel, electronics, services etc.
Agile is especially beneficial for product development where frequent changes in the product come up on a regular basis.
The first main difference is that- When Agile is used in product development, in this example a software, features of the software are delivered frequently, and the testing is done in parallel to development. As a result, testing time is shortened because only small features are need be tested at a time. On the contrary, in the Waterfall methodology, testing take place at the end of the development. As a result, testing time gets lengthy as the entire product must be tested.
The second difference is that- Waterfall methodology is a closed process where all stakeholders are not involved in the development activity. In Agile methodology, active participation of all stakeholders as well as customers is a must.
Although Agile is traditionally being used in software development, it can be applied for any product development be it- toys, food, chemicals, devices, cosmetics, apparel, electronics, services etc.
Agile is especially beneficial for product development where frequent changes in the product come up on a regular basis.
FAQ 8: Can Agile increase productivity?
Speed and flexibility are two key advantages of Agile methodology. This aspect improves employee engagement, collaboration between teams internal and external to the organization which then boosts output. Agile implementations increase productivity as well as ‘value creation’. In fact, Agile’s strength is in 'value creation' rather than fixing crawling productivity. Therefore, if you are looking to create value, go for Agile. If addressing productivity issues is the sole aim, then go for Lean or Kaizen.
FAQ 9: Why is Agile so popular?
There are multiple advantages of utilizing Agile in organizations. Versatility and speed are two of its key benefits. Further, when applied to R&D business processes, Agile accelerates product development; companies can then achieve first-mover advantage. Also, Agile maximizes value throughout the development process and significantly reduces the overall risk of a project.
FAQ 10: What are the limitations or disadvantages of Agile methodology?
Agile must be applied after due diligence.
First important limitation of Agile implementation is that- Agile is rapid at small scale; but scaling up takes time. A company-wide full-scale Agile implementation takes 1 to 3 years depending upon the nature and size of business. Therefore, Agile is not for weak-hearted setups.
Secondly, Agile is unpredictable with regards to effort planning. Hence, Agile project planning must be done with caution.
Thirdly, Agile is all about being fast- to- market with a product designed as per customer demand. Hence, the mechanism of collecting voice of customer and its interpretation must be flawless. However, combining Hoshin Kanrii with Agile helps to circumvent this issue in a big way.
Lastly, Agile methodology has minimal documentation. No elaborate reports etc. Usually, simple burn up and burn down charts are used for documentation purposes. Burn up and burn down charts are visual diagrams which measure a project and show its progress, schedule, status and any outstanding work. If creating and distributing bulky reports is part of an organization’s work culture, then it needs to adapt to a major change if hoping to work with Agile. This must be factored-in while designing change strategy before proceeding with Agile.
In the next part of this article, I shall discuss on how to use Agile to improve business resilience.
First important limitation of Agile implementation is that- Agile is rapid at small scale; but scaling up takes time. A company-wide full-scale Agile implementation takes 1 to 3 years depending upon the nature and size of business. Therefore, Agile is not for weak-hearted setups.
Secondly, Agile is unpredictable with regards to effort planning. Hence, Agile project planning must be done with caution.
Thirdly, Agile is all about being fast- to- market with a product designed as per customer demand. Hence, the mechanism of collecting voice of customer and its interpretation must be flawless. However, combining Hoshin Kanrii with Agile helps to circumvent this issue in a big way.
Lastly, Agile methodology has minimal documentation. No elaborate reports etc. Usually, simple burn up and burn down charts are used for documentation purposes. Burn up and burn down charts are visual diagrams which measure a project and show its progress, schedule, status and any outstanding work. If creating and distributing bulky reports is part of an organization’s work culture, then it needs to adapt to a major change if hoping to work with Agile. This must be factored-in while designing change strategy before proceeding with Agile.
In the next part of this article, I shall discuss on how to use Agile to improve business resilience.
Related reading-
- Business Turnaround and Continuous Improvement Tips & Tricks Part 3 of 6- Agile in Nutshell for Improving Sales & Marketing of Products and Services
- Improving business process effectiveness and efficiency for the new normal.
- What is the difference between business process improvement and business process redesign?
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