The CEO and Sponsor Factor in Agile Transformation

Agile transformations move forward through the effort of teams, but how fast and how deep they go is often decided by one person: the CEO or the transformation’s sponsor. In almost every successful transformation we have seen in the field, there was a visible, active sponsor. In most failed ones, sponsorship amounted to a speech at the kick-off meeting.

Why is the sponsor so critical?

An agile transformation changes not only how teams work but also budgets, organisational structure, decision rights and performance systems. None of these can be changed at team level. The sponsor is the person who clears the way where the transformation runs into the rest of the organisation.

What a good sponsor does

1. Makes the “why” of the transformation clear

They spell out which business problem the transformation will solve: time to market, customer experience, cost or employee engagement. Instead of “becoming agile”, they set a measurable goal.

2. Creates organisational alignment

They point the goals, priorities and incentives of different units in the same direction as the transformation. If one unit is rewarded for speed and another only for cost, conflict between teams is inevitable.

3. Removes structural obstacles

They own the obstacles teams can’t solve on their own: approval processes, budget cycles, role definitions, dependencies. The list of impediments should come onto the sponsor’s agenda regularly.

4. Communicates consistently and often

They share the transformation’s progress, successes and difficulties openly. A sponsor who shares bad news too shows the organisation that openness is safe.

5. Leads by example

They make their own leadership team’s work visible, prioritise openly and ask for feedback. If the leadership team doesn’t run its own work with agile principles, expecting it from teams isn’t convincing.

6. Is patient but demanding

They accept that culture change takes time, but they don’t stop tracking progress with data. Delivery times, quality and customer feedback are reviewed regularly.

Common sponsorship mistakes

• Delegating the transformation and stepping back. A sponsor who hands the transformation to a PMO or an external consultant tells the organisation it isn’t a priority.
• Expecting quick results. Expecting a big productivity jump in the first quarter pushes teams to work for show.
• Changing only the teams. Expecting new behaviour from teams while structure, budgets and measurement systems stay the same.
• Keeping old habits in their own decisions. A sponsor who changes priorities mid-Sprint breaks one of Scrum’s most important rules themselves.

Conclusion

The CEO or sponsor is both the engine of an agile transformation and its most visible example. Setting a vision is an important start, but what carries a transformation to success is the sponsor’s determination to remove obstacles and change their own behaviour.

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Related: Building a coalition for agile transformation, Leadership in Scrum. To build a transformation roadmap with your leadership team, have a look at our agile transformation services.