Maybe the legacy organization actually knows what they’re doing

Usually we’re told that improving IT means changing the old organization. I’ve been re-reading The Art of Business Value, and re-came across this, to the contrary:

This way of thinking has always struck me as a little strange. Our goal is to deliver value, to figure out how to meet the needs that are determined by the organization, and yet we consider the organization to be the biggest impediment to doing so. The only explanation I can think of for this is that we are implicitly assuming that there is a stable, objective, preordained definition of business value, and we are determined to deliver on that definition despite the organization around us. In my experience, this arrogance is not warranted; in fact, the organization probably understands value in ways that the Agile team does not, and the obstacles to Agile adoption actually tell us something useful about business value in the organization.

Because, in fact, the organization knows the “business value,” the strategy, it’s in charge of reliving:

The organization has had to learn what business strategies, values, protocols, and behaviors work in its environment to support its ultimate aims, whether those are maximizing shareholder value or accomplishing mission objectives. That learning forms the basis of tacit assumptions and norms, the organization’s collected wisdom about what behaviors foster success. And if success means accomplishing the ultimate goals that serve as the sources of business value, then the Agile team must come to understand those values, strategies, goals, and operational modes that are embedded in the culture around it—that is, the business values that have been known to foster success.

From The Art of Business Value.

The 100 person limit

Size and internal vs. external coordination costs matter a lot. North of 100 people in a company, employees don’t all know each other. Politics become important. Incentives change. Signaling that work is being done may become more important than actually doing work. These costs are almost always underestimated. Yet they are so prevalent that professional investors should and do seriously reconsider before investing in companies that have more than one office. Severe coordination problems may stem from something as seemingly trivial or innocuous as a company having a multi-floor office. Hiring consultants and trying to outsource key development projects are, for similar reasons, serious red flags. While there’s surely been some lessening of these coordination costs in the last 40 years—and that explains the shift to somewhat smaller companies—the tendency is still to underestimate them. Since they remain fairly high, they’re worth thinking hard about.

The 100 person limit