This document provides guidance on forming an agile team. It recommends starting by clarifying why the team is needed and what it will develop. Consider the skills needed on the cross-functional team and whether potential members can work autonomously. Develop the product using a lightweight approach like lean startup or design thinking. Develop the team by allowing it to form, storm, norm and perform. Recruit members who voluntarily join rather than being assigned. Launch the team with a clear intent, approach, and learning mindset.

2. 1. Start with WHY
2. Articulate WHAT you want to develop
3. Carefully consider WHO you want to recruit
4. Think of the HOW
5. Recruit the Team
6. Launch with a bang

3. 1. Start with WHY
▪ Does this team need to be agile?
▪ Agile teams are inherently small: magic number
7 plus minus 2
▪ Agile teams run in iterations: there are places
where waterfall is better
▪ Agile teams are flat: there are places where
traditional boss roles are more fitting

4. Agile is messy
time
outcome
first step
second step
thereafter
time
output
Waterfall
Project Management
Agile
Product Development

5. Waterfall
Project Management
One waterfall
No testing until completed
Agile
Product Development
vs
Many Sprint iterations
Many Small test with MVPs
vs
vs
Waterfall is sleek, agile can be tedious

6. Traditional
Organization
Agile
Organization
vs
• Centralized hierarchical structure
• Leaders make strategic decisions
• Middle managers make tactical decisions
and gives instructions
• Rank & file execute and deliver
• Functional silos
• Decentralized network structure
• Self-organization
• Team makes its own decisions
• Leaders and managers as
facilitators and coaches
• Cross-functional teams
More responsibilities to team members in agile teams: it’s a lot of work!

7. Warning: There is a temporary loss of productivity when learning agile
▪ J-curve effect: there is a learning curve to agile.
▪ If not addressed and expectation managed upfront…
• This is counterproductive. I don’t get the point.
• It’s so painful, why can’t we do it our normal way?
• Why are we doing this? It’s a waste of time.
• I don’t believe this is a good idea. Count me out.
• Agile doesn’t work.
time
productivity
And unless agile is learned and practiced properly, there is no productivity gain

8. Which flavor of agile would you like to learn?
Waterfall
Lean
Startup
Build
Measure
Learn
Design
Thinking
Empathize
Define
Ideate
Prototype
Test
vs
Scrum

9. It’s a heavy effort to learn agile
Old habits are hard to die; for most people, learning agile requires de-learning of old ways-of-working
https://agile-od.com/lean-agile/a-pretty-
good-summary-of-lean-agile-scrum
https://agile-od.com/101 https://agile-od.com/scrum-sprint-pilot https://agile-od.com/lean-agile/welcome-
to-design-thinking
https://agile-od.com/lean-agile/lean-
leanmanufacturing-leanstartup

10. But agile tends to make money faster in risky markets…
Investment
Probability of
Success
Return of Success
Weighted
Average ROI
Investment in
1 go
$100 20% x20 $200
Investment in
5 iterations
Each iteration +20%
“Kaizen”
(continuous improvement)
$20 20% x20 $80
$20 40% x20 $160
$20 60% x20 $240
$20 80% x20 $320
$20 100% x20 $400
Outcome $100 $1,200
Product
Market Fit
NAILED
ROI 3x
Now you can MILK
THE COW
Agile DE-RISKS
Agile MAKES MONEY
Assumptions Investment
Probability of
Success
Return on Success
Weighted Average
ROI
Investment in
one go
$100 20% x20 $400
It doesn’t stop here
High risk,
high return
opportunity

11. simple complicated complex chaotic
And when it comes to complex problem solving, agile is the only way
algorithmic task
handling
heuristic
problem solving
Easy to
duplicate
results
Many expert steps
required, yet
predictable results
Known ways to do and
confidence in satisfactory
outcome, but details of
outcome unpredictable.
Both how to do
and outcome
unpredictable
We often confuse complicated, with complex

12. 2. Articulate WHAT you want to develop
▪ A purpose driven team is strong. If you have your WHY and WHAT clear, it’s easier
to attract talent and sponsorship.
▪ Invest time and effort in articulating what you want to develop, and why.
https://agile-od.com/lean-agile/rapid-design-thinking-template

13. 3. Carefully consider WHO you want to recruit
▪ Agile teams are cross-functional. What balance of talent do you need for your team
to be complete and self-sustaining?
▪ Agile teams are flat. Can you hire people who can work together in an autonomous,
self-organized, we lead each other, follow each other way?
▪ Agile projects are inherently risky (otherwise what’s the point of doing agile). Are the
people you’re hiring risk takers? Would they have the grit to persevere together?
You’re not done. Don’t start recruiting team members yet.

14. 4. Think of the HOW
▪ Two areas to think of “how”, actually:
▪ How to develop the product
▪ How to develop the team

15. How to develop the product
Advice: Don’t fall in the methodology trap, start with a light-weight approach
Lean
Startup
Build
Measure
Learn
Design
Thinking
Empathize
Define
Ideate
Prototype
Test
Scrum
Walking
skeleton
prototyping

16. Tuckman’s four stages
of group development
Form
STORM
Norm
Perform
How to develop the team
It’s a journey

17. Design
your Team
What does
success look
like?
Source:
• https://theteamc
anvas.com
• https://mural.co

18. 5. Recruit the Team
▪ Don’t assign, allocate, place
▪ Instead, invite, enroll
▪ Let people walk into your team at their
own volition; it’s much more powerful
and sticky

19. 6. Launch with a bang
Clarify intent Formulate approach
Align
Learn together Storm
Good luck!