Plan-Driven vs Agile approach

Recently, one of my customers in CXO suite asked me why should he opt for an Agile way of working while plan-driven approach provides him predictability, control, and efficiency over the life cycle of an engagement.

This discussion consumed multiple sessions spanning over a couple of days.  Good thing is, I am able to convince him to try Agile approach as an experiment, I will be there to coach and help him to realize the full potential of the approach.

Here are the arguments; I build up during the discussion:

Predictability
A. In the plan-driven approach, the prime focus is achieving of goals and milestones as planned.


OR

i. The focus should be on the output as planned.



Control
 B. In the plan-driven approach, management has the ability to influence or make decisions that will help to steer the course of engagement (in terms of time, money, and other resources).

OR

ii. The ability for management to compel a specific behavior of people working on the engagement.

Efficiency 
C. In Plan driven approach, management is geared toward delivering as planned which ensures efficiency.

OR

iii. Ability to extract maximum sap out of the delivery team due to smaller delivery and quick feedback cycles.

Step – 1: Deconstruction of plan-driven approach favoring arguments

A. In the plan-driven approach, the prime focus is achieving of goals and milestones as planned.

The plan-driven, a great amount of energy is spent on achieving the goals and milestones defined in the plan. Are we executing the engagement to realize the plan or to realize the output? Naturally, we are striving for the output.

B. In the plan-driven approach, management has the ability to influence or make decisions that will help to steer the course of engagement (in terms of time, money, and other resources).

If every this is planned and we will be following the plan then why need to make decisions which are not in the plan? Does it poke holes in the plan-driven approach? We can’t make a foolproof plan.  

C. In plan-driven approach, management is geared toward delivering as planned which ensures efficiency.

If our plan is not foolproof then what is the basis of the above argument? Is utilization of resources (which are getting spent in execution of engagement) is the measure of efficiency? 

Step – 2: Deconstruction of pseudo Agile arguments

i. The focus should be on the output as planned.

Are we striving for output or outcome of an engagement? In any engagement, you have bigger goals to achieve, a general direction in which you want to move. In a dynamic adaptive environment, not only customers are learning but people who are executing are learning on a continuous basis. This essentially ensures that as soon as some output is produced, the environment around it changes. In such a scenario what is more valuable – output or outcome.  So the better argument to adapt to Agile approach is:

The focus should be on the outcome as envisioned via short-term participative planning embedded with small releases and multiple quick feedback cycles.

ii. The ability for management to compel a specific behavior of people working on the engagement.

We live in a world in which information is freely available and people. Especially, knowledge workers have access to information on the global scale and they are part of the network. Also due to the high level of education it is quite difficult to compel a specific behavior of people. In such a scenario, management is better off by providing a conducive environment in which information can be shared and people have the psychological safety. So the better argument to adapt to Agile approach is:

Providing the environment of psychological safety which leads to a culture of experimentation.

 
iii. Ability to extract maximum sap out of the delivery team due to smaller delivery and quick feedback cycles.

In short term, this argument may hold good but in medium to long-term, this is going to backfire. You can be on adrenaline high for a long period, you will break soon. For a long-term benefit of the overall system, focus on sustainable pace is a must. So the better argument to adapt Agile approach is:

Ensure a sustainable pace.

There is a fourth argument in favor of the Agile approach which plan-driven approach has no clue.

Efficiency gain is incremental in continuous improvement while effectiveness gain provides a quantum jump in efficiency by innovation. To achieve a quantum jump in efficiency, the Agile approach ensures physiological safe environment on the pillars of continuous learning, experimentation, self-organization, and cross-functional collaboration.

 
 Provides right conditions for innovation which leads to disruptive change.

In the above discussion, I have avoided the words “project” and “product” in favor of “engagement” to avoid wrangling around them.