Agile Transformation: ChatGPT or McBoston?

TL; DR: Agile Transformation with ChatGPT or McBoston?

This article is another excursion into this nascent yet fascinating new technology of generative AI and LLMs and the future of knowledge work. I was interested in learning more about a typical daily challenge many agile practitioners face: How shall we successfully pursue an agile transformation? Shall we outsource the effort to one of the big consultancies — McBoston? Or shall we embark on an agile transformation with ChatGPT providing some guidance? 

If technology can pass a Wharton MBA exam, maybe, it deserves some attention. We thought that AI might initially come after simple office jobs. I am no longer sure about that. Maybe, ChatGPT’s successor will start at the top of the food chain.

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How to Create ChatGPT Prompts

Generally, ChatGPT prompts comprise several elements:

1. I define in what capacity ChatGPT shall interact with the prompts; for example, as a Scrum Master.
2. Then I sketch the situation and suggest what knowledge ChatGPT shall consider answering.
3. As a third step, I point to helpful practices.
4. Finally, I describe the scenario and place my first request.

Once the initial answer is available, follow up with additional questions to guide the bot in a more suitable direction or to receive information on the rationale of the response from the LLM’s algorithm.

I created all prompts and scenarios on January 19, 2023, based on the ChatGPT Jan 9 version.

The General Scenario and Initial Suggestions for an Agile Transformation

Prompt: I want you to act as a change leader in a traditional organization: 

• I will provide you with a scenario, and you will suggest ways of overcoming the problems using your knowledge of change management, communication, leadership, collaboration, stakeholder management, and conflict resolution.
• Your organization used to be the technology leader in your market, but that was 20 years ago. 
• Since then, your market share has been continuously dropping, and earnings have fallen. Your share price has fallen by 50 %. 
• Your organization wants to regain its former market dominance by becoming an agile organization. 
• What would you suggest to the leadership of that organization to help the change effort?

ChatGPT:

“To help the change effort in this scenario, I would suggest the following:

1. Clearly communicate the vision and goals of the change to all stakeholders. This will help them understand the importance of the change and their role in it.
2. Build a strong and diverse change management team to lead the effort. This team should include members from different departments and levels within the organization.
3. Engage key stakeholders early on in the process to gather input and buy-in. This will help ensure that their needs and concerns are taken into account during the change.
4. Develop a detailed plan for the change, including specific milestones and timelines. This will help keep the effort on track and ensure that progress is being made.
5. Provide regular communication and updates on the progress of the change to all stakeholders. This will help keep them informed and engaged.
6. Leverage the expertise of the consulting firm but also empower employees to take ownership of the change by providing them with the necessary training and resources.
7. Be prepared to address and resolve any conflicts that may arise during the change process through effective conflict resolution strategies.
8. Continuously evaluate and adjust the change effort as needed to ensure it stays aligned with the organization's goals and objectives.
9. Encourage collaboration and teamwork across the organization to build a culture of agility and speed.
10. Finally, celebrate the successes along the way and acknowledge the efforts of employees to keep morale high.”

Comment: This answer is classic consultant mumbo-jumbo: “We have done this before, and we know what to do when and how. We will create a winning concept and support changing top-down. Just ensure the minions comply and don’t ask too many questions.”

Follow-up question: Your answer is too much focus on traditional project management. Make the approach more agile.

ChatGPT:

“You’re right, my previous response focused primarily on traditional project management methods. To approach this change effort with an agile mindset, I would suggest the following:

1. Emphasize on creating a culture of continuous improvement and experimentation, where employees are encouraged to take risks and learn from failures.
2. Use agile methodologies such as Scrum or Kanban to manage the change effort. This will allow for more flexibility and adaptability in the process.
3. Encourage cross-functional teams that are self-organizing and empowered to make decisions. This will help to ensure that the change effort is aligned with the organization's goals and objectives.
4. Foster a culture of transparency and open communication. This will allow for regular feedback and adjustment of the change effort as needed.
5. Encourage experimentation and learning by providing time and resources for pilots, prototypes, and other small-scale testing.
6. Use data and metrics to track progress and adjust the change effort as needed.
7. Continuously involve stakeholders, including customers and partners, in the change effort to gather feedback and ensure alignment with their needs.
8. Be prepared to pivot or change course as needed, based on feedback and results.
9. Celebrate successes and failures alike, as they are opportunities to learn and improve.
10. Finally, empower employees to take ownership of their work and the change effort. Provide them with the autonomy, resources and support they need to succeed.”

Comment: Now we are talking. These suggestions resemble the top ten of the critical challenges any agile transformation faces. Let’s figure out whether a guided agile transformation with ChatGPT gets the priorities right.

