Index

Note: Figures and tables are indicated by f and t, respectively.

ABB, 38
accountabilities
copying and possible destruction of, 12
defined, 198
activities, measuring agility and, 84f, 85
adaptive plans, agile, 111–112
adaptive software development (ASD), 38
agile
benefits of, 1–2
danger of incorporating everywhere at once, 5–8
doing agile wrong, 3–13
as euphemism for layoffs, 4–5
example of how agile works, 23–35
innovation and (see innovation)
keystone of success, 13
mastering agile at scale and defining, 178–179 (see also agile at scale)
misuse of, 2–3
naming, 38–39
planning and funding, 32–33, 111–121, 123–124
question of persistence of benefits of, 202–203
as quick fix, 10–13
rapid spread of, 1–3, 39
reasons to adopt, 35–39
research on, 17–21, 19f
self-managing teams and, 1 (see also agile teams)
Taylorism and, 8–10
top-down approach to, 9–10
use by IT departments and software developers, 1, 154–158 (see also IT departments)
agile at scale, 47, 48–51. See also scaling agile
Agile Competitors and Virtual Organizations (Goldman, et al.), 38
agile enterprise, 47, 51–54, 125–142
agile teams at heart of, 35–36
balancing the operating model, 90f
big-bang transition to, 59–60, 79–81, 181
budgeting in, 116–121, 124, 198
bureaucracy and innovation as partners in, 8
definition of, 179
definition of operating model components, 197–200 (see operating model)
envisioning while mastering agile at scale, 177–181
harmonizing operations and innovation in, 53, 154
improved results and, 202, 203, 214–216
leadership in, 197–198
operating model, 125, 126–127, 128–134, 131f, 142
organizational structures, 125–126, 127f, 130–132, 131f, 199
people management (talent strategy), 125, 134–141, 142, 199
planning in, 32–33, 111–116, 124, 198
research papers on improved results in, 19f, 20–21
reviewing in, 121–123, 124, 198
Agile Enterprise Exchange, 164
agile frameworks. See frameworks, scaling agile
agile innovation. See innovation
agile leadership, 51–52, 93–110
defined, 197–198
fostering, 137–138
agile leadership team, 94, 103–104, 106–107, 146, 183–184
measuring progress, 184
as strategy team, 104
agile manifesto
creating own version of, 104
of leadership team, 189–196
Manifesto for Agile Software Development, 14, 38–39, 189
sample, 191f
agile master, 140
agile methods
to determine how agile to be, 87–91, 92
roots of, 36–38
Agile Portfolio Management (APM), 66
agile processes and technology, 29–30, 34, 143–162
agile wars, 159–161
challenge of, 147–150
chapter takeaways, 161–162
process innovation, 152–154
Royal Bank of Scotland example, 143–147
technology innovation, 154–158
working backward from customer solutions, 150–152
agile research. See research on agile
agile software development. See software development
agile teams
agile at scale and addition of, 48–49
at Amazon (two-pizza teams), 171–172, 173
backlog of opportunities, 183–184
backlogs and, 40–41
benefits of, 42–43
challenges of, 13
creating, 176–177
as cross-functional teams, 12–13, 53
customer focus, 150, 162
defined, 199
determining when ready to launch, 61
doing innovation in agile enterprise, 53
at heart of agile enterprise and agile approach, 35–36, 43
how they operate, 40–43
initiative owner (product owner), 41, 154
innovation and, 40, 175, 177–178
large-scale agile teams of teams improve results, 20
matrix organizations and, 12–13, 178
performance management and, 139
persistent, 118–119, 124, 151, 160–161
pilot, 108
providing tools for team effectiveness, 140
rewarding teaming, 140–141
sponsoring, 175
structure and people and, 28–30, 33, 198
taxonomy of, 56–58, 149f, 151
ten questions to ask as company launches, 64
transparency of, 100
use of customer feedback, 43
agile technology teams, 154–158, 162
agile transitions
how to treat urgent, 107–108
layoffs and, 4–5, 48, 88–89, 165
make it fun, 185–188
using agile methods for, 87–91, 92
agile wars, 159–161
agility
benefits of, 78
costs of, 78–79
estimating costs and benefits of, 76f, 78, 80f
learning to measure, 83–87, 84f
Allen, Mark, 73–75, 81, 91
Amabile, Teresa, 21, 187
Amazon, 1, 17, 47, 62, 118, 129, 153, 158
agile system at, 166–174
American Customer Satisfaction Index, 166
Apple, 141
application programming interfaces (APIs), 170
architecture
agile software, 155
cloud-based, 171
modular, 157, 158
monolithic, 155
service-oriented, 170–171
technology, 29–30, 34
Aristotle, 13
assets, fewer with agility, 78

