The Agile principle is based on self-organising and cross-functional teams which learn and adapt in rapid iterations. It enables the tracking of evolving customer needs very closely.
Agile and corporate governance
The board of directors creates the framework for executive action: it guides the executive managers who manage the daily running of the business; it also approves business strategy and major investments, and can appoint executives. The board is a group of professionals with multiple affiliations who meet up to eight times a year for a few hours. Therefore they focus on a limited number of important decisions. Could the Agile philosophy be of benefit?
Customer-centricity
This is the first principle of the Agile approach. However, boards should avoid serving any narrowly defined group of shareholders. They need to act in the interests of all stakeholders and ensure the company remains sustainable. So, board members are not there to please any particular stakeholder (or customer); rather they should ensure harmony with various stakeholders.
Adaptability
This value is also fundamental to Agile because of the constant turbulence of the software industry. In the development of software, plans can never reflect reality and thus need constantly updating. According to an article on the website of the INSEAD business school, companies generally do not ignore the rapidly changing environment. The problem is rather the lack of a clear plan or an inability to communicate that plan. Stakeholders want a clear vision and transparent communications; otherwise there can be strong resistance, most often from investors and trade unions.
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