Other agile management tools include. Kanban, DevOps, Scrumban, Design 3 humancapitalclub.de/files/auf-dem-weg-zur-agilitaet.pdf.

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1. Management Summary 52. Introduction 63. What is Agile? 74. Results of our survey 94.1. Those who succeed in grasping and internalizing agile working principles aim to go one step further. 94.2. Innovation works best agilely. Yet the agile approach does not necessarily re˜ect the best in all matters. 11 4.3. The approach towards an agile organization is uncharted territory for most enterprises. 12 4.4. Additional ˚ndings 14 5. How to become an Agile Organization 17 5.1. Agile Continuum and Incubators 17 5.2. Organizational Culture 18 5.3. Leadership & Governance 19 5.4. Organizational Structure & Processes 20 5.5. Tools & Technology 21 6. Conclusion 23 7. Glossary 24 8. Authors 31 Content 3

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1Management Summary 1 Please refer to our Study —Agility & Congruency: The success formula of healthy Operating Modelsfl 5Agility as a business concept has been used in IT and other development work for over 20 years, but the application of this methodology has been largely limited to the project world. Yet the implementation of an agile mindset and the associated bene˜ts can unlock the major potential of the Agile Organization concept. This is a development that is currently subject to much debate and discussion across different industries and sectors. Agility is a key aspect of a healthy operating model1, which serves as an organizational blueprint and lays the foundation for the detailed design and implementation of a strategy. To enrich the debate, Capgemini Consulting has conducted the fiAgile Organization Study 2017fl. Of the insights gained, three key ˜ndings stand out most notably:Those who succeed in grasping and internalizing agile working principles aim to go one step further. Business units that have had successful experiences with agile working methods tend to further intensify these methods. In IT-related units, for instance, 96% of the respondents indicated that they apply agile working methods within projects and the day-to-day business. Moreover, our survey reveals that agile advocates striving to further expand agile working methods constitute a disproportionately high quota. Within the middle and back of˜ce opera- tions, approximately 48% have experience in agile working, ranking second place following IT, and similar to their IT colleagues, plan to further pursue an agile transformation. In total, 83% of the respondents con˜rmed their goal to roll out agile working methods within their enterprises (Figure 1). Innovation works best agilely. Yet the agile way does not necessarily repre- sent the best approach in all matters. In general, agile working methods prove to be successful in innovation and where rapid progress frequently turns out to be the better approach over perfectionism. Agile methods function best in depart- ments strongly linked to direct and indirect market in˚uences (e.g. marketing, sales, product development, R&D, etc.) as well as project management cross-functions. In departments that focus primarily on the identi˜cation, avoidance and preven- tion of errors and risks, agile working methods prove to be less successful and initial experiences do not indicate progress in this direction. Finance/Risk/Compliance (FRC), accounting and controlling are examples of such areas. If the Agile Organization concept is to function in these sectors, it will be necessary to balance both tension and correlated implementation dif˜culties between agile and traditional working methods.The approach towards an Agile Organization is unchartered territory for most enterprisesOur research shows a huge variation in the perception of the ultimate target state in Agile Organizations. In terms of agile methods, success factors and priorities for an Agile Organization, a concordant view has not yet been established.Due to this large variation and lack of avail- able clarity, we have developed a consis- tent framework, including a transformation charter, based on both our consulting experience and the survey ˜ndings. This framework takes into account typical implementation failures we have observed in the market. Our transformation charter is composed of four dimensions: Organizational Culture Leadership & Governance Organizational Structure & Processes Tools & Technology The framework also relies on the concept of incubators. These serve as vehicles and enablers for each dimension™s agile trans- formation and guide the organization on its journey towards agility. This proce- dure avoids radical interventions and utilizes instead a gradual organizational transformation. As a result, short-term success can be quickly achieved.Figure 1: Any plans for further trans- formation towards Agile? © Capgemini Consulting 201783%17% Yes Not yet planned

