Niall McShane Niall McShane . Mar 12, 2023 12:00:00 PM . 3 min read

Why agile should not be used to reduce cost.

Niall McShane introduces the podcast and its theme by exploring the "productivity versus purpose" tension. He discusses why using agile to reduce cost is a bad idea and doing Agile transformation without chaos.

Why cost-out and agile change programs don't mix

Reducing the workforce during an agile transformation creates fear and uncertainty, which can hinder the adoption of new ways of working. The authors of "Doing Agile Right: Transformation without Chaos" also advise against mixing cost reduction with cultural and work transformation.

How to tap into the workforce's discretional effort

Organizations should focus on connecting their workforce to the purpose of their work. This can lead to higher productivity and engagement, as employees will be more inclined to invest their discretionary effort in the organization's mission.

The 'hard' and 'soft' aspect of an agile change program; how they interact

The 'hard' aspects, such as agreed processes, documentation, and governance, must be in place to ensure a solid system where employees can thrive. The 'soft' aspects focus on connecting employees to the purpose of their work, allowing them to perform at their best within the system.

Fear of Change and How to reduce its effect on an Agile Program

Fear of job loss can hinder an agile transformation. To reduce this fear, organizations should reassure employees that their jobs are safe and focus on implementing the change benevolently.

A short book review as it relates to this episode's topic

"Doing Agile Right: Transformation without Chaos" by Darrell Rigby, Sarah Elk, and Steve Berez offers valuable insights into successful agile transformation programs. Chapter 8, in particular, emphasizes the importance of not mixing cost reduction with cultural and work transformation.

There should be a balance between cost-out strategies and agile change programs. This is to avoid creating fear and hindering the change process. Organizations should focus on connecting employees to the purpose of their work and putting the necessary 'hard' and 'soft' systems in place to ensure success in their agile transformations.

 
 

 

Source Agility Team meeting Image

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