Why Agile Transformations Require System Thinking

This is the first of a sequel of three articles that explore the crucial role of System Thinking for the success of an Agile Transformation. In this first part, we want to highlight the importance of a systemic approach for an Agile Transformation to reach its goal. At the end of this article you find the link to the other two parts.

Situational sketch: You oversee an agile transformation. You are part of the change team in which you have highly skilled and experienced agile coaches and consultants. The Agile transformation started off well, with a good storyline of urgency and shared goals, with more than enough commitment and support from management and stakeholders and teams. Yet, after setting up the first Agile team of teams and involving stakeholders, it is struggling with the next steps. There is a drop in productivity, there are more meetings than necessary, silos are still unconnected… There seems to be a missing part.

How Come Agile Transformations Sometimes Disappoint?

What is the root cause of this disappointment after those first successful changes? The answer is not in the details of Agile approaches, but rather in the organisation’s broader perspective. Without a clear holistic view, Agile will almost inevitably promote mere local solutions – tactical approaches with immediate and tangible improvements that feel like progress, but often miss the context for organisation-wide benefits, such as flow.

This is where systems thinking approaches (like the Theory of Constraints) come into play. A systems thinking perspective urges us to look beyond individual silos next to each other, and examine the system in its entirety, identifying bottlenecks and developing comprehensive flow-oriented solutions. The move from local to system-wide optimisation is not a minor tweak; it is a sea change. It requires a transition from concentrating on isolated elements to understanding the wider interdependencies of the entire system.

*The Theory of Constraints is a way of identifying the most important limiting factor that stands in the way of achieving a goal.*

Regrettably, true systems thinking is rarely seen in organisations. It is challenging to grasp. It is tough to implement. It is antithetical to silos-structured organisations. And it calls for an open mind approach to coordinate – or better yet, merge – the current multiple silos. However, it is a crucial journey, a leap of faith necessary to build a robust, resilient, and more effective organisation.

When we ask, “why does Agile often fail”, the response is not found in its principles or practices. It lies in the broader organisational mindset, that often overlooks the system-wide perspective. Too many Agile transformations seem to work on local optimisations. There is a lack of systems perspective and how varied factors work together. For example, let us not settle for improving just one silo. Do not only transform a single department like IT.

The essence of this conversation is about challenging our own limited views by moving beyond our current practices and looking through a wider perspective with the help of systems thinking. Here’s to building a future that doesn’t merely copy blindly, but optimises and truly excels!

At Wemanity, we are very proud of our Transformation approach, which helps organisations go through changes or even (the ultimate goal) autonomously become adaptable in a permanent way. Systems thinking play a crucial role in making this model so successful. Send us a message if you want to know more about our Transformation framework or the role of System Thinking in it!

In the next article of this sequel we will talk more about the systems approach of our Agile Transformation model.