Do we need managers in an Agile Organisation?

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Agile Organisations adopt the Scrum framework for developing innovative products and services. According to the Scrum guide, the Scrum framework has just 3 roles.

  • Product Owner
  • Scrum Master
  • Development Team

With most organisations undergoing an Agile transformation, are we saying that traditional management roles like project, program and functional managers are obsolete or no longer needed?

I would say ‘NO’; managers still play an essential part in an Agile organisation, and below are the reasons why?

  • Functional managers create teams
    • Managers define boundaries within which a team is permitted to self-organize. For example, the team can only work on accounting software, not on an HR portal.
    • Managers provide a clear, elevated goal for the feature teams to achieve.
    • Managers also compose teams and have a say in the initial team formation.
    • Managers can also change composition of a Scrum team (if required).
    • Managers empower Scrum teams by delegating some of his/her responsibilities to them.
  • Nurture resources
    • Managers take care of the training needs of the team members, whether it is technical, behavioural or domain-specific.
    • They provide functional area leadership. As, some of the managers can be an expert in a particular domain/area.
    • They help maintain team integrity by keeping the same resources together (long-lived feature teams) for a long time.
  • Promote Agile culture
    • Managers must embrace Agile values and principles. They should understand and honestly believe them. They should also encourage others to do the same.
    • Managers remove Organization level impediments for the smooth functioning of the Scrum teams.
    • Managers must help spread Agile adoption in other areas of the organisation like Finance, Sales, Operations, Marketing and HR.
    • Managers sometimes also align with external vendors for an Agile transformation. They do so to save time & effort in creating and forming internal Scrum teams. Instead, they can have a fixed-price contract with the vendor partner and complete the Agile transformation at a fixed price.
  • Manage value creation flow, manage economics
    • Program managers in Agile organisations still manage economics for their areas. This frequently occurs through their involvement in portfolio management and corporate governance.
    • They keep track of the progress of the projects through Sprint reports and metrics, they do join Sprint reviews.
    • To effectively manage value creation, managers should adopt a holistic perspective rather than a localized one.

Following picture summarizes the blog in a simpler way:

Hope above blog is helpful to you. Looking forward to your feedback.

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