The transition from lean-agile frameworks within the financial sector: An indication of Lean-Agile maturity?

In the financial sector, we have recently observed a trend where several companies are choosing to move away from the framework that has underpinned their lean-agile transformation. At first glance, this may seem like a step backward or a sign of dissatisfaction but it may actually indicate that these organisations have achieved a high level of lean-agile maturity.

Abandoning the lean-agile framework is not a trivial decision. It requires a deep understanding of the principles underlying lean and agile methodologies, as well as an organizational maturity that allows for agile and effective action without an overarching framework. Lean-agile maturity means that the organisation has integrated lean-agile principles at relevant levels and has the ability to adapt quickly to changes without relying on a specific structure or framework.

However, it is of utmost importance that this change takes place for the right reasons and not as a result of problems with implementation or challenges with existing governance. Only then can one continue to remain competitive in an increasingly fast-paced and digitalised environment.

Challenges and risks

Although transitioning away from a framework is a positive sign of lean-agile maturity, it also brings certain challenges and risks. Companies need to be aware of these and have strategies in place to manage them:

1. Risk of fragmentation: Without an overarching framework, there is a risk that teams and departments may start to diverge in their methods and processes, which can lead to inefficiencies and communication issues.

2. Need for stronger internal governance: Organisations need to develop stronger internal governance mechanisms to ensure that lean-agile principles are followed and that all teams are working towards the same goals.

3. Ongoing support and engagement: Management need to remain consistently engaged and supportive. Without strong leadership, the agile culture may weaken over time.

4. Maintaining agility at scale: Maintaining agility and flexibility as the organisation grows can be challenging. Companies must find the balance between keeping small, agile teams and effectively scaling the business.

Summary

The fact that several companies in the financial sector are now choosing to abandon their lean-agile framework is hopefully a strong indicator of their high lean-agile maturity. This decision should be seen as a positive development and proof that these organisations have integrated lean-agile principles so deeply that they no longer need to rely on a specific framework to ensure success.

It is crucial that this transition occurs on the right premises, with a clear strategy, strong leadership and ongoing investment in training and development. By navigating these changes carefully, companies in the financial sector can continue to enhance their flexibility, innovation and competitiveness in a rapidly changing market. However, a transition based on incorrect premises can be devastating for a company's ability to act quickly in a changing, digitalised environment.