Linköping University ǀ Department of Management and Engineering Master Thesis 30 hp ǀ Design and Product Development – Management

Spring semester 2020 ǀ LIU-IEI-TEK-A--20/03689—SE

Linköping University SE-581 83 Linköping, Sweden 013-28 10 00, www.liu.se

Evaluating the agile transformation process from an HR’s perspective

A study to investigate challenges arising for HR and

their role in an agile transformation

Sofia Blonde Felicia Ekman

Knowit Insight: Maria Wikberg Supervisor: Thomas Magnusson Examiner: Ksenia Onufrey Opponents: Kajsa Mårtensson & Amina Berrabia

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Abstract

Today many organisations are transforming from a traditional structure to an agile structure to be able to work more efficiently, meet the fast changes that are continuously happening and make sure not be outperformed by competitors. Agile was from the beginning a set of values and principles designed for software development but it has scaled and today it includes the whole organisation. To avoid imbalance within the organisation, it is crucial that the whole organisation applies an agile mindset. However, the transformation may imply a lot of obstacles and challenges on the way. For some departments within an organisation, it is a lot easier to keep up with the changes and be a part of the transformation process while other departments lag behind or are forgotten, which is common for the HR department. HR´s traditional responsibilities are performance appraisal, learning and development, compensation and recruiting and they are commonly viewed as an administrative function rather than a strategic function. However, it is important for HR to be a part of the agile transformation to be able to support the business. Applying agile can be a challenging task for HR since the requirements are many and the goal is clear which makes it hard to have an agile approach. On the other hand, HR can apply “agile lite” to their responsibilities and in that way fit the new organisation structure. In an agile transformation process it is highlighted that HR could function as a change agent, since they have a direct impact on the effectiveness of an organisation’s change and development. However, HR usually takes on a reactive role and are not the ones leading the transformation. This thesis examines two aspects for HR in an agile transformation process. First of all, the roles of HR in an agile transformation is investigated followed by identification of the challenges arising for HR during a transformation. How these challenges impact each other and the role of HR is also covered in the thesis. The study is based on qualitative research methods combined with a literature review. For the data collection, a total of seven semi-structured interviews with people from selected organisations were made. Further, a focus group session was conducted to discuss the findings and get a deeper understanding of the topic. To be able to analyze the aspects, theories concerning traditional HR, agile, agile applied to HR and the change process are covered in the thesis. Further, the chapter Cases of HR in agile transformations is categorized under HR’s role in an agile transformation and challenges with HR in an agile transformation. Regarding HR´s role in an agile transformation there are different opinions. Concluded from this research, HR could act as a change agent. Further, what affects what role HR ends up with is mainly based on their reputation and if they understand and work close to the organisation, which is two identified challenges. Other main challenges identified for HR in an agile transformation are: Understand and work agile, HR’s traditional responsibilities, Experiment, Competence, Attitude and awareness of change, Understand the “why” and communicate continuously, Time and capacity, Behavioral knowledge and External factors. Key Words: Human Resources (HR), Traditional HR, Agile Transformation, Agile applied to HR, Change Process, HR’s Role

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Acknowledgement

Writing this master thesis has been a challenging journey with a lot of ups and downs. However, we have learnt a lot. It is the last project to conduct our Master’s Degree in Engineering and we would like thank all the people who have helped us on our journey. First of all, we would like to thank Knowit Insight and especially our supervisor Maria Wikberg for encouraging and challenging us. Further, we are grateful for all the help, inspiration and enthusiasm from Martina Björk. We would also like to dedicate a sincere thank you to all the people participating in interviews and the focus group for their time and engagement. We would also like to thank our opponents Kajsa Mårtensson and Amina Berrabia, and our examiner Ksenia Onufrey for taking the time to help us improve our thesis by constructive feedback. Our greatest gratitude we would like to express towards our supervisor Thomas Magnusson for guiding us, taking the thesis to new heights by constructive criticisms and supporting us through all times. Last but not least, we would like to thank each other for everything, for always being there through both good and bad times. We made it! Linköping June 4th, 2020 Sofia Blonde and Felicia Ekman

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Table of Contents

1. Introduction ...................................................................................................................................... 1

1.1 Background .................................................................................................................................................... 1

1.2 Problematization ............................................................................................................................................ 2

1.3 Purpose and Research Questions ................................................................................................................... 2

1.4 Outline ............................................................................................................................................................ 3

2. Theoretical Framework ...................................................................................................................... 4

2.1 Traditional HR ................................................................................................................................................ 4 2.1.1 Development of Traditional HR ............................................................................................................. 4 2.1.2 The Reputation of HR ............................................................................................................................. 5 2.1.3 The HR Quadriad .................................................................................................................................... 5

2.2 Agile ............................................................................................................................................................... 7 2.2.1 Modern Agile.......................................................................................................................................... 7

2.3 Agile Applied to HR ........................................................................................................................................ 8 2.3.1 Performance Appraisals ......................................................................................................................... 9 2.3.2 Compensation ........................................................................................................................................ 9 2.3.3 Recruiting ............................................................................................................................................. 10 2.3.4 Learning and Development .................................................................................................................. 10 2.3.5 T-shaped and M-shaped Competence Profiles .................................................................................... 10 2.3.6 Coaching and Supporting ..................................................................................................................... 11

2.4 The Change Process ..................................................................................................................................... 11 2.4.1 The Stages of Planned Change ............................................................................................................. 12 2.4.2 HR’s Role in the Change Process .......................................................................................................... 12 2.4.3 Resistance to Change ........................................................................................................................... 13

2.5 Theoretical Synthesis ................................................................................................................................... 15

3. Method ........................................................................................................................................... 16

3.1 Research Strategy ........................................................................................................................................ 16

3.2 Research Process .......................................................................................................................................... 16

3.3 Literature Review ......................................................................................................................................... 17

3.4 Data Collection ............................................................................................................................................. 17 3.4.1 Sampling ............................................................................................................................................... 17 3.4.2 Interviews ............................................................................................................................................. 19 3.4.3 Focus Group ......................................................................................................................................... 19

3.5 Data Analysis ............................................................................................................................................... 20

3.6 Research Quality .......................................................................................................................................... 20 3.6.1 Credibility ............................................................................................................................................. 21 3.6.2 Transferability ...................................................................................................................................... 21 3.6.3 Dependability ....................................................................................................................................... 21 3.6.4 Confirmability ....................................................................................................................................... 21

3.7 Ethics ............................................................................................................................................................ 21

4. Cases of HR in Agile Transformations ................................................................................................ 22

4.1 HR’s role in an Agile Transformation ........................................................................................................... 22

4.2 Challenges with HR in an Agile Transformation .......................................................................................... 23

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4.2.1 Traditional HR ...................................................................................................................................... 24 4.2.2 Agile Applied to HR .............................................................................................................................. 25 4.2.3 The Change Process ............................................................................................................................. 28

5. Analysis ........................................................................................................................................... 31

5.1 HR’s Role in an Agile Transformation .......................................................................................................... 31

5.2 Challenges with HR in an Agile Transformation .......................................................................................... 32 5.2.1 Traditional HR ...................................................................................................................................... 32 5.2.2 Agile Applied to HR .............................................................................................................................. 34 5.2.3 The Change Process ............................................................................................................................. 38

5.3 Summary of the Challenges ......................................................................................................................... 41

5.4 Connections between Challenges and their Impact on HR’s Role ............................................................... 42

6. Conclusion ....................................................................................................................................... 46

7. Recommendations for Further Research ........................................................................................... 48

7.1 Recommendations for management ........................................................................................................... 48

References ............................................................................................................................................... 50

Appendices .............................................................................................................................................. 53

A. Interview templates in Swedish and English ............................................................................................ 53

B. LinkedIn post ............................................................................................................................................ 58

C. Focus group session preparations ............................................................................................................ 59

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Table of Figures Figure 1 - Illustration of the structure ...................................................................................................... 4 Figure 2 - The HR quadriad, based on Bredin & Söderlund (2011) ........................................................... 6 Figure 3 - Intra-functional and inter-functional project work (Bredin & Söderlund, 2011, p. 2207) ........ 7 Figure 4 - The values in the Agile Manifesto (Shead, 2016)...................................................................... 7 Figure 5 - Comparison between Agile Manifesto and modern agile (Kerievsky, 2016) ............................ 8 Figure 6 - T-shaped and M-shaped skills (Bredin, et al., 2016, p. 223) ................................................... 11 Figure 7 - Lewin’s change model ............................................................................................................ 12 Figure 8 - The research process .............................................................................................................. 17 Figure 9 - The positions of the respondents ........................................................................................... 19 Figure 10 - Categorical overview of the findings .................................................................................... 22 Figure 11 - Identified challenges............................................................................................................. 33

Table 1 - Summary of the various challenges………………………………………………………………………………………47 Table 2 - Recommendations for management……………………………………………………………………………….……54

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1. Introduction

To introduce the reader to the topic of this thesis, a brief background covering human resources (HR) in agile transformations will be presented. The background is followed by problematization, purpose and research questions and the outline of the thesis.

1.1 Background Companies have through all times gone through different transformations in organisational structures and mindsets to be able to adapt to the business climate. In today’s society a new structure and mindset is trending, and it is called agile. Agile is implemented to be able to work more flexible, efficiently and adaptable to changes. (Perkin, 2020) Applying an agile structure and mindset is critical for many companies and there are numerous examples of companies that have been market leaders but not had the ability to see the need to switch to an agile mindset and therefore failed (Birkel, et al., 2013). Pia-Maria Thorén mentions in the first episode of Agila HR podden, how big companies working with a traditional structure are being outperformed by smaller companies working in a more flexible and adaptable way (Mangen, 2018). According to Bazigos et al. (2015), a study made on 161 companies shows that companies with an agile structure were by far the strongest regarding aspects such as speed and stability. Further, Rigby et al. (2018) also highlight how companies with an agile structure have higher team productivity, faster time to market and better quality compared to the companies with a traditional structure. Therefore, many companies today strive to become agile. The agile philosophy has its roots in the agile manifesto that is a set of management practices and it was in the beginning created for software development (Denning, 2016). The agile manifesto is a set of values and twelve principles. The principles are fundamentals existing to give the ability to make good decisions in an agile perspective. (Shead, 2016) Today, the philosophy has developed and scaled and the new concept is called modern agile and it takes the agile perspective to an organisational level (Modern Agile, 2020).

The definition to work in an agile way in this study means being flexible, adaptable, work within a shorter timeframe and a shift in focus from individual to team. Therefore, companies must transform from a traditional structure and apply a new mindset to the organisation which could be a very tricky process with a lot of obstacles (Mangen, 2018). Further, Denning (2018) means that the whole organisation must apply an agile mindset. This is also something that Finn (2020) highlights as important, to avoid obstacles and imbalance within the organisation. A successful agile transformation regards a shift in culture and value throughout the whole organisation, Mangen (2018) highlights.

For some parts in an organisation it is a lot easier to adapt while others have a lot harder or are forgotten in the transformation process (Finn, 2020). Tonnquist (2019) means that agile working methods are hard to implement when the assignment has many external dependencies or when the deadline is set, which is common for the HR department. For this reason, HR usually lag behind when it comes to transformation (Finn, 2020). Bianca (2019) explains that HR’s responsibilities include recruiting and hiring employees according to the company’s current and future goals. Further, they include coordinating the employee’s skills

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development and employee training and increasing the commitment among the employees (Bianca, 2019).

Tetteh (2019) explains that HR are today facing a new transformation since many organisations are moving towards an agile structure. To be able to adapt to a new structure and create a new way of thinking, Claus (2019) means that the traditional HR approach must be challenged which means that the HR’s value proposition must be redesigned to fit the new agile context.

1.2 Problematization Just like Tetteh (2019) explains, HR are facing a transformation process which could be challenging for HR since the traditional HR activities are often related to compliance and operational issues whereas the new proposition should have a greater focus on the employee experience (Claus, 2019). This means that the physical, technological and cultural environment of the company must be considered to create meaningful experiences for everyone. According to Claus (2019), “HR and talent management must get away from a ´one program fits all´ mentality and think about building an organisational talent architecture that allows customizing programs to specific employee segments” (Claus, 2019, p. 210). Gothelf (2014) mentions that agility is highly important in the HR discipline to be able to support the whole business. For example, to be able to attract the right people with the right mindset it is important that HR have a recruitment process that test if the candidate has the right qualities to fit the organisation as well as to attract the candidate by showing an innovative and creative side of the company in the recruitment process (Gothelf, 2014).

When HR do not turn agile, Finn (2020) means that their practices create obstacles within the organisation. Traditional HR practices were developed when process, predictability and status were key, but this does not match with today’s agile mindset. Further, Gothelf (2014) also mentions that HR are usually a part of an organisation that do not apply agile. Therefore, it is very common that HR create imbalance within the organisation since they lag behind in the transformation process (Finn, 2020). To be able to solve this, it is important to investigate challenges arising for HR in an agile transformation.

The goal with an agile transformation is to increase the employees’ commitment, efficiency and loyalty, which means that HR have a crucial role in the transformation process to be able to create an agile mindset (Tetteh, 2019). However, Clay and Halladay (2018) mean that HR are sometimes viewed as a support function rather than a strategic part which creates problem and imbalance in the transformation process. According to Wigren (2019), HR possess a broad expertise about human resources, which is why it is important to make sure they are part of the transformation.

1.3 Purpose and Research Questions The purpose of this thesis is to investigate the problematic areas arising for the HR department in agile transformations and what roles HR can take in these transformations. The following research questions will be answered in this study:

1. What roles could the HR department take in an agile transformation process?

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2. What are the challenges arising for the HR department when an organisation is going through an agile transformation and how can they be explained?

3. How do these challenges impact each other and the role of HR?

1.4 Outline The introduction of this thesis will be followed by a theoretical framework including four different chapters: traditional HR, agile, agile applied to HR and the change process. The framework is followed by the method used in this thesis, including research strategy and design, research process, data collection, data analysis, research quality and ethics. Further, cases of HR in agile transformations is presented. This is followed by an analysis and conclusion. Lastly, recommendations for further research is presented.

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2. Theoretical Framework

First of all, this chapter will cover the basics and models of traditional HR to get a better understanding of the HR function in organisations. This will be followed by theories regarding the roots of agile which culminates in the modern perspective of agile, to get an understanding about where the organisation wants to be after the transformation. These theories will form the basis and understanding for the next chapter, which covers how agile can be applied to HR. The last sub-chapter will cover the change process and possible obstacles within it, and how to avoid them, as well as HR´s role in a change process. Figure 1 shows an illustration of the structure of the theoretical framework. These theories create a deep understanding of the topic and will be used to answer the research questions of this thesis.

Figure 1 - Illustration of the structure

2.1 Traditional HR According to Devanna et al. (1982), there are four basic generic activities that the HR departments are responsible for. The activities are related to performance appraisal, learning and development, compensation and recruiting, which are commonly process-controlled in a traditional structure. These activities are advantageous on an operational level since they fulfill immediate company needs and desires but also affects the company’s long-term goals and strategies. (Devanna, et al., 1982) Further, Flach (2006) means that the fundamental principle of HR is to maintain a good relationship between the employees and the organisation where both parts can benefit from each other. Rousseau and Greller (1994) explain how HR practices usually function autonomously and that their responsibilities also include benefit administration.

2.1.1 Development of Traditional HR The HR activities have further developed and Vulpen (2019) means that the activities presented by Devanna et al. (1982) are one part of the responsibilities, called “traditional HR”. However, he means that HR activities related to production optimization and managing employee attitudes are also part of the responsibilities. Production optimization are related to activities to increase the efficiency, for example by job analysis, job rotation and information sharing. Managing employee attitudes means that HR conduct attitude surveys to identify areas of improvement within the organisation. It also includes knowledge about conflict resolution. The

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three categories of HR activities are intended to create benefits for the employees as well as the organisation. (Vulpen, 2019) Flach (2006) also mentions that the HR activities have changed and that they are more focused on integration between employees and strategic and operative issues. Further, Wright (2008) also emphasizes that HR should move away from the administrative tasks and rather work as internal consultants (business partner) advising on people management. Wright (2008) mentions that HR business partner is a new role that has emerged, that enables for HR to work more strategically. It includes advising senior management on human resources and acting as change agents within the organisation. Further, this has shown to be successful since the senior managers have gotten increased trust for HR, Wright (2008) highlights.