backlog, 36, 94
advantages of, 183–184
of agile leadership team, 89
of agile teams, 40–41
converged, 157
enterprise, 56
of initiatives, 113, 115
of investment opportunities, 117–118
of opportunities, 183
sequencing, 31
Bacon, Francis, 36
Bain & Company, 66, 164, 201
Bain Agility Quotient, 9, 18
balance, 51, 53, 55–56, 65, 79, 179
agile leadership team and, 103
at Amazon, 168, 173–174
in budgeting and reviewing, 123
between operations and innovation, 7
Barnes & Noble, 82
mission of, 219n11
Becker, Henk, 16, 93–98, 101–102, 108, 139
Bell Labs, 36
Bezos, Jeff, 61–62, 118, 166, 167, 169, 171–172, 173, 174
Bhidé, Amar, 99, 182
big-bang agile transitions, 59–60, 79–81, 181
Black, Benjamin, 171
Blockbuster, 77
Boeing, 38
Borland Quattro Pro team, 37
Bosch Power Tools, 93–96, 108, 133, 137, 139–140
agile leadership at, 93–95, 96–97, 108–109
as agile enterprise, 1, 47, 52–53
meetings at business unit level, 93–94
Bose, 38
Brown, Kevin, 114–115
budgeting, agile, 116–121, 124, 198
best practices, 124
defined, 198
for innovation, 116–121
bureaucracy
agile at scale and existing, 48
in agile enterprises, 53
business definition, 129–130
business process architecture, agile and, 34
business processes, defined, 199
business strategy, informing talent strategy, 135
business units
adapting to customer needs, 129–130
defining, 129

Canon, 36
capabilities
agile success and, 174
cross-functional teams and, 150–151
open-market competition for, 153–154
career paths, in agile enterprises, 28–29, 33, 139–140
center of excellence, transition to agile and, 60–61
Central Coast Wineries, 184
Chandler, Alfred D., Jr., 128
change
benefits and costs of, 76f, 78, 80f
responding to over following a plan, 191f, 194–196
change deficiency, 76–77
change excess, 77–81
change levers, for backlog of agile leadership team, 89, 90
chaos, danger of, 3, 6–7, 12, 107, 129
chaotic business systems, 77
chapters (as at Spotify), 70, 126
Chatham House Rule, 164, 220n1
cloud-based architecture, 171
coaching, talent development and, 138, 187
communication
by agile leadership teams, 106
strengthening among agile teams, 106
culture
agile leadership and change in, 110
at Amazon, 167
defined, 198
comparative advantage in managerial context, 101, 102
compensation and rewards, 139–141
confirmation bias, 18
Constellation Wines, 184
contingency theory, 13
converged backlogs, 157
copying, creating an agile enterprise and, 126
costs
agility and lower, 78
efficiency, 78–79
organizational, 79
transition, 78
cross-functional teams
agile teams as, 53
for processes and technology, 144–145, 161
matrix organization and, 12–13, 178
crowdsourcing, 41
Crystal, 38, 65
customer centricity, 168
customer engagement and satisfaction, agile teams and improved, 42
customer engagement favored over rigid contracts, in agile leadership team’s manifesto, 191f, 193–194
customer input and feedback, 102
agile enterprises and gathering, 115
agile teams and, 43
customer needs, defining business units and, 129–130
customer opportunities, agile systems and changing, 179–180
customers
agile focus on, 40
Amazon’s obsession over, 168–169, 173–174
as best judges of what they want, 101–102
exploring through user stories, 55–56
front-line employees as, 88
persistent teams and, 118–119
sequencing transition to agile enterprises and, 58–59
as shareholder in agile at scale, 48
customer solutions
balancing and integrating, 55–56
opportunities aligning with business processes and technology, 149f
working backward from, 150–152

