A clash of cultures: How do cultural differences impact agile transformations?

Abstract

This article in the journal “Gruppe. Interaktion. Organisation. (GIO)” examines, based on a qualitative study, how cultural differences between agile projects and their traditional, non-agile organizational environment lead to conflicts and how these conflicts can be resolved to drive agile transformation initiatives. Previous research identifies and categorizes conflicts in the context of agile transformations, but does not yet explore by what specific practices they can be resolved. A study was conducted on an agile pilot project in a German bank. Following an exploratory approach, 14 semi-structured interviews were conducted with employees of the agile project and non-agile partner areas. Results show that the culture of the agile project is primarily characterized by elements of high needs of flexibility, while the organizational environment puts its emphasis on stability. From the cultural differences, three types of conflicts arise: (1) conflicts that arise from the opposing needs to comply and deviate from process guidelines, (2) conflicts that are based on resistance to other working approaches, and (3) conflicts that result from a hierarchical project structure. These conflicts can be resolved by adapting the agile working approach to the stability-oriented organizational culture and isolating the project team from non-agile areas. Although these practices may appear counterintuitive in terms of agile transformation, they contribute positively, especially in the initial phase of an agile transformation, by creating the necessary conditions for project success which facilitate the organization-wide acceptance of agile values.