A paradigm shift in the Grand Duchy’s organisational culture

Agile Survey 2024

Agile Survey 2024
  • Survey
  • October 03, 2024
83%

of companies define Agile as a culture/state of mind, compared to only 17% of respondents that consider it a self-controlled project management framework.

74%

of companies that have implemented Agile have experienced new ways of collaboration, up from 57% in 2021.

78%

of companies use Scrum as an Agile framework. Kanban and DevOps are the second and third-most preferred options.

During the first quarter of 2024, PwC Luxembourg launched the fourth edition of the Agile Survey, as a follow-up to previous editions from 2017, 2019, and 2021. The survey was based on a set of questions originally developed by PwC Luxembourg and PMI Luxembourg Chapter and was conducted using a questionnaire of multiple-choice and open-ended questions, which allowed us to obtain a better understanding of the current state of the Agile methodology in the Grand Duchy. This white paper aims to examine how the Agile approach has been consolidated in organisations’ core practices and how it represents a promising tool for prompting digital transformation in Luxembourg.

Agile Survey 2024

A paradigm shift in the Grand Duchy’s organisational culture

Key findings

In the first quarter of 2024, we conducted the latest edition of the Agile Survey. With more than two-thirds of respondents from the banking, capital markets, insurance, and public sectors, this white paper examines the implementation of a methodology that aims to improve productivity and automate processes in the Grand Duchy through sprints and cross-functional teams.

The learning curve for Agile has matured. Survey respondents recognise Agile as a mindset (70%) and a way of self organisation (39%). This is a sign that organisations in Luxembourg are more likely to be advanced Agile users who understand the core values of the methodology.

Over half of respondents (57%) identified ‘reduced delivery time’ as the main expected advantage Agile will bring to their companies. Implementing this methodology means prioritising cross-collaborative teams. Since happier and empowered employees tend to be more motivated and committed to their jobs, organisations will have a competitive advantage in terms of productivity and product quality.

Historically, Agile was mainly integrated into IT projects. In the current edition of the survey, this trend has changed, and respondents declared that Agile is broadly adopted for projects across various business areas (39%). Furthermore, it seems that the practice has matured, and the methodology’s implementation is widely used in the project management sphere (38%). Agile seems to be evolving towards becoming an extended framework that supports many company functions, particularly in projects that require business-IT collaboration.

Although Scrum is the most frequent Agile framework among our survey respondents (78%), the evolution of DevOps (57%) is eye-catching. It denotes that many projects are running towards automating processes across different business functions. Thus, companies use Agile methodologies to draw digital transformation roadmaps, which are increasingly part of organisations’ core strategy.

To benefit from Agile’s advantages, companies should develop an awareness of its potential challenges. Over half of respondents declared they had no tool to centralise, track, and manage Agile processes. This could be troublesome because the methodology needs an instrument to support team coordination. In point of fact, the primary negative feedback respondents revealed they have received when using Agile is ‘difficulties in coordination’ (74%), which is unsurprising considering the absence of a tool that prevents internal silos and centralises information and workflows.

Customers are a central element of Agile. In contrast to previous editions, this year’s respondents did not declare the ‘user discontent’ as a concern they received from Agile implementation. This is an excellent example of the maturity of the practice in Luxembourg; customers seem satisfied with the cross-functional collaboration and constant value delivered by organisations implementing Agile.

Keywords for Agile

Today’s business landscape has proven that following ultra-defined and exact instructions is very operationally difficult. The survey respondents reaffirm this idea and consider that ‘mindset’ (70%) and ‘way of self organisation’ (39%) are among the two best descriptions of Agile.

Keywords for Agile

Note: Multiple-choice question. - Source: PwC Global AWM & ESG Research Centre

Organisational functions sponsoring Agile

Although senior management is sometimes more conservative when taking structural risks, it seems to be gaining a protagonist role when sponsoring Agile (32% in 2019 and 48% in 2024). This represents an exceptional opportunity for companies looking to foster business-IT collaboration.

Organisational functions sponsoring the implementation of Agile

Note: Multiple-choice question. 2017 edition data excluded due to methodological differences. - Source: PwC Global AWM & ESG Research Centre

What are the main negative feedback received related to the set-up of Agile?

Experienced negative feedback received related  to the set-up of Agile

Note: Multiple-choice question. - Source: PwC Global AWM & ESG Research Centre

Working through iteration phases rests upon a radical paradigm shift that requires highly-skilled leaders who can coordinate dozens, if not hundreds, of multi-disciplinary teams. Unsurprisingly, companies in Luxembourg see ‘difficulties in coordination’ as the first negative point to adopting Agile. Aditionally, ‘lack of organisational change management’ and ‘managers experience difficulties in adoption to new leadership paradigm’ are key potential drawbacks.

Positive feedback received related to the set-up of Agile

Regardless of the challenges organisations could encounter when using Agile, there are many ways to create long-term value after using it. Therefore, 74% of respondents consider the 'development of new collaboration modes' as the main positive outcome they have experienced with Agile

Positive feedback received related to the set-up of Agile

Note: Multiple-choice question. - Source: PwC Global AWM & ESG Research Centre

Conclusion

Agile challenges traditional organisational cultures. By embracing this methodology, companies can empower individuals, build trust among collaborators, enhance productivity and efficiency, and face the challenges that today’s business landscape constantly encounters. What matters in today’s business landscape is no longer following rigid hierarchies or unquestionable instructions but prioritising communities, betting on quality, and preparing for an unsteady environment.

Agile Survey 2024

A paradigm shift in the Grand Duchy’s organisational culture

Contact us

Thierry Kremser

Advisory Partner, Deputy Advisory & Technology Leader, PwC Luxembourg

Tel: +352 49 48 48 2269

Krzysztof Jaros-Kraszewski

Advisory Director, Technology, PwC Luxembourg

Tel: +352 62133 42 30

Dariush Yazdani

Partner, Global AWM Market Research Centre Leader, PwC Luxembourg

Tel: +352 49 48 48 2191

Joris Van den Bogerd

Advisory Manager, Technology, PwC Luxembourg

Tel: +352 621 334 816

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