Organizational change is often an inevitable consequence of adopting Scrum, mainly because it demands a whole new way of thinking and operating. Since Scrum emphasizes iterative and incremental development, customer collaboration, and flexibility in response to change, it’s not surprising that adopting Scrum can lead to some significant shake-up within an organization. This article explores one such organizational design change caused by Scrum adoption.
A Shift from Hierarchical to Flat Structure
Traditional organizational systems often have a hierarchical structure, where communication and decisions flow from top to bottom. There’s usually a rigid chain of command, with senior leaders making all the major decisions. However, such a hierarchical organizational structure may not be compatible with Scrum’s values and principles, prompting the need for a design change.
The Scrum Framework
Unlike traditional management, Scrum does away with the “command and control” paradigm. It decentralizes decision-making and advocates for self-managing, cross-functional teams that work collaboratively to deliver potentially shippable products in sprints, typically lasting 2-4 weeks. Scrum teams consist of a Product Owner, Scrum Master, and the Development Team. The Product Owner is responsible for maximizing the value of the product, while the Scrum Master ensures smooth Scrum practices, and the Development Team focuses on delivering high-quality work.
Therefore, an organization adopting Scrum may need to transition from a hierarchical structure to a more flat, team-based one.
Flat structure in Scrum
In a flat organizational structure, there are fewer (or no) levels of middle management between staff and executives. The idea is to have a more relaxed, productive environment where everyone is a hands-on contributor and feels comfortable communicating with each other.
The shift towards a flatter structure due to Scrum adoption can lead to the following changes:
- Empowerment and autonomy: Within the Scrum framework, team members have the power to make decisions and resolve issues independently, making them more engaged and motivated.
- Open communication: Hierarchical structures often impede free-flowing dialogue. A flat structure encourages open communication and transparency, which are key Scrum values.
- Better collaboration: In a hierarchical structure, departments often work independently and in silos. The flat structure fosters an environment where interdepartmental collaboration is common.
- Quick decision making: Fewer levels of management mean less bureaucracy, which can result in faster decision-making.
Table 1: Comparison between Hierarchical and Flat Structures
| Hierarchical structure | Flat structure |
|---|---|
| Hierarchical decision making | Decentralized decision making |
| Command and control paradigm | Self-managing teams |
| Independently working departments | Interdepartmental collaboration |
| Impeded communication | Open dialogue |
| Bureaucracy and slow decisions | Quick decision making |
However, this change also poses some challenges. For instance, some employees may resist the change due to their comfort in their specific roles or fear of taking on new responsibilities. Also, the sudden shift to autonomy can feel disorienting for some individuals initially.
Case Study: Microsoft’s Transition
In 2014, Microsoft adopted a Scrum approach for the development of its Visual Studio suite. Before its adoption, Microsoft had a hierarchal setup, with several layers of management. The introduction of Scrum necessitated a shift towards a more flat structure. This allowed for better team autonomy and a more iterative, flexible approach to development. The use of Scrum ultimately helped Microsoft develop better products faster and effectively cope with the rapidly evolving technology landscape.
In conclusion, while transitions from hierarchical to flat structures can present hitches in the beginning, the end advantage, in terms of increased productivity and motivation, improved communication, greater responsiveness to change, and high product value, would be significantly worth it. As this transformation requires a significant culture change, it would be crucial to manage the change effectively, ensuring everyone is onboard with the new ways of working. Training and coaching would also be beneficial to help individuals adapt to the new reality.
Practice Test
True or False: Adopting Scrum might cause an organization to restructure their workflow to align it with the Scrum framework.
- True
- False
Answer: True
Explanation: Scrum can significantly transform an organization’s workflow as short iterations and frequent feedback become central to the work process.
Single select: What is the name of the cycle that organizations adopting Scrum will need to follow?
- A) Deployment cycle
- B) Waterfall Cycle
- C) Agile Cycle
- D) Sprints
Answer: D) Sprints
Explanation: Scrum adoption in an organization involves following cycles known as ‘Sprints’, which are fixed length events of one month or less to create consistency.
True or False: Due to Scrum, the organization might see a change in roles where the ScrumMaster emerges as the manager.
- True
- False
Answer: False
Explanation: The ScrumMaster is not a project manager but a servant leader who helps the team be productive and shields it from external interferences.
Multiple select: What are possible organizational changes due to adopting Scrum?
- A) Teams become self-organizing
- B) The degree of documentation increases
- C) Business stakeholders participate more actively in project development
- D) The work becomes highly predictable
Answer: A) Teams become self-organizing, C) Business stakeholders participate more actively in project development
Explanation: In Scrum, teams are self-organizing, and business stakeholders play a more active role. However, Scrum reduces upfront documentation, and the work is not highly predictable due to the iterative development model.