2.1.2 The Reputation of HR Ahnlund (2018) means that a struggle with traditional HR is that HR often operate in their own silo separated from the business, and therefore becomes a less important function. It is also highlighted by Wright (2008) that HR are viewed as an administrative unit, fixed on bureaucratic procedures. Another issue mentioned by Guest and King (2004) for traditional HR is that HR’s role is ambiguous due to the fact that it is overlapped with a set of activities for managers. Further, HR are often uncertain about their success criteria which leads to uncertainty about what to prioritize. This absence of strategic focus emphasized by Guest and King (2004) means that “they welcome being reactive and busy and are willing to respond to the knock on the door or the telephone call” (Guest & King, 2004, p. 402). By doing that, managers have no problem throwing minor issues for the HR department to handle. Connected to this, Baird and Meshoulam (1988) highlight how managers usually only are aware of HR’s administrative role. This results in an administrative reputation and lower status, which is emphasized by Guest and King (2004) and Baritz (1965). Further, Ferris et al. (2007) explain that the HR reputation is determined by a combined judgement of an organisation’s HR practices, philosophies and policies and particularly created by employees. Guest and King (2004) highlight that HR are sometimes viewed as not being business oriented nor involved in business decisions and that they have lack of influence. Further, Wright (2008) explains that HR have tried to achieve a more strategic function, but it has been hard with resistance from senior management and the heritage as an administrative function.

2.1.3 The HR Quadriad Many organisations strive to be more flexible and effective. In order to do so it is usual to adapt to the characteristics of a project-based organisation (Bredin & Söderlund, 2011). The transformation of structure implies implementation of HR practices and it often means that existing models and practices are challenged (Claus, 2019). The move toward project-based structures tends to increase the workload for the employees which means there is less time for reflection, recuperation and learning. Further, this tends to imply implications for employees and thereby the HR department. (Bredin & Söderlund, 2011) The HR quadriad is a framework that shows the interaction between HR specialists, line managers, project managers and project workers, see figure 2 below. The framework analyzes the central HR roles in project-based organisations, at the operational level. Bredin and Söderlund (2011) mean that the access to HR competence in daily work activities is desirable by many people within the organisations, mainly the line managers and project managers, which also is mentioned by Guest and King (2004) who means that it sometimes occurs an

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overlap between the managers and the HR activities. Further, Bredin and Söderlund (2011) mean that the HR specialists should focus more on strategic work and leave operational tasks to the line managers. They express that “In general, the local HR specialists are supposed to be ‘strategic partners’ and ‘business partners’ to line managers” (Bredin & Söderlund, 2011, p. 2215). The HR departments have further developed and are often replaced by a smaller number of HR specialists, Bredin and Söderlund (2011) highlight.

Figure 2 - The HR quadriad, based on Bredin & Söderlund (2011)

To be able to design the HR quadriad, Bredin and Söderlund (2011) mean that it is important to consider the nature of project work as either intra-functional or inter-functional. Figure 3 below shows the difference between intra-functional and inter-functional project work. The characteristics of project participation is fragmented in intra-functional work which means that project workers are co-located in several projects at the same time, working in teams where colleagues possess similar knowledge. The inter-functional project work is on the other hand focused and the project workers are often assigned to one project at a time. The teams consist of people with different knowledge. (Bredin & Söderlund, 2011) Further, Bredin and Söderlund (2011) mention that line managers in inter-functional work express that it is not necessary with more integrated HR support, since the skills needed for the line managers are already developed. However, it is advantageously to have the HR specialists as support when it is needed. The study made by Bredin and Söderlund (2011) shows that the HR specialists has a clear interaction with the line managers, whereas the interaction with the project dimension is more diffuse. For example, it is likely that the line managers HR responsibilities affects the HR specialists. Bredin and Söderlund (2011) mean that “The framework also points out that changes in one area might have profound effects on changes in another area” (Bredin & Söderlund, 2011, p. 2220).

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Figure 3 - Intra-functional and inter-functional project work (Bredin & Söderlund, 2011, p. 2207)

2.2 Agile Agile means being flexible, and it is based on a set of principles and values inspired by Lean. Back in the days, Lean was focusing on flow activity and optimization but today it has expanded and includes guidance of teams as well. (Shead, 2016) An agile way of working is based on integrated inter-functional project work, according to Socconini and Reato (2019). Agile was in the beginning focusing on sprint-based software development with a focus on the teams but now it also includes flows at the operational level, which means that the agile mindset needs to be applied throughout the organisation (Tonnquist, 2019). Figure 4 shows the values that are stated in the Agile Manifesto of 2001 (Shead, 2016):

Figure 4 - The values in the Agile Manifesto (Shead, 2016)

In a traditional structure, the focus is on the individual whereas the teams are in focus in an agile structure (Cappelli & Tavis, 2018). In agile projects there is a scrum maser who is the leader of the team and makes sure the cooperation works well in the team and runs smoothly. An agile approach means that collaboration in flexible self-organised teams is supported. (Tonnquist, 2019) The teams need to be flexible and continuously create, execute and revise the goals. Another characteristic of an agile structure is that the teams are responsible for the progress, which means they need to identify obstacles, analyze the leadership and continuously think about how to improve. The goal is to be able to adapt quickly to change. (Cappelli & Tavis, 2018)

2.2.1 Modern Agile Modern agile means bringing a modern perspective to the agile manifesto and scale it, which means taking the agile perspective to an organisational level and not just software development level (Modern Agile, 2020). To apply an agile structure to an organisation, it is also important for all business units to collaborate to boost utility of internal knowledge

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(Steiber, 2014). Further, the modern agile has four guiding principles: make people awesome, make safety a prerequisite, experiment & learn rapidly and deliver value continuously. The principle Make People Awesome focus on how organisations can make people in their ecosystem awesome. It includes everyone from the people who use it to the ones producing it. It means, in a new perspective, that instead of focusing on making a great product, the focus should be on making the customer awesome at whatever they do with the product/service. (Modern Agile, 2020) What is highlighted in the principle Make Safety a Prerequisite is that safety is a human need and it is required for high performance. Furthermore, it includes protection of people's information, money, reputation, relationships and time as well as making services, collaborations and products safe. (Modern Agile, 2020)

Experiment & Learn Rapidly is connected to Make People Awesome and Make Safety a

Prerequisite, meaning that it is not possible to achieve this if the employees are not learning

constantly. According to the modern agile philosophy, it is important to experiment and learn

rapidly and that the experiments are safe to fail. In this way, more experiments can and will be

executed. (Modern Agile, 2020) This is also highlighted by Steiber (2014), who emphasizes the

importance of experiment to innovate and to have a culture where experiment is encouraged.

The last principle means it is important to Deliver Value Continuously, meaning for instance dividing large amount of values to smaller pieces. Further, it is important to deliver it safely now rather than later. (Modern Agile, 2020)

Kerievsky (2016) highlights that the guiding principles in modern agile have their roots in the agile manifesto. The values from the manifesto have been translated into a new way of viewing agile, see figure 5 below.

Figure 5 - Comparison between Agile Manifesto and modern agile (Kerievsky, 2016)

2.3 Agile Applied to HR Many organisations are today transforming to an agile structure which means that HR also need to apply an agile practice to HR responsibilities to be able to support the organisation (Cappelli & Tavis, 2018). Further, Cappelli and Tavis (2018) explain that HR are going “agile lite”, meaning that they apply the general principles but not use the protocols and tools from the software world. To apply an agile practice, HR must change how they approach recruitment, compensation, performance appraisal as well as facilitate learning and development (Ayo, 2017). However, Tonnquist (2019) means that agile working methods are hard to implement

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when the assignment has many external dependencies or when the deadline is set. Also, if the requirements are many and the goal is clear it can be hard to have an agile approach (Tonnquist, 2019). Scully (2014) highlights the importance for HR to see the whole picture in an agile organisation so that they can help with producing great customer value by using the lowest possible expenditure of organisational resources. Rock (2008) emphasizes the importance of understanding people to improve the way people work together in agile organisations. For HR this would mean to increase their behavioral knowledge about people and decrease the administration tasks (Rock, 2008). Steiber (2014) explains that in traditional HR, HR are viewed as a maintenance function for human capital while in an agile structure where focus is on innovation HR should have a strategic function. This is also highlighted by Flach (2006), who means that HR’s focus should be on the strategic vision and goals of the organisation. Wright (2008) agrees and mentions that the responsibilities of HR must be renewed to succeed with organisational change. Below, a presentation on how the basic HR responsibilities would work in agile organisations and what needs to be changed from HR in a traditional structure are explained.

2.3.1 Performance Appraisals For an organisation to apply an agile mindset to an HR department they must skip annual performance reviews and yearly goals for their employees, that occur in the traditional structure, Cappelli and Tavis (2018) and Trost (2017) emphasize. The employees in an agile organisation are working on shorter terms compared to a traditional structure since they are working in sprints and in projects with various lengths. Further, an employee can have different leaders in different projects and therefore it makes less sense to once a year get feedback from your boss, Cappelli and Tavis (2018) explain. What is relevant in an agile structured organisation is feedback more often from more people. For example, the performance appraisal could be done after every project, to make sure they are collected more frequently and continuously. By implementing this, the teams can easier improve performance, learn from their mistakes and learn through iteration. (Cappelli & Tavis, 2018) Trost (2017) highlights that it is important in an agile setting, where networks are of key importance, to not create internal competition.

2.3.2 Compensation When transforming, the pay system is affected and must be changed according to the agile philosophy. (Cappelli & Tavis, 2018) Ali et al. (2004) also mention that the compensation system must change when implementing agile. HR must move away from annual salary raises that exist in the traditional structure and apply instant salary increase instead to recognize great contributions. This type of compensation could also increase the employer's engagement since instant rewards support instant feedback in a great way. (Cappelli & Tavis, 2018) Further, Cappelli and Tavis (2018) explain that a salary increase in an agile organisation could for example occur when an employee is taking on a more difficult project. Since the focus shifts from the individual to the team in an agile organisation, Cappelli and Tavis (2018) point out that the contributions and bonuses should be given to the teams as a whole and not just to specific individuals. Another way to work with bonuses and rewards in an agile structured organisation is by basing the bonuses on the company's performance so that everyone gets a bonus depending on how well the company has been doing. Further, compensation could be used to

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support the agile values when it comes to knowledge sharing and learning. (Cappelli & Tavis, 2018)

2.3.3 Recruiting Scully (2014) explains that when an organisation is transforming to an agile structure the characteristics of the employees also have to be changed to fit the new mindset and structure. Therefore, it is important for HR to recruit the right people with characteristics that fit an agile organisation (Scully, 2014). Bredin et al. (2016) emphasize T-shaped and M-shaped competence profiles which will be explained in chapter 2.3.5. Further, the recruitment process also changes when an organisation is transforming to an agile structure. Cappelli and Tavis (2018) brings up an example where a company apply an agile recruitment process by using cross-functional teams that work on all hiring requisitions. Further there is a “head count manager” who is responsible for representing the internal stakeholders who want their positions filled quickly and a scrum master who oversees the whole process. The managers who are hiring are rotating on and off the cross-functional recruitment team. This means that when they are hiring, they are on the team, and when they are not hiring, they are not on the team. Further, they follow an agile process, where the most urgent hires are prioritized, and it works on several hires at once. In this way the team members can share information and discuss the candidates if they would fit better in another position. (Cappelli & Tavis, 2018) Cappelli and Tavis (2018) explain how companies also uses technology to find candidates suitable to work in an agile working environment.

2.3.4 Learning and Development Cappelli and Tavis (2018) explain that when an organisation is transforming into an agile structure, skills need to be brought into the organisation more efficiently and faster. One way of doing this is by having an online library with courses that are available to access on demand (Cappelli & Tavis, 2018). Lessons learnt documentation is another method to use to facilitate learning and development in a range of functions and skills within the organisation (Coleman & Macnicol, 2015). Coleman and Macnicol (2015) mean that by using lessons learnt, it is possible to increase the effectiveness and hence respond to changes in a better way. This is also mentioned by Nahavandi (2015), who highlights that continuous individual and organisational learning and development are important to be able to quickly and efficiently adapt to change. Capelli and Tavis (2018) mean that it is important to quickly train leaders at all levels in agile transformations. Further, Scully (2014) explains that processes are often designed for standards in traditional organisations but when variation happens organisations must be able to handle it efficiently. Therefore, it is important for HR to develop and educate the employees, as well as give the employees the right tools so that they can handle the exceptions that occur (Scully, 2014).

2.3.5 T-shaped and M-shaped Competence Profiles Connecting to recruiting, it is critical to view the competence profiles to be able to find the right people. The competence profiles are also important to consider in learning and development and it is equally important for HR to have the right profile. (Cappelli & Tavis, 2018) Bredin et al. (2016) mean that T-shaped skills are “deep in one area, broad in many”. As seen in figure 6, the T-shaped skills are illustrated as a T where the steam indicates the depth of contributory expertise within one disciplinary knowledge domain and the bar on top of the T indicates a

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broader disciplinary knowledge profile meaning an amount of interactional expertise (Bredin, et al., 2016). To understand this further, Bredin et al. (2016) explain that interactional expertise is knowing about something and contributory expertise is knowing how to do something. According to Bredin et al. (2016), traditional projects should apply T-shaped skills.

In agile projects, team members are not assigned to a specific role and can therefore work self-organised and respond to rapid changes. Team members in agile projects are supposed to move outside their comfort zone and take on tasks in other areas when necessary. (Bredin, et al., 2016) The skills needed for agile projects are called M-shaped skills, illustrated in figure 6. Compared to a T-shaped profile, an M-shaped profile needs to have contributory expertise in more fields but not as deep. Further, Bredin et al. (2016) explain that an M-shaped profile still keeps a broad interactional expertise just like the T-shaped profile. The team will be less vulnerable if the members are more flexible in several domains, Bredin et al. (2016) highlight.

Figure 6 - T-shaped and M-shaped skills (Bredin, et al., 2016, p. 223)

2.3.6 Coaching and Supporting Improve and sharpen coaching skills for managers at all levels is something that is not seen as a traditional HR responsibility but becomes more important when HR are adapting to an agile organisation. This is because the behavioral knowledge of HR become more important in an agile organisation. By improving the skills, it is possible to build employees’ capabilities and relationship with their supervisors and this will further lead to increased engagement among the employees. With increased engagement the organisation will be able to innovate and move faster. (Cappelli & Tavis, 2018)

2.4 The Change Process The transformation to an agile structure is gradual and requires a new mindset where habitual structures and practices are challenged (Tonnquist, 2019). Cappelli and Tavis (2018) highlight that shifting the organisational mindset from a traditional to agile takes persistence. Further, Tonnquist (2019) points out that it affects the entire organisation. Obstacles often arise when an organisation is going through a transformation and some areas or individuals might lag behind in the process. However, to be successful as an organisation, it is important to continuously adapt to change to stay relevant (Boss, 2015). This sub-chapter presents the stages of planned change, different types of changes followed by resistance to change and methods to handle it.

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2.4.1 The Stages of Planned Change When an organisation is going through any type of planned change there are different steps that require different resources and leadership (Nahavandi, 2015). Lewin’s change model consists of three different stages where the first one is the Unfreezing phase. In this phase, it is important to prepare and inform people within the organisation about the change and explain why the change is needed to develop motivation for the change. The Unfreezing phase can be very difficult if there are a lot of internal and external forces against change. (Nahavandi, 2015) To connect this to HR’s role in the change process, Browning (2015) means that it is important to develop the change management team and outline key roles to prepare for the change. Also, it is of great relevance that the change management strategy is defined (Browning, 2015). The second phase is the Changing phase. In this phase the change is implemented, and new policies and practices are introduced to the organisation as well as new behaviors and skills (Nahavandi, 2015). Browning (2015) means that by including communications, operations and resistance management to the change management plans for HR, it is possible to manage the change in this phase. Refreezing phase is the last phase in Lewin’s change model. In this phase it is important to assure that the changes becomes permanent by giving support and encouragement. (Nahavandi, 2015) Nahavandi (2015) explains that the Unfreezing and Refreezing phases sometimes are forgotten when a company goes through a change, but are equally important as the change itself. To be able to successfully implement change from an HR perspective, Browning (2015) means that by gathering and analyzing feedback and then carry out corrective actions where needed it is possible to reinforce the change and hence succeed.

