Today’s business environment is growing exponentially more complex as companies face increasingly greater pressure to respond quickly to shifting marketplace dynamics, to innovate for the future, and to provide consistent value. Business demand for IT is stronger than ever and expectations have become much more sophisticated. Clients are already overburdened by cumbersome, unresponsive technology, so failure to deliver effective software on time is simply not an option.
Yet, software development projects continue to fail at an alarming rate. The Standish Group’s 2011 CHAOS Report found that more than 50 percent of all software development projects conducted between 2002 and 2010 were classified either as challenged or as complete failures, with only 37 percent classified as successful. It’s no surprise then, that software development is often viewed as a risky and costly venture.

The root cause of this problem is in the use of predictive software development processes in complex, unpredictable and sometimes even chaotic business environments. The majority of projects today are still using the traditional waterfall planning methodology, which is best suited for predictable, repeatable work. Years of project work is developed based on assumptions and past experiences. The reductionism approach, which is often used to explain and predict a system’s behavior by reducing it to the interactions of its parts, or to simpler rudimentary units, is still practiced in many classical hierarchical team structures and management techniques.. These types of traditional project planning and management methods are becoming less effective and increasingly obsolete in today’s fast-paced business setting.
We see several problems with the assumption-based and reductionism approaches practiced in traditional waterfall software development:
We see several problems with the assumption-based and reductionism approaches practiced in traditional waterfall software development:
- Waste of money
- High costs of change
- Wrong features prioritization
- Lack of project transparency
- High system complexity and batch delays
The holistic approach and systemic thinking that make up the foundation of Agile project management are gaining additional traction as they are quickly becoming main drivers of successful and predictable software development initiatives. More companies are turning to Agile development because it proactively addresses core reasons for project failures, delivering greater transparency and flexibility. More importantly, Agile avoids most of the assumptions of the waterfall model, helping companies better manage risks, increase flexibility, react faster to business opportunities, and stay ahead of the competition by meeting the ever-changing needs of their customers.
The Agile method of development has several winning practices that directly address flaws of the waterfall methodology:
The Agile method of development has several winning practices that directly address flaws of the waterfall methodology:
- Business value driven prioritization
- Paying for “DONE”
- Change without penalty
- Full control of the project
- Reduced delivery risks
The transition to Agile/Lean Software Development is not a trend; it is a direct response to changing business realities. Just as the automobile engine largely displaced horsepower, Agile software development will soon become the industry standard and a software development methodology of choice for the majority of businesses around the world. Nonetheless, small niches will continue to exist where waterfall development is applicable, just as horsepower is still preferred over automobiles in certain conditions today.
Agile methodology or Lean methodology is currently undergoing a similar transition to that from “steam engine” to “first automobile”: Although there may not exist comfortable paved roads for Agile developers right now, in the next five years, this methodology will become the standard “Ford” and waterfall will go the way of the horse and buggy.
Transitioning to Agile « being Lean» involves changing people’s mindset because it’s a complex initiative capable of taking years to implement. That’s the reason many companies prefer to execute Agile projects by partnering with a specialized third-party service provider in order to speed up time-to-market and to deliver high-quality innovative software that meets customer demand.