Follow-up question: Which elements from your previous answer do you consider mission-critical to succeeding in an agile transformation? Rank the list from most to least critical.

ChatGPT:

I would rank the elements from my previous answer as follows in terms of most to least critical to succeeding in an agile transformation:

1. Emphasizing a culture of continuous improvement and experimentation, where employees are encouraged to take risks and learn from failures. This is the foundation for an agile mindset and essential for the transformation to succeed.
2. Encouraging cross-functional teams that are self-organizing and empowered to make decisions. This is critical for ensuring alignment with the organization's goals and objectives and for creating a sense of ownership among employees.
3. Fostering a culture of transparency and open communication. This is essential for ensuring regular feedback and adjustment of the change effort as needed.
4. Using agile methodologies such as Scrum or Kanban to manage the change effort. This is important for allowing for more flexibility and adaptability in the process.
5. Encouraging experimentation and learning by providing time and resources for pilots, prototypes, and other small-scale testing. This is important for ensuring that the change effort is constantly evolving and improving.
6. Using data and metrics to track progress and adjust the change effort as needed. This is important for ensuring that the change effort is on track and making progress.
7. Continuously involving stakeholders, including customers and partners, in the change effort to gather feedback and ensure alignment with their needs. This is important for ensuring that the change effort is aligned with the organization's goals and objectives.
8. Being prepared to pivot or change course as needed, based on feedback and results. This is important for being able to respond quickly to changes in the market or within the organization.
9. Celebrating successes and failures alike, as they are opportunities to learn and improve. This is important for keeping morale high and fostering a culture of continuous improvement.
10. Empowering employees to take ownership of their work and the change effort. Providing them with the autonomy, resources, and support they need to succeed. This is important for creating a sense of ownership among employees and for ensuring that the change effort is aligned with the organization's goals and objectives.”

Comment: Interestingly, ChatGPT lists “empowering employees to take ownership of their work and the change effort” at the bottom. I would move this issue way up in the list. Maybe, an agile transformation with ChatGPT is not as promising as I thought. 

Follow-up question: Why is "Empowering employees to take ownership of their work and the change effort" only #10 on your list? What is the rationale behind putting it at the bottom of the list? In other words: why do you consider the other nine factors more important?

ChatGPT:

I apologize if my previous ranking was not clear. In an agile transformation, all the elements listed are crucial and interrelated, and it is difficult to prioritize one over the other. However, Empowering employees to take ownership of their work and the change effort is essential for the success of the transformation. Here are a few reasons why I considered the other nine factors to be more critical in my previous response:

1. Emphasizing a culture of continuous improvement and experimentation is the foundation for an agile mindset and essential for the transformation to succeed. Without this mindset, employees may be resistant to change and the agile methodologies will not be fully embraced.
2. Encouraging cross-functional teams that are self-organizing and empowered to make decisions is critical for ensuring alignment with the organization's goals and objectives and for creating a sense of ownership among employees. This is important to ensure that the teams have the autonomy to make decisions that align with the overall objectives and are able to take ownership of the change effort.
3. Fostering a culture of transparency and open communication is essential for ensuring regular feedback and adjustment of the change effort as needed. This is important for ensuring that the change effort is on track and making progress.
4. Using agile methodologies such as Scrum or Kanban to manage the change effort is important for allowing for more flexibility and adaptability in the process. Without this, the change effort may become too rigid and inflexible, making it difficult to adapt to changes in the market or within the organization.
5. Encouraging experimentation and learning by providing time and resources for pilots, prototypes, and other small-scale testing is important for ensuring that the change effort is constantly evolving and improving.
6. Using data and metrics to track progress and adjust the change effort as needed is important for ensuring that the change effort is on track and making progress.
7. Continuously involving stakeholders, including customers and partners, in the change effort to gather feedback and ensure alignment with their needs is important for ensuring that the change effort is aligned with the organization's goals and objectives.
8. Being prepared to pivot or change course as needed, based on feedback and results is important for being able to respond quickly to changes in the market or within the organization.
9. Celebrating successes and failures alike, as they are opportunities to learn and improve is important for keeping morale high and fostering a culture of continuous improvement.

All these elements are critical for the success of an agile transformation. Empowering employees to take ownership of their work and the change effort is a crucial aspect of the change effort, but it is also dependent on the other elements being in place and being successful.”

Comment: Our agile transformation with ChatGPT is back in the game. First, the ChatGPT acknowledges that ranking the success factors is tricky. However, to support its ranking of critical factors, the LLM now offers an explanation and points to the dependencies between all aspects. 

