EN

1st
State
of Agile
HR2020
 Introduction
page 3
Executive summary
page 4
Participants of the
State of Agile HR
page 5
How organizations In times of fast and unpredictable change, agility is required from everyone. This
are embracing agility
begs the question how HR can contribute to agile organizations. And to what
page 7
How the world of HR
extent HR is agile itself.
is changing
page 10 Agile ways of thinking, working and organizing are not only common in IT
The HR department anymore. Other disciplines are also focusing more on agility, both in a strategic
page 16 and practical sense. HR is a good example of this: sometimes as an initiator,
HR processes coach or practitioner of agile ways of thinking, working and organizing. This
page 19 coincides with the changing role of HR itself: a discipline that wants to reinvent
Agile transformation itself and, according to this report, a discipline that is becoming more strategic.
HR has a unique place in the organization in terms of developing agility. HR has
the opportunity to help individuals, teams and leaders grow as agile people and,
collectively, as agile organizations. That is what Agile HR is about.

To provide insight into the current status of Agile HR worldwide, Organize Agile
conducted this study together with the HU University of Applied Sciences. An
annual survey of HR leaders and professionals worldwide, of which this is the
first!

Watch our video about Agile HR:

Agile HR - The new role of HR in agile organizations

The four levels of Agile HR

Worldwide HR departments and professionals are experimenting with agile
frameworks and principles. This is possible on 4 different levels, which are all
covered in this study:

These four levels will all

be covered in this report.
In addition, you will also find
1.
p. 19–20
Supporting a broad adoption of agile in the
organization: an agile transformation

cases of organizations that

are experimenting with Agile

2.
HR and two ‘knowledge bits’
Supporting multidisciplinary teams in the
in which we show Agile HR
organization and helping those teams to adopt HR
practices.
responsibilities
p. 18

3.
p. 10–14
Embracing agile within the HR department itself

4.
p. 15–17
Reinventing HR processes such as performance
management, centered on flexibility

Page 2/21 The State of Agile HR 2020

 Executive
summary
These are the four most striking conclusions of the State of Agile HR:

*agile mindset: a way of

thinking and sensing in
* HR has to master the agile mindset*
According to the respondents the most important requirement for HR to
properly support the transformation towards an agile organization is that HR
has to master the agile mindset. However, the agile mindset is not yet an
integral part of the current culture. To become more successful in Agile HR, HR
which the agility of
people and organizations has to pay more attention towards creating an agile mindset within their
is front and center department and the organization.

* Leadership development is the most

important, complex and unpredictable
challenge for HR
There is strong uncertainty about the role of leaders in organizations that want
to become agile. What type of leadership do such organizations require and how
can the qualities and skills that come with it be defined and strengthened? It is
an issue that HR is grappling with and that necessitates reinventing a vision on
leadership, in collaboration with the leadership talent in the organization. The
unpredictability and complexity of this leadership development, makes it a prime
candidate for agile ways of thinking, working and organizing.

* HR is often on the sidelines of the

transformation towards an agile organization
HR is not actively involved in the transformation towards an agile organization
in 40% of cases. This means that the initiative is taken elsewhere in the
organization and that HR does not get, or wants to get, a role in making such
large-scale change successful. This is a missed opportunity, considering the
strategic role HR aspires to. Part of this absence of HR comes from the fact that
the department itself does not always live according to the principle of ‘practice
what you preach.’ More than half of HR departments are not engaged in agile
ways of thinking, working and organizing in the department itself and therefore
are a less attractive partner in agile transformations.

* Specific HR processes are being influenced

by agile
HR processes are impacted by agile thinking when one or more of these
principles are adopted:
1. Putting people above processes
2. Learning in short cycles
3. Empowering teams
4. Stimulation experimentation

According to the respondents, learning and development (56%) and

performance and feedback (54%) are HR processes that are most profoundly
impacted by agile. This means that there is still a lot of room for development
for these and other processes.

Page 3/21 The State of Agile HR 2020

Participants of the
State of Agile HR
The respondents for the global State of Agile HR study come from a
broad range of nations, industries and organizations.

206
#01

What is the size of your

organization?