Figure 7 - Lewin’s change model

2.4.2 HR’s Role in the Change Process Baran et al. (2018) explain that there are four different types of organisational change: continuous-convergent, continuous-radical, episodic-convergent and episodic-radical. Continuous-convergent change is small changes that gradually shift processes or behaviors. When there are small changes that makes a great impact on the whole organisation it is called continuous-radical. When it comes to episodic-convergent change, it is a bigger turning point that gradually shift the organisation into a new direction. The last type, episodic-radical, is a change that is a great turning point and where the change has a radical impact on the organisation’s values, mission or structure. Further, the HR function works across all four types of organisational change and therefore has a great impact no matter what type of change it is. (Baran, et al., 2018) Further, Baran et al. (2018) highlight that the HR function has a critical role and a great influence both indirectly and directly over the organisation since they oversee employee selection, leader development and employee training. Therefore, HR directly impact the effectiveness of an organisation’s change and development. Baran et al. (2018) also explain that in an episodic type

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of change, for example an agile transformation, the HR function could find themselves similar to a change agent. Clay and Halladay (2018) also confirm that in a change process, the HR function should work as a change agent since they are the agent of the people. In order to function as a change agent, Nahavandi (2015) highlights the importance of understanding how the whole organisation functions. This is also mentioned by Wright (2008), who means that it is important for HR to work closer to the organisation to be able to achieve organisational excellence. To succeed, Wright (2008) also mentions that HR should act as a change agent. Further, Mangen (2018) highlights that HR could take on a proactive role and help drive the agile transformation in an organisation since they have such deep roots in the structure, from how goals are set to an individual level. However, it is common that HR take on a more reactive role in the agile transformation instead due to the fact that traditional HR practices are not suitable in an agile setting (Finn, 2020). Clay and Halladay (2018) point out that a main problem during organisational change is that HR sometimes are viewed as a support function rather than a strategic part in the change management strategy and therefore not acting as a change agent. This is also highlighted by Mangen (2018), who means that HR are seen as a support function rather than a core function which means their position is not prioritized in a transformation. Further, Baran et al. (2018) suggest that the HR function would favor from broadening their view of how organisational change happens.

2.4.3 Resistance to Change Besides factors in the change process that could lead to a less successful agile transformation for an organisation, there could also be resistance to changes among the employees or external forces affecting the change (Nahavandi, 2015). Ayo (2017) means that there are several reasons why people resist to change, four different internal reasons are: a desire not to lose something of value, misunderstanding of the change and its implications, belief that changes do not make sense for the organisation and low tolerance for the change. Further, Nahavandi (2015) mentions that other internal forces could be new leadership, low satisfaction, new mission and conflicts. Ayo (2017) means that the reaction to change and cause of resistance can differ a lot between individuals and groups. However, external forces may also affect the change. These forces can be related to factors such as economic and political, cultural and social, demographic, industry and technology (Nahavandi, 2015). Methods to Handle Resistance to Change To counteract, handle and reduce the resistance to change, there are several methods to use presented below. Communication Clay and Halladay (2018) point out that the HR function is very important in organisational changes. They highlight that HR are designed as a trusted advisor function and that they provide a platform for the employees to express their opinions and questions regarding change. They are there to take care of the employees concerns and therefore they are an excellent channel to communicate the change and how it will be managed. (Clay & Halladay, 2018) Communicating the change clearly and consciously is also something that Browning (2015) highlights as important. Browning (2015) means that it is relevant to conduct surveys throughout the change to enhance the overall process and get feedback from the employees.

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Also, Browning (2015) mentions that it could be beneficial to use both formal and informal communications approaches to meet everyone's needs. Support Browning (2015) means that HR should help the employees getting a better understanding of the need for the change and the way it may affect them. On the other hand, Nahavandi (2015) highlights that it is the leader’s role and a leadership tool to support the employees through the change. Further, Browning (2015) explains that it is also HR’s responsibility to provide strong support for the changing environment, for example by providing the training and information needed for the managers to answer and handle the employee’s questions. Engaging and Encouraging

Clay and Halladay (2018) highlight, just like Baran et al. (2018) and Browning (2015), that HR play an important role in organisational change since they can easily work with encouraging the change among the employees. Nahavandi (2015) also points out that it is important to engage employees in the transformation process but from a leadership perspective. To engage the employees, Browning (2015) explains that HR could work with assigning and clarifying roles, increase focus on employees who are mostly affected by the change and take into account motivational factors for each employee. Vision and Inspiration Nahavandi (2015) highlights that all employees need to change their perception of change from negative to positive, by seeing potential benefits with the change. This could be solved by leadership tools that could be used to inspire and role modeling. By inspiring the employees through the change process, the resistance towards the change will decrease. It is also important to set a clear and common vision through the change process. This will make it is easier for the employees to have the goal in their mind through the whole process, especially in the unfreezing phase. (Nahavandi, 2015) Nahavandi (2015) also highlights that it will be easier for the employees to be focused in the refreezing phase in Lewin’s Model for Change. To set a clear vision, is also something that Murthey (2007) points out as important regarding leadership in change management. Creativity To successfully implement change, Nahavandi (2015) explains that it is important to view the aspect of creativity. Creativity is at the core of successful change since it is about addressing problems in new ways. Regarding this factor it is very important to let all employees experiment and to tolerate mistakes as an organisation. (Nahavandi, 2015) Organisational Culture To be able to implement change successfully it is also important to recognize the organisational culture and change it if it’s required (Nahavandi, 2015). Like mentioned earlier, role modeling is an important aspect in change management. When it comes to role modeling, Schein (2017) highlights that it is not as important what the leaders says as what he/she does in a changing organisational culture. Schein (2017) also points out that it is important to know where to allocate the resources and what should be rewarded. Further, this should be in line with the change.

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2.5 Theoretical Synthesis The aim of the theoretical synthesis is to get an understanding about how the research questions will be answered and how the purpose of this thesis will be analyzed. To create an understanding of HR in an agile transformation and to be able to identify challenges that can arise, theories regarding Traditional HR, Agile, Agile applied to HR and The Change Process was covered. These theories made it possible to create a holistic picture of the agile transformation from an HR perspective and hence it was possible to create a solid base to later map out the specific challenges and identify connections between these. To clarify, a theoretical understanding of Traditional HR was needed to create an understanding about where HR is in the beginning of an agile transformation and challenges that can arise in this area. A Traditional HR structure is characterized by process-controlled activities and HR working in their own silo. Further, theories regarding Agile was needed to create knowledge about the goal with the transformation, not at least modern agile to get the perspective of agile at organisational level which is appropriate to apply to HR. Agile applied to HR was also covered to understand the connection between the theories and challenges occurring from this perspective. Agile applied to HR means that HR apply the agile mindset to their responsibility and hence work more strategically. To reach the goal with the transformation, The change process was also covered, to get an understanding of the transformation process and challenges that possibly could arise in this area, for example resistance to change, communication and support. Connected to the change process, HR’s role was investigated. HR can either take on a role as a change agent which is more of a proactive role or they could have a more reactive role in the transformation. However, the role can potentially change throughout the different phases in planned change (unfreezing, changing and refreezing) and therefore theories regarding the different phases in planned change was also covered. Challenges of HR in an agile transformation can relate to three different areas addressed in the theoretical study. First, some challenges are rooted in the traditional HR structures and processes (see chapter 2.1, Traditional HR); second, some challenges are related to applying agile principles to HR work (see chapter 2.3, Agile Applied to HR); finally certain challenges arise as a result of agile transformation as an organisational change process (see chapter 2.4, The Change Process).

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3. Method

This chapter explains methods used to gather and investigate the empirical data, based on theory. Further, the research quality and ethics are discussed.

3.1 Research Strategy The aim of this study was to investigate the problematic areas arising for the HR department in agile transformations and what roles HR can take in these transformations. Also, the role of HR in a transformation process was examine. To investigate this, there were several research strategies to choose from. Two methods presented by Bell et al. (2019) are quantitative and qualitative research methods. Qualitative research methods often result in words rather than numbers. This strategy is advantageous when a deep understanding is needed to understand underlying reasons, motivations and behaviors. The technique is often unstructured or semi-structured and methods such as individual interviews, focus groups and participation/observation is common. (Bell, et al., 2019) This study was based on qualitative research strategies to be able to understand the transformation to an agile mindset, based on people’s experiences and the organisational structure. It was of great relevance to understand how and why things were happening on a deep level, which made qualitative strategies the most suitable for this thesis. To conduct the qualitative study, three steps presented by Merriam (1998) were followed. First of all the design of the study was chosen which also included deciding the sample, see sub-chapter 3.4.1. After that, data collection through interviews and focus group were made followed by analysis of the data. (Merriam, 1998) Theory was combined with empirical data in the chapter Cases of HR in agile transformations, which implied that an abductive approach was taken which means that data collection was followed by theories to draw conclusions (Bryman & Bell, 2011).

3.2 Research Process The research was requested by the consultancy firm Knowit Insight, a Nordic consultancy firm with 300 employees working as digital management consultants. The study was conducted over a period of 20 weeks and the process started off by a literature review to understand the topic in combination with clarifying the scope and understand the problematization. Through this process, discussion was held with the supervisor at the consultancy firm and the supervisor at Linköping University. This was followed by data collection through interviews, and the findings and results were further discussed in the focus group session. The results and findings from the literature review, interviews and focus group session are presented in the chapter Cases of HR in agile transformations. After that, an analysis was conducted followed by a conclusion regarding the research questions. Figure 9 illustrates the research process for this study.

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Figure 8 - The research process

3.3 Literature Review Starting the research and collecting data, a literature review was conducted through articles found at Linköping University's library as well as searches through Google and Google scholar. Keywords for the searches were for instance; traditional HR, agile, agile applied to HR, agile transformation, modern agile, the change process and HR’s role in an agile transformation. Books suggested by the supervisor for this research were also a part of the literature studies. A literature review can be done in a narrative or systematic approach. The narrative approach is more wide-range in scope and less focused compared to the systematic approach. The narrative approach is used when the researchers want to gain initial knowledge within the field that is supposed to be researched. (Bell, et al., 2019) Efron and Ravid (2019) explain that a narrative approach implies to gather a broad spectrum of data in the research field and then incorporate it into a coherent interpretation that focus on the main issues. For this research, a narrative approach was applied. Further, Bell, et al. (2019) highlight that a narrative approach is more suitable when the research is qualitative.

3.4 Data Collection This section explains the methods used to collect data. The primary data was mainly collected through interviews and a focus group session, with people from the sample group. Six selected organisations were interviewed and one focus group session was completed. The sampling for the interviews and focus group, including a presentation of the case organisations for the interviews, is also presented below.

3.4.1 Sampling To get more than a one-sided perspective, a decision was made to interview people from the HR department as well as managers in charge of the agile transformation and experts within the area, see figure 10. Further, the interviewees came from different companies to make the research more general and to be able to apply the research to several companies and

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situations. Knowit Insight who requested the research, provided us with people to interview based on specific requests but also based on their customer base. Through a LinkedIn post, see appendix B, a reach out was made to several people who could be interested in discussing the topic. Below, the case organisations for the interviews are presented. Further, the focus group consisted of five new participants from four different organisations. The participants have positions within the HR department at different companies in Sweden and experience of agile transformations. The participants were reached out by the supervisor at Knowit Insight. Case Organisations This study was partly based on seven interviews with people from six different organisations. Three of the organisations are customers to Knowit Insight and two organisations were contacted through the LinkedIn post. The last organisation was reached through the investigators. The people selected for the interviews were two experts in the area “HR in agile transformations”, managers in charge of the agile transformation and HR managers. What the organisations have in common is that they have all started or have experience from an agile transformation, but they are in different stages. Some organisations help others become more agile while others work within the organisation to become more agile. The interviews were mainly focused from an HR perspective, to match the study’s purpose. Organisation A operates in the insurance industry and so does organisation B. Organisation A have just started the agile transformation within the whole organisation while organisation B started the transformation last year, which means they are still in the beginning of it as well. Organisation C operates in the commercial vehicles industry and are at different stages in the transformation at different departments. Some have come a long way in the process while others have not started yet. Both manager C and HR person C works at organisation C. HR person D operates in organisation D where the HR department is acting agile as far as possible even though it is not outspoken that they are going through an agile transformation. The industry that organisation D are operating in is computer hardware and software. Expert E works in the field of HR in agile transformations and operates as a consultant to help other organisations in their transformations. In organisation F, where expert F operates, they help other organisations become more agile through the HR department within the concerned organisations, which means they act as consultants. The interviewed people will be referred to as in figure 10 in the thesis.

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Figure 9 - The positions of the respondents

3.4.2 Interviews A great amount of the primary data was collected through qualitative interviews. The interviews were made in a semi-structured way. There were predefined questions that were supposed to be answered but if the interviewee mentioned something that could be relevant or interesting for the research, a clarification, explanation or more information was asked for and the interviewers left the structure in that case. By doing that, the interviews could be more flexible and data collection more efficient and the interview became more conversational (Guion, et al., 2011). See the questions in appendix A. For the interviews, open-ended questions were used to be able to collect deep information. With open-ended questions the interviewee was able to answer more freely and thus more describing. According to Kvale (1998), this is why open-ended questions are preferred. All the interviews were either physical meetings or phone calls held in private, meaning that only one person were interviewed at the time in a private setting. During the interviews the interviewers took on different roles. One took notes while the other one asked the questions. The interviews were held between 3rd of March and to the 25th of March and they were recorded by approval of the interviewee to be able to go back to make sure nothing was being missed out or misunderstood. The interview questions were set up to map out obstacles and challenges through the transformation process to an agile approach, focusing on the HR perspective, and also to identify what role HR could take in the transformation in the different organisations.

3.4.3 Focus Group A digital focus group session was held to discuss and explore the findings from the interviews. Bell et al. (2019) describe that a focus group often is used when a topic or issue is supposed to be discussed and explored more deeply compared to group interviews, that often have a wider span and not the same depth. Hennink (2014) also highlights how a focus group should bring a broad range of views and perspectives on the research issue. Further, Hennink (2014) explains how the participants in a focus group should have similar background and experience related to the research issue, which can be confirmed by the sampling of the focus group. Two represents from Knowit Insight helped with moderating and facilitating the focus group. The

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structure and invitation for the digital focus group session can be find in appendix C. Bell et al. (2019) highlight how focus groups are suitable for qualitative research, which is also mentioned by Hennink (2014). For the session, one of the investigators took on the role as a moderator with help from the two represents from Knowit Insight and the other one took notes and observed. The focus group session was recorded by approval from the participants, since Bell et al. (2019) mean that it is very difficult to write down what everyone says and who says what. Further, the focus group session helped to get the nuance of not just what people said but how they said it which is important in a qualitative research (Bell, et al., 2019). The Covid-19 pandemic resulted in a focus group that had to be executed digital. This created less interactions among the participants than desired. Also, technical issues created problem for some participants that did not have the possibility to participate as wished.

3.5 Data Analysis According to Bell et al. (2019), the first step of the data analysis is to manage the data to ensure that there are no flaws. In this study, the interviews and the focus group were recorded and transcribed which enabled the transcription to be coded and broken down into different components with labels, related to the research questions. The labels were the following: HR´s role in an agile transformation and Challenges with HR in an agile transformation. By doing this, it was possible to search for patterns and links between the codes. Also, the amount of data could be reduced to contain only valuable information. These steps are also explained by Sargeant (2012). Sargeant (2012) explains that the first step is deconstruction, were data is braked down into smaller component parts. This is where the data was broken down and color-coded in the different labels. The deconstruction is followed by interpretation, were the coded data is supposed to be understood. The last step is reconstruction. In this step, Sargeant (2012) means that “reconstruction refers to recreating or repackaging the prominent codes and themes in a manner that shows the relationships and insights derived in the interpretation phase and that explains them more broadly in light of existing knowledge and theoretical perspectives” (Sargeant, 2012, p. 2) At this stage, the color-coded data were grouped together by HR´s role in an agile transformation and Challenges with HR in an agile transformation, to show the patterns and links that had been discovered in the interpretation stage. To answer the last research question, all the answers from the interviews and focus group session were summarized in a table, see table 1. From the table, comparisons could be made between the different organisations and an analysis could be conducted on how the different challenges impact each other and HR´s role in an agile transformation. When it comes to agile applied to HR and specifically HR´s traditional tasks, no participants mentioned challenges regarding performance appraisals nor recruiting. Therefore, they are not mentioned in the sub-chapter Challenges with HR in an agile transformation.

3.6 Research Quality To take the research trustworthiness into consideration, Bell et al. (2019) and Anney (2015) highlight four aspects: credibility, transferability, dependability and confirmability.

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3.6.1 Credibility According to Bell et al. (2019), credibility regards making sure that the investigator has correctly understood what the interviewee meant. In this study, credibility was ensured through validation, meaning that the answer was repeated to make sure it was understood correctly if it was a little bit unclear. Further, if the interviewers were uncertain about something afterwards, the findings from the interviews were presented to the interviewees to make sure it was correct.