Typical Problems and Anti-Patterns of Agile Transformations

Prompt: What are typical problems and anti-patterns that you observe during agile transformations? List these critical issues for each of the previous ten elements and suggestion how to avoid them in the spirit of agility. 

Note: ChatGPT also created the HTML for the following list.

ChatGPT:

“Here are typical problems and anti-patterns that I observe during agile transformations and suggestions on how to avoid them:

1. Emphasizing a culture of continuous improvement and experimentation:
   • Problem: Employees may be resistant to change and may not fully embrace the agile mindset.
   • Anti-pattern: Managers may impose agile practices without involving employees and without explaining the reasons for the change.
   • Suggestion: Communicate the reasons for the change, involve employees in the process, provide training and coaching on agile methodologies, and create a safe environment for experimentation and learning.
2. Encouraging cross-functional teams that are self-organizing and empowered to make decisions:
   • Problem: Teams may lack the autonomy to make decisions that align with the overall objectives or may not take ownership of the change effort.
   • Anti-pattern: Managers may micromanage teams or make decisions on their behalf.
   • Suggestion: Empower teams to make decisions that align with the overall objectives, provide training and coaching on agile methodologies, and create a culture of trust and transparency.
3. Fostering a culture of transparency and open communication:
   • Problem: Communication may be siloed, and regular feedback may not be provided.
   • Anti-pattern: Managers may not provide regular feedback or may not be transparent about the progress of the change effort.
   • Suggestion: Encourage open communication, provide regular feedback, and create a culture of transparency and trust.
4. Using agile methodologies such as Scrum or Kanban to manage the change effort:
   • Problem: Agile methodologies may not be fully embraced or may be applied incorrectly.
   • Anti-pattern: Managers may impose agile methodologies without involving employees or providing training and coaching.
   • Suggestion: Provide training and coaching on agile methodologies, involve employees in the process, and continuously evaluate and adjust the agile methodologies as needed.
5. Encouraging experimentation and learning by providing time and resources for pilots, prototypes, and other small-scale testing:
   • Problem: Experiments may not be conducted or may not be incorporated into the change effort.
   • Anti-pattern: Managers may not provide time and resources for experimentation or may not incorporate the results into the change effort.
   • Suggestion: Encourage experimentation, provide time and resources for pilots, prototypes, and other small-scale testing, and incorporate the results into the change effort.
6. Using data and metrics to track progress and adjust the change effort as needed:
   • Problem: Data and metrics may not be used or may not be used effectively to track progress and adjust the change effort.
   • Anti-pattern: Managers may not use data and metrics or may not use them effectively.
   • Suggestion: Use data and metrics to track progress and adjust the change effort as needed, provide training and coaching on data analysis, and involve employees in the process.
7. Continuously involving stakeholders, including customers and partners, in the change effort to gather feedback and ensure alignment with their needs:
   • Problem: Stakeholders may not be involved in the change effort, or their needs may not be taken into account.
   • Anti-pattern: Managers may not involve stakeholders or may not take their needs into account.
   • Suggestion: Involve stakeholders early on in the process, gather input and buy-in, and take their needs into account during the change effort.
8. Being prepared to pivot or change course as needed, based on feedback and results:
   • Problem: The change effort may become too rigid and inflexible, making it difficult to adapt to changes in the market or within the organization.
   • Anti-pattern: Managers may not be prepared to pivot or change course as needed, and may not be responsive to feedback and results.
   • Suggestion: Continuously evaluate and adjust the change effort as needed, based on feedback and results, and be prepared to pivot or change course as needed.
9. Celebrating successes and failures alike, as they are opportunities to learn and improve:
   • Problem: Morale may be low and employees may not be motivated to participate in the change effort.
   • Anti-pattern: Managers may not celebrate successes or may not acknowledge failures.
   • Suggestion: Celebrate successes and acknowledge failures, as they are opportunities to learn and improve, and keep morale high.
10. Empowering employees to take ownership of their work and the change effort:
    • Problem: Employees may not take ownership of their work or the change effort.
    • Anti-pattern: Managers may not empower employees or may not provide them with the autonomy, resources, and support they need to succeed.
    • Suggestion: Empower employees to take ownership of their work and the change effort, provide them with the autonomy, resources, and support they need to succeed, and create a culture of trust and transparency.”

Comment: Our agile transformation with ChatGPT is picking up speed. Now, the bot adds insight to all previously identified success factors: It identifies a likely problem, why the problem may exist, and a first set of ideas on how to remedy it. (Admittedly, sometimes, the text sounds repetitive.) The suggested solutions remain at the meta-level, given the information we provided to ChatGPT. 