data, in agile enterprise, 199–200
Dell, Michael, 112
Dell, use of agile, 47
approach to customer service and cost effectiveness, 114
planning at, 112–116
reviewing plans and budgets, 122–123
Dell Agenda, 113–114
Dell Management Model (DMM), 112, 114–116
Dell Technologies, 112
Deming, W. Edwards, 36
Denner, Volkmar, 52
departmental silos, IT departments and, 155–156
design thinking, 41
development and career paths, agile teams and, 28–29, 33, 139–140
DevOps, 67
DevSecOps, 158, 200
dictator-in-crisis myth, 105–106
digital customer solutions, 156–157
Disciplined Agile Delivery (DAD), 66
Dynamic-Systems-Development Method (DSDM), 38, 65

Easel Corporation, 37
Eastman Kodak, 77
eBay, 171
Einstein, Albert, 87
“Embracing Agile” (Rigby et al.), 39
empiricism, agile and, 201
employees
building trust with leaders over time, 99–100
front-line, as customers, 88
learning by doing things themselves, 98–99
sequencing transition to agile enterprises and, 58–59
employee satisfaction and engagement, agile teams and, 2, 42
Energy Project, 21
engineering practices, improved, 157
enterprise backlog, 56
Enterprise Scrum, 66, 67
ESPN, 75
Executive Action Team, in Scrum@Scale, 69
executive committee, agile transformation and reconstitution of, 102–103
Executive MetaScrum Team, in Scrum@Scale, 69
experiments, agile innovation and learning from, 151–152
Extreme Programming (XP), 38, 65, 66

Facebook, 47, 156
Feature-Driven Development (FDD), 38
Federal Express, 38
feedback
coworker, 140
customer, 43, 102, 115
loops, 104
performance, 139
sprints and rapid, 63, 65
Feynman, Richard, 187–188
financial results, of transition to agile, 61–62
Fire Phone, 118
Fitzgerald, F. Scott, 53
“five whys” technique, 185
flow efficiency, agile at scale and, 49–50, 50f
frameworks, scaling agile, 65–71, 179
Scaled Agile Framework (SAFe), 66, 67–68, 179
Scrum@Scale, 66, 68–70, 179
selecting, 66
Fuji-Xerox, 36
funding. See also budgeting, agile
for agile, 31–33
tying to outcomes, 119–121

Gallup, 21
Gandhi, Mohandas, 10
Gantt chart, 88
Garton, Eric, 138, 141
Gebhardt, Anne Kathrin, 108
GE (General Electric), 160
Goldberger, Jason, 168, 169–170, 172–173
Golden Mean, 13
golden mean, agile, 76f, 79–80
Goldman, Steven L., 38
Google
culture of, 167
Project Aristotle, 21
use of agile, 47, 156
Gresham’s law, 3
Gripen jet, incorporation of agile methods in development of, 2, 4, 39, 45
guilds (as at Spotify), 70, 126

Habito, 143
Haier, use of agile, 4, 47
Harley-Davidson, 38
harmonization, 51, 53, 62, 89, 193, 190
at Dell, 123
Harvard Business Review, 36, 39, 187
hierarchical authority, virtue of in some contexts, 6
Hieronymi, Felix, 52–53
Hoffman, Dennis, 114
Honda, 36
human-centered design, 145
humility, leaders developing, 56, 63, 105

Inc. 500, 99
individuals and interactions favored over processes and tools, in agile leadership team’s manifesto, 190–192, 191f
ING Netherlands, wholesale implementation of agile at, 10–11, 47, 59
initiative owner (product owner), 41, 154
initiatives
backlog of, 113, 115
focus and sequence of, 115
welcoming unplanned, 117–118
innovation.
agile at scale and time to release, 49–50
agile process and, 1–2, 143–147
agile teams and, 40, 53, 175, 177–178
agile vs. traditional, 19–20, 19f
balancing with operations, 7–8, 53, 154
balancing with stability, 123
budgeting for, 116–121
effect on business results, 201, 203–205
funding innovative initiatives at Amazon, 172
happiness and, 186
harmonizing with bureaucracy, 7–8, 62–65
learning from experiments, 151–152
process, 152–154
research papers on improving business results through, 19f
scaling and, 130
technology, 154–158
innovation departments, Spotify Model and, 71
inputs, measuring agility and, 84f, 85–86
interdependencies, planning for, 60–62
“Internally created methods” framework, 66
investment opportunities, backlog of, 117–118
Ironman World Championship, 73–75, 81, 91
IT departments
departmental silos and, 155–156
going agile in more places than, 202, 203, 212–214
issues with complexity, 148
research papers on agile working beyond, 19f
use of agile, 1
IT services vendor models, 158
Ivarsson, Anders, 70