True or False: The Product Owner role does not exist before the adoption of Scrum.
- True
- False
Answer: True
Explanation: The role of a Product Owner, who prioritizes the backlog and interfaces with the stakeholders and team, comes into existence after the adoption of Scrum.
Single select: When adopting Scrum methods, what is expected to be the organization’s major shift?
- A) From predictive to iterative
- B) From iterative to predictive
- C) From structured to unstructured
- D) From unstructured to structured
Answer: A) From predictive to iterative
Explanation: Scrum encourages organizations to adapt and respond through widely spaced, iterative and incremental solution construction.
True or False: Adopting Scrum may cause a change where the organization starts valuing responses to changes over following a plan.
- True
- False
Answer: True
Explanation: As Scrum is part of the Agile methodology, one of the key value statements is “Responding to change over following a plan”.
Single select: What is likely to decline in the organization after adopting Scrum?
- A) Communication
- B) Bureaucracy
- C) Productivity
- D) Output
Answer: B) Bureaucracy
Explanation: With Scrum, the decision-making process is decentralized, which can help reduce bureaucracy.
True or False: Organizations adopting Scrum will likely see a culture of continuous learning and improvement.
- True
- False
Answer: True
Explanation: Scrum methodology fosters a culture of continuous learning and improvement through regular retrospectives.
Multiple select: What organizational changes might result from adopting Scrum?
- A) More traditional role of management
- B) More emphasis on collaboration
- C) Changes to physical office space to foster communication
- D) Longer development cycles
Answer: B) More emphasis on collaboration, C) Changes to physical office space to foster communication
Explanation: Scrum encourages frequent communication and collaboration, and organizations often see changes in their physical office spaces to facilitate this. However, Scrum leads to shorter, not longer, development cycles.
Interview Questions
Can you elaborate on a key organizational design change observed when a company adopts Scrum?
One of the key organizational changes when adopting Scrum is the shift away from traditional hierarchical structures towards a more team-based, collaborative approach.
What role does the Scrum Master play in the new organizational design?
The Scrum Master plays a vital role as a facilitator, helping the team in the understanding and implementation of Scrum, and resolving any issues that hamper the team’s progress.
Are there any changes to the roles associated with project delivery when adopting Scrum?
In Scrum, the roles of a project manager are often separated into three roles: the Product Owner, who manages the product backlog and prioritizes the work based on business value; the Scrum Team, who develop the product; and the Scrum Master, who coaches and supports the team.
How does communication flow change in organizations adopting Scrum?
The communication becomes more transparent, frequent, and open; facilitated by methods such as Daily Scrum Meetings and the use of Scrum Boards for task tracking.
How does Scrum affect decision-making in organizations?
In Scrum, decision-making is more decentralized. The team is given the autonomy to decide how to best achieve their goals, resulting in increased efficiency and adaptability.
How does adopting Scrum affect the process of product development?
Product development becomes iterative and incremental, the goal is to deliver potentially shippable increments at the end of each Sprint.
What kind of work culture can an organization expect to form when adopting Scrum?
Scrum promotes a work culture that values transparency, inspection, and adaptation, with a strong focus on delivering value to the end user.
Does adopting Scrum necessitate changes in an organization’s structure?
Yes, adopting Scrum usually involves a change from traditional top-down structures to more flat, self-organizing teams.
How does quality control change in an organization upon adopting Scrum?
Scrum promotes quality control through continuous inspection during every Sprint review and retrospective. This ensures that issues are identified and resolved quickly.
Who is responsible for the product backlog in Scrum-based organizations?
The Product Owner is responsible for managing and prioritizing the product backlog in Scrum-based organizations.
How does adopting Scrum impact an organization’s approach to tackling complex projects?
Adopting Scrum enables organizations to break complex projects down into manageable chunks called Sprints. Each Sprint aims to deliver tangible results, allowing for regular review and adaptation.
How does Scrum, when implemented, impact the levels of responsibility within an organization?
With Scrum, teams become self-organizing, meaning they take on greater levels of responsibility. Scrum masters and product owners also bear specific responsibilities in ensuring the smooth running of the Scrum process.
Can you describe the transformation in performance evaluation in a Scrum environment?
In a Scrum environment, performance evaluation shifts focus from individual accomplishments to team performance and the continual improvement of the team.
How does the Scrum framework affect problem-solving in organizations?
Scrum encourages rapid problem-solving as teams have regular meetings (Daily Scrum) where bottlenecks, issues, or blockages are identified and solutions are sought collaboratively.
What impact does adopting Scrum have on the project management methodology of an organization?
Adopting Scrum transforms the project management process from a predictive (or waterfall) methodology to an empirical, iterative approach that is more adaptable to changes.
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