From Silos to Streams: A Bottom-up Agile Transformation

This Agile success story is drawn from the Agile Experience ReportBottom-up organizational change based on value streamswritten by Thomas Elkjaer and Tim Pedersen.


In 2020, a Danish public sector IT department with 400 employees supporting critical services began an Agile transformation. Though based on SAFe, the effort struggled. Their work centered on production and support, not software development, making the standard framework feel out of sync.

After more than a year, progress was unclear. Agile was treated as a checklist, not a mindset. Teams lacked clarity on their customers and how value flowed. Roles like Scrum master and product owner had little real authority. It became clear that deeper change was needed, one rooted in how people think, work, and connect.

Challenges behind the curtain

From the start, the Agile transformation faced internal friction. Many teams were structured in ways that disrupted their ability to deliver. In one unit, recent changes had left team members feeling disoriented. Work was marked by stop-and-go patterns, and there was little clarity on what the unit actually delivered or to whom.

In another area, four teams working on Access and Identity Management were split across three units. They relied on each other to get work done but had no shared prioritization or planning. Coordination happened late and often involved going through layers of management. The work was collaborative in theory but siloed in practice.

Transformation through Agile values

Context over conformity

Recognizing that SAFe alone wouldn’t address the real issues, the transformation team shifted focus. They introduced a Lean-Agile Center of Excellence (LACE) to model Agile practices and offer tailored coaching. Training emphasized learning and reflection over certification, while Scrum and Kanban were introduced gradually based on each team’s needs.

Rather than enforcing roles, the focus was on creating conditions for Agile to grow. Teams used retrospectives to guide change. Some members stepped into Scrum Master roles by interest, while others were hired externally to bring needed clarity.

Reorganizing around value

In Unit 1, workshops helped teams identify their customers and map value streams. This led to a self-selection workshop where employees reorganized into new teams. Managers observed but did not interfere. The change came from within.

Six months later, the unit reorganized again on its own, showing that the process had taken hold. What began as a restructure became a path to continuous improvement.

Meanwhile, four Access and Identity Management teams started aligning through shared planning and visual tools. Over time, they developed a common Agile language and more direct communication.

Eventually, the teams proposed forming a new unit. Leadership approved. A value stream workshop followed, and in just three hours, they mapped three full streams. Everyone participated. This time, they were ready.

Real results

The changes were both structural and cultural. One layer of hierarchy was removed, and coordinators moved into clearer roles like service request manager and product owner. Teams became more autonomous and no longer waited for top-down decisions.

Planning improved, and collaboration with partners like HR became smoother as priorities became shared and visible.

Even after consultants stepped back, the transformation continued. Units repeated workshops, and Agile coaching grew internally through an apprenticeship model. The culture shifted from compliance to ownership.

The bigger picture

Agile worked not because of a strict framework but because of its core values. Collaboration replaced coordination. Adaptability replaced rigidity. Teams stopped asking what process to follow and started asking what value they were delivering. They learned to reflect, adjust, and improve.

What Agile looked like in action

These real-world actions show how Agile values (see the Manifesto) and principles (see the 12 Principles) came to life in the day-to-day work of teams and leaders throughout the transformation.

  • Teams self-organized around value streams
    (Principle 11: “The best architectures, requirements, and designs emerge from self-organizing teams”)
    Teams led their own reorganization based on value stream insights, creating structures that better supported their work.
  • Training focused on learning and reflection, not just certification
    (Manifesto Value: “Individuals and interactions over processes and tools”)
    Training emphasized understanding Agile principles in context, encouraging dialogue and team growth over test results.
  • Cross-unit collaboration replaced fragmented planning
    (Manifesto Value: “Customer collaboration over contract negotiation”)
    Teams and units aligned priorities directly, reducing reliance on formal plans and improving real-time coordination.
  • Used retrospectives to guide continuous improvement
    (Principle 12: “At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly”)
    Teams repeatedly reorganized themselves based on what they learned about their work and collaboration.
  • Flattened hierarchy to support empowered teams
    (Principle 5: “Build projects around motivated individuals… trust them to get the job done”)
    By removing a layer of coordination, the organization gave teams more clarity and control over their decisions.
  • Built internal Agile coaching through face-to-face mentoring
    (Principle 6: “The most efficient and effective method… is face-to-face conversation”)
    An apprenticeship model helped internal coaches develop skills through guided practice and direct interaction.

Read the original Experience ReportBottom-up organizational change based on value streamswritten by Thomas Elkjaer and Tim Pedersen.

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Joe Foley

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