Linköping University ǀ Department of Management and Engineering Master Thesis 30 hp ǀ Design and Product Development – Management Spring semester 2020 ǀ LIU-IEI-TEK-A--20/03689—SE
Linköping University SE-581 83 Linköping, Sweden 013-28 10 00, www.liu.se
Evaluating the agile transformation
process from an HR’s perspective
A study to investigate challenges arising for HR and
their role in an agile transformation
Sofia Blonde
Felicia Ekman
Knowit Insight: Maria Wikberg Supervisor: Thomas Magnusson Examiner: Ksenia Onufrey
ii
Abstract
Today many organisations are transforming from a traditional structure to an agile structure to be able to work more efficiently, meet the fast changes that are continuously happening and make sure not be outperformed by competitors. Agile was from the beginning a set of values and principles designed for software development but it has scaled and today it includes the whole organisation. To avoid imbalance within the organisation, it is crucial that the whole organisation applies an agile mindset. However, the transformation may imply a lot of obstacles and challenges on the way. For some departments within an organisation, it is a lot easier to keep up with the changes and be a part of the transformation process while other departments lag behind or are forgotten, which is common for the HR department. HR´s traditional responsibilities are performance appraisal, learning and development, compensation and recruiting and they are commonly viewed as an administrative function rather than a strategic function. However, it is important for HR to be a part of the agile transformation to be able to support the business. Applying agile can be a challenging task for HR since the requirements are many and the goal is clear which makes it hard to have an agile approach. On the other hand, HR can apply “agile lite” to their responsibilities and in that way fit the new organisation structure. In an agile transformation process it is highlighted that HR could function as a change agent, since they have a direct impact on the effectiveness of an organisation’s change and development. However, HR usually takes on a reactive role and are not the ones leading the transformation.
This thesis examines two aspects for HR in an agile transformation process. First of all, the roles of HR in an agile transformation is investigated followed by identification of the challenges arising for HR during a transformation. How these challenges impact each other and the role of HR is also covered in the thesis. The study is based on qualitative research methods combined with a literature review. For the data collection, a total of seven semi-structured interviews with people from selected organisations were made. Further, a focus group session was conducted to discuss the findings and get a deeper understanding of the topic.
To be able to analyze the aspects, theories concerning traditional HR, agile, agile applied to HR and the change process are covered in the thesis. Further, the chapter Cases of HR in agile
transformations is categorized under HR’s role in an agile transformation and challenges with
HR in an agile transformation.
Regarding HR´s role in an agile transformation there are different opinions. Concluded from this research, HR could act as a change agent. Further, what affects what role HR ends up with is mainly based on their reputation and if they understand and work close to the organisation, which is two identified challenges. Other main challenges identified for HR in an agile transformation are: Understand and work agile, HR’s traditional responsibilities, Experiment, Competence, Attitude and awareness of change, Understand the “why” and communicate continuously, Time and capacity, Behavioral knowledge and External factors.
Key Words: Human Resources (HR), Traditional HR, Agile Transformation, Agile applied to HR, Change Process, HR’s Role
iii
Acknowledgement
Writing this master thesis has been a challenging journey with a lot of ups and downs. However, we have learnt a lot. It is the last project to conduct our Master’s Degree in Engineering and we would like thank all the people who have helped us on our journey.
First of all, we would like to thank Knowit Insight and especially our supervisor Maria Wikberg for encouraging and challenging us. Further, we are grateful for all the help, inspiration and enthusiasm from Martina Björk. We would also like to dedicate a sincere thank you to all the people participating in interviews and the focus group for their time and engagement.
We would also like to thank our opponents Kajsa Mårtensson and Amina Berrabia, and our examiner Ksenia Onufrey for taking the time to help us improve our thesis by constructive feedback.
Our greatest gratitude we would like to express towards our supervisor Thomas Magnusson for guiding us, taking the thesis to new heights by constructive criticisms and supporting us through all times.
Last but not least, we would like to thank each other for everything, for always being there through both good and bad times. We made it!
Linköping June 4th, 2020
iv
Table of Contents
1. Introduction ... 1
1.1 Background ... 1
1.2 Problematization ... 2
1.3 Purpose and Research Questions ... 2
1.4 Outline ... 3 2. Theoretical Framework ... 4 2.1 Traditional HR ... 4 2.1.1 Development of Traditional HR ... 4 2.1.2 The Reputation of HR ... 5 2.1.3 The HR Quadriad ... 5 2.2 Agile ... 7 2.2.1 Modern Agile... 7 2.3 Agile Applied to HR ... 8 2.3.1 Performance Appraisals ... 9 2.3.2 Compensation ... 9 2.3.3 Recruiting ... 10
2.3.4 Learning and Development ... 10
2.3.5 T-shaped and M-shaped Competence Profiles ... 10
2.3.6 Coaching and Supporting ... 11
2.4 The Change Process ... 11
2.4.1 The Stages of Planned Change ... 12
2.4.2 HR’s Role in the Change Process ... 12
2.4.3 Resistance to Change ... 13 2.5 Theoretical Synthesis ... 15 3. Method ... 16 3.1 Research Strategy ... 16 3.2 Research Process ... 16 3.3 Literature Review ... 17 3.4 Data Collection ... 17 3.4.1 Sampling ... 17 3.4.2 Interviews ... 19 3.4.3 Focus Group ... 19 3.5 Data Analysis ... 20 3.6 Research Quality ... 20 3.6.1 Credibility ... 21 3.6.2 Transferability ... 21 3.6.3 Dependability ... 21 3.6.4 Confirmability ... 21 3.7 Ethics ... 21
4. Cases of HR in Agile Transformations ... 22
4.1 HR’s role in an Agile Transformation ... 22
v
4.2.1 Traditional HR ... 24
4.2.2 Agile Applied to HR ... 25
4.2.3 The Change Process ... 28
5. Analysis ... 31
5.1 HR’s Role in an Agile Transformation ... 31
5.2 Challenges with HR in an Agile Transformation ... 32
5.2.1 Traditional HR ... 32
5.2.2 Agile Applied to HR ... 34
5.2.3 The Change Process ... 38
5.3 Summary of the Challenges ... 41
5.4 Connections between Challenges and their Impact on HR’s Role ... 42
6. Conclusion ... 46
7. Recommendations for Further Research ... 48
7.1 Recommendations for management ... 48
References ... 50
Appendices ... 53
A. Interview templates in Swedish and English ... 53
B. LinkedIn post ... 58
vi
Table of Figures
Figure 1 - Illustration of the structure ... 4
Figure 2 - The HR quadriad, based on Bredin & Söderlund (2011) ... 6
Figure 3 - Intra-functional and inter-functional project work (Bredin & Söderlund, 2011, p. 2207) ... 7
Figure 4 - The values in the Agile Manifesto (Shead, 2016)... 7
Figure 5 - Comparison between Agile Manifesto and modern agile (Kerievsky, 2016) ... 8
Figure 6 - T-shaped and M-shaped skills (Bredin, et al., 2016, p. 223) ... 11
Figure 7 - Lewin’s change model ... 12
Figure 8 - The research process ... 17
Figure 9 - The positions of the respondents ... 19
Figure 10 - Categorical overview of the findings ... 22
Figure 11 - Identified challenges... 33
Table 1 - Summary of the various challenges………47
1
1. Introduction
To introduce the reader to the topic of this thesis, a brief background covering human resources (HR) in agile transformations will be presented. The background is followed by problematization, purpose and research questions and the outline of the thesis.
