The Influence of Agile Ways of Working on Change Capacity. A case study exploring organizational agility in practice

In this case study, I explore if and how agile ways of working influence change capacity. In that, I investigate the effects on change capacity at both the organizational and individual level. First, to gain an understanding of the prevalent perspectives and arguments on agile and change capacity, literature was reviewed. Second, qualitative data was collected from a single firm set within the banking industry. The findings from this were then analyzed as ‘actions’ taken by the firm represented by agile ways of working, and the ‘outcome’ represented by organizational and individual change capacity. While the actions were synonymous with those described in agile literature, the outcome revealed completely new insights not previously addressed by scholars.

This study indicates that agile ways of working positively influence change capacity; at the organizational level, by creating shared understanding and quick results. Additionally, it shows that the organization’s sensing capabilities are enhanced at the operational level with scope to further optimize them at the strategic level. The influence of agile ways of working on the firm’s seizing capabilities is undeniable, as the organization is able to adapt and respond to changes in a rapid manner like never before. At the individual level, agile ways of working create change readiness and trust. At the same time, some risks are identified at both levels, including backlog of work, stress, and fatigue. The positive effects outweigh the risks significantly, indicating the magnitude of benefits an organization can potentially enjoy by adopting agile ways of working.

This thesis provides novel and valuable insights to practitioners regarding the benefits of agile ways of working and how its specific elements can build change capacity. It also highlights the role of top management in the process. This study is especially beneficial to those managers who are considering agile ways of working or have recently implemented it at their firm.