Agile working is not a method or process, but a vision for organizing work in a flexible and iterative way.
It's a mindset that helps organizations be agile and respond quickly to changing customer needs. Instead of spending months devising a perfect plan, agile teams work iteratively: they build something small, test it with users, learn from feedback and improve the product step by step.
In this article you'll learn everything about the origin of Agile, the core principles, popular frameworks like Scrum and Kanban, and how to get started practically.
The origin of Agile working
Agile working has its roots in the 1980s, when companies like Toyota and Honda surprised the West with their flexible production processes. In 1986, Takeuchi & Nonaka described the "rugby approach" in Harvard Business Review: instead of a relay race where each phase is neatly completed, the entire team works together like a rugby team carrying the ball to the goal line.
This pattern was first described in their groundbreaking article The New New Product Development Game.
The experimental 1990s
During the 1990s, software developers adopted these insights and experimented with various adaptive methodologies:
- Extreme Programming (XP) – focus on technical quality
- Crystal – family of methodologies for different team sizes
- Dynamic Systems Development Method (DSDM) – time-boxed development
- Feature Driven Development – shorter iterations around concrete features
The Agile Manifesto (2001)
In February 2001, 17 pioneers gathered in Snowbird, Utah. They were tired of software projects chronically going over time and budget while not delivering what customers really needed. From their discussions emerged the Manifesto for Agile Software Development: four core values and twelve principles that laid the foundation for modern agile working.
The four core values of the Agile Manifesto
Agile working is built on four fundamental values:
- Individuals and interactions over processes and tools
- Working software over comprehensive documentation
- Customer collaboration over contract negotiation
- Responding to change over following a plan
These values don't mean that processes, documentation, contracts or planning are unimportant. They indicate where the emphasis lies when you have to make choices.
The twelve Agile principles
The four core values are translated into twelve concrete principles:
Customer focus
- Deliver valuable software regularly to the customer
- Welcome changing requirements, even late in development
- Work daily with stakeholders
Team performance
- Build projects around motivated individuals
- Face-to-face conversation is the most effective communication
- Self-organizing teams deliver the best results
Continuous improvement
- Measure progress with working software
- Maintain a sustainable development pace
- Reflect regularly and adapt your approach
Simplicity and quality
- Simplicity – the art of maximizing the work not done
- Technical excellence and good design enhance agility
Agile vs. Scrum: what's the difference?
| Agile | Scrum | |
|---|---|---|
| What is it? | A mindset, a way of thinking | A concrete framework with rules |
| Comparison | Fruit | Apple |
| Documented in | Agile Manifesto (2001) | The Scrum Guide / SBOK |
- Agile is the overarching philosophy. It's about collaboration, working results over documentation, and responding to change.
- Scrum is a specific application of Agile. It's a set of rules, roles and events to put that agility into practice.
You can work Agile without Scrum (for example with Kanban), but you cannot do Scrum without the Agile mindset.
Popular Agile frameworks
Agile working is a vision, not a specific method. Different frameworks help organizations shape the agile mindset:
Scrum
Scrum is the most widely used framework for agile working. It consists of:
- Roles: Product Owner, Scrum Master, Development Team
- Events: Sprint Planning, Daily Scrum, Sprint Review, Retrospective
- Artifacts: Product Backlog, Sprint Backlog, Increment
Kanban
Kanban visualizes workflow and limits Work in Progress (WIP). Perfect for teams providing continuous support or with a stable flow of work.
Extreme Programming (XP)
XP emphasizes software quality through practices like Test-Driven Development, Pair Programming and continuous integration.
Lean Startup
Helps develop new products through the Build-Measure-Learn cycle. Minimizes waste by quickly experimenting with Minimum Viable Products (MVPs).
Why Agile working is more important than ever
Digitalization, AI disruption and geopolitical turbulence are exponentially accelerating market dynamics. Customers have become more empowered, compare prices in real-time and expect customization "right now".
Traditional companies that stick to rigid processes and long planning cycles are being overtaken by agile competitors. Agile working provides the tools to respond: short iterations, continuous feedback and multidisciplinary teams with decision-making power.
Benefits of Agile working
Research shows that Agile working leads to:
- 30-50% faster time-to-market
- 20-30% higher customer satisfaction
- Higher employee satisfaction through autonomy and self-direction
- Better quality through continuous feedback and iteration
- Lower risks through early and frequent validation
How to get started with Agile working?
Start small, invest in culture & coaching, and always measure customer outcomes over output:
- Start with one team – Choose a pilot project suitable for iterative work
- Choose a framework – Scrum for product development, Kanban for service teams
- Invest in training – Make sure everyone understands the principles
- Start with retrospectives – Continuous improvement is the core
- Measure results – Focus on customer value, not output
Agile and AI: the future
Artificial Intelligence is transforming how Agile teams work. AI tools not only speed up task execution, but also improve decision-making quality. From automated code reviews to intelligent backlog prioritization – AI helps teams become even more effective.
Conclusion
Agile working is not a trick but a way of thinking and doing that helps organizations thrive in an unpredictable world. The core values – people over processes, working products over documentation, collaboration over contracts, and responding to change over following plans – are more relevant today than ever.
Whether you choose Scrum, Kanban or a hybrid approach: the key to success lies in embracing the Agile mindset and continuously learning and improving.
Learn more
This article gives you the basics of Agile working. Want to dive deeper into specific topics?
At iPeople we have been working with organizations that want to become Agile since 2015. From startups to multinationals — we have seen what works and what doesn't.