The Benefits of Using Agile – 7 Statistics Every Business Executive Should Know
The art of doing twice the work in half the time – Jeff Sutherland gets right to the heart of the impact of Agile and Scrum. Beyond pointed statements like this, there are now more business executives than ever before asking themselves: Why Agile, and what are the benefits for my business?
In our new white paper, which is available for free download here, we provide insights into the benefits of using Agile from an executive perspective. And in this blog post we have summarized the seven most important statistics that underpin the great Agile promise with additional facts and figures.
1. Three Times More Successful Than Waterfall
Transformation projects are complex and the corresponding risk of failure is high. In several studies, analysts and consultants investigated the success rate: According to McKinsey, only 27 percent of projects achieve their set goals – something we reported on this in this blog post. The reasons for this are manifold, but this one number is worth a thousand words: Agile projects are three times more likely to succeed than projects managed with traditional methods such as Waterfall. A clear plus point for Agile! (Source: The Standish Group)
2. Uncompromising Customer Focus
Agile approaches like Scrum prioritize customers and their actual needs. While many business projects struggle with internal sensitivities, trench warfare between departments and management ego trips, approaches à la Scrum leave very little room for maneuver. Everything revolves around the final customer, and that’s why 49 percent of the top managers surveyed by Forbes say that the primary reason for Scrum’s success is its uncompromising customer focus. (Source: Forbes)
3. Team, Team, Team
Success comes not by developing big master plans, but rather by implementing short-term goals – and these goals are best defined by small, agile teams themselves. Agile starts right where employees feel most comfortable: at team level. 50 percent of all team members state that their motivation is team success vs. 27 percent who say corporate goals and 23 percent who say personal goals. Agile starts with the team, the number one motivation factor. (Source: Atlassian)
4. Growing Success Rate
To cut a long story short: Agile’s success rate is spiraling upwards. While organizations that use traditional methods such as Waterfall projects regularly mess up, more and more organizations are enjoying success with Agile. As many as 98 percent of respondents in a survey said that Agile has helped them achieve project success. (Source: VersionOne)
5. Overcome Silo Mentality
The lack of collaboration between departments in a company is one of the main reasons for the failure of projects. 54 percent of companies surveyed in a study are now confirming that Agile was critical to help foster collaboration between departments that do not actually work together. Agile connects teams – and therefore increases the joint success of projects. (Source: TechBeacon)
6. On the Market Faster
With increasing competition comes greater pressure to be the first on the market with a new product. Studies confirm that the time-to-market factor for organizations using agile approaches improves on average by 18 to 20 percent. True to the motto “It’s the fast that eat the slow” and not the big that eat the small, Agile helps organizations of all sizes to respond faster to market demands and deliver customers what they really want faster than ever before. (Source: Atlassian)
7. On an Upward Spiral
Agile has developed into the ne plus ultra for companies whose market success depends on rapid innovation. In a study, Harvard Business Review came to the conclusion that innovation cycles can be compressed by more than 75 percent thanks to Agile. As a result, companies are entering into an upward spiral that is driven and accelerated by constant new offers: Agile is a catalyst for innovation and a guarantor of long-term business success! (Source: Harvard Business Review)
You can find more details on the question Why Agile? in our new swarmOS white paper – download it here for free!