Digital Transformation vs Agile Transformation

An Agile Transformation is primarily focused on equipping teams and their leaders to effectively leverage Agile methodologies.

This may involve implementing the Scaled Agile Framework or Large Scale Scrum when working with a large organization. An Agile Transformation may also begin small with one or two pilot teams that start with using Scrum. Regardless of the scale of the transformation, the key is that the company, or team within a company, wants to achieve the benefits of an Agile way of working. These benefits may include shorter release cycles, higher quality code being delivered, improved collaboration between teams and/or products more closely aligned with customer needs.

Agile methodologies are all based on the principles and values described in the Agile Manifesto ( www.agilemanifesto.org ). In essence, the Agile Manifesto focused on people working together to quickly deliver the best product for their customers without sacrificing quality. Some of the teams I’ve coached have achieved that and realized many of the desired benefits of using an Agile methodology. However quite often I find that the teams want to focus on their customer, change how they work, and collaborate with other parts of the company, but there are organizational culture impediments that get in the way.

While the Agile Manifesto emphasizes customer collaboration and working together daily, most Agile Transformations focus primarily on learning a process or methodology.

Most Agile methodologies have meetings or ceremonies designed to foster collaboration. However, there is seldom much attention paid to the actual culture change within a company that must happen for these new ways of working to really stick through true behavior change.

Culture change is a key element to any successful transformation. In many Agile transformations, this is a missed opportunity while people want to stay focused on how to “do” agile activities.

Digital Transformations look across an organization to create new ways of working and thinking about the work done in service of the customer.

This customer-centric improvement mindset necessitates culture change within the organization. As a result, organizational culture change is a built-in aspect of any successful Digital Transformation.

Some people may equate Digital Transformation with automating manual processes or updating a workflow to improve efficiency. These are potential elements of a Digital transformation, but not the only aspects. Successful Digital Transformations think about all aspects of how the company currently operates and identifies how to utilize technology to deliver value more quickly to one’s customers. This involves a new mindset focused on innovation, collaboration, and experimentation. This mindset leads to learning cycles focused on value delivery for one’s customers. As a result of this mindset shift, organizations undergoing a Digital Transformation often experience increased efficiency and improved business agility. Many organizations also experience improved employee engagement because of the Digital Transformation’s emphasis on culture.

While both types of transformations look at improved ways of working to deliver better customer products and services, there are some key differences between an Agile Transformation and a Digital Transformation.

One of those is the focus on culture change that is a key element of a Digital Transformation and often a missed opportunity in an Agile Transformation. Digital Transformations also look at the entire organization, identifying new ways of working and thinking. In practice most Agile methodologies emphasize using the methodology or framework to implement Agile ways of working.

Agile Transformations are very process focused while Digital Transformations are more organizationally wholistic in practice. Both approaches will lead to improved customer focus and new ways of working.