3.6.2 Transferability Bell et al. (2019) mean that the transferability is important for the research trustworthiness. Further, Anney (2015) means it is important to be able to apply the research on several organisations and situations and not just the one investigated. By interviewing people in six different organisations and implementing a focus group with people from four different organisations, comparisons could be done and a broader perspective on the research issue was achieved and hence the findings are more general. Further, by describing the research context as in chapter 3.1-3.6 the readers can easily transfer the result to their own situation if it is sensible.

3.6.3 Dependability To make sure the research has the aspect of dependability, Bell et al. (2019) explain that all phases of the research process should be kept in a record so that the investigation could be repeated. This is also highlighted by Anney (2015). To ensure the dependability for this research, the whole research process is described in the report. Further, all material was kept such as interview questions, material for the focus group, gantt-schedule etc.

3.6.4 Confirmability According to Bell et al. (2019), confirmability refers to authors acting in good faith, meaning having an objective view and not letting personal values color the research. Therefore, other researchers would be able to confirm the same result according to Anney (2015). Since the topic was new for the investigators it was easier to have an objective approach and exclude personal values. Even though the investigators were supervised by Knowit Insight, they worked independently which ensures confirmability.

3.7 Ethics The ethics of this thesis are based on the four ethical principles mentioned by Bryman and Bell (2011). These are harm to participants, lack of informed consent, invasion on privacy and deception. To ensure that the principles were followed in the study, the goal and purpose were shared with the participants in advance. By doing this, the participants could get an insight of the study and hence decide whether or not to participate. Further, they were informed about anonymity and the participants had the opportunity to decide whether they wanted the interview to be recorded or not, which is suggested by Bryman and Bell (2011).

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4. Cases of HR in Agile Transformations

This chapter presents empirical data gathered from interviews and the focus group session. Figure 11 shows a categorical overview of the findings and how the chapter is structured. The structure is mainly based on the interview form, where HR’s role in an agile transformation process and challenges with HR in an agile transformation are the different categories. Further, Traditional HR, Agile applied to HR and The change process are sub-categories of challenges with HR in an agile transformation. The findings are presented by these categories.

Figure 10 - Categorical overview of the findings

4.1 HR’s role in an Agile Transformation Expert E points out that there are many different opinions when it comes to HR’s role in a transformation process. Manager A describes that HR are expected to be “an engine” in the transformation in their organisation. HR are also represented in the management team in organisation A. “Since HR are a very important part of the change, it is important to include them” – Manager A Expert F mentions that HR are the contractor which means they often work progressively in the agile transformation. In organisation B, manager B has been put in charge of including HR in the transformation. Further, manager C explains that in their organisation, HR are aware of the transformation, but they are not yet involved. HR person D explains that HR were involved in a change that took place throughout the organisation a while ago. In this organisation, HR are part of the management team which means they can act as a strategic partner and hence be able to lead change. HR person C, who belongs to the same organisation as manager C, explains that in some departments HR are not involved at all in the transformation while in other departments they are a bigger part of the transformation. The participants in the focus group emphasize that it is important that HR are a part of the transformation process. Further, they mention that HR should act as a catalyzer in the transformation process and that HR’s role is to make sure the employees feel as safe as possible in the transformation process. When an organisation is going through a transformation it has to change and consider both culture and structure, according to expert E. Culture and structure are HR´s primary deliveries and therefore it is very important that they are included in leading the transformation.

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Expert E explains that it is usually neither the management team nor the CEO that drives the change. Instead, expert E and focus group believe that it is often a passionate person within the organisation that finds it interesting and drives the change. “It is uncommon that HR start and lead the agile work since HR often are seen as an administration unit, or, the organisation has not understood the advantage of making HR part of the transformation since they possess knowledge within behavioral science field that can be utilized in change.” – Expert E Expert F explains that sometimes in the agile transformation, HR happen to be forgotten and are not included. However, many HR-related issues are addressed when going through an agile transformation, which means that HR are an important part of the change manager C points out. Nevertheless, the need to involve HR in the processes is often underestimated, which is something that manager C mentions as a challenge. Manager C also believes that support is very important in a transformation process. Some roles are affected more than others in a transformation why it is important for HR to be involved and support the employees at an early stage, in order for the transfer to be as smooth as possible for all parties.

4.2 Challenges with HR in an Agile Transformation During the interviews, a number of different challenges that emerge in agile transformations regarding HR were identified and categorized based on the theoretical framework. The challenges are presented below and figure 12 shows an overview of the challenges and which category they belong to.

Figure 11 - Identified challenges

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4.2.1 Traditional HR The data collected from the interviews and focus group session regarding challenges connected to Traditional HR is presented below. The Reputation of HR Expert E believes that there is a strong administrative heritage for the HR department that includes paperwork and keeping processes intact. Further, the administrative work that is currently done by HR, will be digitized in the future expert E mentions. The fact that HR are seen as an administrative function and support function is also something that manager B and HR person C highlight. Manager B means that the HR function have a strong focus on the traditional HR tasks. The participants in the focus group also mention this and emphasize that when HR are viewed more as an administrative function they are not included in the strategic questions and decisions. Further, participants in the focus group explain that HR’s reputation also depends on what attitude the CEO has on HR. “If the CEO sees HR as a strategic partner, it is easy to take on a role and develop it as a strategic partner, but it is an uphill trend if the CEO instead sees HR as an administrative executive.“ – Focus group This results in limited influence and involvement for HR, not at least in a transformation. In order to succeed in the agile transformation, expert E and HR person C believe that HR’s reputation must move away from the administrative and that new roles and tasks must be developed and introduced. Understand and Work Closer to the Organisation Expert F believes that there are HR departments that do not understand what the organisation as a whole is doing, which of course is something that creates problems and challenges. HR are often more interested in the people in the organisation than what the organisation actually wants to achieve. A lack of understanding can lead to less trust of the HR department in the management team, which is a pitfall according to expert F. Lack of organisational understanding is also something that HR person C and D mention as a challenge, but HR person D also emphasizes the importance of it. In order to succeed with the agile transformation, HR person C means that HR must strengthen their understanding of the entire organisation and get closer to the business. HR person C also emphasizes that to remove the administrative reputation, HR have to get a better understanding for the organisation. Further, expert E means that in order for HR to support and lead the transformation, they must change their communication pattern. To be able to do that, expert E means that they have to work closer to the organisation, for example by getting to know the individuals and the teams in the organisation and also focus more on the behavioral knowledge. “By being more involved in the organisation and increase the attendance, it will be easier for HR to lead change.” – Expert E However, prior to the agile transformation, expert E explains that HR often are an isolated team working and communicating in silos which participants in the focus group also mention. This means that they communicate as a group directly to the rest of organisation and do not

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integrate more than necessary with the remaining parts of the organisation. When it comes to HR in an agile organisation, HR should instead go out and communicate in the organisation and thus show that they exist, expert E explains. The importance of working closer to the organisation is also something that expert F and manager B highlight. HR person D on the other hand, explains how HR have a great present in their organisation, but also highlights the importance of having it. HR business partner is a new role that has emerged in the recent years, replacing HR generalists and HR specialists, expert F explains. This role means working more closely with the organisation and understand and support the organisation in a different way and not only work with the administrative tasks. A changed focus would probably lead to HR being able to support managers and employees even more, expert F mentions. At the focus group session, the participants mention that the effects of HR being more present in the rest of the organisation are always positive. By being more present and work closer to the organisaton, HR can build a new image of themselves. However, the participants mean that HR sometimes must invite themselves and dare to “take place”, and not wait to be invited by others in the organisation. By doing this, HR will probably gain better confidence, the participants highlight.

4.2.2 Agile Applied to HR The challenges connected to Agile applied to HR, founded from the collected data, is presented below.

Understand and Work Agile Expert E and manager A explain that it is important that HR understand the principles of agile in order to support the organisation in the transformation process. Manager A means that HR need to understand how the agile way of working differs from the traditional way. Participants in the focus group mention that it is a journey to adapt HR to the agile mindset, since HR are often used to work traditionally. Therefore, the starting distance for HR to become agile is longer. Further, expert E highlights that HR’s own processes need to change to match the agile structure and that it becomes easier to support the organisation if HR have a deeper understanding of agile and understand problems and obstacles that can arise. This is also mentioned by HR person C and manager B. Expert E believes that it is easy to “do agile”, which means it is easy to use all practices, but it is difficult to understand the basic idea and mindset. HR person C highlights, just like expert E, that HR need to gain an understanding of how to work in an agile way since HR have such an important role in transformation. Further, the participants in the focus group mention that it is important for HR to be as prepared as possible when an organisation is going through an agile transformation. It is common that HR are at the same level as the rest of the organisation regarding understanding agile, but to be able to lead the transformation they must be ahead. HR should therefore start a little earlier, since they must do the same transfer as other departments. For HR to gain a greater understanding of the agile working methods, HR person C believes that support from agile coaches could be part of the solution. Further, to be able to succeed with an agile transformation, expert E points out that the mindset and way of working must change towards agile. This is also mentioned by manager A

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and B. HR person C mentions that the entire organisation must work according to the same principles in order for the agile transformation to work. “If only HR work agile but not the rest of the organisation, the work will not be as efficient. On the contrary, if the entire organisation works according to agile working methods but not HR, HR will be seen as a function that are still working in an old-fashioned way.” – Manager C The participants in the focus group session mean that it is important to work with the mindset and continuously develop the agile way of working. What is mentioned as a challenge is that many organisations work with the agile transformation in a small part of the organisation because of fear if it will work out or not. The organisations do not dare to implement the transformation in the entire organisation which creates a small parallel organisation instead. However, the participants mean that it is important that all parts of the organisation is part of the transformation. Connected to this, many organisations starts the transformation in the wrong way. The participants in the focus group mention that it is common that the organisation forget to anchor the change properly in the organisation and examine how it will affect them. Instead, many organisations is driven by the thought that the transformation will make them more effective quickly. This may lead to unsatisfied employees that are not willing to change and hence it creates a parallel organisation working with the transformation. HR’s Traditional Responsibilities Expert F believes that HR often become a block as they want to follow the traditional steps they have defined. Expert E believes that one example of a structural block is HR’s annual processes. Therefore, in order to succeed with the agile transformation, HR must also change their own structure and processes. On the other hand, when it comes to applying the agile approach to HR’s traditional tasks, HR person D explains that it is not possible to apply an agile approach to all HR responsibilities. Further, expert E explains that HR´s traditional responsibilities are process-controlled and in direct opposite to the agile mindset. Compensation Manager A and C believe that the changed focus from individual to team within performance management and the salary structure can be seen as a challenge for HR, which expert E also mentions. Expert E believes that questions related to salaries and developing new skills often encounter resistance as they become status-threatening. Further, it can be difficult when it comes to the structure since there are several factors that have to be taken into consideration, such as the union, inflation and that it must match the organisation’s turnover, expert E mentions. Coaching and Supporting Expert E means that the transformation to an agile way of working means that HR must coach managers and leaders in a different way, which is also something that HR person C and D mention. Manager C also mentions this and highlights that HR especially have to support the ones who gets a new role, and expert F emphasizes that HR must support more. Furthermore, HR person D believes that problems arise directly in coaching and supporting managers. HR person D mentions an example where a new template for appraisal for managers had been requested. However, when the template was created and sent out to the managers, it was not

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used for the meetings. The reason was that the managers were used to do as they had always done and were not motivated enough in the end to change.

Learning and Development Expert E explains that the process-controlled tasks are about external motivation and external control, while an agile organisation is based on internal motivation. This means that it is important to build a culture where people want to learn which is a challenge, expert E highlights. This is also mentioned by Manager A, who highlights that HR need to find new ways for the employees to find motivation. Expert E mentions, among other things, that developing new skills in an agile organisation should be about wanting to develop and attend courses, and not something HR should force on the employees. This is also something that manager B mentions. Experiment Expert E explains that the basic thesis is that there is no set plan for the agile transformation. The plan must be adapted to each and every organisation. Therefore, to succeed with the agile transformation, expert E believes it is important to experiment. Despite that, many HR departments do not dare to experiment. The reason behind, according to expert E, is that organisations need to feel safe to change and feel that they have the possibility to go back to the old structure if it did not work out as expected. HR person D explains that their HR department is experimenting a lot during change to respond to it in the best possible way. In organisation B, experiments are also used to adapt to an agile way of working and to come up with up ideas to continuously discuss the transformation at the managerial level. Expert E believes that “one size doesn't fit all”, which is why it is important to dare to experiment in order to be able to adapt to the change. Competence Strategic competence, technical skills and M-shaped and T-shaped competence profiles are three areas where challenges for HR have been mentioned. Strategic Competence To succeed with the transformation, HR need to strengthen their strategic competence. Expert F and manager B believes that HR often focus more on the “soft questions”, like ethics, moral, equality, and well-being, and not significantly on the strategic parts. Further, expert F emphasizes how the administrative HR tasks will disappear due to automatization and digitalization and then an increased focus on the strategic and business-related parts are of great relevance. Manager B highlights how the challenge regarding strategic HR is discovered later in the transformation process, when it is too late and therefore instead becomes a problem. However, the participants in the focus group session mention that there has been a shift in recent years where many HR departments work as a strategic partner rather than working with administrative tasks. The participants highlight that a strategic partner is often more willing to work in an agile way and hence participate in the change. Participants in the focus group, on the other hand, also highlight the aspect that there are organisations that do not have HR represented in the management team and then it becomes hard for HR to operate as a strategic partner.

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Technical Skills Another challenge that expert F and manager B mention is that HR are not as technically skilled as they are often more interested in soft questions rather than business issues. Lack of technical knowledge can be the reason why the implementation ability of an agile transformation for HR is not enough, according to expert F. M-shaped and T-shaped Competence Profiles Leading the transformation can also be very difficult. Expert E points out the importance of people in the HR team having M-shaped skills in order to alternately lead the transformation and no one must do it themselves. If the employees have M-shaped skills, employees can be home and sick one day without the whole organisation being affected, since more people within the organisation have the necessary skills. Further, deliveries do not fail because someone was absent one day. Manager C also mentions the importance of having a broad competence profile.

4.2.3 The Change Process In this chapter, the challenges for HR in an agile transformation connected to The Change Process is described. Attitude and Awareness of Change Expert E means that there is a shift today from previously concerning HR departments, where HR want to become agile. Expert F describes the changes and the agile way of working as a motivating force for employees and in organisation F, HR are often the contractor, which means that the HR department are often positive towards the change. Expert F describes that the organisation’s customers have HR departments that are quite progressive, which means they want to be in the loop and continuously seek information. Further, HR person D also explains that their team are very prone to change, which means that they respond well to it. On the other hand, manager B mentions that the drive for change comes from external forces outside HR, and not directly from the HR department. According to expert E, HR have in some cases been pressured by the organisation requiring HR’s support in the transformation and in other cases HR’s processes have been in the way of becoming an agile organisation. Historically, organisation B is not used to major changes, which means that the current change has been met by HR specialists who are both positive towards the change but also those who are not as positive and have a difficulty accepting the change. Participants in the focus group session and HR person D also highlight that the attitude toward change depends on how the HR team is put together since there are always people in the organisation who are more resistant toward change than others. However, in organisation D, the people in the HR department are very prone towards change. Further, because changes happen rarely in organisation B, manager B describes that a fear of change has been developed by some employees in the HR department which is also mentioned by HR person C who mean that it is those who like routines who usually are more resistant. This is also emphasized by the participants in the focus group who mean that people may not want to change because they do not understand why or feel insecure about it. Organisation B is a traditional structured business, which makes change a difficult topic to discuss. However, manager B thinks it is important to talk about it. Expert F has also encountered organisations where HR do not have the same interest of becoming agile. By talking about change, manager B means that the fear

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of it will be reduced. In organisation A, the HR department are also used to a traditional way of working, which means that the transformation to work more team-based will entail a major change. When it comes to how aware HR are about the change, manager A thinks that HR probably do not understand the extent of the change. It is a process of maturity and a process of change that must be respected. In organisation C, where manager C and HR person C is operating, the HR department have asked for education and information about the agile way of working. HR are aware that the agile transformation is happening and that it is affecting them and they are curious about it, but generally they have not started to work with it yet besides a few occasional attempts. The central HR function within the organisation is aware that it is important and raise the agile perspective throughout the organisation. Manager C and HR person C agrees that HR are responding positively towards the changes. Regarding the time aspect, the participants in the focus group mention that if the effects of change do not appear within the promised timeframe, which usually is the case, the resistance will increase. In most cases, HR departments do not see the benefits that are achieved in the short term, as behavioral changes and increased motivation, which creates frustration and resistance.

