Seeing the Whole Elephant: Systems Thinking in Agile Transformations
Imagine leading an Agile transformation. You introduce new frameworks, train teams, and set ambitious goals - but something feels off. Teams are "doing Agile" but not "being Agile." Processes improve, but real business outcomes lag behind. Stakeholders blame each other, leaders expect instant results, and before long, frustration builds.
What went wrong?
Most transformations fail not because of bad intentions or lack of effort but because they treat organizations as machines rather than complex adaptive systems. And this is where systems thinking becomes the key to sustainable change.
The image above illustrates a fundamental challenge in systems thinking. When different people experience only parts of a system- without seeing the whole- they form incomplete or contradictory conclusions. This is exactly what happens in Agile transformations:
Each perspective has truth in it, but none tell the whole story. To create real change, we need to step back and see the full system.
- Leaders see Agile as a way to increase speed.
- Teams focus on frameworks and rituals.
- Business stakeholders expect immediate ROI.
- Coaches emphasize mindset shifts.
Each perspective has truth in it, but none tell the whole story. To create real change, we need to step back and see the full system.
Our Training Courses
What is Systems Thinking?
At its core, systems thinking is the ability to recognize that:
- A system is more than the sum of its partsits elements interact in ways that create unexpected behaviors.
- Cause and effect are rarely linearquick fixes often backfire in the long run.
- The problem is not "out there"- we are part of the systemour decisions and assumptions shape the results we get.
Agile Transformations as Complex Systems
Agile transformations are not mechanical projects where you install a process and get predictable results. They behave more like living ecosystems, with:
Without a systems approach, transformations turn into local optimizations - improving one part while breaking another.
- Feedback loops - where small changes trigger bigger cultural shifts.
- Emergent behaviors - where new patterns form as people adapt.
- Delays and unintended consequences - where early progress can mask deeper issues.
Without a systems approach, transformations turn into local optimizations - improving one part while breaking another.
Three Systems Thinking Principles for Agile Coaches
1. Look Beyond Isolated Problems
Most transformation efforts focus on fixing pain points:
But these aren’t root causes - they're symptoms of deeper systemic patterns. Instead of treating Agile adoption like a checklist, ask:
Example: A bank introduces Agile teams but keeps rigid budgeting cycles. Teams struggle with funding constraints, leading to short-term thinking. The problem isn’t with the teams- it’s with the financial system around them.
- “Teams aren’t collaborating.”
- “Leadership isn’t engaged.”
- “Velocity isn’t improving.”
But these aren’t root causes - they're symptoms of deeper systemic patterns. Instead of treating Agile adoption like a checklist, ask:
- What’s reinforcing the current behavior?
- What constraints are shaping decisions?
- What happens if this "problem" is removed- will another one take its place?
Example: A bank introduces Agile teams but keeps rigid budgeting cycles. Teams struggle with funding constraints, leading to short-term thinking. The problem isn’t with the teams- it’s with the financial system around them.
2. Identify Feedback Loops
In complex systems, change doesn’t happen in isolation - it creates ripple effects. These can be:
Reinforcing loops - small wins build momentum (e.g., psychological safety leads to innovation, which leads to trust, which leads to better collaboration).
Balancing loops - hidden forces resist change (e.g., teams are "empowered" but still need executive approval for decisions, slowing progress).
Example: A company invests in Agile coaching, but leaders still reward individual heroics over team collaboration. The old reward system acts as a balancing loop, pulling the organization back to the status quo.
Reinforcing loops - small wins build momentum (e.g., psychological safety leads to innovation, which leads to trust, which leads to better collaboration).
Balancing loops - hidden forces resist change (e.g., teams are "empowered" but still need executive approval for decisions, slowing progress).
Example: A company invests in Agile coaching, but leaders still reward individual heroics over team collaboration. The old reward system acts as a balancing loop, pulling the organization back to the status quo.
3. Shift Between Zooming In and Out
- Zoom in to understand daily challenges—how teams struggle with conflicting priorities.
- Zoom out to see organizational structures, incentives, and cultural narratives that shape those struggles.
An Agile transformation fails when it focuses only on team-level agility without changing how the organization funds, prioritizes, and measures work.
Example: A bank implements SAFe at the program level but doesn’t change how portfolio planning happens. Teams deliver iteratively, but long-term funding is still waterfall-based—causing friction and misalignment.
Seeing the Whole Elephant
Transformation isn’t about rolling out Agile processes - it’s about shifting how people think, connect, and make decisions. If you treat Agile like a tool, you’ll get fragmented adoption. If you see it as a systemic shift, you can create lasting change.
Ask Yourself:
Ask Yourself:
- Am I looking at the full system, or just a part of it?
- What hidden forces are keeping the status quo in place?
- Are we optimizing one area at the expense of another?
Might be interesting