1.1 Background
Companies have through all times gone through different transformations in organisational structures and mindsets to be able to adapt to the business climate. In today’s society a new structure and mindset is trending, and it is called agile. Agile is implemented to be able to work more flexible, efficiently and adaptable to changes. (Perkin, 2020) Applying an agile structure and mindset is critical for many companies and there are numerous examples of companies that have been market leaders but not had the ability to see the need to switch to an agile mindset and therefore failed (Birkel, et al., 2013). Pia-Maria Thorén mentions in the first episode of Agila HR podden, how big companies working with a traditional structure are being outperformed by smaller companies working in a more flexible and adaptable way (Mangen, 2018). According to Bazigos et al. (2015), a study made on 161 companies shows that companies with an agile structure were by far the strongest regarding aspects such as speed and stability. Further, Rigby et al. (2018) also highlight how companies with an agile structure have higher team productivity, faster time to market and better quality compared to the companies with a traditional structure. Therefore, many companies today strive to become agile.
The agile philosophy has its roots in the agile manifesto that is a set of management practices and it was in the beginning created for software development (Denning, 2016). The agile manifesto is a set of values and twelve principles. The principles are fundamentals existing to give the ability to make good decisions in an agile perspective. (Shead, 2016) Today, the philosophy has developed and scaled and the new concept is called modern agile and it takes the agile perspective to an organisational level (Modern Agile, 2020).
The definition to work in an agile way in this study means being flexible, adaptable, work within a shorter timeframe and a shift in focus from individual to team. Therefore, companies must transform from a traditional structure and apply a new mindset to the organisation which could be a very tricky process with a lot of obstacles (Mangen, 2018). Further, Denning (2018) means that the whole organisation must apply an agile mindset. This is also something that Finn (2020) highlights as important, to avoid obstacles and imbalance within the organisation. A successful agile transformation regards a shift in culture and value throughout the whole organisation, Mangen (2018) highlights.
For some parts in an organisation it is a lot easier to adapt while others have a lot harder or are forgotten in the transformation process (Finn, 2020). Tonnquist (2019) means that agile working methods are hard to implement when the assignment has many external dependencies or when the deadline is set, which is common for the HR department. For this reason, HR usually lag behind when it comes to transformation (Finn, 2020). Bianca (2019) explains that HR’s responsibilities include recruiting and hiring employees according to the company’s current and future goals. Further, they include coordinating the employee’s skills
2
development and employee training and increasing the commitment among the employees (Bianca, 2019).
Tetteh (2019) explains that HR are today facing a new transformation since many organisations are moving towards an agile structure. To be able to adapt to a new structure and create a new way of thinking, Claus (2019) means that the traditional HR approach must be challenged which means that the HR’s value proposition must be redesigned to fit the new agile context.
1.2 Problematization
Just like Tetteh (2019) explains, HR are facing a transformation process which could be challenging for HR since the traditional HR activities are often related to compliance and operational issues whereas the new proposition should have a greater focus on the employee experience (Claus, 2019). This means that the physical, technological and cultural environment of the company must be considered to create meaningful experiences for everyone. According to Claus (2019), “HR and talent management must get away from a ´one program fits all´
mentality and think about building an organisational talent architecture that allows customizing programs to specific employee segments” (Claus, 2019, p. 210).
Gothelf (2014) mentions that agility is highly important in the HR discipline to be able to support the whole business. For example, to be able to attract the right people with the right mindset it is important that HR have a recruitment process that test if the candidate has the right qualities to fit the organisation as well as to attract the candidate by showing an innovative and creative side of the company in the recruitment process (Gothelf, 2014).
When HR do not turn agile, Finn (2020) means that their practices create obstacles within the organisation. Traditional HR practices were developed when process, predictability and status were key, but this does not match with today’s agile mindset. Further, Gothelf (2014) also mentions that HR are usually a part of an organisation that do not apply agile. Therefore, it is very common that HR create imbalance within the organisation since they lag behind in the transformation process (Finn, 2020). To be able to solve this, it is important to investigate challenges arising for HR in an agile transformation.
The goal with an agile transformation is to increase the employees’ commitment, efficiency and loyalty, which means that HR have a crucial role in the transformation process to be able to create an agile mindset (Tetteh, 2019). However, Clay and Halladay (2018) mean that HR are sometimes viewed as a support function rather than a strategic part which creates problem and imbalance in the transformation process. According to Wigren (2019), HR possess a broad expertise about human resources, which is why it is important to make sure they are part of the transformation.
1.3 Purpose and Research Questions
The purpose of this thesis is to investigate the problematic areas arising for the HR department in agile transformations and what roles HR can take in these transformations.
The following research questions will be answered in this study:
3
2. What are the challenges arising for the HR department when an organisation is going through an agile transformation and how can they be explained?
3. How do these challenges impact each other and the role of HR?
1.4 Outline
The introduction of this thesis will be followed by a theoretical framework including four different chapters: traditional HR, agile, agile applied to HR and the change process. The framework is followed by the method used in this thesis, including research strategy and design, research process, data collection, data analysis, research quality and ethics. Further, cases of HR in agile transformations is presented. This is followed by an analysis and conclusion. Lastly, recommendations for further research is presented.
4
2. Theoretical Framework
First of all, this chapter will cover the basics and models of traditional HR to get a better understanding of the HR function in organisations. This will be followed by theories regarding the roots of agile which culminates in the modern perspective of agile, to get an understanding about where the organisation wants to be after the transformation. These theories will form the basis and understanding for the next chapter, which covers how agile can be applied to HR. The last sub-chapter will cover the change process and possible obstacles within it, and how to avoid them, as well as HR´s role in a change process. Figure 1 shows an illustration of the structure of the theoretical framework. These theories create a deep understanding of the topic and will be used to answer the research questions of this thesis.