Understand the “why” and Communicate Continuously In order to succeed with the agile transformation, expert E believes that it is important to find out why change is important for the organisation. Expert E highlights that it is important to find the “why” and communicate it throughout the organisation in order for everyone to get an understanding why the change is required. Participants in the focus group also emphasize this and mean that is important for an organisation to have a common goal vision. According to expert E, this is often a challenge where many organisations fail. Expert E believes that many organisations decide their “why” in the beginning and forget to discuss it continuously through the transformation journey, which result in confused employees that do not understand the reason for change after a while. Expert F, HR person C and manager A also emphasize the importance of HR communicating continuously to the employees, especially during change. In organisation D, HR have a standing point at the monthly meetings with the organisation, where HR can communicate directly to all employees. Time and Capacity Expert E explains that a common problem that arises in a transformation is that many organisations are naive and enter the process without understanding the investment and time it will take. This is also something that manager B mentions. Manager B believes that in order to implement an agile mindset, the HR department must leave the traditional way of working, which is something that is very time-consuming. Further, the people in the HR department that experience the change as exciting in organisation B, get frustrated when one is unable to cope due to lack of time or if he/she does not understand the reason for change. If the frustration is eliminated, manager B says that there is a lot of passion, will and thoughts when discussing what they want to achieve. However, manager B believes that the frustration created when there is lack of time makes it difficult to handle the change in certain situations. Here, support is needed, manager B highlights. Time and capacity is also a challenge mentioned by manager C. At organisation C, it is emphasized that HR do not have enough time and capacity to carry out the transformation,

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since there are other areas that need to be prioritized. Further, expert F also highlights that the time usually is a challenge and that projects regarding the agile transformation often extend the timeframe due to a lack of implementing capacity for HR. Deciding how much capacity to put on the various tasks is also a challenge the participants in the focus group session mention. The participants mention that the capacity must be distributed effectively to create more time. To solve the problem of capacity, organisation A has chosen to hire people who have expertise in the agile area, including agile coaches, who assist with the transfer. Manager A believes that many organisations underestimate the need to increase competence during the journey and the amount of people needed in the transformation process. In organisation D, HR person D explains that they get a lot of support globally and therefore have the time to act as a strategic partner and lead the transformation. Behavioral Knowledge Expert E mentions that behavioral knowledge can be used and valuable in a transformation process, but it is often forgotten that HR have this type of expertise. Expert E means that HR have an administrative reputation and not a reputation as being schooled in behavioral sciences. Manager B also emphasizes this and means that a faster pace of changes requires a greater focus on characteristics of behavioral knowledge. Furthermore, manager A also points out that the behavior must be changed to change mindset and way of working. However, manager A believes that it is easy to fall back into habitual behaviors, which makes collaboration with HR especially important as they possess behavioral knowledge. HR should thus be included early in the transformation to prevent employees from falling back, which they are in organisation A. The participants in the focus group mention that HR do not lead transformation or are included, since the push is often for efficiency and not behavioral changes. “When selling agile, the push is often for efficiency. This puts other departments in focus and makes it difficult to understand why HR’s role is so important in an agile transformation. If behavioral changes and creating a new culture is emphasized instead, HR’s role becomes more central.” – Focus group External Factors Expert E explains that there are authorities, institutions and regulations that complicates the agile work for HR. Further, when HR move away from traditional structures and annual processes, collective agreements create problems when the agreements says that salary negotiation should be completed in April every year. Other examples are regulations regarding how to work with work environment issues, trade union activities, collective agreements and the Swedish Tax Agency. For example, manager B mentions that organisation B operates in a traditional way when it comes to claims settlement which is a statutory product. However, the participants in the focus group session mean that external factors are no excuse to not work agile since there are always tasks that can be performed in an agile way. The participants mean that it is common that employees who are against change use external factors as argument to not change. However, the participants believe it is more about mindset.

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5. Analysis

The following chapter links the theories and findings from the study and forms an analysis. First of all, HR’s role in an agile transformation is analyzed followed by an analysis of the challenges with HR in an agile transformation.

5.1 HR’s Role in an Agile Transformation What can be seen in the different organisations is that HR have different roles in the transformation in the various organisations. In some cases, HR take on a reactive role and in others they take on a proactive role. Most commonly, HR are not the ones leading the transformation or the engine of the transformation, which is also mentioned by Finn (2020) and the case in organisation B and C. The role that HR take on in the unfreezing phase is usually the role they end up with throughout the whole transformation. Finn (2020) explains that it is common that HR take on a more reactive role in an agile transformation since traditional HR practices are not as suitable in an agile setting. This is not in line with what Baran et al. (2018), Wright (2008) and Clay and Halladay (2018) mention, they suggest that during an episodic-radical type of change, like an agile transformation, HR should have a function similar to a change agent. The reason to this is that they have a critical role where they oversee employee selection, leader development and employee training and therefore directly impact the effectiveness of an organisation’s change and development, Baran et. al (2018) mention. This is also emphasized by Mangen (2018) who highlights that HR should take on a proactive role since they have such deep roots in the structure. Further, Clay and Halladay (2018), Baran et al. (2018) and Browning (2015) emphasize the importance of including HR in a transformation process since they can efficiently work with encouraging the change among the employees, which is important through all stages throughout planned change. Since HR are a very important part of the change, it is important to include them from the beginning, manager A and the focus group highlight. This means they should take on a proactive role already in the unfreezing phase. This is also emphasized by Browning (2015), who means that HR have a critical role in change and need to help the employees getting a better understanding of the change and how it will affect them, which the focus group also agree on. Further, Clay and Halladay (2018) explain that HR are a very important function in a transformation since they are designed as a trusted advisor function and that they provide a platform for the employees to express their opinions and questions regarding change, which is important both in the unfreezing and changing phase. Manager C also highlights the employees need for support from HR during change, especially the roles that are most affected by the change and therefore it is important to include them. This is critical in the changing phase. However, what was discovered in the interviews was that in a lot of cases, the need for HR to be involved in the transformation was discovered in the chaining phase when they already had taken on a more reactive role. Further, it is important to change both structure and culture in a transformation process, expert E, the focus group and Nahavandi (2015) explain. This happens in the changing phase, and like mentioned by expert E, structure and culture are HR’s primary deliveries and therefore, just like Browning (2015) explains, these are arguments why HR should manage the changing phase. Like mentioned earlier, HR are there to support the employees and encourage them, which are the critical factors in the refreezing phase to make sure the change becomes permanent.

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Therefore, HR should take on a proactive role in the refreezing phase. According to Browning, Baran et al. (2018) and Clay and Halladay (2018) HR should be included in all the stages of planned change and have more of a change agent role, which the focus group agree on. In organisation A and D, HR have a role as a change agent. Further, expert E also highlights the importance of including HR in the transformation and all the stages of planned change. However, HR are often underestimated in the change which is something manager C also mentions, and the need to include them is not discovered until later in the stages of planned change. This seems to be a common challenge and problem, and the reason why HR sometimes are forgotten in the transformation process and take on a more reactive role, like Finn (2020) explains. Further, expert E explains that the reason why HR usually do not lead change is that they are usually seen as an administration and support unit, which is something that Clay and Halladay (2018) also confirm as a main problem. Therefore, HR are often not included in leading the change.

5.2 Challenges with HR in an Agile Transformation The major challenges for HR in an agile transformation are analyzed and discussed below. The chapter is divided into the three different categories: Traditional HR, Agile applied to HR and The change process.

5.2.1 Traditional HR The challenges The reputation of HR and Understand and work closer to the organisation is analyzed below, connected to Traditional HR.

The Reputation of HR

One challenge for HR in an agile transformation is that they have a strong administrative reputation and they are therefore viewed more as a support/administrative function rather than a strategic function in a transformation process, expert E and the focus group highlight. This is also mentioned by manager B and HR person C and confirmed by Wright (2008), Guest and King (2004) and Clay and Halladay (2018), who point out it is as a main problem in change processes. In organisation A, F and D on the other hand, this challenge is not mentioned. In organisation A and D, HR are represented in the management team which could be a reason why this challenge is not mentioned. By being a part of the management team, they automatically get more of a strategic reputation. Mangen (2018) explains that HR’s position is not prioritized in a transformation, since HR are seen as a support function rather than a core function. The reason to HR´s administrative reputation can be connected to HR´s traditional responsibilities, brought up by Devanna et al. (1982) and the responsibility concerning benefit administration mentioned by Rousseau and Greller (1994). Further, Baird and Meshoulam (1988) means that it is only HR’s administrative role that the managers are aware of, which may be a reason for the reputation as well. Connected to this, manager B mentions that HR have a strong focus on the traditional tasks within their organisation. Guest and King (2004) and Baritz (1965) point out that the reputation is also created due to lack of strategic focus which creates a lower status for HR. This could be a reason why they are not prioritized in the transformation process. The participants in the focus group explain that HR’s reputation depends partly on the CEOs attitude towards HR and if he/she views HR as a strategic function or administrative function. The attitude result in more or less inclusion in the transformation process for HR.

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Understand and Work Closer to the Organisation

To understand and work closer to the organisation is a challenge that is mentioned by all respondents except manager A in the study. Expert F mentions that HR are often more interested in the people in the organisation than what the organisation actually wants to achieve, which is also highlighted by Guest and King (2004) as common for HR. Expert F means that HR often have a lack of understanding for the organisation as a whole. This challenge is confirmed by Scully (2014), who means that it is of great relevance for HR to understand the organisation as a whole, especially during a transformation. Nahavandi (2015) also points out that it is important to understand the organisation, to be able to lead the change. HR person C and D agree that lack of organisational understanding is a challenge for HR and expert F points out that it can easily lead to less trust of the HR department in the management team. However, one reason the challenge arise is because organisations are usually very complex and hard to understand. To solve this challenge, HR must get closer to the organisation and Baran et al. (2018) mean that HR need to understand organisational change and broadening their view, which is also mentioned by HR person C. HR person C believes that the administrative reputation of HR will decrease if the overall understanding of the organisation increase. Expert E, F and manager B also emphasize that HR must work closer to the organisation, which is also confirmed by Wright (2008). A challenge mentioned by expert E and the focus group is that HR usually work in their own silo separated from the business, which is also highlighted by Ahnlund (2018). This could be a reason behind the lack of understanding of the organisation from an HR’s perspective and therefore Ahnlund (2018) means that HR could be viewed as a less important function. However, in organisation D, HR have a great present and position within the organisation, and HR person D does not mention working closer to the organisation as a challenge. A deeper collaboration between HR and the organisation would probably contribute to a better agile transformation and create an agile mindset throughout the organisation, according to Steiber (2014). Further, Bredin and Söderlund (2011) point out that many people within project-based organisations, especially line managers and project managers, have a desire to access HR competence in daily work activities. The interaction between HR specialists, line managers, project managers and project workers can be seen in the HR quadriad, see figure 2. This is also highlighted by Guest and King (2004) who mean that activities of the managers and the HR department sometimes overlap. Therefore, it is important for HR to work closer and increase their presence in the organisation. The participants in the focus group session mean that it creates positive effects if HR are more present in the organisation. Also, it is possible for HR to create a new image of themselves. However, the developed activities created by Vulpen (2019), simplifies for HR to work closer to the organisation, since it is not just about the administrative work anymore. Flach (2006) also means that the HR activities have changed, and the focus is now on integration between employees and strategic and operative issues. Further, a new role has emerged in the recent years, called HR business partner, according to expert F. The role intends to work closer to the organisation and understand and support it in new ways and not just focus on the administrative tasks. This is also emphasized by Wright (2008), who means that HR should work as a business partner advising on people management. The new role enables for HR to work more strategically Wright (2008) highlights, and it has shown an increased trust for HR. The participants in the focus group session also highlight that increased confidence will appear if

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the HR department dare to “take place” and show that they exist. However, since it is brought up that HR’s administrative reputation and support function is still a problem, development and improvement are still required.

5.2.2 Agile Applied to HR Below, an analysis is presented on the challenges categorized under Agile applied to HR including, Understand and work agile, HR's traditional responsibilities, Experiment and Competence. Understand and Work Agile

The challenge to understand and work agile for HR is mentioned by all respondents in this study. Cappelli and Tavis (2018) highlight the importance for HR to understand the agile practice to support the organisation and so do expert E, HR person C, manager A and B mention. Further, expert E highlights that the agile principles have to be applied to agile practices, which is also confirmed by Scully (2014). Therefore, HR’s existing models and practices need to be challenged when transforming, according to Bredin and Söderlund (2011). Expert E points out that it is easy to “do agile” but it is difficult to understand the basic idea and mindset. Tonnquist (2019) highlights that if the requirements are many and the goal is clear it can be hard to apply an agile approach which could easily be the case for HR and therefore more of a challenge to apply agile to their responsibilities. This is also mentioned by HR person D who explains that it is not possible to apply an agile approach to all HR responsibilities, which is a challenge. The focus group also emphasize this by explaining that it is a journey to adapt HR to the agile mindset, since HR are often used to work traditionally. The agile approach is based on software development and is not developed for HR from the beginning which makes it difficult for organisations to directly apply the agile approach to HR’s processes, which is also emphasized by Finn (2020). This results in that the starting distance for HR to become agile is often longer. Further, Cappelli and Tavis (2018) highlight how HR can go “agile lite”, meaning applying general principles but not using the general protocols and tools from the software world. Further, it is important that the whole organisation works according to the agile mindset to be efficient, manager A highlights. The participants in the focus group session also mention the importance of continuously working with the mindset and the agile way of working. They also highlight that the whole organisation must be part of the transformation to avoid creating a parallel organisation working with the transformation and not the rest of the organisation. Manager A mentions that if the whole organisation except the HR function work in an agile way, they will be seen as a function that are still working in an old-fashioned way. It will therefore be hard for them to lead the transformation since in a role modeling aspect it is not as important as what one says as what one does, like Schein (2017) highlights. Further, Cappelli and Tavis (2018) highlight the importance for HR to not just understand the mindset, but also apply agile practices to HR responsibilities when an organisation is transforming to be able to support the organisation in the most efficient way. The participants in the focus group highlight that HR have to be as prepared as possible and be ahead to be able lead the transformation. The participants also highlight the importance of anchoring the change properly in the organisation and examine how it will affect them in the beginning of the transformation. By doing this, the employees will probably be positive towards the change and hence the organisation avoids that a parallel organisation working with the transformation is created.

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A specific challenge is that HR’s traditional annual processes may become a block for the agile transformation, which both expert E and F highlight. This is also mentioned by Wright (2008) who explains that HR sometimes are viewed as a function fixed on bureaucratic procedures. Further, this could be connected to the contrast between how traditional HR is structured compared to agile applied to HR responsibilities, where a clear shift is needed. Expert E explains that when it comes to HR’s traditional tasks, they are in direct opposite to the agile mindset. Further, expert E points out that the role of HR needs to be changed since the administrative tasks will be digitized and new roles and tasks must be introduced, which is also something mentioned by manager A and HR person C. Rock (2008) also points out that HR should shift their focus and decrease the administration tasks. HR's Traditional Responsibilities

The challenges regarding HR’s traditional responsibilities are analyzed and presented below, including compensation, coaching and supporting, learning and development. One reason why these challenges arise since the agile structure is in great contrast compared to the traditional structure.