Jane’s (military analyst), 2
job architecture, simplifying at agile companies, 139
jobs, in agile enterprises, 199
John Deere, incorporation of agile methods, 1, 39

Kahneman, Daniel, 80, 165, 182
Kanban, 65, 66, 93, 179
Kniberg, Henrik, 70
Kraemer, Daniela, 93–94, 134
Kramer, Steven J., 21, 187
Kübler-Ross, Elisabeth, 185

Lampert, Edward S., 4
Large Scale Scrum (LeSS), 66
layoffs, agile restructuring and, 4–5, 48, 88–89, 165
leadership team, agile manifesto and, 189–196. See also agile leadership
lean, 159–160
lean product development (lean start-up), 159, 160
lean production systems (Lean Six Sigma), 159–160
Lean Management framework, 66
learning
agile leadership teams accelerating learning loops, 107
welcoming and celebrating, 177
Lego, use of agile, 47
Liebert, Carl, 57–58
lightweight development methods, 13–14, 38
Lis, Anne, 140
location strategy, revised, 158
Lovallo, Dan, 80

Maffetone, Phil, 74
management system, 198
Manifesto for Agile Software Development, 14, 38–39, 189
Mankins, Michael, 138, 141
Martella, Erik, 184
Matheson, Les, 143–147
matrix choices, customer needs and, 129
matrix organizations, agile teams and, 12–13, 178
McEwan, Ross, 143
McGregor, Douglas, 95, 99–100
measurement systems, agile leadership teams and shift in, 107
measuring agility, 83–87, 84f
metrics, to measure agility, 83–87, 84f
micromanagement, agile and, 9, 26, 82, 174
microservices, at Amazon, 170
Microsoft
approach to performance management and rewards, 141
use of agile, 47
mindset, agile, 40
mission, agile and, 82
Mission Bell Winery, incorporation of agile methods, 39
MIT’s Center for Collective Intelligence, 21
modular architecture, 157, 158
modular capabilities, designing operations as, 152–153
modules, coordinating and integrating, 60
multitasking, avoiding, 50, 115
Murphy, Julie, 136–137
Musk, Elon, 77–78

Nagel, Roger N., 38
National Public Radio, use of agile, 4, 39
Netflix, use of agile, 1, 47
Net Promoter scores, 120, 147, 154
“The New New Product Development Game” (Nonaka & Takeuchi), 36–37
Nexus, 66
Nonaka, Ikujiro, 36–37

On the Principles of Political Economy and Taxation (Ricardo), 100–101
open-market competition for capabilities, 153–154
OpenView Venture Partners, 39
operating model, 142
Bosch example, 128, 132–134
creating agile enterprise and, 125, 126–127, 128–134, 131f, 142
customizing, 128
definitions of components, 197–200
envisioning future, 128–132
following strategy, 128–129
operations, balancing with innovation, 7–8, 53, 154
organizational anarchists, 38
organizational structure
of agile enterprise, 130–132, 131f
Bosch, 134
creating an agile enterprise and, 125–126
organizational units in agile enterprises, 199
Spotify, 126, 127f
OS X, 141
outcomes. See also results
agile and measuring, 83, 84f, 85, 184–185
tying funding to, 119–121
outputs, measuring agility and, 84f, 85
overcommunication, by agile leadership teams, 106