Respondents

19
Countries
<500 500–1,000 1,000–5,000 5,000–10,000 >10,000

6
40% 15% 30% 7% 20% Continents

#02

Telecommunication Which industry does your

Media/Entertainment organization operate in?
Transportation
Insurance
2% Professional Services
Non-profit 3% 2% 1%
4%
Education
17%
4%

Healthcare and Pharmaceuticals

5%

Energy 6% 15% Technology

7%
Financial Services
7% 10%
8% 8% Other
Industrial/Manufacturing

Government Retail

Page 4/21 The State of Agile HR 2020

How organizations
are embracing agility
All respondents were asked how far their organization
is in terms of agile ways of thinking, working and #04

organizing, outside of software development.

Does your organization
use agile ways of thinking,
#03

working and organizing?

For how many years has your outside of software development!
organization been practicing
agile?

less than one year 22%

1–2 years 32%

2–3 years 21%

63%
3–4 years 11%
37%

longer than 4 years 14%

#05

What were the reasons for adopting agile within the organization?
(multiple answers possible)

Being flexible enough to

quickly respond to change
83%
As, HR, we often found that
our development and
Better business results 68% decision-making processes
were taking too much time,
Creating a productive
and open culture
61% and that it was difficult to
smoothen or accelerate
Keeping up with these processes. We are also
technological change
34% dealing with a great number
of stakeholders, internally
Motivating current
31% as well as externally.
employees
Keeping up with Monique Roelfsema
the competition
30%
Strategic HR advisor,
Dutch National Police
Employer branding 15%

Page 5/21 The State of Agile HR 2020

#06

Which agile frameworks

does your organization 32% 55% 4%
work with?
(multiple answers possible)

Agile Portfolio Kanban LeSS

Management

9% 80% 24%

SAFe Scrum Other

We are working in multidisciplinary

teams and we do use agile methods
such as Scrum, Kanban and Agile
Portfolio Management. However, it does
not mean that we really think agile.

Joseline Haverman
HR professional, Ministry of
Education, Culture and Science

#07

100%
To what extent is the agile

57%
mindset part of the culture?

0%

Page 6/21 The State of Agile HR 2020

How the world
of HR is changing
The role of HR in organizations has changed quite a bit
in recent years. Some examples are the increased
automation of HR tasks and the devolution of HR
responsibilities to line managers. In this chapter of the
study, it becomes clear that the respondents think the HR itself is struggling to make the
role of HR is becoming more and more strategic. step towards being a change leader.

Marit Plooijer
HR professional

#08

What are the main challenges

of HR within your organization?
(multiple answers possible)

Leadership development

Employee experience
Performance management
Attracting top talent
Strategic
63% workforce planning

45%
39%
35% 36%

My perception is that there is a desire from leadership to have

very thoughtfully planned steps for each project. They are
used to having these super hyper detailed project plans. Now
that we are trying to drive projects the agile way, it is more
vague. I have a target date, but the scope is fluent, it might
change between now and then. There is a challenge for them
to let go and be comfortable. I think for some leaders it is a
challenge to trust and say ‘I am ok not knowing everything’,
because that is really the best way to operate for projects like
this. They feel that a more traditional approach, gives them
more certainty.
Isabel Sanz
HR Information and Systems Director, Palo Alto Networks

Page 7/21 The State of Agile HR 2020

 CASE:

Marieke Pepers
Former Organizational Change Manager at Genentech,
with an HR responsibility for 12000 employees

“The role of managers has changed quite a bit in the past few years, from
micro-management towards a much more facilitating management style.

The old-fashioned manager was the expert: the one who from a technical
perspective knew best, and who would divide the work based on time and
expertise.

In that era, the role of HR was fairly simple. ‘Hey, so-and-so’s contract ends
soon, is he doing a good job? Does he or she need training?‘ Or ‘this person
is ill’ were generally the topics HR was involved in.

Nowadays the manager is the facilitator, so normally they’re already on top

of talent development. And they’ll need HR to provide more in-depth
knowledge and support — ‘how do I bring out the best in people?’

Of course that marks a big change for HR, from supporting micro-
management towards coaching the facilitator. I think it has made the role
of HR a lot more fun. Personally I think this is the biggest opportunity for
HR to set people in motion, to create a great place to work.”

#09

How is the role of HR changing within the organization?

