Working in agile teams: On the edge of chaos?

It is often assumed that coordinating work in agile teams helps firms respond more quickly to changing requirements (e.g., new customer requests or market needs). Despite the growing popularity of agile teams and related project management methodologies such as Scrum, there is surprisingly little empirical research on what working in agile teams means for employees. This dissertation describes agile teams as flexible “sailboats” because they use a specific approach that allows them to navigate changing requirements. This approach is characterized by various Agile Work Practices (AWPs) that help teams coordinate taskwork and teamwork in an iterative manner (rather than a sequential manner). This dissertation examined the practices of more than 300 different teams within a large organization in Germany. It was found that when teams approach tasks in short cycles and work towards goals iteratively (agile taskwork), employees tend to be more engaged and proactive at work. By promoting team proactivity, agile taskwork can lead to long-term improvements in team performance. Although the effects of agile taskwork were relatively robust, the benefits of agile teamwork mainly emerged when there was less team role conflict. The findings of this dissertation suggest that leaders can take action to improve agile team effectiveness by (1) aligning AWPs with team needs, (2) regulating hindrance job demands, and (3) facilitating proactive behavior. This can help teams to work “on the edge of chaos” – in a manner that is neither too rigid nor too chaotic.