WHY AGILE FAILS
(Agile Implementation in
Financial Services in Indonesia)
Question 1 : What is the similarity ?
RIGID BUSINESS PLAN
> U.S.S.R with their 5-year economic plan
> Banks with their annual business plan before they
- Why are banks (& other traditional financial institutions)
so rigid ?
- Why are they not as Agile as you guys crazy startups?
Banks and other
traditional FIs You crazy startups
Strict KPIs based on regulatory
compliance and gross margin
We need to understand the very basic motive: KPIs
Between This This
Fail to define, to prioritize, to
increment, & to iterate
Spend resources in a product that is:
Takes too long to launch/
WHILE FOR MANY NON-BANKS THE OPTION IS CLEAR
> Annual business plan is mandatory; required by OJK (and other dudes in charge).
> We have hundreds of regulations to comply with.
While those startups only have a few regulatory requirements (if any at all).
> We cause systemic risk, economic catastrophe, if we fail.
While those crazy risk takers would only fail to pay their bills if their business fails.
> Running cross functional teams is not that easy
(changes in organizational structure need OJK’s acknowledgment or approval).
> Our shareholders’ expectations are different from yours.
> etc …..
WE (BANKS) CAN’T JUST CHANGE OUR BEHAVIOUR
But, much adaptation
IT DOES NOT MEAN THERE IS NO HOPE
Values and Principles
Planning and Budgeting
Use the door your boss is
already familiar with
And come out the other side
as Super Agilista
INDIVIDUALS AND INTERACTIONS OVER PROCESSES AND TOOLS
Yes I know what you may want to say. This is not an appropriate example.
At the end of the day, your customers don’t care
whether you’re Agile, Lean or whatever.
They only want great products.
The more your management is engaged with you,
the closer you get to meeting your customers’
Founder Putera Sampoerna
Shareholder PT Sampoerna Wirausaha, Putera Sampoerna Foundation
Partner bank BNI, Bank Amar, Bank Sahabat Sampoerna, Bank Permata
Funding adviser KPMG
Auditor Crowe Horwath
Tax Consultant Deloitte
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
1. Customer satisfaction through early and continuous delivery
2. Accommodate changing requirements, even late in development
3. Frequent delivery of working product
4. Collaboration between the business stakeholders and developers throughout the project
5. Support, trust, and motivate the people involved
6. Enable face-to-face interactions
7. Working product is the primary measure of progress
8. Agile processes to support a consistent development pace
9. Attention to technical detail and design enhances agility
11. Self-organizing teams encourage great architectures, requirements, and designs
12. Regular reflections on how to become more effective
12 Agile Principles (modified)