From left to right: Krzysztof Jaros-Kraszewski, Joris Van den Bogerd, Thierry Kremser

To gain a deeper understanding of Agile adoption in the Grand Duchy, PwC has been conducting a comprehensive Agile Survey every two years since 2017. The 2024 edition marks the fourth iteration of this survey, offering valuable insights into the current state of Agile adoption across various industries. Thierry Kremser, Partner; Joris Van den Bogerd, Technology Advisory Manager; and Krzysztof Jaros-Kraszewski, Director at PwC Luxembourg provide a detailed analysis of the market evolution, challenges faced by organisations, and the strategic takeaways for top management as Agile continues to grow beyond IT departments into broader business functions.

What prompted PwC to conduct this Agile Survey?

TK: We have been performing the Agile Survey in Luxembourg every two years since 2017. Through it, our aim is to gain a deeper understanding of the current state of Agile adoption in the Grand Duchy. This year marks our fourth edition, offering us a solid historical perspective on Agile adoption trends over the last few years. The survey is open to all industries, though the majority of respondents for this edition were large organisations – over 1,000 employees -, with banking, capital markets and insurance industries leading the way.

What are the drivers for Luxembourgish companies and institutions to adopt Agile?

TK: In Luxembourg, the adoption of Agile in organisations is mostly driven by management's expectations of reducing project delivery times, enhancing collaboration between business and IT, and ultimately increasing business value.

One of the most compelling findings this year is the overwhelmingly positive feedback regarding how Agile is delivering on these expectations. Companies are reporting that Agile at scale, is aligning perfectly with what management had hoped to achieve.

New modes of collaboration have emerged, fostering a culture of continuous improvement, teamwork, and openness. This cultural shift has been key in driving the success of Agile, especially in how it enhances the way business and IT work together.

What’s also interesting is that we are seeing clear, measurable benefits from Agile adoption. More than half of the organisations surveyed, have reported an improvement in customer satisfaction. This is a direct outcome of Agile’s iterative approach, which allows companies to deliver better products and services more efficiently. At the same time, there has been a noticeable reduction in project completion times, also known as time-to-market, which further proves that Agile is the right framework for achieving faster and more efficient project outcomes.

The success of Agile is also visible in terms of increased productivity and quality. Teams are working more effectively, leading to better business outcomes and higher value delivered. The clear takeaway is that Agile is not just meeting expectations but is exceeding them in several areas, making it a fundamental part of how organisations in Luxembourg are driving forward their projects and operations.

How is the market evolving in terms of Agile adoption, and where do most companies in Luxembourg currently stand in this transformation?

JVB: Initially, Agile was seen primarily as a tool for improving the delivery and increase efficiency in project execution. However, as organisations have matured in their Agile adoption, there has been a change of paradigm. Agile is now increasingly seen as a mindset, a philosophy that promotes flexibility, collaboration, and adaptability across all levels of the organisation.

In 2024, organisations have moved past the experimentation phase. In our analysis we have made a distinction between the financial and non-financial sector. The banking sector, one of the early adopters of the framework, have seen its adoption rate the furthest ahead, which was in line with our expectations. While the other sectors have been adopting Agile as well, they are still catching up and seeing the value in extending Agile practices beyond IT. It is worth noting that although Agile adoption has been steadily progressing across all sectors, one-third of the respondents lack a formalised roadmap, leading us to believe that they applied Agile practices where they saw it fit instead of using a step-by-step approach.

The market also reflects a significant increase in key roles, which has helped organisations meet their expectations at a higher level. Two roles, in particular, are driving this success: the Product Owner and the Agile Coach.

Based on their experience, what insights and recommendations do organisations provide for those embarking on an Agile transformation journey?

KJK: If given the opportunity to reboot, most of the organisations would drastically change their strategy. 52% indicated that they would prioritise more extensive and ongoing training, which isn’t limited to theoretical training but involves on-the-job training. Training helps embed Agile mindsets and practices across all levels, ensuring that teams are fully equipped to function autonomously and effectively.

Another major lesson is the need for strong senior management sponsorship. Agile started at the team level and is increasingly becoming a corporate-wide transformation, requiring management involvement from the start, otherwise risking it to become fragmented and less effective. Not only must the leaders support the Agile transformation, but they also have to actively take part in its implementation in order to properly evolve into a holistic, organisation-wide practice.

A third crucial takeaway is the necessity of linking Agile transformation with corporate strategy if they want to maximise its benefits.

What key challenges do organisations typically encounter during their Agile transformation, and how do these obstacles affect the overall success of the transition?

JVB: When undergoing their Agile transformation, companies are faced with several challenges. The two most prevalent being coordination across departments and people aspect. Agile thrives on collaboration, but in many traditional organisations, teams often work in silos, with minimal interaction between departments. The need to bring together cross-functional teams, including business, IT, operations, and other units, can be a daunting task and should not be overlooked. 

Additionally, cultural resistance to change is one of the hardest barriers to overcome. Becoming Agile requires a shift in mindset which can often be uncomfortable for employees who are accustomed to well-defined roles and responsibilities. A strong leadership and commitment to change management is required in order to overcome this people-related challenge. Organisations need to invest continuously in training and have a transparent communication to help its employees understand why the shift is necessary and how an Agile framework will impact positively their roles.

Another major challenge relates to tooling. Surprisingly, half of the respondents in recent surveys reported they do not have an appropriate tool for tracking and managing Agile projects. The need for an integrated end-to-end solution to track and measure work across teams is critical in ensuring transparency, managing workflows, and aligning deliverables with business goals.

How can top executives ensure that Agile practices are embedded into the company culture and contribute to long-term business success?

KJK: First and foremost, it is essential to link Agile transformation to the company's overall strategy. Agile needs to be more than just an operational initiative—it must align with and support the firm’s long-term objectives. By integrating Agile into the strategic planning process, senior leaders can ensure that all teams and departments are working toward shared business goals. A highly effective way to do this is by implementing dynamic planning models like Objectives and Key Results (OKRs), providing a clear framework for setting company-wide goals and cascading them down to the team level.

In addition to strategic alignment, top management must set clear goals and track progress. This involves defining measurable outcomes that reflect the impact of Agile on both business performance and internal processes. By regularly tracking these goals, management can ensure that the Agile transformation is delivering value and adjust course when necessary.

Empowering lower levels of the organisation to take action is another crucial step in maximising Agile adoption. Agile thrives when decision-making is decentralised, allowing teams to move quickly and respond effectively to challenges and opportunities. This means creating an environment where teams are encouraged to make decisions, experiment, and learn from their outcomes without needing constant approval from senior leadership.

One of the reasons this approach is so effective is that when management sees the benefits brought on by Agile, they are more likely to push the entire organisation in that direction. As Agile demonstrates tangible improvements in areas like productivity, quality, and time to market, leadership naturally drives the organisation to adopt it more widely. Moreover, as companies begin to involve more business units in Agile, the focus shifts toward product development and planning, and senior management must be deeply engaged in this transition. Agile’s expansion beyond IT and into business functions depends heavily on the sponsorship and active support of top management. Without this sponsorship, the breakout from IT into broader business operations may stall or face resistance.

At PwC, we believe that the trend towards business integration will persist. Today, an increasing number of executives are considering Agile as a framework to adopt, inspired by the successes they have observed in the market. For this reason, we believe that the outlook for Agile looks promising, and we hope that the insights from our survey will give executives valuable input to drive the Agile adoption in their organisations.