The role of the first line manager in a Scaled Agile ...

The role of the first line manager in a

Scaled Agile organization

A Case Study at Volvo Cars Corporation

Master¡¯s Thesis in the Management and Economics of Innovation Master¡¯s Programme

ANNA LJUNG

JOHANNA UDESEN

Department of Technology Management and Economics

Division of Entrepreneurship and Strategy

CHALMERS UNIVERSITY OF TECHNOLOGY

Gothenburg, Sweden 2019

Report No. E 2019:051

MASTER¡¯S THESIS E 2019:051

The role of the first line manager in a

Scaled Agile organization

A case study at Volvo Cars Corporation

ANNA LJUNG

JOHANNA UDESEN

Tutor, Chalmers:

Tutor, organization:

Kamilla Kohn R?dberg

Eric Land¨¦n

Johanna Hartman

Niclas Pettersson

Department of Technology Management and Economics

Division of Entrepreneurship and Strategy

CHALMERS UNIVERSITY OF TECHNOLOGY

Gothenburg, Sweden 2019

The role of the first line manager in a Scaled Agile organization

A case study at Volvo Cars Corporation

? ANNA LJUNG, 2019

? JOHANNA UDESEN ,2019.

Master¡¯s Thesis E 2019:051

Department of Technology Management and Economics

Division of Entrepreneurship and Strategy

Chalmers University of Technology

SE-412 96 Gothenburg, Sweden

Telephone: + 46 (0)31-772 1000

Cover:

[¡°One person under the magnifying glass¡± This thesis is investigating the line manager role,

illustrated by looking particularly at one role.]

Chalmers digitaltryck

Gothenburg, Sweden 2019

Abstract

The global business environment requires organizations to be more flexible and adaptive to changes.

Agile was designed for this purpose, originating from small software companies. Large established firms

looking for a solution are trying to take advantages of the Agile benefits. The size of these firms however

require a different approach than the one developed for small software companies, and this approach

could be Scaled Agile. Scaled Agile are combining Lean and Agile principles to suit large firms.

However, the management theory of traditional, Agile and Scaled Agile organizations is in part

contradictory. When large organizations with traditional organizational structures undergo a Scaled

Agile transformation, there is uncertainty about what happens to the traditional line manager. The

purpose of this thesis is to map out how a traditional and hierarchical management role can be

implemented into a Scaled Agile organizational structure, focusing on Volvo Cars Corporation, VCC,

and using three additional organizations to provide a contrast. This has been conducted through a

qualitative case study totaling 16 interviews aiming to answer the following research questions: (1) How

has the line management structure changed when going through a Scaled Agile transformation? and (2)

What tasks and responsibilities have been removed respectively emerged and what does this require of

a first line manager in a Scaled Agile organization? To answer these research questions, this thesis

covers theory concerning the characteristics of traditional, Agile and Scaled Agile organizations and

their respective management styles. The collected interview data was compiled and categorized under

Changes in organizational structure, The interplay between PO, ScM and FLM (first line manager),

Line manager responsibilities and Challenges of the line manager. The main part of the findings

concerns VCC. The findings from the three additional organizations are categorized under the same

headings. All four organizations had started implementing Scaled Agile, but their approach varied

substantially. This thesis concludes that line managers are still needed in a Scaled Agile organization.

Their roles however have to change in order to align with Agile practices. By doing so the first line

manager loses technical responsibilities but becomes more involved in HR, interpersonal tasks and

transformation work. The organizations investigated chose to keep the line structure almost as it was

before the transformation, but still expected individuals to change their way of working. This makes the

mindset of the individual all the more important to the success of a Scaled Agile transformation, however

the findings implies that an individual with an Agile mindset can positively influence those around them.

In the four organizations, the Scaled Agile approach has changed the distribution of power between

some of the Agile roles compared to original Agile methods. This thesis advise that the first line manager

embrace their increasingly HR related role by letting go of product responsibilities, embracing more

HR, developing individuals and becoming a servant leader.

Keywords: Scaled Agile management, Scaled Agile transformation, Agile management, traditional

management, hierarchical, first line manager, FLM, line manager responsibilities, line structure

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