Scrum Agile Project Management

Agility is Inefficient

This presentation explain the difference between the two terms effectiveness and efficiency and show how focusing on the latter in Agile can lead to multiple bad consequences that you will probably recognize from organizations in your field.

Agility is mainly about effectiveness. Yet, most corporations that are striving to become agile these days, do it for another reason, namely to become more efficient. But focusing on efficiency is extremely dangerous! Big companies that were praised for their extreme efficiency have gone bust or at least lost a lot of market share in the recent past. Certain management consultancies continue to sell their customers the same good old formula and advise them to become more efficient by optimizing their cost structures. These organizations, therefore, continue to build the same products, just cheaper. But people don’t want those products anymore. Blockbuster, Nokia, Blackberry, text messaging, the taxi industry, local coffee shops, newspapers, Myspace, and many more are well-known examples.

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