(multiple answers possible)

HR is becoming
more decentralized 20%
HR is becoming
more centralized 23%
HR responsibilities are shifting
to multidisciplinary teams 33%

HR is becoming
more strategic 65%
HR is becoming
more important 54%
in the organization

The role of HR in not changing

in the organization 20% Only 2% of respondents reported
that HR is becoming less
important in the organization
HR is becoming
more operational 12%

Page 8/21 The State of Agile HR 2020

CASE:

Monique Roelfsema and

Saskia Dorrestein
Strategic Advisors, HR General Staff, Dutch National Police

Agile within the HR department

“The agile movement within the police really comes from those teams that are
motivated to change. However, the connection with HR is not yet optimal in all
areas. We certainly see the need for support from HR. We only notice that we as
HR ourselves are in a bit of a split because we have to support the movement
while we ourselves also have to make the transformation. This double task is
quite complicated. Nevertheless, we do see more and more colleagues actively
experimenting with adopting the agile way of working.

For example, we are currently using design sprints for a policy project, more and
more agile frameworks are being used, we use more visualizations, and we are
connected to the internal network of Agile Pioneers. We also think it is a good
thing that we as HR first experiment with this ourselves before we introduce it to
others. After all, you have to know what it means before you can advise someone
else. Practice what you preach.

‘We’re not an organization to be at the forefront of this’

It is of course very interesting what is being developed both in the Netherlands
and abroad in the field of Agile HR. Now, we are not necessarily an organization
to be frontrunners in this, we are not the type of organization for that; big and
with many dependencies. However, it is interesting for us to look at how other
organizations are developing in this area and from there experiment with what
we can apply within our context.”

Page 9/21 The State of Agile HR 2020

The HR department
To what extent does the HR department itself embrace
agility, and what are the opportunities and challenges?

#10

Does your HR department use

agile ways of thinking, working
and organizing?

0%
49% 100%

67% 9% 24%
of the HR departments are mentions the agile mindset are organizing agile by working
using agile frameworks as having a strong presence in multidisciplinary teams
within HR

#11

What were the reasons for the HR

department to start working agile?
(multiple answers possible)

Being able to respond

faster to business demand
70%
Being able to support
the organization in an 53%
agile transformation

Working in self-organizing
and multidisciplinary teams
49%
Being able to focus
38%
on the collective HR goals
We had only three analysts when I
started at the people technology
Increasing employee happiness 36%
team, and they were swamped and
drowning in all kinds of requests that
Being able to work in 32% had different levels of priority. I felt
a more structured way this was a good way to make sure
More autonomy for HR teams that the team could focus on the
31% critical deliverables and to keep that
(or HR professionals)
focus with the agile methodologies.
More clarity about 7% So engagement and focus were two
the roles in the team of the drivers for that.
Isabel Sanz
HR Information and Systems
Director, Palo Alto Networks

Page 10/21 The State of Agile HR 2020

#12

What are the main benefits of Agile HR for your department?

(multiple answers possible)

Being able to serve the business better 70%

Improved flexibility of the HR department 47%
Achieving goals together by working in a structured way 42%
Engaged and passionate employees 38%
None at this moment 3%

Just being able to use this approach with all the

other teams within HR is beneficial. Now when I go
to someone and I talk to them about a sprint or
‘we need to break this down into chunks’, they get In the past, HR was not able to respond quickly
it. I do not have to explain all of that anymore. This enough to developments around us or questions
makes it for us as HR easier to be more consistent from the company itself. That’s very different
in the way we operate. That makes it also easier to now. There is now a single team in charge of the
get buy in because everyone sees the value. Even change calendar, by using project and portfolio
though I feel we are applying it more on a tactical management. This not only gives us insight into
level, I still see the benefits as exponential. the various themes at play, but also helps us to
Isabel Sanz make choices about what we want to focus on
HR Information and Systems this quarter.
Director, Palo Alto Networks Floortje van de Laak
Agile coach,
former HR Business Partner, Achmea Insurance

#13

Which agile frameworks

are used within your HR 27% 47% 3%
department?
(multiple answers possible)

Agile Portfolio Kanban LeSS

Management

4% 56% 22%

SAFe Scrum Other

Page 11/21 The State of Agile HR 2020

KNOWLEDGE BIT:

AGILE PORTFOLIO MANAGEMENT

When HR departments want to apply agile ways of working, they often think of
Scrum. Scrum is a framework that lends itself well for complex development
work. These are often the heavier projects, on which a multidisciplinary team
works for a longer period of time. Such as the development and implementation
of new HR systems. But this does not include all the work of HR as a
department. Departments often work on multiple projects and ongoing
activities at the same time. The question then is how can you keep track of this
and at the same time remain agile, without falling back into detailed traditional
planning. It is at this level that Agile Portfolio Management can be useful: in HR
departments, in large programs and in HR management teams.

