The Road to Become Agile : A case study of agile transformations in the retail market, including an organization development approach

Abstract: In today’s volatile market, retail companies struggle for survival as they have to become more flexible and dynamic. Thus, they change the organization, implementing agile methods. However agile is more than a set of practices and therefore the implementation process needs to be accompanied by organizational development to accomplish successful organizational change. This has been shown to be difficult for retail companies due to their size, defined silos, comfortable long-established ways of doing things and strong bureaucratic hierarchical culture. This thesis studies the implementation of agile in a large-scale retail organization and uses organizational development as a tool for deeper understanding and analysis. The study has been conducted at one of Sweden's leading retail organizations, where the research design contains two phases: one pre-study phase where a deeper understanding of the company and the transformation is achieved resulting in a problem formulation and the second phase where the main study is directed by the problem formulation and leads to an analysis and conclusion. The analysis is based on empirics gathered from three separate teams and is divided into three interconnected change phases, “Preparation”, “Implementation” and “Desired state”. From the analysis in the preparation and implementation phases; strengths and challenges within the organization were identified. Together with a maturity model to evaluate the implemented agile practices and an organizational culture assessment instrument to evaluate people and culture, the strengths and challenges were then used to estimate their current state and compare it to their future desired state. In conclusion, the strengths of the case company were that, when implemented, the observed teams incorporated the agile ceremonies and ways of work successfully. However, there were challenges identified in relation to resistance within management, there was a general lack of support from the sponsors and confusion about the managerial roles. There was also a lack of communication, cooperation and synchronizations between teams.