Year: 2018

The Five Principles of Lean Management as the Basis of the Agile Manifesto

In order to understand agility from a historical perspective, it is important to go back to the principles of lean management. Agility in the sense of the Agile Manifesto from 2001 can thereby be seen as the application of the five principles of Lean to software development. The focus of agility is on the rapid delivery of customer value through working software. And the optimal flow for this comes from an interdisciplinary and self-organizing team that covers the complete value stream from the idea to operating the software.

Purpose over Profit

Many companies appear to have forgotten the very purpose of their existence. Most employees therefore answer the question about the purpose of their employer with the apparently correct answer: “To make profit”. But profit is never an end in itself; rather, it is like the air we breathe to survive and yet our lives thankfully do not consist only of breathing. Profit is therefore only a necessary condition for the survival of the organization and the yardstick for properly fulfilling an important purpose for the customer.

Leadership Under Change – Equality Not Subordination

In the transition from the industrial age to the age of knowledge work, the relationship between employees and their organization changes fundamentally. Dependent workers increasingly become independent knowledge workers who carry their means of production in their heads. The organization is therefore more dependent on knowledge workers than vice versa. In this transition, the network replaces the hierarchy as the leading organizational principle. Leadership is therefore no longer based on subordination and obedience, but now aims at the self-leadership of the people entrusted to it.

Impact over Input

Successful agile organizations are strongly oriented towards a common mission despite the guiding principle of self-organization. Autonomy requires orientation, otherwise it leads to chaos. Of course, all other organizations also claim for themselves an appropriate vision and mission. Agile organizations, however, are more impact-driven. They focus more on outcomes and measure the impact that these outcomes make. Traditional organizations are more input-driven inasmuch they try to plan exactly which input in terms of resources is needed