Figure 1 - Illustration of the structure
2.1 Traditional HR
According to Devanna et al. (1982), there are four basic generic activities that the HR departments are responsible for. The activities are related to performance appraisal, learning and development, compensation and recruiting, which are commonly process-controlled in a traditional structure. These activities are advantageous on an operational level since they fulfill immediate company needs and desires but also affects the company’s long-term goals and strategies. (Devanna, et al., 1982) Further, Flach (2006) means that the fundamental principle of HR is to maintain a good relationship between the employees and the organisation where both parts can benefit from each other. Rousseau and Greller (1994) explain how HR practices usually function autonomously and that their responsibilities also include benefit administration.
2.1.1 Development of Traditional HR
The HR activities have further developed and Vulpen (2019) means that the activities presented by Devanna et al. (1982) are one part of the responsibilities, called “traditional HR”. However, he means that HR activities related to production optimization and managing employee attitudes are also part of the responsibilities. Production optimization are related to activities to increase the efficiency, for example by job analysis, job rotation and information sharing. Managing employee attitudes means that HR conduct attitude surveys to identify areas of improvement within the organisation. It also includes knowledge about conflict resolution. The
5
three categories of HR activities are intended to create benefits for the employees as well as the organisation. (Vulpen, 2019) Flach (2006) also mentions that the HR activities have changed and that they are more focused on integration between employees and strategic and operative issues. Further, Wright (2008) also emphasizes that HR should move away from the administrative tasks and rather work as internal consultants (business partner) advising on people management. Wright (2008) mentions that HR business partner is a new role that has emerged, that enables for HR to work more strategically. It includes advising senior management on human resources and acting as change agents within the organisation. Further, this has shown to be successful since the senior managers have gotten increased trust for HR, Wright (2008) highlights.
2.1.2 The Reputation of HR
Ahnlund (2018) means that a struggle with traditional HR is that HR often operate in their own silo separated from the business, and therefore becomes a less important function. It is also highlighted by Wright (2008) that HR are viewed as an administrative unit, fixed on bureaucratic procedures. Another issue mentioned by Guest and King (2004) for traditional HR is that HR’s role is ambiguous due to the fact that it is overlapped with a set of activities for managers. Further, HR are often uncertain about their success criteria which leads to uncertainty about what to prioritize. This absence of strategic focus emphasized by Guest and King (2004) means that “they welcome being reactive and busy and are willing to respond to the knock on the door or the telephone call” (Guest & King, 2004, p. 402). By doing that, managers have no problem
throwing minor issues for the HR department to handle. Connected to this, Baird and Meshoulam (1988) highlight how managers usually only are aware of HR’s administrative role. This results in an administrative reputation and lower status, which is emphasized by Guest and King (2004) and Baritz (1965). Further, Ferris et al. (2007) explain that the HR reputation is determined by a combined judgement of an organisation’s HR practices, philosophies and policies and particularly created by employees. Guest and King (2004) highlight that HR are sometimes viewed as not being business oriented nor involved in business decisions and that they have lack of influence. Further, Wright (2008) explains that HR have tried to achieve a more strategic function, but it has been hard with resistance from senior management and the heritage as an administrative function.
2.1.3 The HR Quadriad
Many organisations strive to be more flexible and effective. In order to do so it is usual to adapt to the characteristics of a project-based organisation (Bredin & Söderlund, 2011). The transformation of structure implies implementation of HR practices and it often means that existing models and practices are challenged (Claus, 2019). The move toward project-based structures tends to increase the workload for the employees which means there is less time for reflection, recuperation and learning. Further, this tends to imply implications for employees and thereby the HR department. (Bredin & Söderlund, 2011)
The HR quadriad is a framework that shows the interaction between HR specialists, line managers, project managers and project workers, see figure 2 below. The framework analyzes the central HR roles in project-based organisations, at the operational level. Bredin and Söderlund (2011) mean that the access to HR competence in daily work activities is desirable by many people within the organisations, mainly the line managers and project managers, which also is mentioned by Guest and King (2004) who means that it sometimes occurs an
6
overlap between the managers and the HR activities. Further, Bredin and Söderlund (2011) mean that the HR specialists should focus more on strategic work and leave operational tasks to the line managers. They express that “In general, the local HR specialists are supposed to be
‘strategic partners’ and ‘business partners’ to line managers” (Bredin & Söderlund, 2011, p.
2215). The HR departments have further developed and are often replaced by a smaller number of HR specialists, Bredin and Söderlund (2011) highlight.
Figure 2 - The HR quadriad, based on Bredin & Söderlund (2011)
To be able to design the HR quadriad, Bredin and Söderlund (2011) mean that it is important to consider the nature of project work as either intra-functional or inter-functional. Figure 3 below shows the difference between intra-functional and inter-functional project work. The characteristics of project participation is fragmented in intra-functional work which means that project workers are co-located in several projects at the same time, working in teams where colleagues possess similar knowledge. The inter-functional project work is on the other hand focused and the project workers are often assigned to one project at a time. The teams consist of people with different knowledge. (Bredin & Söderlund, 2011) Further, Bredin and Söderlund (2011) mention that line managers in inter-functional work express that it is not necessary with more integrated HR support, since the skills needed for the line managers are already developed. However, it is advantageously to have the HR specialists as support when it is needed.
The study made by Bredin and Söderlund (2011) shows that the HR specialists has a clear interaction with the line managers, whereas the interaction with the project dimension is more diffuse. For example, it is likely that the line managers HR responsibilities affects the HR specialists. Bredin and Söderlund (2011) mean that “The framework also points out that
changes in one area might have profound effects on changes in another area” (Bredin &
7
Figure 3 - Intra-functional and inter-functional project work (Bredin & Söderlund, 2011, p. 2207)
2.2 Agile
Agile means being flexible, and it is based on a set of principles and values inspired by Lean. Back in the days, Lean was focusing on flow activity and optimization but today it has expanded and includes guidance of teams as well. (Shead, 2016) An agile way of working is based on integrated inter-functional project work, according to Socconini and Reato (2019). Agile was in the beginning focusing on sprint-based software development with a focus on the teams but now it also includes flows at the operational level, which means that the agile mindset needs to be applied throughout the organisation (Tonnquist, 2019). Figure 4 shows the values that are stated in the Agile Manifesto of 2001 (Shead, 2016):
Figure 4 - The values in the Agile Manifesto (Shead, 2016)
In a traditional structure, the focus is on the individual whereas the teams are in focus in an agile structure (Cappelli & Tavis, 2018). In agile projects there is a scrum maser who is the leader of the team and makes sure the cooperation works well in the team and runs smoothly. An agile approach means that collaboration in flexible self-organised teams is supported. (Tonnquist, 2019) The teams need to be flexible and continuously create, execute and revise the goals. Another characteristic of an agile structure is that the teams are responsible for the progress, which means they need to identify obstacles, analyze the leadership and continuously think about how to improve. The goal is to be able to adapt quickly to change. (Cappelli & Tavis, 2018)
2.2.1 Modern Agile
Modern agile means bringing a modern perspective to the agile manifesto and scale it, which means taking the agile perspective to an organisational level and not just software development level (Modern Agile, 2020). To apply an agile structure to an organisation, it is also important for all business units to collaborate to boost utility of internal knowledge
8
(Steiber, 2014). Further, the modern agile has four guiding principles: make people awesome, make safety a prerequisite, experiment & learn rapidly and deliver value continuously.
