Tag Archives: Agile management

Six Lessons That Society Must Learn About Agile

By Steve Denning – The article isn’t suggesting that firms embracing Agile are either angels or devils. I have yet to see a firm espousing Agile that has no flaws: those flaws must be seen for what they are and they need to be addressed.

If not addressed, they will cause serious financial, economic or social problems. Some of the flaws need to be addressed by the firms themselves and will be reinforced by the marketplace. Others may require government intervention.

Among the flaws for which the marketplace will by itself tend to generate corrective action are:

  1. Failure to continue innovating
  2. Sweat-shop workplaces
  3. Short-termism
  4. Share buybacks
  5. Rethink “maximizing shareholder value”
  6. Abuse of monopoly power and privacy

We need to see Agile by the clear light of day, neither through rose-colored spectacles in which everything is kumbaya, nor through a glass darkly in which everything is evil.

The saying “you can’t have it both ways” doesn’t mean that we can’t walk and chew gum at the same time. more>

Reinventing And Humanizing Management: How Agile And Beyond Budgeting Have Converged

By Steve Denning – “What is required in today’s creative economy,” wrote Gary Hamel recently, “is a radical rethink of our top-down, tradition-encrusted management principles and processes. The challenge: building organizations that are as innovative as they are efficient, as passion-filled as they are pragmatic… This is not merely about implementing a new practice, process or structure. Instead, we have to start with a new set of management principles.”

The Agile movement began in software development, while the Beyond Budgeting (BB) movement started from a re-think of budgeting principles. What’s interesting is to see how far these two movements, which had such radically different origins, have steadily converged.

The purpose of the Beyond Budgeting movement is not necessarily to get rid of budgets. The purpose is to create these organizations that are more adaptive, more human, call it more agile. In order to do that, we need to change traditional management.

At the core of traditional management, you find the budgeting process and the budgeting mindset. So the budget is “the elephant in the room.” An organization can never be truly agile unless you also address that mindset, and that process. It is necessary but not sufficient. more>