Scrum as an Agile Method for Strategic Organizational Learning in Digital Enterprise Transformation: Applying the Four Elements of Organizational Learning

Scrum as an Agile Method for Strategic Organizational Learning in Digital Enterprise Transformation: Applying the Four Elements of Organizational Learning

Atilla Wohllebe
DOI: 10.4018/978-1-7998-8583-2.ch002
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Abstract

In the context of managing digital enterprise transformation, the generation and distribution of knowledge across the entire organization is of great importance. Because existing processes are being questioned and activities are changing, the promotion of organizational learning should be part of the digital transformation strategy. This chapter uses the example of Scrum to show how organizational learning can be supported by agile working methods. After an introduction to organizational learning and to Scrum as a process of continuous improvement, the four elements of organizational learning are used and compared to the characteristic elements of Scrum. In addition, the author points out existing research gaps, especially in quantitative research, and gives practical advice for managers on how to use Scrum to promote organizational learning.
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Introduction

Increasingly, many markets have become faster moving and more complex, customer requirements are constantly changing. In this environment, classic “waterfall”-based project management functions less and less. Agile working methods and frameworks such as Scrum and Kanban have become more and more relevant in recent years and can be found especially as a part of digital enterprise transformation strategies.

At the same time, digitalization is now presenting enterprises of all sizes and in all industries with major challenges. While in some cases it is “only” a matter of process innovations, other companies are even rethinking entire business models, partly because new competitors are constantly emerging and customers have higher expectations. The increasingly rapid technological development associated with digitization and the associated shortening of product life cycles also reduces the half-life of knowledge. The acquisition of new, up-to-date knowledge is increasingly becoming a central challenge for enterprises.

The introduction of agile working methods can be seen as a consequence of the need for faster, more output-focused product development and is now part of strategies for managing the digital enterprise transformation. As an agile working method Scrum plays a central role in this development.

Against the background of the decrease in the half-life of knowledge described above, the question arises as to what extent agile methods can also help here. With a focus on Scrum this chapter therefore examines how Scrum can support the learning process of organizations and their individuals and thus contribute to mastering the challenges of the digital enterprise transformation.

The research question of the contribution of Scrum to organizational learning as a core challenge of the digital enterprise transformation is methodically examined through a literature review.

The chapter first introduces the concepts of organizational learning and agile working and presents Scrum as a method of agile working. The four elements of organizational learning are introduced as a model for the presentation of organizational learning. Existing findings of the literature on both topics are reviewed. In the following synthesis it will be shown to what extent Scrum supports organizational learning and thus can contribute to a successful transformation process as a component of the digital enterprise transformation strategy.

Key Terms in this Chapter

Sprint: Sprint in the sense of Scrum refers to an iteration of the Scrum process in which a product increment is developed and implemented. The Sprint begins with Sprint Planning and ends with Review and Retrospective. During the sprint (often lasting two weeks) the team exchanges information about the current progress of work in the Daily.

Community Of Practice: A community of practice is a meeting of employees of the same function (e.g. marketing) from different cross-functional teams (e.g. product-related strategic business units). The purpose of this meeting is to exchange functional knowledge as a form of individual and organizational learning.

Agile Methods: Agile methods are forms and models of cooperation that are designed to respond better to changing requirements during the planning and working process than classic, waterfall-like working models, where detailed rough and fine concepts are often developed. A decisive factor for agile methods is the alignment with the principles of the agile manifesto.

Scrum: Scrum is an agile method of project management and is used especially in software development. Scrum works according to a defined work process, in which different, defined roles are involved at certain points in time.

Organizational learning: The term organizational learning refers to the learning of an organization as a whole, rather than just its individual members. It is primarily about making the knowledge of individual employees and the knowledge of individual teams available to other parts of the organization in order to develop the organization as a whole.

Culture of Continuous Improvement: The term Culture of Continuous Improvement describes an organizational culture in which improvements are not project-related and one-time oriented, but where opportunities for improvement flow directly into the work process.

Increment: The term “increment” originates from product development and in this case refers to a small but finished and usable component of a product. Conceivable here would be, for example, a partial functionality of a large software, whereby this partial functionality as such should potentially already be usable for the end user.

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