The principle Make People Awesome focus on how organisations can make people in their ecosystem awesome. It includes everyone from the people who use it to the ones producing it. It means, in a new perspective, that instead of focusing on making a great product, the focus should be on making the customer awesome at whatever they do with the product/service. (Modern Agile, 2020)
What is highlighted in the principle Make Safety a Prerequisite is that safety is a human need and it is required for high performance. Furthermore, it includes protection of people's information, money, reputation, relationships and time as well as making services, collaborations and products safe. (Modern Agile, 2020)
Experiment & Learn Rapidly is connected to Make People Awesome and Make Safety a Prerequisite, meaning that it is not possible to achieve this if the employees are not learning
constantly. According to the modern agile philosophy, it is important to experiment and learn rapidly and that the experiments are safe to fail. In this way, more experiments can and will be executed. (Modern Agile, 2020) This is also highlighted by Steiber (2014), who emphasizes the importance of experiment to innovate and to have a culture where experiment is encouraged. The last principle means it is important to Deliver Value Continuously, meaning for instance dividing large amount of values to smaller pieces. Further, it is important to deliver it safely now rather than later. (Modern Agile, 2020)
Kerievsky (2016) highlights that the guiding principles in modern agile have their roots in the agile manifesto. The values from the manifesto have been translated into a new way of viewing agile, see figure 5 below.
Figure 5 - Comparison between Agile Manifesto and modern agile (Kerievsky, 2016)
2.3 Agile Applied to HR
Many organisations are today transforming to an agile structure which means that HR also need to apply an agile practice to HR responsibilities to be able to support the organisation (Cappelli & Tavis, 2018). Further, Cappelli and Tavis (2018) explain that HR are going “agile lite”, meaning that they apply the general principles but not use the protocols and tools from the software world. To apply an agile practice, HR must change how they approach recruitment, compensation, performance appraisal as well as facilitate learning and development (Ayo, 2017). However, Tonnquist (2019) means that agile working methods are hard to implement
9
when the assignment has many external dependencies or when the deadline is set. Also, if the requirements are many and the goal is clear it can be hard to have an agile approach (Tonnquist, 2019).
Scully (2014) highlights the importance for HR to see the whole picture in an agile organisation so that they can help with producing great customer value by using the lowest possible expenditure of organisational resources. Rock (2008) emphasizes the importance of understanding people to improve the way people work together in agile organisations. For HR this would mean to increase their behavioral knowledge about people and decrease the administration tasks (Rock, 2008). Steiber (2014) explains that in traditional HR, HR are viewed as a maintenance function for human capital while in an agile structure where focus is on innovation HR should have a strategic function. This is also highlighted by Flach (2006), who means that HR’s focus should be on the strategic vision and goals of the organisation. Wright (2008) agrees and mentions that the responsibilities of HR must be renewed to succeed with organisational change. Below, a presentation on how the basic HR responsibilities would work in agile organisations and what needs to be changed from HR in a traditional structure are explained.
2.3.1 Performance Appraisals
For an organisation to apply an agile mindset to an HR department they must skip annual performance reviews and yearly goals for their employees, that occur in the traditional structure, Cappelli and Tavis (2018) and Trost (2017) emphasize. The employees in an agile organisation are working on shorter terms compared to a traditional structure since they are working in sprints and in projects with various lengths. Further, an employee can have different leaders in different projects and therefore it makes less sense to once a year get feedback from your boss, Cappelli and Tavis (2018) explain. What is relevant in an agile structured organisation is feedback more often from more people. For example, the performance appraisal could be done after every project, to make sure they are collected more frequently and continuously. By implementing this, the teams can easier improve performance, learn from their mistakes and learn through iteration. (Cappelli & Tavis, 2018) Trost (2017) highlights that it is important in an agile setting, where networks are of key importance, to not create internal competition.
2.3.2 Compensation
When transforming, the pay system is affected and must be changed according to the agile philosophy. (Cappelli & Tavis, 2018) Ali et al. (2004) also mention that the compensation system must change when implementing agile. HR must move away from annual salary raises that exist in the traditional structure and apply instant salary increase instead to recognize great contributions. This type of compensation could also increase the employer's engagement since instant rewards support instant feedback in a great way. (Cappelli & Tavis, 2018) Further, Cappelli and Tavis (2018) explain that a salary increase in an agile organisation could for example occur when an employee is taking on a more difficult project. Since the focus shifts from the individual to the team in an agile organisation, Cappelli and Tavis (2018) point out that the contributions and bonuses should be given to the teams as a whole and not just to specific individuals. Another way to work with bonuses and rewards in an agile structured organisation is by basing the bonuses on the company's performance so that everyone gets a bonus depending on how well the company has been doing. Further, compensation could be used to
10
support the agile values when it comes to knowledge sharing and learning. (Cappelli & Tavis, 2018)
2.3.3 Recruiting
Scully (2014) explains that when an organisation is transforming to an agile structure the characteristics of the employees also have to be changed to fit the new mindset and structure. Therefore, it is important for HR to recruit the right people with characteristics that fit an agile organisation (Scully, 2014). Bredin et al. (2016) emphasize T-shaped and M-shaped competence profiles which will be explained in chapter 2.3.5.
