The agile method of software creation is one of the newer progressive methods of organization typically being implemented in IT and development companies. The framework is based on the Manifesto for Agile Software Development, which emphasizes individuals and interactions, working software, customer collaboration, and rapid response to change as a basis for a free and less restrained environment (Wadhwa, 2019). Although the agile system is typically met with excitement and enthusiasm by managers and employees alike, the long-term implementation of Agile-like systems is also associated with a decrease in discipline, profits, and production volumes. One of the companies that suffered from such developments is ING – a Dutch banking group that sought to implement agile principles in its daily processes. The purpose of this paper is to evaluate how ING dealt with the initial setbacks in discipline from using Agile.
The Agile Manifesto
The agile manifesto was developed in 2001 by a group of software developers known as the Snowbird 17. It goes as follows:
- Individuals and interactions over processes and tools,
- Working software over comprehensive documentation,
- Customer collaboration over contract negotiation,
- Responding to change over following a plan. (Drumond, 2019, par. 11)
The manifesto acknowledges that the factors placed in the right column also have their importance, but claim that the ones in the left have priority. This manifesto proposes a more agile way of doing business when compared to the traditional hierarchical, waterfall-like structure of software development and project management.
ING and Agile
ING decided to implement Agile in early 2014, with the system being implemented in mid-2015, after deliberation (Jacobs, 2017). ING recognized that software was being used so extensively throughout the banking system, that IT knowledge and experience were becoming paramount in the successful company operation, thus making Agile more attractive as a method. The impetus for change came from the understanding of swaying customer preferences, acknowledging that a customer-centered approach would provide better results for the company in the long run (Jacobs, 2017). Since customer collaboration is one of the tenets of Agile manifesto, the system was considered favorable for the task.
The primary reason for ING encountering a decrease in discipline and the overall efficiency in the first year after adopting Agile was its sporadic use throughout the system (Jacobs, 2017). The banking sphere traditionally implements a very hierarchic structure, with planning, documentation, and contract negotiation. To find proof of this, one needs to go to the nearest bank and see how many papers need to be filled out before a solution is generated. In most cases, it is not the solution one wants or needs, but the closest possible approximate from the rigid options offered by the bank. With the introduction of mobile banking, that trend began to change. At the same time, it also puts a greater emphasis on IT and software development that are to accommodate the system.
Agile and hierarchical structures typically do not agree with one another (Wadhwa, 2019). One of the systems is built on planning and control, whereas the other, as indicated by the Agile manifesto, values individuals, interactions, and rapid responses over corporate planning. In ING’s case, the sporadic implementation of Agile by creating small groups operating under these principles and integrated into the overall company structure were rendered inefficient – while they were capable of self-disciplining and self-regulation, the departments still working under the waterfall structure viewed them as mavericks and enforced documentation and regulation from the outside (Jacobs, 2017). At the same time, the presence of teams that did not adhere to the overall disciplinarian structure damaged the organizational morale by generating two separate forms of management.
Lastly, the individuals and management working using Agile did not always agree with the system, seeing that there were no tools of physical control. Believing that employees needed a manager to ensure efficiency and not trusting them to self-organize, managers exercised micromanaging skills whenever possible. The employees, when faced with such treatment, became disillusioned with Agile, since the promised freedom in handling projects and clients was constantly undermined. All of these factors, together, led to a loss of discipline in IGN. Agile is reliant on discipline, so a detraction from self-organization led to a decrease in productivity.
ING Solutions to the Problem
The company recognized the failures of implementing Agile peace-meal, so they carried on with a more in-depth transformation of the banking group by implementing it at all levels and in all departments, over time. Instead of building a hierarchical top-down structure, ING transformed itself into a flat organization with 350 teams, each made up of 9 employees (Jacobs, 2017). These teams were broadly organized into different departments, in order to keep them moving in the overall direction necessary by the company. Each team also had an Agile coach, which taught managers and employees to work in highly-productive ways, with an emphasis on self-organization. As a result, ING regained its positions and dramatically improved the quality of customer service, as well as the overall efficiency of its projects. Thus, it could be concluded that one of the primary conditions for the success of Agile is the organization’s commitment to transform itself fully. At the same time, a framework is a tool, not an end-goal. It should be implemented when the organizational goals fit within its paradigm.
References
Drumond, C. (2019). Is the Agile manifesto still a thing? Web.
Jacobs, P. (2017). ING’s agile transformation.Web.
Wadhwa, D. (2019). Top three reasons why companies still struggle with Agile and SCRUM. Web.