The three advantages of Agile Portfolio Management are:

1. insight into your joint ambitions, projects and activities
2. connection between people and their work
3. direction by making choices together and in short cycles

The ultimate Agile Portfolio Management team knows no silos and works
focused on those things that have value for the business. This also means that
the business has insight into what’s going on in HR and that HR has the
discipline to say ‘no’ when needed.

The visual tool we use in Agile Portfolio Management is a model with three
circles:

The middle ring shows the ambitions of HR divided into themes, the intermedi-
ate ring shows which projects and activities HR is working on, and the outer ring
reflects (operational) issues that are currently at play. By having a different type
of conversation as a team about the what and why of one's own work, new
energy is generated and, in time, one’s own agility increases.

Want to learn more about Agile Portfolio Management? Start your learning
journey with our e-learning: Introduction Agile HR Online

Page 12/21 The State of Agile HR 2020

#14

What are the key success factors for embracing

Agile HR within your HR department?
(multiple answers possible)

Autonomy for teams 40%

Self-awareness of team members 40%

A psychologically safe environment

where mutual trust prevails 37%

Communication within and

between HR teams 34%

Clear framework for doing work 33%

Flexible organizational structure 33%

Internal coaching in thinking,

working and organizing agile 29%

Common and guiding intrinsic goals 27%

External coaching in thinking,

working and organizing agile 23%

Not enough experience yet to say

something about key success factors
19%

For me Agile HR starts with Agile Portfolio

Management and a collaborative approach
to setting priorities. A lot more customer
involvement and creating an environment As HR, you have to ensure that Agile is
where teams can try to work agile. embedded in the organization. So
practice what you preach. Which means
Isabel Sanz that, as a department, you really have to
HR Information and Systems Director, Palo cut back on picking up large projects.
Alto Networks Because speed is simply necessary for HR
to be able to deliver faster and to be able
to keep up with the rapidly changing
world.
Marieke Pepers
former Organizational Change
Manager at Genentech

Page 13/21 The State of Agile HR 2020

 From my perspective agile first of all means
the mindset at the top, creating the right
conditions. This means having a rhythm for
our Agile Portfolio Management at the top in
which, between the ceremonies, the priorities
are protected. It also means that the
leadership team needs to feel comfortable
giving the team more autonomy. Letting go
of that control. If it doesn’t come from the
top it is hard because people are not going to
change the way they operate unless they see
the benefit. For me the self managed teams,
transparency and more stakeholder
involvement in the process, those three things
are critical.
Isabel Sanz
HR Information and Systems
Director, Palo Alto Networks

#15

What are the threats to Agile HR

within your department?
(multiple answers possible)

The switch from the current

culture to the agile mindset 53%

Underestimating the transformation

towards working agile 40%

Lack of commitment from

the executive board 37%

The belief that current processes

are working well enough 32%

Lack of coaching 30%

Not carrying out the agile

transformation carefully 30%

Difficult to implement changes 18%

Page 14/21 The State of Agile HR 2020

CASE:

Floortje van de Laak

Agile coach
former HR Business Partner, Achmea Insurance

Performance management
“Since we have been working with Agile Portfolio Management, we have gained
more insight and focus on the themes where we want to develop something
new and this is reflected in the results. For example, HR has set up a whole new
performance management model. A model that is really innovative in the
market and in which there is a lot of interest from other companies.”

Can you tell us more about your new performance management model?
“Yes, we have completely stopped with performance reviews. Previously it was
always the case that the manager had a performance review with the employee
based on his or her performance in the previous year. We have completely
abandoned this because we believe that investing in talent and matching people
with the work they excel at is more important, and that also leads to better
performance. This is also proven by all kinds of scientific studies.