Further, the recruitment process also changes when an organisation is transforming to an agile structure. Cappelli and Tavis (2018) brings up an example where a company apply an agile recruitment process by using cross-functional teams that work on all hiring requisitions. Further there is a “head count manager” who is responsible for representing the internal stakeholders who want their positions filled quickly and a scrum master who oversees the whole process. The managers who are hiring are rotating on and off the cross-functional recruitment team. This means that when they are hiring, they are on the team, and when they are not hiring, they are not on the team. Further, they follow an agile process, where the most urgent hires are prioritized, and it works on several hires at once. In this way the team members can share information and discuss the candidates if they would fit better in another position. (Cappelli & Tavis, 2018) Cappelli and Tavis (2018) explain how companies also uses technology to find candidates suitable to work in an agile working environment.
2.3.4 Learning and Development
Cappelli and Tavis (2018) explain that when an organisation is transforming into an agile structure, skills need to be brought into the organisation more efficiently and faster. One way of doing this is by having an online library with courses that are available to access on demand (Cappelli & Tavis, 2018). Lessons learnt documentation is another method to use to facilitate learning and development in a range of functions and skills within the organisation (Coleman & Macnicol, 2015). Coleman and Macnicol (2015) mean that by using lessons learnt, it is possible to increase the effectiveness and hence respond to changes in a better way. This is also mentioned by Nahavandi (2015), who highlights that continuous individual and organisational learning and development are important to be able to quickly and efficiently adapt to change. Capelli and Tavis (2018) mean that it is important to quickly train leaders at all levels in agile transformations. Further, Scully (2014) explains that processes are often designed for standards in traditional organisations but when variation happens organisations must be able to handle it efficiently. Therefore, it is important for HR to develop and educate the employees, as well as give the employees the right tools so that they can handle the exceptions that occur (Scully, 2014).
2.3.5 T-shaped and M-shaped Competence Profiles
Connecting to recruiting, it is critical to view the competence profiles to be able to find the right people. The competence profiles are also important to consider in learning and development and it is equally important for HR to have the right profile. (Cappelli & Tavis, 2018) Bredin et al. (2016) mean that T-shaped skills are “deep in one area, broad in many”. As seen in figure 6, the T-shaped skills are illustrated as a T where the steam indicates the depth of contributory expertise within one disciplinary knowledge domain and the bar on top of the T indicates a
11
broader disciplinary knowledge profile meaning an amount of interactional expertise (Bredin, et al., 2016). To understand this further, Bredin et al. (2016) explain that interactional expertise is knowing about something and contributory expertise is knowing how to do
something. According to Bredin et al. (2016), traditional projects should apply T-shaped skills.
In agile projects, team members are not assigned to a specific role and can therefore work self-organised and respond to rapid changes. Team members in agile projects are supposed to move outside their comfort zone and take on tasks in other areas when necessary. (Bredin, et al., 2016) The skills needed for agile projects are called M-shaped skills, illustrated in figure 6. Compared to a T-shaped profile, an M-shaped profile needs to have contributory expertise in more fields but not as deep. Further, Bredin et al. (2016) explain that an M-shaped profile still keeps a broad interactional expertise just like the T-shaped profile. The team will be less vulnerable if the members are more flexible in several domains, Bredin et al. (2016) highlight.
Figure 6 - T-shaped and M-shaped skills (Bredin, et al., 2016, p. 223)
2.3.6 Coaching and Supporting
Improve and sharpen coaching skills for managers at all levels is something that is not seen as a traditional HR responsibility but becomes more important when HR are adapting to an agile organisation. This is because the behavioral knowledge of HR become more important in an agile organisation. By improving the skills, it is possible to build employees’ capabilities and relationship with their supervisors and this will further lead to increased engagement among the employees. With increased engagement the organisation will be able to innovate and move faster. (Cappelli & Tavis, 2018)
2.4 The Change Process
The transformation to an agile structure is gradual and requires a new mindset where habitual structures and practices are challenged (Tonnquist, 2019). Cappelli and Tavis (2018) highlight that shifting the organisational mindset from a traditional to agile takes persistence. Further, Tonnquist (2019) points out that it affects the entire organisation. Obstacles often arise when an organisation is going through a transformation and some areas or individuals might lag behind in the process. However, to be successful as an organisation, it is important to continuously adapt to change to stay relevant (Boss, 2015). This sub-chapter presents the stages of planned change, different types of changes followed by resistance to change and methods to handle it.
12 2.4.1 The Stages of Planned Change
When an organisation is going through any type of planned change there are different steps that require different resources and leadership (Nahavandi, 2015). Lewin’s change model consists of three different stages where the first one is the Unfreezing phase. In this phase, it is important to prepare and inform people within the organisation about the change and explain why the change is needed to develop motivation for the change. The Unfreezing phase can be very difficult if there are a lot of internal and external forces against change. (Nahavandi, 2015) To connect this to HR’s role in the change process, Browning (2015) means that it is important to develop the change management team and outline key roles to prepare for the change. Also, it is of great relevance that the change management strategy is defined (Browning, 2015).
The second phase is the Changing phase. In this phase the change is implemented, and new policies and practices are introduced to the organisation as well as new behaviors and skills (Nahavandi, 2015). Browning (2015) means that by including communications, operations and resistance management to the change management plans for HR, it is possible to manage the change in this phase.
Refreezing phase is the last phase in Lewin’s change model. In this phase it is important to
assure that the changes becomes permanent by giving support and encouragement. (Nahavandi, 2015) Nahavandi (2015) explains that the Unfreezing and Refreezing phases sometimes are forgotten when a company goes through a change, but are equally important as the change itself. To be able to successfully implement change from an HR perspective, Browning (2015) means that by gathering and analyzing feedback and then carry out corrective actions where needed it is possible to reinforce the change and hence succeed.
Figure 7 - Lewin’s change model
2.4.2 HR’s Role in the Change Process
Baran et al. (2018) explain that there are four different types of organisational change: continuous-convergent, continuous-radical, episodic-convergent and episodic-radical. Continuous-convergent change is small changes that gradually shift processes or behaviors. When there are small changes that makes a great impact on the whole organisation it is called continuous-radical. When it comes to episodic-convergent change, it is a bigger turning point that gradually shift the organisation into a new direction. The last type, episodic-radical, is a change that is a great turning point and where the change has a radical impact on the organisation’s values, mission or structure. Further, the HR function works across all four types of organisational change and therefore has a great impact no matter what type of change it is. (Baran, et al., 2018)
Further, Baran et al. (2018) highlight that the HR function has a critical role and a great influence both indirectly and directly over the organisation since they oversee employee selection, leader development and employee training. Therefore, HR directly impact the effectiveness of an organisation’s change and development. Baran et al. (2018) also explain that in an episodic type
13
of change, for example an agile transformation, the HR function could find themselves similar to a change agent. Clay and Halladay (2018) also confirm that in a change process, the HR function should work as a change agent since they are the agent of the people. In order to function as a change agent, Nahavandi (2015) highlights the importance of understanding how the whole organisation functions. This is also mentioned by Wright (2008), who means that it is important for HR to work closer to the organisation to be able to achieve organisational excellence. To succeed, Wright (2008) also mentions that HR should act as a change agent. Further, Mangen (2018) highlights that HR could take on a proactive role and help drive the agile transformation in an organisation since they have such deep roots in the structure, from how goals are set to an individual level.