Compensation When it comes to HR’s traditional responsibilities, the compensation structure that has to shift focus from individual to team, could be a challenge. This is emphasized by expert E and manager C. The shift from individual focus to team focus in a compensation system is also mentioned by Cappelli and Tavis (2018) and Ali et al. (2004), and they mean that it is HR’s responsibility. By changing the structure, expert E means that a challenge occurs since questions regarding salaries often encounter resistance since they become status-threatening. This could also be connected to Ayos (2017) statement about resistance towards change that regards “a desire not to lose something of value” and make it harder for HR to change the structure. Another challenge regarding compensation structure for HR is that there are several factors that have to be taken into consideration, such as the union, inflation and that it must match the organisation´s turnover, expert E mentions. Coaching and Supporting HR person C and E highlight how challenges and problems also arise regarding coaching and supporting managers. This is one of HR’s developed responsibilities in an agile organisation and an important aspect in a transformation process, emphasized by Browning (2015). Cappelli and Tavis (2018) also emphasize how this becomes more important when an organisation is transforming to an agile structure, which is also mentioned by expert F. Another type of coaching is needed when an organisation is transforming since the role of leaders and managers changes, which expert E and HR person D mention as a challenge. Manager C also highlights that HR specifically need to support the ones with a new role. The problem for HR in the aspect of coaching and supporting also lies in the fact that the managers are used to do what they have always done and are not motivated enough to change, HR person D explains. Learning and Development To transform an organisation into an agile structure, Cappelli and Tavis (2018) explain that skills need to be brought in more efficiently and faster, which is a challenge for HR. It could be connected to the principle “Make People Awesome” explained by Modern Agile (2020) in an employee perspective, which means focusing on the people in the organisation instead of the

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product. Expert E emphasizes that a traditionally structured organisation usually is based on external motivation while an agile organisation should be based on internal motivation, since skills and competence could be acquired more easily with internal motivation. Connected to this, expert E, manager A and B also highlight the importance of building a culture for HR where people want to learn which can be a challenge. Manager A means that it is important to find new ways for the employees to find motivation. Nahavandi (2015) also points out that learning on individual and organisational level is important to increase the effectiveness and adapt to change quickly. Experiment One challenge for HR is to dare to experiment. Expert E explains that the basic thesis is that there is no set plan for the agile transformation. The plan must be adapted to each and every organisation and therefore experimenting is crucial, expert E emphasizes. This is also highlighted by Modern Agile (2020), which means that experimentation will make it possible to learn rapidly. Steiber (2014) also mentions the importance of experiment and means that it is important to have an environment where experiment is encouraged. Connected to this, Nahavandi (2015) brings up the aspect of creativity in a change process. Nahavandi (2015) points out that creativity is at the core of change since it is about addressing problems in new ways. Further, Modern Agile (2020) and expert E highlight the importance of making it safe to fail when experimenting. This is also mentioned by Nahavandi (2015), who means that it is important to let employees experiment and tolerate mistakes. This is one reason why it becomes a challenge for HR, since they do not dare to experiment because they do not feel safe enough to experiment and fail or if the organisation has a culture where it is not encourage to experiment. Further, another reason why this challenge arise can be because in a traditional setting, experimenting is not as common as in an agile setting, which makes people more unfamiliar with it (Modern Agile, 2020). However, in organisation B and D, the HR departments have started to experiment and it has been very successful. Competence Below the challenges regarding HR’s competence are analyzed, including strategic competence, technical skills and M-shaped and T-shaped competence profiles. Strategic Competence To succeed in the transformation, HR need to strengthen their strategic competence. According to Bredin and Söderlund (2011), the HR specialists should focus more on strategic work and less on the operational tasks. Further, Guest and King (2004) explain that HR sometimes are seen as a function not being business oriented nor involved in business decisions which leads to a lack of influence. Expert F and manager B also believe that HR often focus more on the “soft questions” like ethics, moral, equality and well-being and not significantly on the strategic parts. This could be connected to the fact that HR have gotten a reputation based on their traditional practices, according to Ferris et al. (2007). HR are therefore viewed more as a support function rather than a strategic function in the change management strategy which is mentioned by Clay and Halladay (2018). This also highlighted by Guest and King (2004) who mean that HR are often uncertain about their success criteria and therefore uncertain about what to prioritize which leads to an absent of strategic focus. Further, Guest and King (2004) highlight that this results in that managers have no problem at throwing minor issues at HR that they do not want to deal with themselves. This could also be a factor for an increased

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administrative reputation for HR. However, expert F means that the administrative tasks performed by HR will disappear due to automatization and digitalization and the focus must change towards strategic and business-related parts instead. To get away from the reputation and be viewed more as a strategic function, HR may have to increase their strategic competence. This is also mentioned by Steiber (2014) and Flach (2006) who mean that HR have to operate as a strategic function in an agile structure rather than a maintenance function. Wright (2008) also highlights how HR must be renewed to succeed with organisational change but mentions that HR have tried to gain a more strategic function but it has been difficult due to resistance from senior management and the heritage as an administrative function. However, strategic competence is not a challenge mentioned in organisation D. In organisation D, HR have a strategic position and are a part of the management team. In organisation A, HR are also a part of the management team and they do not mention this as a challenge either. According to Bredin and Söderlund (2011), the HR specialists should act as a strategic partner or business partner. This is also mentioned by the participants in the focus group session, who highlight that it has been a shift in many organisations where HR instead are seen as a strategic partner rather than a department working with administrative tasks and hence willing to work in an agile way. However, the participants also mention that when HR are not represented in the management team, which is the case in some organisations, it is hard for HR to operate as a strategic partner. Technical Skills Expert F and manager B mention that HR are often not as technically skilled as the rest of the organisation, which is a challenge. The reason behind lack of technical skills could be that HR’s tasks are traditionally not technical focused and their work is not as focused on technology. On the other hand, this challenge is not mentioned by the other respondents in the study. However, technical skills are, according to Cappelli and Tavis (2018), necessary to find the right candidates to work in an agile organisation. Directly related to one of HR’s responsibilities, Cappelli and Tavis (2018) highlight how technology are today used to find candidates fitting in an agile culture. Therefore, it is important for HR to have technical skills in an agile transformation. M-shaped and T-shaped Competence Profiles M-shaped skills are important for HR in an agile transformation, expert E highlights. Back in the days, many traditional organisations, including the HR department, have been based on T-shaped competence profiles which makes it a challenge to transform to M-shaped competence profiles. Expert E means that M-shaped skills are needed when leading change. This is also highlighted by manager C, who means that it is important to have a broad competence profile. According to Bredin et al. (2016), an M-shaped profile need to have contributory expertise in more fields than in a T-shaped profile, but not as deep. Bredin et al. (2016) also mention that the M-shaped profile is more flexible in several domains, which means the team will be less vulnerable. This is also mentioned by expert E, who means that it is important that the team can continue the work even if an employee is home and sick one day.

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5.2.3 The Change Process The challenges Attitude and awareness of change, Understand the “why” and communicate continuously, Time and capacity, Behavioral knowledge and External factors are connected to The change process and analyzed below. Attitude and Awareness of Change Expert E mentions that there is a shift today where HR departments show an interest in becoming agile. However, it has not always been the case. According to Ayo (2017), a desire not to lose something of value, misunderstanding of the change and its implications, belief that changes do not make sense for the organisation and low tolerance for the change are four reasons why people resist to change. These examples could be the reason why HR departments earlier have been recalcitrant. In organisation F, they rarely encounter resistance from HR since they are the contractor. Expert F mentions that HR are curious about the change, which may indicate that their customers work actively with methods to handle resistance to change, explained by Nahavandi (2015). In organisation C, the people in the HR department are also positive about the change, even though HR are not such a big part of the change yet. The fact that the organisation is positive about the change and does not mention any specific obstacles, may be linked to the fact that they are early in the transformation and that resistance and problems have not yet arisen. This could be connected to what manager A believes. Manager A explains that HR in their organisation are positive towards the change but probably do not understand the extent of it. It is a process of maturity and a process of change that must be respected, manager A highlights. Further, manager C mentions that HR are aware that the agile perspective should be raised throughout the organisation, which interacts with Nahavandi’s (2015) words about a clear and common vision. In organisation B, the agile transformation has been favored both positively by those who are curious about change but also negatively by some employees in the HR department. Since change happens rarely in organisation B and they operate traditionally in many ways, the negative attitude and resistance to change can occur. HR person D and the participants in the focus group also believe that there is varying reception for change. They mean that there are always people in an organisation who are more resistant to change. It is very personal if you are prone to change or more negative about it, the focus group highlights. However, in organisation D, the people in the HR department are very prone towards change, and does not highlight this as a challenge. Manager B believes that those who are negative to change are afraid of it, which can be linked to “a desire not to lose something” mentioned by Ayo (2017). Manager B also means that some people from the HR department are frustrated because they do not have time for change, which can be linked to “belief that changes do not make sense for the organisation” and “low tolerance for the change”, explained by Ayo (2017). Further, the participants from the focus group emphasize that if the effects of change do not appear within the promised timeframe, the resistance will increase. This can be connected to the internal force “low satisfaction”, mentioned by Nahavandi (2015). HR person D, on the other hand, believes that it is those who like routines that are often negative to change. Therefore, Browning (2015) means that it is important to support the employees and increase their understanding about it, which manager B also agrees with. To not understand why or feel

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insecure about the change is highlighted by the focus group as a reason for resistance. By getting an understanding about how change will affect them, the fear may decrease, says Browning (2015). Manager B points out that by talking about change, the fear of it may be reduced, which could be linked to the importance of communication that is mentioned by Browning (2015). Understand the “why” and Communicate Continuously According to expert E, understanding and communicating the “why” is often a challenge where many organisations fail. Expert E believes that many organisations decide their “why” in the unfreezing phase just like Nahavandi (2015) explains, and forget to discuss about it continuously through the change journey which result in confused employees that do not understand the reason for change after a while. Further, organisaions often rush through the unfreezing phase and hence forget to establish the “why”. Browning (2015) explains that it is of great relevance that the change management strategy is defined, including the “why” and HR should be part of the team defining the strategy.

Another challenge during a transformation is finding the “why” (why the change is needed) and communicate it throughout the organisation continuously, expert E emphasizes. The importance and challenge of communicating change continuously for HR is also emphasized by HR person C, manager A and expert F. Browning (2015) highlights that communicating continuously is critical to succeed with change. Further, Clay and Halladay (2018) highlight that HR are an excellent channel to communicate change. In organisation D, HR have a standing point at the monthly meetings with the organisation, where HR can communicate directly to all employees. Therefore, HR person D does not emphasize communicating continuously as a challenge. By communicating the “why”, the employees will probably change their perception of the change from negative to positive, by seeing the potentials benefits, Nahavandi (2015) points out. Further, Nahavandi (2015) highlights the importance of creating a clear and common vision, just like expert E and focus group mention. By doing this it will make it easier for the employees to have a goal in their mind through the whole process.

Time and Capacity

Another challenge for HR, that expert E and manager B mention, is that when transforming to an agile mindset many organisations and HR departments are naive and do not understand the investment and time it will take. Many HR department do not see the positive effects or the relevance for them to transform and therefore they do not prioritize the change. The challenge can also arise due to the fact that HR already have a great workload and have a difficult time to prioritize change. Expert F means that the timeframe is often extended due to lack of implementing capacity for HR. Cappelli and Tavis (2018) mention that a successful transformation takes persistence. This is also highlighted by Nahavandi (2015), who means that it is common to rush through a change and thus miss the unfreezing and refreezing phases. According to Nahavandi (2015), these phases are equally important as the change itself. Another aspect regarding time and capacity is that HR do not have the time and capacity to transform, manager C mentions. Manager C means that the organisation must find tools to make time for the new working methods. This could be viewed as a general challenge for all HR departments going through any type of change. Further, the participants in the focus group session mean that it is important to decide how much capacity to distribute on the various tasks to be able to create more time, which could be seen as a challenge.

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To be able to cope with the time and capacity it takes to implement change, organisation A has chosen to hire agile coaches within their HR department to lead them through the change. This action has been implemented to counteract this challenge. Manager A means that many organisations underestimate the need to increase the competence during change. This could be connected to methods to handle resistance to change. One method presented by Browning (2015) is support and an agile coach can be seen as a support function to implement the change. Further, HR person D is the only respondent who does not mention time and capacity as a challenge. Organisation D get a lot of support globally which enables for them to act as a strategic partner and lead change which could also be connected to the method to support, presented by Browning (2015). Behavioral Knowledge In a transformation process, HR’s behavioral knowledge is sometimes forgotten due to their administrative reputation, expert E mentions. This result in HR being underestimated in the transformation. Expert E and manager B highlight the importance of taking advantage of the knowledge that HR possess within the behavioral science field. The behavioral knowledge is important to be able to get to know the individuals and the teams within the organisation and thus work closer to it, expert E mentions. Further, to lead a transformation, expert E emphasizes that knowledge in behavioral science is relevant to understand what motivates the employees to change. The importance of behavioral knowledge is also brought up by Rock (2008), who means that it is important to understand people to be able to improve the collaboration in organisations. However, the participants in the focus group mention that another reason why HR do not lead change or are included is because when “selling” agile, the push is often for efficiency. This puts other departments in focus and makes it difficult to understand why HR’s role is so important in an agile transformation. If behavioral changes and creating a new culture is emphasized instead, HR’s role becomes of greater relevance. Behavior must also be changed according to expert E and manager A. What is mentioned is that it is easy to fall back into habitual behaviors and since HR have great knowledge within the behavioral science field they should be included early in the process, which they are in organisation A. Nahavandi (2015) also mentions the importance to assure that the change becomes permanent and employees do not fall back into old habits to successfully implement change, this is included in the refreezing phase according to Nahavandi (2015). External Factors

There are a lot of things affecting how smooth a change is happening. Tonnquist (2019) means that external factors may affect change, for example economic and political factors. Expert E points out the same thing and means that authorities, institutions and regulations may complicate the transformation process for HR, since it will be harder for them to apply agile to their responsibilities. This is a reason why it is hard for HR to change the traditional annual process, mentioned by expert E, and therefore HR’s processes become blocks in the transformation. Connecting to Lewin’s change model, Nahavandi (2015) mentions that external forces (as well as internal) may affect the unfreezing phase and make it more difficult to implement the change. Manager B means that organisation B is affected by external factors and operates in a traditional way when it comes to claims settlement. Further, this challenge is not mentioned by expert F, manager A, C and HR person C and D.

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However, external factors are no excuse to not work agile, according to the participants in the focus group session. There are always tasks that can be completed in an agile way and the participants mention that employees who are against change often use external factor as argument to not change.

5.3 Summary of the Challenges Table 1 below summarizes whether the various organisations experience the different challenges or not. If it says “No” it means that the interviewee explicitly said that it is not a challenge for them. Further, if it says “Not mentioned”, the challenge was not mentioned at all during the interview and is therefore probably not seen as a challenge for HR within the organisation. If it says “Yes” it means that they have expressed it as a challenge and obstacle for HR in an agile transformation. The reputation of HR is mentioned by the majority as a challenge but not by organisation A, D nor expert F. Regarding Understand and work closer to the organisation there is also a majority who experience this as an obstacle and challenge for HR. However, the only challenge all the participants agreed on is the challenge To understand and work agile. When it comes to HR´s traditional responsibilities and Competence, there are different opinions regarding what responsibilities that becomes a challenge in an agile transformation and also what competence HR lack. The challenge to Experiment is only mentioned by expert E. However, it is only mentioned in organisation B and D that they are experimenting. Regarding the challenges within the category The change process: Understand the why and communicate continuously, Behavioral knowledge and External factors, there are different experiences on whether it is a challenge or not. Time and capacity is on the other hand a challenge mentioned by the majority of the investigated organisations. When it comes to Attitude and awareness of change, organisation B and the focus group where the only ones seeing it as a challenge for HR in an agile transformation. Regarding this challenge, expert E mentions that it has been a shift today regarding the attitude from HR departments.