So now we have TDP, which stands for Talent, Development and Performance.
Teams decide for themselves how they implement this so that it fits in with the
team’s way of working. In the ultimate state, you as an individual and as a team
determine your development goals and discuss how you as a team are going to
work towards the goals of the team/department. You will talk about this with
each other on a regular basis, in order to get feedback from your team and to
grow further as an individual and as a team. What is ‘regular’ is up to the
employee and the team. This is received very enthusiastically.

The desire for this was apparent from the agile teams that were already
widespread within Achmea. In those teams there was not a single manager who
managed the agile team, in the multidisciplinary teams people all have a
different manager. It was difficult for managers to performance review this
way. It was clear we had to look at performance management differently.

We didn’t change anything in the job descriptions, you’re still in a certain job
with a certain salary. Everyone receives a salary increase on January 1st,
provided the maximum has not yet been reached. In addition, the amounts in
the scales are adjusted, which usually is equal to an adjustment for inflation.
The salary increase is therefore completely disconnected from the performance
review.

In short, you don’t get a rating at the end of the year. You determine your own
development goals and the way in which you are going to contribute to the
departmental goals. You start working with these and discuss them with your
colleagues. At least once a year you write a self-reflection, in which you reflect
on the past period and also look ahead to the coming period.”

Page 15/21 The State of Agile HR 2020

HR processes
Agile HR processes that are influenced by one or more
agile principles: I do have the feeling that in all
• Putting people above processes organisations it has now become
• Learning in short cycles clear that traditional
• Empowering teams performance management with
• Stimulation experimentation a five-point scale and one
manager assessing is out of date.

Marieke Pepers
former Organizational Change
#16 Manager at Genentech
Which HR processes are
influenced by agile in your
organization?
(multiple answers possible)

Learning and Performance

Onboarding and development and feedback
offboarding
56% 54%
34%
HR analytics Compensation Recruitment
and benefits
26% 37%
25%

KNOWLEDGE BIT:

GROWTH CONVERSATIONS
An important issue for HR is how performance management can support
rather than obstruct an agile organization. Traditional performance
management has many characteristics of a non-agile organization: long
annual cycles, hierarchy as the main steering tool and the use of financial
incentives in the hope of improving performance. As Professor Kilian Wawoe's
research shows, such practices do not lead to the desired improvement in
performance in the long term.

But what is the alternative? An important key lies in the way we organize
performance conversations. This can be more short-cycled and focused on
growth rather than on reckoning. It also means the end of the annual

Page 16/21 The State of Agile HR 2020

performance review with the five-point scale. As large insurer Achmea shows,
abolishing that scale is a good first step. It still means that measures are
needed when someone is structurally underperforming. But for the largest
group for which this does not apply, there are other, more agile options.

One example is ‘Growth Conversations’. These are short 15-minute

conversations that take place regularly (at least once a month) between two
people: manager and employee, or employees among themselves. These
conversations are supported by cards on which questions are formulated and
which are aimed at growth and development. The cards make it easier to start a
conversation and to link that conversation to the person and the work
environment. That is why the cards contain questions that relate to four
ambitions:
• Personal development ambitions
What are you good at and can you do even better?
• Stretch business ambitions
What is the impossible challenge that you can help the organization tackle?
• Value-driven ambitions
How can you embody our collective values?
• Team development ambitions
How can you be an even better teammate?

These cards are made with a diverse group of employees, supported by HR. Then
it is a matter of practicing and starting more and more conversations that will
help you move forward as a person and a professional.

Read about designing an agile job framework in this blog by Minke Buizer.

Page 17/21 The State of Agile HR 2020

#18

Do multidisciplinary teams in the organization

have HR responsibilities that were previously
the responsibility of the HR department?

NO
YES 70%

30%

23% 30% 28%

Feedback & Recruitment L&D,

Performance onboarding

We work with multidisciplinary self-managing

teams. The basis is that the teams manage
their own revenue and costs. In the HR field,
this means that they take on their own
recruitment and selection. They facilitate the
onboarding process and the teams provide a
‘buddy’ who checks whether the new
colleague is comfortable and is able to
develop him or herself.

Kim van der Meij

HR Business Partner at SWIS

Page 18/21 The State of Agile HR 2020

Agile transformation
The role of HR in the transformation towards an
agile organization.
It is interesting that HR is often still
on the sidelines of the transformation
towards being agile. Because HR is
#19
normally a good sparring partner for
senior management. So how come
Is HR actively involved in the that we are not, in this case? I think
HR still has to learn in the field of
transformation towards an agile Agile. This will help us to advise better
organization? and to connect agile knowledge to our
knowledge of the business and its
departments.