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62Introduction Agile Organizations have been introduced by many proponents as the new norm to equip companies with the ability to rapidly adapt to market and environmental changes in a productive and cost-ef˜cient manner. This need becomes even more imperative as pressure from nimbler competitors and more demanding consumers increases. In this report, we take a close look at orga- nizational agility, what it entails and how it can be applied to companies in different industries. For this purpose, we have con- ducted the fiCapgemini Consulting Agile Organization Surveyfl with 119 partici- pants from industries accross all business sectors (Figure 2). While the majority of the participants were large companies in the ˜nancial service and automotive sectors, important com- parative data was also obtained from other industries and smaller companies. Twelve countries, including China, the USA, and many European countries participated in the survey, with the majority of partici- pants coming from Germany. Our survey results indicate that agile methods are known to respondents primarily through their use in projects, yet most respondents see signi˜cant bene˜ts in broadening their application scope to daily business processes. Based on the results of our study and experience gained from various projects, we were able to re˜ne and optimize our transformation model towards becoming a more agile and customer-centric organi- zation based on daily agile practices. The remainder of this document lays out the primary cornerstone concepts of this approach. Financial Services Automotive Manufacturing, High Tech Consumer Products & Retail Telecommunication, Media & Enterntainment Energy & Utilities Life Sciences & Chemicals Figure 2: Industries represented in the survey (%) © Capgemini Consulting 20178.4%15.1%16%8.4%52.1 %0 – 100100 – 1.0001.000 – 5.0005.000 – 10.000> 10.000Number of employees (%) 5%12.6%12.6%12.6%52.9%250 – 5005050 – 250500 – 1.000> 1.000Revenue in Million $*excluding 4 % of participants not stating their revenue 34.5%10.1%8.4%7.6%7.6%5.9%5%Industries presented in the survey (%)

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resilience, responsiveness and learning from within. Additionally, agility means to constantly assess the status quo and to adapt to changes instantly in order to succeed on the road of transforming to organizational agility. This ability to learn and improve quickly is a major differentiator of (most) start-ups in comparison to larger and/or established companies. Start-ups tend to focus on customer needs instead of being held back by hefty internal processes. Thus, being agile means retaining the start-up mindset, even in larger organizations.There is currently no generally accepted de˜nition for the term fiAgile Organizationfl. For this reason, Capgemini has launched the Capgemini Consulting Agile Organiza- tion Study 2017. The results provide us with an added factual basis, which we can utilize in helping our customers on their journey towards becoming an Agile Organization.3 http://www.humancapitalclub.de/˜les/auf-dem-weg-zur-agilitaet.pdf 4 Please refer to our Study —Agility & Congruency: The success formula of healthy Operating Modelsfl fiAgility is a company™s ability to sense and respond to change adequately and in due time.4fi8Figure 3: Case Study Adidas 3© Capgemini Consulting 2017adidas Steps conductedHigher employeesatisfactionEnsuring development ofmarket oriented productsFaster decision making andproduct developmentImpactSector: SportswearCountry: Germany EE: 60.000Revenue: 17 bn. • Employees select theirobjectives and focusesOutside-In-PerspectiveExchange of information on internal and external levelSelf-directed learninglarge variety of different coursesConstant re˜ection of usedmethods, contents and own attitudes

