Roadmap to Organizational Success: Agile and Beyond

July 26, 2023
10
min read
Blog creator
Agustín Talagorría
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This post explores the software industry's diverse management philosophies. While we do not claim to have all the answers, our objective is to provide you with a broad understanding of these philosophies, helping you make informed decisions on how to best steer your products, projects, and teams.

By delving into the various approaches, we intend to equip readers with valuable insights to consider when defining their organization’s work methodologies and team structures. We offer an overview of the main philosophies prevalent in the software industry, highlighting their unique characteristics and suitable contexts.

Nevertheless, seeking professional guidance and consultation for tailored advice is highly recommended. We welcome your comments and inquiries; feel free to contact us directly through our contact page for specific professional assistance.

Why Organizational Mindset Matters

Image linking culture and strategy

An organizational mindset is essential because it provides a strategic and cultural foundation to operate effectively, make informed decisions, foster continuous improvement, engage employees, and deliver customer value.

It serves as a compass, guiding the organization’s actions, behaviors, and strategic direction.

In this post, we will introduce the main philosophies a software organization can adopt:

  • Plan-Driven philosophy, regarded as the traditional mindset in the software industry. With a track record of effectiveness in fields like construction, it was also adopted as the go-to approach in software development.
Plan Driven Schema
  • Agile philosophy, a newer paradigm born on top of the traditional mindset to fit software characteristics. As stated in the Agile Manifesto:
    “We are uncovering better ways of developing software by doing it and helping others do it.”
Lean Schema
  • Lean philosophy, originating from the Toyota Production System, characterized by minimizing risk and waste while maximizing customer value.
Agile Schema

These philosophies are not mutually exclusive. Hybrid approaches can be used in different environments or project scenarios. Organizations may adopt a combination of Lean, Agile, and Plan-Driven approaches based on the characteristics of what is being worked on, customer needs, and organizational culture.

The word “project” is frequently used in this post. However, Agile is designed for managing products, not projects. For the sake of convenience, the term “project” will continue to be used throughout the post.

The Aims of the Mindsets: Plan-Driven, Lean, and Agile

Let’s imagine your organization is beginning a new software solution. Which approach would you ask your team to adopt?

  • “Tell me the estimated project completion date and present a detailed plan to achieve it.”
  • “Let’s begin working, try to build something, and recheck if we are on the right path in a few weeks.”
  • “Let’s discover what you need to start working ASAP and what the optimal way of doing it is. If obstacles arise, let’s rejoin to optimize our processes.”

According to your answer, you may notice which way of thinking you are following.

  • Plan-Driven prioritizes upfront planning, thorough requirements gathering, and strict adherence to predefined timelines, budgets, and resources.
  • Lean focuses on minimizing risk and waste while maximizing customer value through process optimization.
  • Agile values individuals and interactions over processes and tools, working software over comprehensive documentation, customer collaboration over contract negotiation, and responding to change over following a plan.

Each mindset requires a distinct approach to work. By embracing the appropriate philosophy, organizations can enhance collaboration, optimize processes, and achieve better outcomes.

Directing Focus According to Organizational Mindset

Now that we have explored different mindsets, let’s analyze where organizational focus should lie.

If a project is not meeting a set deadline, how would you respond?

  • Gather the team to analyze issues and identify improvements collectively.
  • Challenge the team to change their way of working.
  • Request the team to put in extra hours to meet the deadline.

Lean focuses on improving processes and reducing waste. Agile emphasizes people, collaboration, and adaptability. Plan-Driven focuses on predictability, planning, and adherence to predefined processes.

Wanting “the best of both worlds” without alignment is often one of the main challenges organizations face.

Image of people pointing a target

Organizational Environment and Mindset Compatibility

When adopting a mindset, it’s crucial to assess whether the organizational environment supports it.

Which statement best defines your environment?

  • The project scope, team structure, and budget never change.
  • Requirements are unclear at first, priorities evolve, and stakeholders collaborate frequently.
  • The team understands the work, and reducing time-to-market and cost is essential.

Each philosophy fits different conditions:

  • Plan-Driven environments value predictability and stability.
  • Agile thrives in dynamic environments with evolving requirements.
  • Lean suits environments focused on efficiency and continuous improvement.

If you find yourself asking questions like:

  • Why can’t the team provide a clear timeline?
  • Why is the Agile team struggling?
  • Why are team members idle?

The environment may not be aligned with the mindset you’re trying to apply.

Finding the Best Match: Organizational Structure

Organizational structure supports or limits mindset adoption.

Consider:

  • What happens when someone proposes an innovative idea?
  • Is it clear who to approach to propose changes?
  • Can teams change how they work without heavy bureaucracy?
  • Agile fits flat or decentralized structures.
  • Lean aligns with process-oriented, cross-functional teams.
  • Plan-Driven works best with hierarchical structures and centralized control.

Image linked people

Assessing Organizational Culture for Mindset Assimilation

Introducing new technology often reveals cultural traits.

How would your team approach adoption?

  • Conduct a full analysis and detailed plan.
  • Experiment, gather feedback, and iterate.
  • Optimize processes and scale gradually.

Culture influences success. Continuous coaching and support are essential to help teams embrace the principles behind each mindset.


Conclusions

Choosing a management philosophy aligned with your organization’s goals and values is key to success.

  • Plan-Driven offers structure and predictability.
  • Agile promotes adaptability and collaboration.
  • Lean focuses on efficiency and waste reduction.

These approaches are not mutually exclusive. Hybrid models can be effective when aligned with requirements, team dynamics, and organizational culture.

Thank you for joining us on this exploration of management philosophies. We hope this post has provided valuable insights and sparked ideas for your organization’s success.

For personalized advice, feel free to contact our experts.

Acknowledgment

This article was developed with the valuable contribution of Gabriel Ledesma,  Certified Team Coach a ex member of the Streaver team, whose insights helped deepen the exploration of modern management philosophies.

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