Beware of "pseudo-agility": Why does your rapid iteration actually stifle innovation?

Concepts like "Agile thinking" and "Agile innovation" have far exceeded the initial scope of product development and manufacturing. Nowadays, we often hear about using Agile methods for budget planning, talent management, and even organizing family meetings. Agile is a good approach for product development, but many organizations have taken it too far and used it to avoid the process of careful planning and preparation. Combining Agile with the "Working Backwards" method would yield better results.

How Agile Enterprises Can Transcend Themselves

Agile seems to be a perfect fit for companies aiming to develop brand - new products or services and seeking rapid growth. These companies can't achieve their goals through interviewing and observing consumers because consumers can't respond to things that don't actually exist.

The solution is to create a prototype, the Minimum Viable Product. After several sprints (usually two - week cycles), the product team can present something good enough to consumers and get feedback. If the response is poor, the team can at least quickly obtain this information with minimal investment and may find better ideas in the process. If it attracts customers, the team can quickly iterate and create a better product based on the prototype.

In contrast, the Working Backwards method focuses on planning. This method emerged in 2004 when Amazon's e - commerce strategy was highly successful, and Amazon actively sought new opportunities in broad potential markets. Where should they start?

Instead of rushing to develop seemingly viable new products (which Agile thinking would encourage), Amazon advocated that slow is fast. CEO Jeff Bezos often said he was the "Chief Slow - down Officer." He would intervene if he felt the team was acting without clearly identifying customer problems and finding a perfect solution.

The Working Backwards method requires clearly visualizing the proposed product and imagining the media coverage after its launch. For software developers and product managers ready to start programming, this approach is completely wrong and even strange. The Working Backwards team usually spends weeks or even months carefully discussing this imagined media report and preparing FAQs to explain to colleagues, customers, and senior management how Amazon can offer the product at an affordable yet profitable price. Only after senior management is satisfied with these documents can the team start writing code and creating the product.

This method has persisted: today, Amazon still thinks backwards from the results it believes will please customers, even if it currently lacks the ability to achieve them. The e - book reader Kindle, the AWS cloud computing service, and Alexa's Echo voice assistant were all realized through the Working Backwards method. At that time, Amazon had little experience in manufacturing electronic devices and hosting other computer activities on servers. However, all three products became popular. Over time, they attracted competitors but still held the largest market share.

Speed Isn't Everything

Many companies use Agile methods. The fundamental problem with Agile is that its fast pace can lead developers astray. Developers aim to produce a Minimum Viable Product in a few weeks, so they skip the necessary careful research. We've even encountered worse situations: they make two compromises.

First, instead of investing time and taking on the uncertainty to develop new skills, they use existing skills. They accept the current limitations, thus affecting the potential of high - growth products.

Second, they limit their aspirations for the product. They don't aim for major breakthroughs but focus on incremental improvements. Or, the Minimum Viable Product they boldly create is actually unfeasible and can't get practical feedback from customers. Developers don't have time for solid preparation and can't develop something sustainable.

The team tells themselves that any information they get will help develop a breakthrough - innovative product in the future. But this future goal is rarely achieved. The Agile process often boils down to two - week sprints, leaving the team with no time or space to go back and carefully consider what customers really need. The team thinks in fragments based on existing resources and doesn't have time to deeply consider the big picture - which is exactly what breakthrough innovation requires.

Supporters of Agile development worry that the Working Backwards method will deprive the team of the power and speed to start new code, get customer feedback, and iterate quickly. However, speed isn't everything, especially for major breakthroughs. Don't confuse writing code with making progress. The Working Backwards method can actually help you launch successful products faster.

How to Improve Agile Methods

Our suggestion isn't for companies to completely abandon Agile methods. Agile methods are indeed efficient tools for product development, especially in software - related fields. Many Agile principles and processes are used by Amazon and other companies. After all, most product development only requires incremental changes. This kind of improvement doesn't require much thought. Just putting two incomplete options into the real world can yield crucial feedback.

Breakthrough - innovation product teams can also benefit from Agile methods, provided they first complete the planning process of the Working Backwards method. When entering the programming and product - building stage, it's best to move forward quickly and not get stuck. At this time, Agile sprint development can help you stay on the right track and ensure you can bring a finished product to market.

Therefore, the best solution is to combine Agile methods with methods like the Working Backwards method. For example, Amazon is used to using the Working Backwards method in the ideation stage but then uses Agile methods for product building and launch. If a giant like Amazon can flexibly switch between different methods, startups can surely follow suit.

Keywords: #Innovation

Colin Bryar, Bill Carr | By

Colin Bryar worked at Amazon from 1998 to 2010, eventually serving as Vice President of Technology and was a technology advisor to Jeff Bezos. He now serves as a senior advisor and is one of the authors of "Working Backwards: Insights, Stories and Secrets from Inside Amazon." Bill Carr worked at Amazon from 1999 to 2014, holding positions such as Vice President of Digital Media. He now serves as a senior advisor and is one of the authors of "Working Backwards: Insights, Stories and Secrets from Inside Amazon."

Shuojian | Translated by Zhou Qiang | Edited and proofread by

This article is from the WeChat official account "Harvard Business Review" (ID: hbrchinese). Author: HBR - China. Republished by 36Kr with permission.