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4Results of our survey Overall, the results of our survey show a high potential and motivation for a (further) roll-out of agile working methods. The survey results also indicate the business units in which agile working could be applied best and the units in which agile working shows a rather low potential. Finally, it becomes clear that the approach towards becoming an Agile Organization is still fairly unknown. This is consistent with another study performed by Capgemini Consulting, which addresses the strategic organizational changes that need to be made to an organization™s operating model in order to implement agility on a long-term basis.Those who succeed in grasping and internalizing agile working principles aim to go one step further. Figure 4 contrasts the experiences in agile working as well as plans and intentions for a further roll-out of agile-related working methods. As many as 83% of the partici- pants strive to further expand agile methods within the corporation, and 54% of this group has already had positive experiences with agile working. However, 29% have no current experience in agile working but strive to transform into an Agile Organization. For those with experi- ence with agile approaches, 85% decided to continue utilizing the agile methods, with 100% of sales organizations responding af˜rmatively. Only 17% of the participants do not see a need to take steps in order transform towards an Agile Organization. Overall 9% of organizations that have already worked with agile principles consider agile methods neither promising nor bene˜cial in adding value to their enterprises or units. For those participants from Finance, Risk and Compliance units, this ˜gure is signi˜- cantly higher (15.4%). Nevertheless, when comparing the outcomes, a large majority of those accustomed and familiar with agile working principles do see further potential in these methods. The bottom-left corner of the diagram shows respondents without any experi- ence in agile working and not wishing to pursue related methods. Yet, even the companies without prior experience with agile working principles consider the concept of an Agile Organization appealing (bottom-right corner, 29%). 9Figure 4: Is agile in use and are there any plans for a further transformation towards an Agile Organization? © Capgemini Consulting 2017No plans to transform towards fiAgileflPlans to transform towards fiAgileflNo usage of fiAgileflfiAgilefl in use 9%54%29%8%

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Figure 5 shows, that the ˜nancial sector has established experience with agile working beyond the framework of regular projects. Also, as shown in Figure 6, the aim to transform the proprietary organiza- tion into an agility-driven one had been expressed more frequently by participants from the ˜nancial services sector compared to their industry peers, e.g. the automotive sector. 10Figure 5: Financial Services: How are agile methods used in different departments? © Capgemini Consulting 201730% 40% 50% 60% 70% 80% 0% 20% 10% 90% 100% 17%6%17%Sales Marketing FRC 31% 9% 9% 51%14% 42% 6% 22% 31%Controlling 21% 9% 9% 60%62%IT 55% 40% 5%3%19% 65%Operations Not yetFor ProjectsBothin Daily Business9 9 Figure 6: Automotive: How are agile methods used in different departments? 30% 40% 50% 60% 70% 80% 0% 20% 10% 90% 100% 17617Sales Marketing FRC 44%56%14 44%11%56%Controlling 22%6067%IT 56%44%319 65Operations 33%67%22%11%11%56%Not yetFor ProjectsBothin Daily Business© Capgemini Consulting 2017

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Innovation works best agilely. Yet the agile approach does not necessarily re˜ect the best in all matters. For a better understanding and interpreta- tion of the above data, we took a deeper look at the business units in which the advocates for and opponents of Agile Organizations originate. Not surprisingly, IT related departments are largely at the forefront in terms of integrating and applying agile working principles and naturally plan to continue. When looking at the non-IT related depart- ments, the following trends could be identi˜ed: Departments or business units with a strong customer focus, in which the idea of innovation represents the top priority and where rapid, determined actions are more important than perfectionism, are more likely to achieve their goals more quickly and more ef˜ciently through agile working methods. However, departments and business units in which the identi˜cation, reduction and avoidance of risks rank ˜rst and where strict policies and guidelines play a signi˜- cant role, are less likely to attempt to increase their ef˜ciency through the application of agile working principles. fiBeing agile is the art of com-bining the virtues of ˜exibility and stability. Florian Rodeit, Head of Finance Operations Center Prague, Deutsche Börse AGfi11Figure 7: Department comparison of future transformation plans towards agile © Capgemini Consulting 201730% 40% 50%60%70%80%0% 20% 10% 90%100%ITbased on productswhole organizationOperations (Middle-/Backof˜ce)SalesMarketingAccounting/ControllingFinance/Risk/ComplianceYesNot yet plannedFigure 8: Agile potential of different departments © Capgemini Consulting 2017High Medium Low Agile potentialProductDevelopmentMarketing &CommunicationFinance, Risk, Compliance Logistics Accounting & Controlling Organi- zational Develop- mentOperations Procure- mentIT HR Service Legal & ComplianceSales Business Development

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