ChatGPT Acting as a Consultant, Creating a Concept for an Agile Transformation

Prompt: I want you to act as a consultant for business agility for a large, traditional organization. Based on your previous list of critical success factors, I want you to propose a detailed concept of an agile transformation. Your proposal shall address:

• All the people that need to be involved in the transformation.
• A timeline when what shall happen. 
• A concept of when and whom to educate in agile practices and concepts in the organization.
• A way to identify possible change agents to support the transformation effort bottom-up. 
• Suggestions on how to handle resistance to change, particularly from middle managers. 
• A rough estimation of the budget required. 
• A suggestion on how to finance the transformation./li>

Create the concept in the spirit of the Agile Manifesto or the Scrum Guide.

ChatGPT:

“As a consultant for business agility, I would propose the following detailed concept of an agile transformation for a large, traditional organization:

1. Involvement: The Scrum framework is used to involve a cross-functional, self-organizing team, including employees at all levels, customers and partners. This allows the team to align their work with the organization's goals and objectives, and ensures that all stakeholders are engaged and invested in the process.
2. Timeline: The transformation should be an ongoing effort, where the team will continuously inspect and adapt to deliver valuable results. The team will establish a Sprint cadence, usually two weeks, in which they will plan, execute, and review their work. This approach allows for more flexibility and adaptability in the process.
3. Education: Education on Agile practices and concepts should be provided to the team, and the team will continuously educate themselves and others in the organization on Agile principles and values.
4. Change agents: The team should be empowered to drive the change, they will be responsible for the transformation and will have the autonomy to make decisions that align with the overall objectives. The team should also have a clear understanding of the vision of the organization, and they will be able to act as change agents within the organization.
5. Resistance to change: The team will continuously gather feedback from all stakeholders, including those who may resist change. They will use this feedback to adjust their work, and to address any concerns or resistance.
6. Budget: The budget for the transformation should be allocated for the team, for example for training, coaching, and implementation. The team should be able to adjust their budget as needed and should be able to measure their value delivered.
7. Financing: The financing of the transformation should be done through the allocation of budget to the team, and the team should be able to measure their value delivered.

In summary, the Agile transformation should be an ongoing effort, where the team will continuously inspect and adapt to deliver valuable results. The team should be empowered to drive the change, and continuously gather feedback from all stakeholders to address any concerns or resistance. The budget for the transformation should be allocated for the team, and the team should be able to measure their value delivered.”

Comment: Some of these responses are a reasonable start, although they are in classic consultant speak. However, the answers regarding covering resistance to change, budget, and funding do not meet my expectations for an agile transformation with ChatGPT.

Follow-up question: Can you recommend outsourcing an agile transformation to a big consultancy?

ChatGPT:

“Outsourcing an agile transformation to a big consultancy can have its benefits, such as access to specialized expertise and resources, as well as a proven track record of successful transformations. However, it can also have its drawbacks, such as a lack of understanding of the organization's unique culture and constraints, and a lack of ownership and commitment from the organization's employees.

Here are a few things to consider when outsourcing an agile transformation to a big consultancy:

1. Align with the organization's goals and objectives: It is important to ensure that the consultancy's approach aligns with the organization's goals and objectives and that the consultancy is able to deliver the results that the organization is seeking.
2. Involve employees in the process: To ensure that the transformation is successful, it is important to involve employees at all levels in the process, regardless of whether it is outsourced or not. This will ensure that the change effort is aligned with the organization's goals and objectives and that employees are engaged and invested in the process.
3. Ensure a good fit: It is important to choose a consultancy that has a good understanding of the organization's culture and constraints, and that is able to work well with the organization's employees. A good fit will ensure that the transformation is successful and that the organization's employees are engaged and invested in the process.
4. Keep the ownership: Even if the consultancy is providing the expertise and resources, it's important that the ownership of the change stays within the organization. This will ensure that the employees are able to take ownership of the change and that they are invested in the process.
5. Be prepared for resistance: Change is hard, and it is important to be prepared for resistance, regardless of whether the change is outsourced or not. This can include resistance from middle managers and other employees who may be hesitant to embrace change. It is important to address any resistance head-on and to provide support and resources to help employees through the transition. This can include communication and training on the benefits of the change, as well as addressing concerns and providing support during the transition period.

Comment: These answers weigh the pros and cons of outsourcing an agile transformation to an external consultancy. Regarding the previous set of responses, this one is more substantial. 

Follow-up question: Why do you believe outside consultants with no intimate knowledge of the organization can support an agile transformation?