However, it is common that HR take on a more reactive role in the agile transformation instead due to the fact that traditional HR practices are not suitable in an agile setting (Finn, 2020). Clay and Halladay (2018) point out that a main problem during organisational change is that HR sometimes are viewed as a support function rather than a strategic part in the change management strategy and therefore not acting as a change agent. This is also highlighted by Mangen (2018), who means that HR are seen as a support function rather than a core function which means their position is not prioritized in a transformation. Further, Baran et al. (2018) suggest that the HR function would favor from broadening their view of how organisational change happens.
2.4.3 Resistance to Change
Besides factors in the change process that could lead to a less successful agile transformation for an organisation, there could also be resistance to changes among the employees or external forces affecting the change (Nahavandi, 2015). Ayo (2017) means that there are several reasons why people resist to change, four different internal reasons are: a desire not to lose something of value, misunderstanding of the change and its implications, belief that changes do not make sense for the organisation and low tolerance for the change. Further, Nahavandi (2015) mentions that other internal forces could be new leadership, low satisfaction, new mission and conflicts. Ayo (2017) means that the reaction to change and cause of resistance can differ a lot between individuals and groups. However, external forces may also affect the change. These forces can be related to factors such as economic and political, cultural and social, demographic, industry and technology (Nahavandi, 2015).
Methods to Handle Resistance to Change
To counteract, handle and reduce the resistance to change, there are several methods to use presented below.
Communication
Clay and Halladay (2018) point out that the HR function is very important in organisational changes. They highlight that HR are designed as a trusted advisor function and that they provide a platform for the employees to express their opinions and questions regarding change. They are there to take care of the employees concerns and therefore they are an excellent channel to communicate the change and how it will be managed. (Clay & Halladay, 2018) Communicating the change clearly and consciously is also something that Browning (2015) highlights as important. Browning (2015) means that it is relevant to conduct surveys throughout the change to enhance the overall process and get feedback from the employees.
14
Also, Browning (2015) mentions that it could be beneficial to use both formal and informal communications approaches to meet everyone's needs.
Support
Browning (2015) means that HR should help the employees getting a better understanding of the need for the change and the way it may affect them. On the other hand, Nahavandi (2015) highlights that it is the leader’s role and a leadership tool to support the employees through the change. Further, Browning (2015) explains that it is also HR’s responsibility to provide strong support for the changing environment, for example by providing the training and information needed for the managers to answer and handle the employee’s questions.
Engaging and Encouraging
Clay and Halladay (2018) highlight, just like Baran et al. (2018) and Browning (2015), that HR play an important role in organisational change since they can easily work with encouraging the change among the employees. Nahavandi (2015) also points out that it is important to engage employees in the transformation process but from a leadership perspective. To engage the employees, Browning (2015) explains that HR could work with assigning and clarifying roles, increase focus on employees who are mostly affected by the change and take into account motivational factors for each employee.
Vision and Inspiration
Nahavandi (2015) highlights that all employees need to change their perception of change from negative to positive, by seeing potential benefits with the change. This could be solved by leadership tools that could be used to inspire and role modeling. By inspiring the employees through the change process, the resistance towards the change will decrease. It is also important to set a clear and common vision through the change process. This will make it is easier for the employees to have the goal in their mind through the whole process, especially in the unfreezing phase. (Nahavandi, 2015) Nahavandi (2015) also highlights that it will be easier for the employees to be focused in the refreezing phase in Lewin’s Model for Change. To set a clear vision, is also something that Murthey (2007) points out as important regarding leadership in change management.
Creativity
To successfully implement change, Nahavandi (2015) explains that it is important to view the aspect of creativity. Creativity is at the core of successful change since it is about addressing problems in new ways. Regarding this factor it is very important to let all employees experiment and to tolerate mistakes as an organisation. (Nahavandi, 2015)
Organisational Culture
To be able to implement change successfully it is also important to recognize the organisational culture and change it if it’s required (Nahavandi, 2015). Like mentioned earlier, role modeling is an important aspect in change management. When it comes to role modeling, Schein (2017) highlights that it is not as important what the leaders says as what he/she does in a changing organisational culture. Schein (2017) also points out that it is important to know where to allocate the resources and what should be rewarded. Further, this should be in line with the change.
15
2.5 Theoretical Synthesis
The aim of the theoretical synthesis is to get an understanding about how the research questions will be answered and how the purpose of this thesis will be analyzed. To create an understanding of HR in an agile transformation and to be able to identify challenges that can arise, theories regarding Traditional HR, Agile, Agile applied to HR and The Change Process was covered. These theories made it possible to create a holistic picture of the agile transformation from an HR perspective and hence it was possible to create a solid base to later map out the specific challenges and identify connections between these.
To clarify, a theoretical understanding of Traditional HR was needed to create an understanding about where HR is in the beginning of an agile transformation and challenges that can arise in this area. A Traditional HR structure is characterized by process-controlled activities and HR working in their own silo. Further, theories regarding Agile was needed to create knowledge about the goal with the transformation, not at least modern agile to get the perspective of agile at organisational level which is appropriate to apply to HR. Agile applied to HR was also covered to understand the connection between the theories and challenges occurring from this perspective. Agile applied to HR means that HR apply the agile mindset to their responsibility and hence work more strategically. To reach the goal with the transformation, The change
process was also covered, to get an understanding of the transformation process and
challenges that possibly could arise in this area, for example resistance to change, communication and support. Connected to the change process, HR’s role was investigated. HR can either take on a role as a change agent which is more of a proactive role or they could have a more reactive role in the transformation. However, the role can potentially change throughout the different phases in planned change (unfreezing, changing and refreezing) and therefore theories regarding the different phases in planned change was also covered.
Challenges of HR in an agile transformation can relate to three different areas addressed in the theoretical study. First, some challenges are rooted in the traditional HR structures and processes (see chapter 2.1, Traditional HR); second, some challenges are related to applying agile principles to HR work (see chapter 2.3, Agile Applied to HR); finally certain challenges arise as a result of agile transformation as an organisational change process (see chapter 2.4, The
16
3. Method
This chapter explains methods used to gather and investigate the empirical data, based on theory. Further, the research quality and ethics are discussed.