PayPal, use of agile, 47
people. See under talent
performance management and rewards, 139
persistent teams (product teams), 12, 118–119, 124, 151, 160–161
pilot agile teams, 108
Pinkham, Chris, 171
plan-do-study-act (PDSA) cycle, 36, 37
planning, agile, 32–33, 112–116, 124
best practices, 124
defined, 198
revisiting and adapting, 115–116
planning fallacy, 80
Polaroid, 77
Porter, Michael, 165
“The Power of Small Wins” (Amabile & Kramer), 187
predictions, accuracy of, 81, 182
Preiss, Kenneth, 38
The Princess Bride (film), 3–4
The Principles of Scientific Management (Taylor), 8–9
processes, agile, 29–32, 34
aligning customer solutions, technology, and business, 149f
challenges of, 147–150
identifying problem and processes leading to it, 185
working backward from customer solutions, 150–152
process innovation, 152–154
design operations as modular capabilities, 152–153
open-market competition for capabilities, 153–154
Procter & Gamble, 144
productivity
inspired employees and, 138
performance management and rewards and, 141
product management method, 159, 160–161
product owner (initiative owner), 41, 154
product review, 34–35
product teams, 12, 161
funding, 118–119
program management office, transition to agile and, 48, 60–61
Project Aristotle, 21
project teams, 118
prototyping, 42
purpose
defined, 197
determining your, 81–83
measuring agility and, 83, 84f

RadioShack, 77
Recipes for Agile Governance in the Enterprise (RAGE), 66
research notes summary, 201–216
agile enterprises can improve results, 202, 203, 214–216
agile innovation is better than regular innovation, 202, 205–208
benefits persist when agile scaled across many teams, 202, 208–212
innovation improves business results, broadly, 201, 203–205
works cited, 203–216
agile works beyond IT, 202, 203, 212–214
research on agile, 17–21, 19f
key questions, 201–202
papers addressing aspects of agile, 19f
results. See also outcomes
of agile enterprises, 180, 202, 203, 214–216
from agile teams, 175–176
innovation and, 201, 203–205
revenue growth, benefit of agility, 78
reviewing, agile, 121–123, 124
best practices, 124
defined, 198
rewarding teaming, 140–141
reward systems, agile leadership teams and shift in, 107
Ricardo, David, 100–101
Rigby, Darrell, 39
Riot Games, use of agile, 47, 121–122
risk
agile teams and reduction of, 42
agility and increased, 79
Royal Bank of Scotland (RBS), use of agile, 47
adaptation of budgeting procedures, 119–121
agile enablers, 147
agile process innovation, 153–154
budget review process, 122
customer journey teams, 146
digital customer solution (Home Agent), 156–157
focus on customer service, 143–147
“rugby” approach, 37
rules for agile, 174–188
learn to love agile teams, and then create your own, 175–177
make it fun, 185–188
master agile at scale, but envision agile enterprise, 177–182
use agile innovation to get there, 181–185

Saab, use of agile methods in development of Gripen fighter jet, 2, 4, 39, 45
Salesforce, use of agile, 47
SAP SE, use of agile, 45–46
Scaled Agile Framework (SAFe), 66, 67–68, 179
scaling agile, 27–28, 45–72
agile at scale, 48–51
agile enterprise, 51–54
chapter takeaways, 72
creating agile vision and strategy, 54–62
defined, 47
examples, 45–47
harmonizing bureaucracy and innovation, 62–65
innovation and, 130
meaning of, 47–54
planning for interdependencies, 60–62
Scaled Agile Framework (SAFe), 67–68
scaling agile frameworks, 65–71
Scrum@Scale, 68–70
sequencing the transition, 58–60
taxonomy of teams, 56–58
scenario-based funding, 120–121
scientific method, 18, 36
Schlatmann, Bart, 59
Schwaber, Ken, 37
Scott, Dave, 75
Scrum (framework), 65, 66, 179
Scrum Inc., 66
Scrum master, 94, 140
Scrum methods, 37–38
Scrum@Scale (Scrum of Scrums), 66, 68–70, 179
Sears, agile as euphemism for layoffs at, 4
self-managing teams, agile and, 1. See also agile teams
self-reflection, agile leadership and, 97
senior executives
in agile enterprise, 51–52
missteps in approaching agile transformations, 87–88
need for executives to be on board with agile, 31–33, 35
scaling agile and, 9–10, 14
sequencing transition to agile enterprise, 58–60
Shapiro, Mary, 21
Shewhart, Walter, 36
Shouraboura, Nadia, 173–174
Sidky, Ahmed, 121–122
Silver Lake Partners, 112
60 Minutes (television program), 77–78
skunkworks, 37
software development
adaptive (ASD), 38
agile and, 1, 29, 34, 154–158, 161–162
issues with traditional approach, 148
Scrum methods, 37–38
software systems, built as microservices, 152
Sparrow, Tammy, 62
specialization, excessive software, 155
Spotify
attempting to copy, 5, 11, 12
incorporation of agile methods, 1, 47, 156
organizational chart, 126, 127f
Spotify Model, 66, 70–71
sprints
agile teams’ use of, 28–29, 31, 34, 36, 41
celebrating wins, 187
as device to harmonize the organization, 63, 65
purpose of, 44
squads (as at Spotify), 70, 126
stability, balancing innovation and business, 123
stack ranking system, 141
stand-ups (meetings), 93, 94, 109
Standish Group’s chaos study, 20
start-ups
agile and, 14
chaotic business systems and, 77
strategy
creating agile, 54–62
defined, 197
essence of, 165
operating model following, 128–129
Stripe, talent acquisition at, 138
success
as habit, 186
pathways to, 81–87
Superforecasting (Tetlock & Gardner), 81
support and control functions, transformed, 158
Sutherland, Jeff, 37, 38, 39, 68