Anonymous
HR Business Partner

40% 60%
NO YES

#20

The value of HR in an agile organization is What is the role of HR in the

mainly in facilitating and less controlling.
Keeping up with the context, of which we as transformation towards an
HR have a clear view. As an HR professional,
you have to take all that context into account, agile organization?
so I believe that the role of HR is becoming (multiple answers possible)
much broader. We are actually too reactive
today.
Marit Plooijer
HR professional
52% The HR department sets
a good example

We are encouraging people to start trying

small bits of it in the hope that if they adopt
those and become comfortable with those The HR department
they will come to the next level. Our next step
is to encourage agility outside of HR. I am
44% encourages and supports
agile ways of thinking,
excited and the teams that are using it are working and organizing
seeing the benefits and they are really
enthusiastic about it.
Isabel Sanz
HR Information and Systems HR facilitates the agile
Director, Palo Alto Networks 30% mindset in the organization

26% HR is mostly reactive

Page 19/21 The State of Agile HR 2020

#21

What are the requirements for HR to properly support

the transformation towards an agile organization?
(multiple answers possible)

HR has to master the agile mindset 57%

The HR department has to work agile itself 56%
The organization trusts HR
in organizational matters 56%
A psychologically safe environment
in which you can give and receive feedback 50%
HR has extensive knowledge about
agile frameworks and practices 28%

My tip for HR is that HR tries to let go of its

own interests and starts to think more in
the interest of the organization. That they
are curious and service-minded towards
the organization. I think that you can only
survive as HR if you embrace this evolution
and take control of it again.

Marit Plooijer
HR professional

CASE:

Andrea Pierik
Senior HR Business Partner at Randstad

“For me, it’s first and foremost a mindset, which asks of us to put the end
user first. These end users for us are our internal clients, our candidates and
our own employees. Which factors, for example, are the most important to
increase employee satisfaction? This can sometimes be something as
simple as a good laptop and chair.

We also work a lot with people analytics, combining these metrics with
business analytics to see how people contribute to the final business result.
We have become much more ‘data driven’ in the last two years.
This means that we really know better what the problem is, which analysis
lies beneath it and what we want to achieve.

What we still have to do is focus on the end user, prioritizing and making
choices. We also have something to learn in making our goals more
concrete: when do we consider a goal done? What are you going to make
and what is in it for the end user? If you’re going to work agile, you’ll notice
that you can’t do anything with vague descriptions”.

Page 20/21 The State of Agile HR 2020

 Want to win a free Agile HR training seat?

? Respondents see leadership development as by far the biggest challenge for

HR. But what do you think is the smallest challenge for HR according to the
respondents?

Employer branding
Work-life balance

Let us know what the answer is and why on www.stateofagilehr.com and have
the opportunity to win a free seat in our 3-day Agile HR training course in New
York or The Netherlands, certified by the International Consortium for Agile.

Who are we?

Organize Agile is an international team of coaches and consultants who believe
that everyone can be a changemaker, stable teams are the engine of innovation
and the future belongs to flexible organizations. With this conviction in mind,
we help business and government to organize agile. We are located in New York
and in the Netherlands. Our trainings in the Netherlands are provided by Scrum
Company.

In 2017 we published our book Agile HR – the (un)missable role of HR in agile

organizations, nominated for Management Book of the Year 2018 and now in its
Gidion Peters 7th edition.
founder of Organize Agile
co-author of the book ‘Agile HR’
The first international State of Agile HR is conducted in collaboration with
Kirsten Bakker of the HU University of Applied Sciences.

We want to thank all the respondents for sharing their experience with us.
Without them it would never have been possible to provide a deep insight into
the current status of Agile HR and we hope that the results help them on their
journey towards an agile HR department and organization.

Special thanks to: Monique Roelfsema and Saskia Dorrestein, Isabel Sanz, Kim
van der Meij, Joseline Haverman, Marit Plooijer, Marieke Pepers, Andrea Pierik
and Floortje van de Laak for the wonderful in-depth interviews we had with you.

Willemijn Dijk
Agile (HR) coach

Learn more about Agile HR

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