Over the years, Iโve had many management conversations about HR policies in Agile setups. Questions like:
- โHow should performance appraisals work in Agile organizations?โ
- โHow do we develop multi-skilled people?โ
- โHow do we create real teams?โ
- โHow do we keep and attract new developersโ
These questions were hard to answer at first, but as I studied the often outdated theories of HR, I got to understand how HR practices play an essential role in enabling Agile success.
One particular questions that I did not have an answer to was something like:
โHow do we ensure our people donโt reject this idea of multi-skilling in a market where deep expertise is highly valued and technology changes so fast?โ
We worked together to rethink their performance appraisal system. Instead of traditional top-down evaluations, we implemented:
- Frequent, informal feedback sessions led by peers and collaborators.
- A shift from individual evaluation to team-based success metrics.
- An emphasis on identifying learning opportunities rather than judging past performance.
Performance Appraisal in an Agile Setup
Traditional HR practices, like performance appraisals, often fail in Agile settings. Why? They are built on assumptions that work is predictable, environments are static, and individuals operate independently. Agile organizations, however, thrive on adaptability, collaboration, and continuous learning.
Multi-skilled value system. source: Creating Agile Organizations by Cesario Ramos & Ilia Pavlichenko, 2022, Addison Wesley.
- Skills must evolve constantly. Technologies that are critical today may be obsolete tomorrow.
- Continuous learning is a necessity. Teams and individuals must keep developing a deep understanding of new tools and domains to remain competitive.
- Collaboration trumps individual effort. Success depends on how well teams work together toward shared goals.
This dynamic directly impacts HR practices:
Traditional Performance Appraisals: Why They Fall Short
In traditional systems, appraisals focus on:
- Judging past performance.
- Setting static objectives for the future.
- Individual outcomes in isolation.
But Agile settings demand a different approach. The focus must shift from judgment to support learning:
Agile HR Principles: Supporting Multi-Skill Development
- Feedback is informal, frequent, and team-driven. Instead of top-down evaluations, peers and collaborators provide frequent actionable feedback.
- Growth is continuous and contextual. Employees and teams determine their learning needs, driven by evolving team and business goals.
- Collaboration drives success. Performance is judged based on team outcomes, not individual metrics, because work is highly interdependent.
- Power dynamics are eliminated in feedback. Managers act as coaches, not evaluators, enabling trust and genuine growth.
By aligning HR practices with the principles of Agile, organizations create an environment where collaboration becomes the foundation of success.
Agility isnโt just about frameworksโitโs about building systems and cultures where teams and individuals can thrive.
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