Takeuchi, Hirotaka, 36–37, 39
talent acquisition, 138–139
talent engine, in agile enterprise, 199
talent gaps, filling on agile teams, 28, 29, 33
talent management, in agile enterprise, 125, 134–141, 142
talent strategy, 134–141
bringing in new talent inspired by mission, 138–139
business strategy informing, 135
defined, 199
dynamic resourcing and career paths, 139–140
fostering leadership, not just management, 137–138
talent system, 136–137
defined, 199
Target Corp., use of agile, 47
agile budgeting and, 116–117
taxonomy
of opportunities, 149f
of teams, 56–58, 149f, 151
Taylor, Frederick Winslow, 8–10, 95
teaching others, mastering skills through, 187–188
team-based performance measures, 141, 147
technical talent, upgraded, 157
technology
in agile enterprise, 199–200
aligning with business practices and customer solutions, 149f
challenges of agile, 147–150
rethinking at Amazon, 170
working backward from customer solutions, 150–152
technology architecture, for agile, 29–30, 34, 155, 157, 158
technology innovation, 154–158
Tesla, 77–78
testing working models, 176
Tetlock, Phil, 80–81
Theory X, 95
Theory Y, 13, 95, 99–100
3M
Corporate Research Systems Lab, 62
Health Information Systems, 62
use of agile, 1, 47
Time, Talent, Energy (Mankins & Garton), 138–139
Toyoda, Sakishi, 184–185
Toyota Industries, 184
Toys “R” Us, 77
trade-offs, 12, 65, 78–79, 103, 129, 153, 160
training philosophies, Ironman competition example, 73–75, 91
transition costs, 78
transparency, of agile teams, 100
Triathlete magazine, 75
tribes (as at Spotify), 70, 126
Trussle, 143
trust
agile transformation and mindset of, 105
building trustworthiness between leaders and employees, 99–100
in employees to do the job right, 98–99
Twitter, 156

Uber, 77
Union Square Ventures, 182
USAA
taxonomy of teams at, 57–58
use of agile, 1, 46
user stories, 54–55, 55f, 172

value
different way of adding, 102–104
how leaders add, 97–102
values, agile enterprise’s, 197
venture capitalist, agile funding procedures resembling, 116
virtual services, Amazon’s, 171
vision, creating agile, 54–62, 105
vulnerability testing, 51

Wagner, Sebastian, 46
Walmart, talent system at, 136–137
Warby Parker, 82, 83
waterfall process, 51, 148
Weber, Max, 6–7
Welch, Jack, 182
Willis Towers Watson, 21
Wilson, Fred, 182
Windows Vista, 141
wins, creating and celebrating, 186–187
Woelders, Frans, 146
work, agile and modularizing, 34
working solutions favored over excessive documentation, in agile leadership team’s manifesto, 191f, 192–193
work in process (WIP), agile mindset and, 41
workplace trust, 99–100

Xerox, 77

yin and yang of business, 53, 54f

zShops, 171