ChatGPT:

While outside consultants may not have intimate knowledge of the organization, they can bring a fresh perspective and specialized expertise to the agile transformation effort. They can provide valuable insights into best practices and industry trends, and can help the organization identify and address any issues that may be hindering the transformation.

Additionally, outside consultants can provide training and coaching on agile methodologies and principles, which can be beneficial for employees who may not have experience with agile practices. They can also provide support and guidance to the organization's leadership team, helping them to navigate the complexities of the transformation and to make informed decisions.

It’s important to note that, while outside consultants can provide valuable expertise and support, the success of the agile transformation ultimately depends on the organization's leadership and employees. Therefore, it is important to involve the employees in the process, to ensure that they understand the reasons for the change and are invested in the process.

In summary, while outside consultants may not have intimate knowledge of the organization, they can bring specialized expertise, fresh perspective, and support to the agile transformation effort. However, the success of the transformation ultimately depends on the organization's leadership and employees, who should be involved in the process and understand the reasons for the change.”

Comment: This response could be from a sales prospect of a consultancy specializing in agile transformations. Unfortunately, I miss information on how often outsourced change projects fail and why it would be different regarding an agile transformation.

Follow-up question: Is there more I should know?

ChatGPT:

“There are a few additional things to consider when outsourcing an agile transformation to a big consultancy:

1. Communication and transparency: It is important to establish clear communication channels between the organization and the consultancy, to ensure that everyone is on the same page and that progress is being made. This includes regular status updates, progress reports, and regular meetings between the organization and the consultancy.
2. Sustainability: The transformation should be sustainable, meaning that the organization should be able to continue the change after the consultancy is gone. The consultancy should provide training, coaching, and support to the organization's employees, so they can continue to improve and evolve after the consultancy leaves.
3. Tailored approach: The consultancy should be able to tailor their approach to the organization's needs, and not to force a one-size-fits-all solution. They should be able to adapt to the organization's culture, constraints, and goals.
4. Measuring success: It's important to establish metrics to measure the success of the transformation, such as customer satisfaction, employee engagement, and delivery of value. This will help the organization to understand the impact of the transformation and to make data-driven decisions.

In summary, outsourcing an agile transformation to a big consultancy can bring specialized expertise and support to the organization, but it's important to consider factors such as clear communication, sustainability, tailored approach, measuring success, and employee involvement to ensure the success of the transformation.”

Comment: This response is more substantial than the previous one. ChatGPT points to several critical success factors that apply whenever external consultancies join a change project. Maybe, an agile transformation with ChatGPT guiding would have a (slim) chance of success.

Follow-up question: Is it worth spending thousands of dollars on junior consultants from a big consultancy with little practical experience in agile transformations and no knowledge of your organization?

ChatGPT:

“It is not always necessary to spend thousands of dollars on senior consultants from a big consultancy for an Agile transformation. While they may have more experience and expertise, it's important to consider the specific needs of your organization and whether junior consultants with less experience but more knowledge about your organization can be as effective.

It is important to note that the success of an Agile transformation depends on the ability of the consultants to work with the organization's employees and understand the organization's culture and constraints, regardless of their experience level. Junior consultants who have little practical experience in Agile transformations but have knowledge of the organization and its specific needs can be just as effective in leading the transformation.

Additionally, it's important to consider the cost-benefit ratio of hiring a big consultancy firm, and evaluate if the cost of hiring them outweighs the benefits they can bring. Organizations can also consider other options such as hiring an internal Agile coach, or finding a smaller, local consultancy that is more specialized in the specific industry.

In summary, it's important to consider the specific needs of the organization and the cost-benefit ratio when deciding whether to hire a big consultancy firm for an Agile transformation. Junior consultants with knowledge of the organization and its specific needs can be just as effective in leading the transformation as senior consultants with more experience.”

Comment: This is a bold statement: junior consultants, inexperienced in agile practices, can successfully settle an agile transformation if they only know the organisation well. I have my doubts in this regard.

Conclusion: An Agile Transformation with ChatGPT

Given that ChatGPT’s underlying LLM was not trained beyond 2021 and given the niche topic, some of the answers have their weak moments, while others reflect the challenges of an agile transformation with ChatGPT well. I am eager to learn what will be possible with a newer LLM that also allows training by practitioners in specialized knowledge areas. We thought that AI might initially come after simple office jobs. I am no longer sure about that. Maybe, ChatGPT’s successor will start at the top of the food chain. 

Would you consider embarking on an agile transformation with ChatGPT instead of McBoston? Please share your experience with us in the comments.

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Agile Transformation: ChatGPT or McBoston? was first published on Age-of-Product.com.