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Table 1 - Summary of the various challenges

5.4 Connections between Challenges and their Impact on HR’s Role The discussion of results is based on table 1 above and answers the third research question regarding how the challenges impact each other and HR’s role. The first challenge mentioned is the administrative reputation of HR which makes it hard for HR to be involved in the change and act as a strategic partner. This is also mentioned by Clay and Halladay (2018). The focus group mentioned that if HR do not have a place in the management team, it can also be difficult to work as a strategic partner. However, if the reputation were more focused on the strategic parts that HR possess, HR would probably have a more natural place in the transformation process, since those skills are valuable in a transformation. This would facilitate for HR to take on a more reactive role. Further, neither manager A nor HR person D mention HR’s reputation as a challenge. This is probably due to the fact that the HR department in organisation A and D are part of the management team. Also, they mention that HR work closely to the rest of the organisation. Manager A and HR person D do not mention that they need to increase their strategic competence, as many other organisations point out, which is probably because they already

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have a strategic reputation and position within their organisations. Expert F does not mention HR’s reputation as a challenge either, which probably depends on that organisation F helps other HR departments with the transformation and hence it indicates that HR already act as a strategic partner. In organisation C, many departments are not involved in the transformation and HR work a lot in their own silo. Manager C mentions that HR have an administrative reputation, which is probably due to their lack of presence in the organisation. In organisation B, HR also have a reputation as an administrative function, where the HR function works traditionally. Manager B is currently working to change HR’s position and reputation, and it is mentioned that HR must strengthen their strategic competence. This is also mentioned by Bredin and Söderlund (2011) as important. To conclude, HR’s role depends greatly on the reputation they have within the organisation. If HR have a strategic reputation, as in organisation A and D, they are often more involved in the change and have the opportunity to lead it. If HR instead have an administrative reputation, they often ends up with a reactive role, as in organisation B and C. To understand and work closer to the organisation is another challenge that arise due to the fact that HR traditionally often have worked in their own silo. This is also mentioned by Ahnlund (2018). This challenge is emphasized by the majority of the respondents. For HR to be able to act as a strategic partner and take on a proactive role, they have to increase their understanding of the organisation as well as increase their presence. This will make it possible for them to act as a change agent in an agile transformation process, as proposed by Nahavandi (2015), and increased trust from the managers. This could be confirmed by the fact that neither organisation A nor E mention that work closer to the organisation is a challenge, since they already have a great presence within their organisations. Further, in organisation A and D, HR lead the transformation and act as a strategic partner. According to Wright (2008), the presence is crucial to be able to lead change. If HR are not working closer to the organisation, it becomes even harder to understand the business which means that these factors depends greatly on each other. What can be seen in this study is that in the organisations where this challenge is brought up, it affects HR´s role in the way that they take on a more reactive role in the change process. The challenge to understand and work agile is emphasized by all respondents as a challenge, since agile means a whole new way of working and a new mindset. The focus group mention that if HR should lead change, it is important that they are ahead in the agile mindset and way of working. By bringing in an external party who is knowledgeable in the field, the challenge of understanding and working agile can be minimized. For example, organisation A has hired agile coaches to help them with the transformation. To conclude, by having great knowledge within the agile field, it will be easier for HR to take on a more proactive role. However, if HR do not understand or work agile, HR will most likely end up with a reactive role throughout the process. All organisations have understood that agile must be applied to HR’s responsibilities, which is why the majority of the respondents mention that changing HR’s traditional responsibilities is a challenge. However, the results of this study did not reveal influence of this challenge on the role of HR. Further, the majority of the respondents also see time and capacity as a challenge.

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By having time and capacity to spend on change it is easier to take on a proactive role, which can be seen in organisation A and D. To dare to experiment is also a challenge for many HR departments in agile transformations. What can be identified in this study regarding HR’s role is that experimenting does not directly affect what role HR ends up with in the transformation. However, if HR are leading the change it is very important that they are a role model who dare to experiment which is in line with what Schein (2017) mentions about role modeling. Further, by having lack of strategic competence and technical skills, HR’s trust and status within the organisation becomes affected which results in that they do not get prioritized in the change process. This will result in a more reactive role. However, an increased strategic competence and technical skills will facilitate for them to take on a proactive role instead. Regarding the challenge of M-shaped and T-shaped competence profiles, this study does not imply that this challenge impact HR’s role. When it comes to the challenge attitude and awareness of change, the majority do not experience it as a challenge. Expert E explains that it has been a shift in the recent years were HR have gotten a more positive attitude towards the agile way of working. If the HR team has a more positive attitude towards the change and are more aware of it, it will be easier for them to take on a role as a change agent which can be seen in organisation A and D. On the other hand, if they have a negative attitude and are less aware of the change, they will most likely end up with a reactive role throughout the change process. What might be a possibility though, is that their attitude changes through the transformation process and that their awareness increase. In that case, they might be able to shift from a reactive role to a proactive role. Another main challenge identified is to understand the “why” and communicate it continuously, which is also emphasized by Nahavandi (2015) as important. Further, if HR work in their own silo and do not have a great presence in the organisation, as expert E mentions is common for HR, it makes it difficult for HR to communicate continuously with the rest of the organisation. HR’s position and presence in the organisation thus affects the communication ability. This can be seen in organisation A and D where their presence enables continuous communication between HR and the rest of the organisation. Further, in organisation D, this is not mentioned as a challenge, which is probably because HR have a standing point at the monthly meetings with the organisation, where HR can communicate directly to all employees. This simplifies for HR to communicate with the organisation continuously. The results of this study did not reveal influence of this challenge regarding HR’s role. However, there is a lot of potential in using HR in a transformation to communicate the why, since they possess great behavioral and people knowledge. If HR’s behavioral knowledge is forgotten it results in that HR do not become as relevant in the transformation process and hence obtain a reactive role. On the other hand, if HR’s behavioral knowledge is emphasized, the relevance of having them part of the transformation increase and they can achieve a more proactive role. Many of the organisations cite these characteristics as important in a change, which is also emphasized by Rock (2008). In organisation A they have an understanding about HR’s behavioral knowledge and they have included HR early in the transformation process, and hence HR have been able to take on a more proactive role.

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The last challenge is external factors and this challenge is mentioned by expert E and manager B. They mean that external factors, like institutions and regulations, are not adapted to an agile structure. This blocks the HR department from transforming their responsibilities to fit an agile structured organisation, since these institutions and regulations needs to be followed. According to Nahavandi (2015), the external factors may complicate the unfreezing phase. Further, this study shows that the external factors do not directly impact what role HR obtain in an agile transformation. Between these challenges, connections could be identified. First of all, a connection could be drawn between having a strategic reputation and working closer to the organisation. If HR work closer to the organisation it will be easier for them to attain a strategic reputation. It will also facilitate for them to communicate continuously with the rest of the organisation. By being more present, the people in the organisation might also be more aware about the behavioral knowledge that HR possess. By increasing awareness of HR’s behavioral knowledge and how it is useful in a change process, HR will also gain a more strategic reputation. Further, if HR possess strategic competence, it will be easier for them to obtain a strategic reputation instead of an administrative reputation. To conclude, it is equally important that HR increase their presence and strategic focus as well as for the organisation to view HR as a strategic function rather than an administrative function. The challenge to understand the organisation, could be connected to lack of technical skills. If an organisation is focused on the tech industry, understanding the organisation may become harder for HR if they do not possess these skills. Further, if HR are considered to have poor technical knowledge, it can also affect the reputation. A clear connection could also be drawn between understand and work agile as well as HR’s traditional responsibilities. To be able to apply agile to HR’s traditional responsibilities it is of greatest relevance to understand agile. If HR do not understand agile it will be even more challenging to apply it to their traditional responsibilities. However, by experimenting it will be easier to find ways to apply agile to the responsibilities. Further, by having a positive attitude and being aware it will be easier for HR to understand and work agile. The challenge to work and understand agile will therefore be greater if HR are more negative and resistant towards the change. There is also a connection between understand the ”why” and time and capacity. If the HR department have lack of time and capacity, they might forget to decide the “why” which can lead to employees being confused about why the change is needed.

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6. Conclusion

The study that has been conducted shows that there are different opinions regarding HR’s role in an agile transformation, they can either take on a reactive role or a more proactive role and act as a change agent. However, the majority of the respondents in this research believe that HR should act as a change agent through all stages in an agile transformation which is in line with what is mentioned in the theoretical framework. This means that HR should have a great involvement and be part of the team leading the transformation. By including HR and letting them lead the change it will be easier to change the culture and reduce resistance to change since they have great behavioral knowledge and influence both indirect and direct over the organisation. Further, it will be easier in the refreezing phase were the changes need to become permanent by giving support and encouragement which is HR’s responsibilities. However, to take on a proactive role is not obvious since there are prerequisites connected to the different challenges in this study. The different challenges affect how easy it is for HR to take on a proactive role or if they end up with a more reactive role instead. This can be seen in this study, since HR in the different organisations have had more or less difficult to take on a proactive role, depending on what challenges they have faced. Further, all challenges do not affect the role HR ends up with since some challenges are general no matter of HR’s role. One main reason that affects what role HR ends up with in the agile transformation is HR’s reputation within the organisation, which is one identified main challenge. If they are seen as a strategic function it is common that they act as a change agent. However, if they have an administrative reputation it is common that they end up with a reactive role instead. To have a strategic reputation is therefore a prerequisite for HR to take on a more proactive role. Reasons for the administrative reputation could be connected to the challenges lack of strategic competence and technical skills. To conclude, the reputation is of greatest relevance since it affects HR’s role in the transformation process. However, if HR have a more administrative reputation but are a part of the team leading the transformation, they will automatically be included and therefore it is easier for them to shift to a more proactive role despite their reputation. Further, this could lead to HR getting a strategic reputation instead. Another main challenge that affects what role HR ends up with is understand and work closer to the organisation. This challenge means that HR usually work in their own silo and do not understand the organisation completely. If this challenge occurs in an organisation it affects HR’s role as it gets more reactive in the transformation process. Other challenges that affect if HR get a reactive role or not is the behavioral knowledge, lack of competence and time and capacity. The behavioral knowledge that HR possess is often forgotten as a consequence of HR’s administrative reputation. This complicates for HR to be seen as an important part in the transformation. Further, if HR lack strategic competence and technical skills, it can be hard for them to be part of the transformation which leads to a more reactive role. What is also important is to have the right competence profile. Lastly, time and capacity occurs as a challenge and create prerequisites for a reactive role for HR, if the workload is too heavy for HR and they have a hard time prioritizing change. Connections could be drawn between the challenge understand and work closer to the organisation and the challenges regarding HR´s reputation, HR´s behavioral knowledge and understand the “why” and communicate continuously.

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Attitude and awareness of change is another main challenge identified. However, it was mentioned that there has been a shift today regarding the attitude which also can be seen in this study since there are only two respondents that emphasize this as a great challenge. When it comes to how HR’s role is affected, it can be conducted that if the attitude is positive and HR have a great awareness, they will more likely end up with a proactive role and if the situation is in opposite they will most likely end up with a reactive role. Further, if HR have a positive attitude and are aware of the change it will be easier for them to work and understand agile, compared to if they are more resistant. One of the greatest challenges that all respondents in this study mentioned was for HR to understand and work agile, which is hard since it is a whole new mindset that is in great contrast to the traditional way of working. Further, the agile philosophy can be hard to apply to HR practices since it is founded for software development which means that the basics are not designed for HR responsibilities. To conclude, if HR have a great understanding of agile and work in an agile way, it will be easier for them to take on a proactive role and hence lead the change. This challenge could be connected to HR’s traditional responsibilities were understand and work agile is a prerequisite to be able to apply agile to HR’s traditional responsibilities. Further, experimenting is of greatest relevance to find ways to apply agile to HR’s responsibilities. Other challenges identified for HR in an agile transformation are to understand the “why” and communicate continuously, dare to experiment, HR’s traditional responsibilities and external factors. These challenges do not significantly or directly impact HR’s role in a transformation. However, to understand the “why” and communicate continuously, is of greatest relevant in an agile transformation to make sure the transformation runs smoothly and that the employees understand why it is important. Further, experimenting is of greatest importance when going through an agile transformation to find ways to adapt the new mindset. The challenge regarding external factors is only seen as a challenge by two of the respondents, which means it is relevant to consider but might not be of greatest relevance in all cases. To conclude, it is important to be aware of the identified challenges when transforming to an agile structure. Also, it is important to understand how they may affect HR’s role and each other to be able to create the best possible prerequisites for the transformation.

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7. Recommendations for Further Research

This thesis investigated HR’s role in an agile transformation and challenges arising for HR in the transformation process. Further, how these challenges impact each other and the role of HR was examined. First of all, this study included comparison between six organisations and response from a focus group session. This means that further investigation could be made on additional organisations within other industries to make the research applicable to more settings. Further, this study was conducted at a general level which means there are also possibilities to investigate on a deeper level. Other relevant studies within this topic is investigating concrete solutions on the identified challenges. It could also be interesting to follow the development of an agile transformation to see where and when the challenges arise.

7.1 Recommendations for management Table 2 below present recommendations for management by action and what it will result in. By considering these, HR will probably get a more present role in the organisation and hence be able to be involved in change and potentially lead it. Further, considering these may affect if the transformation to an agile structure is successful or not.

Table 2 – Recommendations for management

Action What it result in

Make sure to have HR represented in the management team

Simplified communication between HR and the rest of the organisation, removal of the administrative reputation and facilitation for HR to be involved in the transformation process

Have a standing point for HR at all weekly meetings where they can discuss the change

Facilitation for HR to communicate continuously about the change to the rest of the organisation

Increase the knowledge about HR within the organisation and make sure that HR increase their presence

A better understanding about the whole organisation from an HR’s perspective

Help and support HR to focus more on the strategic parts, by reducing their administrative tasks

Increased strategic competence for HR and removal of HR’s administrative reputation

Support HR in attending courses about the agile way of working and how to apply it on their responsibilities

A better understanding about the agile mindset for HR

Create a culture where it is okay to make mistakes and encourage experimenting

Facilitation for HR to transform to an agile way of working

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Push for cultural and behavioral change and not only efficiency when selling agile

Greater relevance of including HR

Make sure to utilize the behavioral knowledge that HR possess in the transformation process

More smoothly transformation process, less resistance to change and more satisfied employees

Hire agile coaches who are experts in the field to help with the transformation

Freed up time and increased capacity for HR

Make sure that HR understand why the transformation is needed

Greater support for the employees and managers within the organisation

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References

Ahnlund, A., 2018. Så blir HR en strategisk partner i den digitala transformationen. [Online] Available at: https://hrbloggen.se/2018/01/hr-strategisk-partner-digitala-transformationen.html [Använd 23 April 2020]. Ali, J., Giap, C. T. & Cheong, T. T., 2004. Knowledge management in agile organizations. Sunway Collage Journal 1, pp. 13-20. Anney, V. N., 2015. Ensuring the Quality of the Findings of Qualitative Research: Looking at Trustworthiness Criteria. Journal of Emerging Trends in Educational Research and Policy Studies, pp. 272-281. Ayo, J., 2017. Introducing Change in Organization: Implication for Human Resoruce Development Practitioners, Osun State, Nigeria: Babalola University. Baird, L. & Meshoulam, I., 1988. Managing Two Fits of Strategic Human Resource Management. Academy of Management Review, pp. 116-128. Baran, B. E., Filipkowski, J. N. & Stockwell, R. A., 2018. Organizational Change: Perspectives From Human Resource Management. Journal of Chnage Management , pp. 201-209. Baritz, L., 1965. The servants of power: a history of the use of social science in American industry. University of Michigan. Bazigos, M., De Smet, A. & Gagnon, C., 2015. Why agility pays. McKinsey Quarterly, December. Bell, E., Bryman, A. & Harley, B., 2019. Business Research Methods. 5th Edition red. United Kingdom: Oxford University Press. Bianca, A., 2019. The Role of Human Resource Management in Organizations. [Online] Available at: https://smallbusiness.chron.com/role-human-resource-management-organizations-21077.html [Använd 13 February 2020]. Birkel, F., Kelly, C. L. & Welch, G., 2013. Survival of the Most Adaptable. SpencerStuart, March. Boss, J., 2015. 6 Secrets Of Organizations That Successfully Adapt To Change. [Online] Available at: https://www.forbes.com/sites/jeffboss/2015/11/14/6-secrets-of-organizations-that-successfully-adapt-to-change/#531f23882b0b [Använd 10 March 2020]. Bredin, K., Enberg, C., Niss, C. & Söderlund, J., 2016. Knowledge Integration at Work: individual project competence in agile projects. Managing knowledge integration across boundaries, pp. 206-226. Bredin, K. & Söderlund, J., 2011. The HR quadriad: a framework for the analysis of HRM in project-based organizations. International Journal of Human Resource Management, pp. 2202-2221. Browning, S. M., 2015. Four Steps to Effective Change Management for HR. [Online] Available at: https://www.tlnt.com/four-steps-to-effective-change-management-for-hr/ [Använd 24 February 2020]. Bryman, A. & Bell, E., 2011. Business Research Methods. 3rd Edition red. Oxford: Oxford University Press. Cappelli, P. & Tavis, A., 2018. HR goes Agile. Harvard Business Review, Mar-Apr, pp. 46-52. Claus, L., 2019. HR disruption-Time already to reinvent talent management, Barcelona: Elsevier. Clay, S. & Halladay, K., 2018. HR´s Role in Change Management. Workforce Solutions Review, pp. 4-7.