3.1 Research Strategy
The aim of this study was to investigate the problematic areas arising for the HR department in agile transformations and what roles HR can take in these transformations. Also, the role of HR in a transformation process was examine. To investigate this, there were several research strategies to choose from. Two methods presented by Bell et al. (2019) are quantitative and qualitative research methods.
Qualitative research methods often result in words rather than numbers. This strategy is advantageous when a deep understanding is needed to understand underlying reasons, motivations and behaviors. The technique is often unstructured or semi-structured and methods such as individual interviews, focus groups and participation/observation is common. (Bell, et al., 2019) This study was based on qualitative research strategies to be able to understand the transformation to an agile mindset, based on people’s experiences and the organisational structure. It was of great relevance to understand how and why things were happening on a deep level, which made qualitative strategies the most suitable for this thesis. To conduct the qualitative study, three steps presented by Merriam (1998) were followed. First of all the design of the study was chosen which also included deciding the sample, see sub-chapter 3.4.1. After that, data collection through interviews and focus group were made followed by analysis of the data. (Merriam, 1998)
Theory was combined with empirical data in the chapter Cases of HR in agile transformations, which implied that an abductive approach was taken which means that data collection was followed by theories to draw conclusions (Bryman & Bell, 2011).
3.2 Research Process
The research was requested by the consultancy firm Knowit Insight, a Nordic consultancy firm with 300 employees working as digital management consultants. The study was conducted over a period of 20 weeks and the process started off by a literature review to understand the topic in combination with clarifying the scope and understand the problematization. Through this process, discussion was held with the supervisor at the consultancy firm and the supervisor at Linköping University. This was followed by data collection through interviews, and the findings and results were further discussed in the focus group session. The results and findings from the literature review, interviews and focus group session are presented in the chapter Cases of HR
in agile transformations. After that, an analysis was conducted followed by a conclusion
17
Figure 8 - The research process
3.3 Literature Review
Starting the research and collecting data, a literature review was conducted through articles found at Linköping University's library as well as searches through Google and Google scholar. Keywords for the searches were for instance; traditional HR, agile, agile applied to HR, agile transformation, modern agile, the change process and HR’s role in an agile transformation. Books suggested by the supervisor for this research were also a part of the literature studies. A literature review can be done in a narrative or systematic approach. The narrative approach is more wide-range in scope and less focused compared to the systematic approach. The narrative approach is used when the researchers want to gain initial knowledge within the field that is supposed to be researched. (Bell, et al., 2019) Efron and Ravid (2019) explain that a narrative approach implies to gather a broad spectrum of data in the research field and then incorporate it into a coherent interpretation that focus on the main issues. For this research, a narrative approach was applied. Further, Bell, et al. (2019) highlight that a narrative approach is more suitable when the research is qualitative.
3.4 Data Collection
This section explains the methods used to collect data. The primary data was mainly collected through interviews and a focus group session, with people from the sample group. Six selected organisations were interviewed and one focus group session was completed. The sampling for the interviews and focus group, including a presentation of the case organisations for the interviews, is also presented below.
3.4.1 Sampling
To get more than a one-sided perspective, a decision was made to interview people from the HR department as well as managers in charge of the agile transformation and experts within the area, see figure 10. Further, the interviewees came from different companies to make the research more general and to be able to apply the research to several companies and
18
situations. Knowit Insight who requested the research, provided us with people to interview based on specific requests but also based on their customer base. Through a LinkedIn post, see appendix B, a reach out was made to several people who could be interested in discussing the topic. Below, the case organisations for the interviews are presented.
Further, the focus group consisted of five new participants from four different organisations. The participants have positions within the HR department at different companies in Sweden and experience of agile transformations. The participants were reached out by the supervisor at Knowit Insight.
Case Organisations
This study was partly based on seven interviews with people from six different organisations. Three of the organisations are customers to Knowit Insight and two organisations were contacted through the LinkedIn post. The last organisation was reached through the investigators. The people selected for the interviews were two experts in the area “HR in agile transformations”, managers in charge of the agile transformation and HR managers.
What the organisations have in common is that they have all started or have experience from an agile transformation, but they are in different stages. Some organisations help others become more agile while others work within the organisation to become more agile. The interviews were mainly focused from an HR perspective, to match the study’s purpose. Organisation A operates in the insurance industry and so does organisation B. Organisation A have just started the agile transformation within the whole organisation while organisation B started the transformation last year, which means they are still in the beginning of it as well. Organisation C operates in the commercial vehicles industry and are at different stages in the transformation at different departments. Some have come a long way in the process while others have not started yet. Both manager C and HR person C works at organisation C. HR person D operates in organisation D where the HR department is acting agile as far as possible even though it is not outspoken that they are going through an agile transformation. The industry that organisation D are operating in is computer hardware and software. Expert E works in the field of HR in agile transformations and operates as a consultant to help other organisations in their transformations. In organisation F, where expert F operates, they help other organisations become more agile through the HR department within the concerned organisations, which means they act as consultants. The interviewed people will be referred to as in figure 10 in the thesis.
19
Figure 9 - The positions of the respondents
3.4.2 Interviews
A great amount of the primary data was collected through qualitative interviews. The interviews were made in a semi-structured way. There were predefined questions that were supposed to be answered but if the interviewee mentioned something that could be relevant or interesting for the research, a clarification, explanation or more information was asked for and the interviewers left the structure in that case. By doing that, the interviews could be more flexible and data collection more efficient and the interview became more conversational (Guion, et al., 2011). See the questions in appendix A.
For the interviews, open-ended questions were used to be able to collect deep information. With open-ended questions the interviewee was able to answer more freely and thus more describing. According to Kvale (1998), this is why open-ended questions are preferred.
All the interviews were either physical meetings or phone calls held in private, meaning that only one person were interviewed at the time in a private setting. During the interviews the interviewers took on different roles. One took notes while the other one asked the questions. The interviews were held between 3rd of March and to the 25th of March and they were recorded by approval of the interviewee to be able to go back to make sure nothing was being missed out or misunderstood.
The interview questions were set up to map out obstacles and challenges through the transformation process to an agile approach, focusing on the HR perspective, and also to identify what role HR could take in the transformation in the different organisations.
