Agile 101: Terms and concepts for business leaders
A practical primer for leaders looking to borrow concepts from the software world’s Agile methodology.
Agile software development is an umbrella term for a set of frameworks and practices based on the values and principles expressed in the “Manifesto for Agile Software Development” and the 12 Principles behind it. But Agile can have value for other functions, encouraging collaboration between self-organizing, cross-functional teams.
As we explored in Adapting Agile for the Enterprise, those outside of software development likely won’t see the value in adopting formal (“capital A”) Agile practices to the letter. However, a basic understanding of some common terms can help them navigate the terrain and determine what might work for their needs.
Here are key concepts in Agile, with some examples of how they might be applied outside of the software context.
Agile: A development approach for delivering software incrementally following the principles and values of the “Manifesto for Agile Software Development”
The Four Values of Agile: The Agile manifesto lays out four priorities to guide decision-making:
- Individuals and relationships over processes and tools
- Working software over comprehensive documentation
- Collaboration over contract negotiation
- Response to change over following a set plan
Agile coach: A teacher who is formally tasked with helping people in multiple scrum teams to apply Agile methods and mindset. Business examples: In a procurement function, this role might be filled by the chief procurement officer, says Everest Group partner Amy Fong. Consumer products giant Unilever expanded this concept enterprise-wide in a corporate transformation effort, with coaches identified at the business unit and functional levels.
Scrum: The common method employed to implement the principles of Agile development. The scrum lays out the approach, roles, and interaction of a cross-functional team carrying out Agile development.
Scrum team: The developers, designers, and other technical experts working directly on the project to turn a product vision into functional software. The optimal size for a scrum team is less than 10; larger groups are typically subdivided. Support or oversight roles such as coaches and product owners are not included in that number. Business example: A scrum team tasked with drafting a corporate AI policy might include representatives from legal, IT, human resources, analytics, and more.
Scrum master: The coordinator of interaction between the scrum team, product owner, and other stakeholders. These process experts monitor and control activities and remove roadblocks throughout the Agile process. Business example: In procurement, a sourcing or category manager could fill this role, tracking the overall progress of a project, removing barriers, and mitigating delays across one or more scrum teams, Fong says.
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Product owner: this product expert creates and controls the product vision and has the ultimate say regarding what features are included and when they are delivered. They play a key role balancing input from stakeholders to make the best decisions for the product. Business example: A business unit leader, a practice lead, or an emergency physician might serve as product owner for a given project, depending on the setting and scope.
Stakeholders: Those with an interest in the product who help develop the product vision and road map with the product owner, based on their expertise and insight, but who are not involved in the day-to-day development process.
Users: The end users for the product being developed, who provide feedback during reviews and demos or answer questions from the product owner. Like other stakeholders, they are not involved in the day-to-day development process. Business example: When manufacturing company Timken’s HR team worked to redefine its hiring and onboarding processes, it gathered feedback on the experience from recent hires.
Sprint: A designated time period during which scrum teams complete specific objectives toward target objectives. The scrum team fits requirements into a certain sprint period and then moves on to another sprint (which might involve iterative improvement or completely new tasks), repeating the cycle until the project is done. Sprints are characteristically short; see the next term.
Timebox: The maximum amount of time that can be used for a sprint (typically two to four weeks, with two weeks being the norm).
Product backlog: A list of to-do items needed to successfully complete the project. The items are prioritized by the product owner so that there is no dispute about what to do next.
Standup (or huddle): A daily meeting about 15 minutes long, during which the scrum team discusses what they accomplished the previous day, what they plan to work on that day, and whether there are any roadblocks. The meeting is short enough to be done standing up.
Minimum Viable Product (MVP): Yes, the popular MVP concept—a software release with the least amount of functionality and refinement necessary to start serving customer needs —comes from Agile and illustrates the Agile tenets of iteration and continual improvement.