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Coleman, S. & Macnicol, D., 2015. Project Leadership. 3rd edition red. Routledge: Gower Publishing. Denning, S., 2016. What Is Aglie?. Forbes, 13 August. Denning, S., 2018. The Challange of Leadership in the Age of Agile. Leader to Leader, pp. 20-25. Devanna, M., Fombrun, C. & Warren, L., 1982. Strategic Planning and Human Resource Management. Human Resource Management. Efron, S. E. & Ravid, R., 2019. Writing the Literature Review - A Practical Guide. New York: The Guilford Press. Ferris, G. R. o.a., 2007. Human resources reputation and effectiveness. Human Resource Management Review , June, pp. 117-130. Finn, A., 2020. What's the role of HR in agile organisations?, London: PA consulting . Finn, A., 2020. Why HR is critical to successful Agile transformation, London: PA Consulting. Flach, B., 2006. Personalledning: human resource management i forskning och praktik. Lund: Studentlitteratur. Gothelf, J., 2014. Bring Agile to the Whole Organization. Harvard Business Review, 14 November. Guest, D. & King, Z., 2004. Power, Innovation and Problem‐Solving: The Personnel Managers’ Three Steps to Heaven?. Journal of Management Studies, 16 April, pp. 401-423. Guion, L., Diehl, D. & McDonald, D., 2011. Conducting an In-depth Interview, Florida: University of Florida. Hennink, M. M., 2014. Focus group discussions. New York: Oxford University Press. Kerievsky, J., 2016. An Introduction to Modern Agile. InfoQ, 20 October. Kvale, S., 1998. Interviews: An Introduction to Qualitative Research Interviewing. American Journal of Evaluation, pp. 267-270. Mangen, F., 2018. Agil HR med Pia-Maria Thorén. [Ljudupptagning] (AgilaHRpodden). Mangen, F., 2018. Praktisk Agil HR med Björn Sandberg. u.o.:u.n. Merriam, S. B., 1998. Qualitative Research and Case Study Applications in Education. 2 red. San Francisco: Jossey-Bass. Modern Agile, 2020. Guiding Principles. [Online] Available at: http://modernagile.org [Använd 9 March 2020]. Murthey, C. S. V., 2007. Change Management. Mumbai: Himalaya Pub. House Pvt. Ltd.. Nahavandi, A., 2015. The Art and Science of Leadership. 7th Edition red. Edinburgh: Pearson Education Limited. Perkin, N., 2020. Agile Transformation - structures, processes and mindsets for the digital age. 1st edition red. London: Kogan Page Limited. Rigby, D. K., Sutherland, J. & Noble, A., 2018. Agile at Scale. Harvard Business Review, May-June. Rock, D., 2008. SCARF: a brain-based model for collaborating with and influencing others, Sydney: Neuro Leadership Journal. Rousseau, D. M. & Greller, M. M., 1994. Human Resource Practices: Administrative Contract Makers. Human Resource Management, pp. 385-401. Sargeant, J., 2012. Qualitative Research Part II: Participants, Analysis, and Quality Assurance, Nova Scotia: Journal of Graduate Medical Education. Schein, E. H., 2017. Organizational culture and leadership. Hoboken: Wiley. Scully, J., 2014. Agile HR Delivery. Workforce Solutions Review, January, pp. 8-11.

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Shead, M., 2016. What is Agile?. [Online] Available at: https://www.youtube.com/watch?v=Z9QbYZh1YXY [Använd 12 February 2020]. Socconini, L. & Reato, C., 2019. Lean Six Sigma Management System for Leaders. 2nd Edition red. Barcelona: Marge Books. Steiber, A., 2014. Googlemodellen - Företagsledning för kontinuerlig innovation i en snabbföränderlig värld, u.o.: Stiftelsen IMIT och VINNOVA. Tetteh, V. A., 2019. Management of Human Resources, Amenia: Salem Press Encyclopedia. Tonnquist, B., 2019. Agilt eller projekt?. 1st edition red. Stockholm: Sanoma utbildning. Trost, A., 2017. The End of Performance Appraisal: A Practitioners' Guide to Alternatives in Agile Organisations. Tübingen: Springer. Wigren, H., 2019. Vad är agil HR i praktiken?. Winningtemp, 29 October. Wright, C., 2008. Reinventing human resource management: Business partners, internal consultants and the limits to professionalization. Human Relations, p. 1063–1086. Vulpen, E. v., 2019. 15 Key Human Resoruces Roles. [Online] Available at: https://www.digitalhrtech.com/human-resources-roles/ [Använd 12 February 2020].

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Appendices

A. Interview templates in Swedish and English

HR-intervju Ansvar och arbetsuppgifter

• Hur ser din nuvarande roll ut? Vad är dina arbetsuppgifter? (Ge konkreta exempel) • Hur såg din roll ut för ett år sedan? (Innan den agila transformationen) • Hur skulle du säga att din roll och ansvar har påverkats av den agila transformationen?

Kommunikation

• Hur skedde kommunikationen mellan HR och resten av organisationen innan den agila transformationen?

• Hur skedde kommunikationen under den agila transformationen? • Hur sker kommunikationen mellan HR och resten av organisationen i dagsläget? • Hur förmedlades information om förändringen inom organisationen?

Medvetenhet om förändringsarbetet

• Vilka förändringar kommer/har det agila arbetssättet att innebära för organisationen på: o Individnivå o HR-nivå o Strukturmässigt

• Anser du att din roll behöver förändras för att möta de organisatoriska förändringarna?

• På vilket sätt blir du informerad om vad som sker med förändringsarbetet? • Hur bemöts förändringarna från HRs sida? • Känner du att du har tillräckligt med kunskap om vad ett agilt arbetssätt/agilt mindset

innebär? Utveckla. • Finns information om verksamheten och transformationen lättillgänglig?

o Använder du dig av detta material? • Hur såg/ser arbetsbelastningen ut under förändringsarbetet? • Hur såg/ser HR’s involvering i transformationsteamen ut?

Utmaningar med HR i en agil transformation

• Upplevde du att HR var lika delaktiga i den agila transformation som resten av organisationen?

• Vilka utmaningar upplevde du med transformationen ur ett HR-perspektiv? (Ge konkreta exempel) o Varför uppstod dessa utmaningar? o När uppkom dessa utmaningar? o Hur uppkom dessa utmaningar?

HRs roll i en agil organisation

• Har roll-beskrivningarna förändrats på grund av den agila transformationen och var HR delaktiga i beskrivningen av de nya rollerna? På vilket sätt?

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• Har kompetensprofiler ändrats i organisationen och vad har det inneburit för HR som kompetensförsörjare?

• Vilka kompetenser behöver HR i en agil organisation jämfört med en traditionell organisation? Är det något som ni ser har saknats hos HR i den nya organisationen?

o Har det inneburit några konsekvenser för organisationen? • Hur arbetar HR med att beskriva och introducera nya karriärvägar? • Hur ser lönestrukturen ut i dagsläget? Hur såg processen ut före den agila

transformationen? o När kan man löneförhandla? o Blir team eller individ belönade? o På vilka kriterier ges bonus ut?

• Vem är involverad i beslutsprocessen om HR frågor? • Hur arbetar HR med medarbetarsamtal/arbetsmiljön? Hur såg processen ut före den

agila transformationen? • Hur sker rekryteringen? Vilka är delaktiga i processen? Hur såg processen ut före den

agila transformationen? o Vad är viktiga kriterier för era kandidater?

• Upplevde/upplever du att du hade tillräckligt med tid att lägga på förändringsarbetet och vilka uppgifter prioriterade du i så fall? o Går de nya arbetsuppgifterna i konflikt med dina dåvarande uppgifter?

• Vad finns det för förbättringsområden? (Ge konkreta förslag) HR-interview Responsibility and duties

• What is your current role? What are your duties? (Give concrete examples)

• How did your role look like a year ago? (Before the agile transformation)

• How would you say that your role and responsibilities have been affected by the agile transformation?

Communication

• How did communication occur between HR and the rest of the organisation before the agile transformation?

• How did communication occur during the agile transformation?

• How is communication between HR and the rest of the organisation currently occurring?

• How was information conveyed about the change within the organisation? Attitude and Awareness of Change

• What changes implies the agile approach for the organisation at: o Individual level o HR level o Structurally

• Do you think that your role needs to change to meet the organisational changes?

• In what way are you informed of what is happening regarding the change?

• How are these changes met by HR?

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• Do you feel that you have enough knowledge about what an agile way of working / agile mindset means? Explain

• Is information about the business and the transformation easily accessible? o Do you use this material?

• What is/was the workload during change?

• What will/did HR's involvement in the transformation team look like? Challenges with HR in an agile transformation

• Did you find that HR was as involved in the agile transformation as the rest of the organisation?

• What challenges did you experience with the transformation from an HR perspective? (Give concrete examples) o Why did these challenges arise? o When did these challenges arise? o How did these challenges arise?

HR’s role in an agile transformation

• Have the role descriptions changed because of the agile transformation and were HR involved in the description of the new roles? How?

• Have competence profiles changed in the organisation and what has this meant for HR as a competence provider?

• What competencies do HR need in an agile organisation compared to a traditional organisation? Is there anything you see missing from HR in the new organisation?

• Has it had any consequences for the organisation?

• How do HR work to describe and introduce new career paths?

• What is the current salary structure? What did the process look like before the agile transformation? o When can you negotiate salary? o Will team or individual be rewarded? o On what criteria are bonuses awarded?

• Who is involved in the HR decision-making process?

• How do HR work with appraisals/ work environment? What did the process look like before the agile transformation?

• How is recruitment done? Who are involved in the process? What did the process look like before the agile transformation? o What are important criteria for your candidates?

• Did you experience/feel that you had/have enough time to spend on the change and what tasks did you prioritize in that case? o Do the new tasks conflict with your current tasks?

• What are the areas for improvement? (Give specific suggestions) VD/förändringsansvarig-intervju Ansvar och arbetsuppgifter

• Hur ser din nuvarande roll ut? • Hur såg/ser din roll ut under den agila transformation, vad var/är ditt ansvar? • Hur skulle du säga att din roll och ansvar har påverkats av den agila transformationen?

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Kommunikation

• Hur skedde kommunikationen mellan HR och resten av organisationen innan den agila transformationen?

• Hur var kommunikationen under den agila transformationen? • Hur sker kommunikationen mellan HR och resten av organisationen i dagsläget? • Hur förmedlades information om förändringen inom organisationen? Hur förmedlades

den till HR? Medvetenhet om förändringsarbetet

• Vilka förändringar kommer/har det agila arbetssättet att innebära för organisationen på: o Individnivå o HR-nivå o Strukturmässigt

• Anser du att HRs roll behöver förändras för att möta de organisatoriska förändringarna?

• Hur bemöttes förändringarna från HRs sida? • Finns information om verksamheten och transformationen lättillgänglig? • Hur såg/ser HR’s involvering i transformationsteamen ut?

Utmaningar med HR i en agil transformation

• Upplevde du att HR var lika delaktig i den agila transformation som resten av organisationen?

• Vilka utmaningar upplevde ni med transformationen med HR-avdelningen? (Ge konkreta exempel) o Varför uppstod dessa utmaningar? o När uppkom dessa utmaningar? o Hur uppkom dessa utmaningar?

HRs roll i en agil organisation

• Har kompetensprofiler ändrats i organisationen och vad har det inneburit för HR som kompetensförsörjare?

• Vilka kompetenser behöver HR i en agil organisation jämfört med en traditionell organisation? Är det något som ni ser har saknats hos HR i den nya organisationen?

o Har det inneburit några konsekvenser för organisationen? • Upplever ni att HR arbetar agilt? • Har rollbeskrivningarna förändrats på grund av den agila transformationen och var HR

delaktig i beskrivningen av de nya rollerna? På vilket sätt? • Hur ser lönestrukturen ut i dagsläget? Hur såg processen ut före den agila

transformationen? o När kan man löneförhandla? o Blir team eller individ belönade? o På vilka kriterier ges bonus ut?

• Vem är involverad i beslutsprocessen om HR frågor?

57

• Hur arbetar HR med medarbetarsamtal/arbetsmiljön? Hur såg processen ut före den agila transformationen/hur är tanken att det ska se ut efter den agila transformationen?

• Hur sker rekryteringen? Vilka är delaktiga i processen? Hur såg processen ut före den agila transformationen? o Vad är viktiga kriterier för era kandidater?

• Vad finns det för förbättringsområden? (Ge konkreta förslag) Managers in charge of the agile transformation-interview Responsibility and duties

• What is your current role?

• What did your role look like during the agile transformation, what was/is your responsibility?

• How would you say that your role and responsibilities have been affected by the agile transformation?

Communication

• How did communication occur between HR and the rest of the organisation before the agile transformation?

• How did communication occur during the agile transformation?

• How is communication between HR and the rest of the organisation currently occurring?

• How was information conveyed about the change within the organisation? How was it communicated to HR?

Attitude and Awareness of Change

• What changes implies the agile approach for the organisation at: o Individual level o HR level o Structurally

• Do you think that HR’s role needs to change to meet the organisational changes?

• How were these changes met by HR?

• Is information about the business and the transformation easily accessible?

• What will/did HR’s involvement in the transformation team look like?

Challenges with HR in an agile transformation

• Did you find that HR was as involved in the agile transformation as the rest of the organisation?

• What challenges did you experience in the transformation with the HR department? (Give concrete examples) o Why did these challenges arise? o When did these challenges arise? o How did these challenges arise?

HR’s role in an agile transformation

58

• Have competence profiles changed in the organisation and what has this meant for HR as a competence provider?

• What competencies do HR need in an agile organisation compared to a traditional organisation? Is there anything you see missing from HR in the new organisation?

• Has it had any consequences for the organisation?

• Do you experience that HR work agile?

• Have the role descriptions changed because of the agile transformation and were HR involved in the description of the new roles? How?

• What is the current salary structure? What did the process look like before the agile transformation? o When can you negotiate salary? o Will team or individual be rewarded? o On what criteria are bonuses awarded?

• Who is involved in the HR decision-making process?

• How do HR work with appraisals/work environment? What did the process look like before the agile transformation? How will it look like after the transformation process?

• How is recruitment done? Who are involved in the process? What did the process look like before the agile transformation? o What are important criteria for your candidates?

• What are the areas for improvement? (Give specific suggestions)

B. LinkedIn post

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C. Focus group session preparations

Lunch-Workshop • Workshop för 4-6 st HR-personer • Tid: Måndag 27 april (11.30-12.50) - 1h 20 min

Inbjudan Hej! Den är utmanande tider, och inom våra organisationer inte minst för HR-funktionen. Att kunna anpassa sig till ändrade förutsättningar snabbt och ställa om har visat sig vara en viktig förmåga att ha som organisation. Omställningar som ofta påverkar HR-funktionen både direkt och indirekt. Utvecklingen mot mer snabbrörliga och anpassningsbara, eller agila, organisationer har pågått ett tag nu, men krisen har på många sätt visat varför utvecklingen är betydelsefull, men också att det måste ske utifrån varje specifik organisations särskilda förutsättningar. Den 27 april klockan 11.30-12.50 genomför vi på Knowit och Organizing for speed en workshop tillsammans med Felicia Ekman och Sofia Blonde, två masterstudenter från Linköpings universitet som skriver sitt exjobb om vilken roll HR bör ha i agila transformationer. I intervjuer och studier som de gjort visar resultatet att HRs roll är otydlig och underskattad. Det finns potential att ta tillvara på den kunskap och erfarenhet som finns i HR-funktioner under denna typ av transformationer, men hur? Vad är de stora utmaningarna idag och hur kan man göra annorlunda för att skapa förutsättningar för HR att ta en annan roll? Vi vill bjuda in dig till denna workshop som äger rum i en mindre grupp, digitalt via Zoom, där vi gemensamt diskuterar utmaningar och delar erfarenheter om vad man kan göra annorlunda. Känner du att detta skulle vara värdefullt för dig så hör av dig till oss så skickar vi en inbjudan till workshopen. Hör av dig om du undrar något, xxxxx Upplägg Del 1:

1. Inledning - 5 min 2. Presentera oss + vårt området kopplat till hur dagsläget ser ut - 5 min 3. Deltagarna får presentera sig - 5 min 4. “Tankar kring HR i en agil transformation?” på Menti - 5 min

Tid: 20 min Del 2:

5. ”Vilka utmaningar ser du med HRs roll i en agil transformation?” - 5 min 6. Presentation av deras findings - 15 min 7. Vi sammanfattar och presenterar de problemområden som vi hittat men som inte

sagts ännu (släpp in deltagarna till diskussion) - 10 min

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8. Diskutera problemområdena som tagits upp samt problem i dagsläget för HR - fokusera på VARFÖR de uppkommer - 10 min

Tid: 40 min Del 3:

9. Diskutera lösningsförslag - 20 min • Vi presenterar lösningar som vi hittat, deltagarna är med och diskuterar.

Stödfrågor: o Hur kan vi göra saker på ett annorlunda sätt och vad kan vi lära oss av

detta? o Hur vill vi att HRs roll ska vara? o Vad skulle vi kunna göra för att se till att den blir så?

10. Avslutning och tack - 5 min Tid: 25 min