3.4.3 Focus Group
A digital focus group session was held to discuss and explore the findings from the interviews. Bell et al. (2019) describe that a focus group often is used when a topic or issue is supposed to be discussed and explored more deeply compared to group interviews, that often have a wider span and not the same depth. Hennink (2014) also highlights how a focus group should bring a broad range of views and perspectives on the research issue. Further, Hennink (2014) explains how the participants in a focus group should have similar background and experience related to the research issue, which can be confirmed by the sampling of the focus group. Two represents from Knowit Insight helped with moderating and facilitating the focus group. The
20
structure and invitation for the digital focus group session can be find in appendix C. Bell et al. (2019) highlight how focus groups are suitable for qualitative research, which is also mentioned by Hennink (2014). For the session, one of the investigators took on the role as a moderator with help from the two represents from Knowit Insight and the other one took notes and observed. The focus group session was recorded by approval from the participants, since Bell et al. (2019) mean that it is very difficult to write down what everyone says and who says what. Further, the focus group session helped to get the nuance of not just what people said but how they said it which is important in a qualitative research (Bell, et al., 2019).
The Covid-19 pandemic resulted in a focus group that had to be executed digital. This created less interactions among the participants than desired. Also, technical issues created problem for some participants that did not have the possibility to participate as wished.
3.5 Data Analysis
According to Bell et al. (2019), the first step of the data analysis is to manage the data to ensure that there are no flaws. In this study, the interviews and the focus group were recorded and transcribed which enabled the transcription to be coded and broken down into different components with labels, related to the research questions. The labels were the following: HR´s
role in an agile transformation and Challenges with HR in an agile transformation. By doing this,
it was possible to search for patterns and links between the codes. Also, the amount of data could be reduced to contain only valuable information. These steps are also explained by Sargeant (2012). Sargeant (2012) explains that the first step is deconstruction, were data is braked down into smaller component parts. This is where the data was broken down and color-coded in the different labels. The deconstruction is followed by interpretation, were the color-coded data is supposed to be understood. The last step is reconstruction. In this step, Sargeant (2012) means that “reconstruction refers to recreating or repackaging the prominent codes and themes
in a manner that shows the relationships and insights derived in the interpretation phase and that explains them more broadly in light of existing knowledge and theoretical perspectives”
(Sargeant, 2012, p. 2) At this stage, the color-coded data were grouped together by HR´s role
in an agile transformation and Challenges with HR in an agile transformation, to show the
patterns and links that had been discovered in the interpretation stage.
To answer the last research question, all the answers from the interviews and focus group session were summarized in a table, see table 1. From the table, comparisons could be made between the different organisations and an analysis could be conducted on how the different challenges impact each other and HR´s role in an agile transformation.
When it comes to agile applied to HR and specifically HR´s traditional tasks, no participants mentioned challenges regarding performance appraisals nor recruiting. Therefore, they are not mentioned in the sub-chapter Challenges with HR in an agile transformation.
3.6 Research Quality
To take the research trustworthiness into consideration, Bell et al. (2019) and Anney (2015) highlight four aspects: credibility, transferability, dependability and confirmability.
21 3.6.1 Credibility
According to Bell et al. (2019), credibility regards making sure that the investigator has correctly understood what the interviewee meant. In this study, credibility was ensured through validation, meaning that the answer was repeated to make sure it was understood correctly if it was a little bit unclear. Further, if the interviewers were uncertain about something afterwards, the findings from the interviews were presented to the interviewees to make sure it was correct.
3.6.2 Transferability
Bell et al. (2019) mean that the transferability is important for the research trustworthiness. Further, Anney (2015) means it is important to be able to apply the research on several organisations and situations and not just the one investigated. By interviewing people in six different organisations and implementing a focus group with people from four different organisations, comparisons could be done and a broader perspective on the research issue was achieved and hence the findings are more general. Further, by describing the research context as in chapter 3.1-3.6 the readers can easily transfer the result to their own situation if it is sensible.
3.6.3 Dependability
To make sure the research has the aspect of dependability, Bell et al. (2019) explain that all phases of the research process should be kept in a record so that the investigation could be repeated. This is also highlighted by Anney (2015). To ensure the dependability for this research, the whole research process is described in the report. Further, all material was kept such as interview questions, material for the focus group, gantt-schedule etc.
3.6.4 Confirmability
According to Bell et al. (2019), confirmability refers to authors acting in good faith, meaning having an objective view and not letting personal values color the research. Therefore, other researchers would be able to confirm the same result according to Anney (2015). Since the topic was new for the investigators it was easier to have an objective approach and exclude personal values. Even though the investigators were supervised by Knowit Insight, they worked independently which ensures confirmability.
3.7 Ethics
The ethics of this thesis are based on the four ethical principles mentioned by Bryman and Bell (2011). These are harm to participants, lack of informed consent, invasion on privacy and deception. To ensure that the principles were followed in the study, the goal and purpose were shared with the participants in advance. By doing this, the participants could get an insight of the study and hence decide whether or not to participate. Further, they were informed about anonymity and the participants had the opportunity to decide whether they wanted the interview to be recorded or not, which is suggested by Bryman and Bell (2011).
22
4. Cases of HR in Agile Transformations
This chapter presents empirical data gathered from interviews and the focus group session. Figure 11 shows a categorical overview of the findings and how the chapter is structured. The structure is mainly based on the interview form, where HR’s role in an agile transformation process and challenges with HR in an agile transformation are the different categories. Further, Traditional HR, Agile applied to HR and The change process are sub-categories of challenges with HR in an agile transformation. The findings are presented by these categories.
Figure 10 - Categorical overview of the findings
4.1 HR’s role in an Agile Transformation
Expert E points out that there are many different opinions when it comes to HR’s role in a transformation process. Manager A describes that HR are expected to be “an engine” in the transformation in their organisation. HR are also represented in the management team in organisation A.
“Since HR are a very important part of the change, it is important to include them” – Manager A
Expert F mentions that HR are the contractor which means they often work progressively in the agile transformation. In organisation B, manager B has been put in charge of including HR in the transformation. Further, manager C explains that in their organisation, HR are aware of the transformation, but they are not yet involved. HR person D explains that HR were involved in a change that took place throughout the organisation a while ago. In this organisation, HR are part of the management team which means they can act as a strategic partner and hence be able to lead change. HR person C, who belongs to the same organisation as manager C, explains that in some departments HR are not involved at all in the transformation while in other departments they are a bigger part of the transformation. The participants in the focus group emphasize that it is important that HR are a part of the transformation process. Further, they mention that HR should act as a catalyzer in the transformation process and that HR’s role is to make sure the employees feel as safe as possible in the transformation process. When an organisation is going through a transformation it has to change and consider both culture and structure, according to expert E. Culture and structure are HR´s primary deliveries and therefore it is very important that they are included in leading the transformation.
