Work Methodologies DefinedTerm

Agile Software Development

Also known as: Agile, Agile Methodology

An iterative and incremental approach to software development that emphasizes collaboration, adaptability, and continuous delivery of value.

Updated: 2026-01-04

Definition

Agile Software Development is a set of principles and practices for software development based on short iterations, continuous feedback, and incremental adaptation. It was formally established in 2001 with the Agile Manifesto, signed by 17 developers who codified 4 values and 12 principles as an alternative to traditional waterfall processes.

The four core values prioritize:

  1. Individuals and interactions over processes and tools
  2. Working software over comprehensive documentation
  3. Customer collaboration over contract negotiation
  4. Responding to change over following a plan

How It Works

Agile does not prescribe a specific process but defines guiding principles implementable through various frameworks (Scrum, Kanban, XP, SAFe).

Iterative cycle: work is organized in short iterations (1-4 weeks called sprints in Scrum), each producing potentially releasable increments of software. Each iteration includes planning, development, testing, and review.

Feedback loops: end-of-iteration retrospectives allow the team to inspect the process and adapt. Daily standups synchronize daily work. Demos with stakeholders validate developed features.

Cross-functional teams: self-organizing teams of 5-9 people with all necessary skills (development, testing, design, product). Minimizes handoffs and increases ownership.

Prioritized backlog: the Product Owner maintains a prioritized list of features (user stories), continuously reordered based on business value and feedback.

Adoption and Diffusion

Market penetration: according to the 17th State of Agile Report (2024), 94% of organizations practice some form of agile development. This percentage has grown from ~37% in 2010.

Most used frameworks: Scrum dominates with ~66% adoption, followed by Kanban (~18%), Scrumban (~9%), SAFe (~5%). Many organizations hybrid different approaches.

Sectors: born in software, Agile has extended to marketing (Agile Marketing), HR, finance, product management. The term “Business Agility” describes the application of agile principles to the entire organization.

Practical Considerations

Scaling challenges: Agile works well for single teams (5-9 people), but scaling to dozens/hundreds of teams requires dedicated frameworks like SAFe, LeSS, or Nexus. Coordination between teams becomes the primary constraint.

Cultural fit: Agile requires transparency, trust, and error tolerance. In hierarchical or risk-averse cultures, superficial adoption (“Agile theater”) produces inferior results compared to well-executed waterfall.

Metrics: velocity (story points per sprint), cycle time, lead time, and deployment frequency are common metrics. Metrics should be used for internal improvement, not for team comparisons or individual performance.

Technical practices: the Agile Manifesto is deliberately light on technical practices. XP (Extreme Programming) fills this gap with TDD, pair programming, CI/CD, continuous refactoring. DevOps extends these practices to operations.

Common Misconceptions

”Agile means no documentation”

No. The manifesto says “working software OVER comprehensive documentation”, not “instead of”. Necessary documentation (API specs, architectures, user guides) should be produced, but just-in-time and kept updated, not written upfront and then ignored.

”Agile is faster than waterfall”

Not necessarily. Agile produces usable value earlier (shorter time-to-market for initial features), but total time may be similar or greater. The advantage is in the ability to adapt and reduce waste on unused features.

”Agile only works for small projects”

False. Organizations like Spotify, Netflix, Amazon scale Agile to thousands of developers. However, it requires specific frameworks and investment in tooling, automation, and culture.

”In Agile you don’t need a Project Manager”

Partially true. The traditional PM role is distributed: the Product Owner manages scope and priorities, the team self-organizes for execution, the Scrum Master facilitates the process. In large organizations, coordination roles remain (Release Train Engineer in SAFe, Program Manager).

  • Scrum: agile framework with specific roles, events, and artifacts
  • Kanban: method to visualize and optimize workflow
  • DevOps: extension of agile principles to deployment and operations
  • Design Thinking: complementary approach for discovery and ideation
  • OKR: goal-setting framework aligned with agile iteration and adaptation

Sources

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