When it comes to Agile transformations, especially in big organizations, it’s not just about ticking off practices like sprint planning or standups. It’s a shift in mindset—one that emphasizes working together, adapting to change, and focusing on what actually matters to the customer.
Douglas McGregor’s Theory X and Theory Y offers a great lens to view the cultural shift at the heart of this transformation.
Theory X assumes that people inherently dislike work, avoid responsibility, and need to be directed or controlled to achieve goals. This aligns with a traditional, top-down management style, where employees are seen as needing constant supervision and direction. In contrast, Theory Y assumes that people are self-motivated, enjoy taking on responsibility, and can be trusted to work toward goals if they are properly supported and given autonomy.
The Challenge in Large Organizations
But here’s the tricky part: in larger companies, change doesn’t come easy. Many of these places have been running on traditional ways of working for years, sometimes decades. It’s that old-school, top-down approach (aligned with Theory X) where sticking to the plan and hitting deadlines is all that matters, even if what you’re delivering isn’t what the customer needs anymore. This is why many employees in such organizations have been conditioned to operate within a Theory X mindset—they’re used to being managed closely, given specific tasks to complete, and not having much say in decisions.
When Agile enters the picture, with its emphasis on self-organization, collaboration, and team empowerment, it can feel uncomfortable, even unsettling, for these individuals. Suddenly being expected to take ownership, solve problems independently, or contribute to decision-making can feel overwhelming. They may feel more secure with clear directions, predictability, and control—values that Agile deliberately disrupts. So, resistance isn’t just at the management level; it can also be present within the teams themselves.
How to Drive the Cultural Shift
For any real culture shift to happen, a few things need to be in place:
1. Leadership Showing the Way
It starts at the top. Leaders can’t just talk the Agile talk; they’ve got to walk it too. If they keep clinging to old habits while telling their teams to be Agile, the mixed messages become pretty obvious. When leaders actively model behaviors like being open, transparent, and adaptable, it’s easier for teams to follow suit. And let’s be honest, leaders need to do more than just give the green light—they’ve got to clear the roadblocks that slow teams down.
This is especially crucial when dealing with “Theory X people.” Leaders must show that they genuinely trust their teams to take on more responsibility, gradually guiding them toward a Theory Y mindset.
2. Building Psychological Safety
Teams need to feel safe enough to try things, make mistakes, and learn—without worrying about getting blamed. In many traditional setups, failure’s a dirty word, and that mindset kills any chance of nurturing an Agile environment. But when teams feel they can experiment and grow from their slip-ups, that’s when Agile really starts to flourish.
For people conditioned by a Theory X environment, this safety net is crucial. They’ve spent years following orders and avoiding risks, so it’s important to reassure them that they won’t be punished for experimenting or voicing their ideas.
3. Empowering the Teams
Too often in big companies, teams are still micromanaged or have to jump through hoops to get decisions approved. For Agile to truly take root, teams need the freedom to make choices and be responsible for delivering value, not just ticking off tasks on a list. Trust them to get the job done, and you’ll see the difference.
However, it’s important to remember that transitioning from Theory X to Theory Y doesn’t happen overnight. Some people will need more guidance and encouragement as they adjust to making their own decisions and working more autonomously.
4. Putting Customers at the Center
A lot of traditional setups measure success by timelines, budgets, or how many features got shipped. But Agile flips that—it’s about how well you’re solving problems for your customers. To make this happen, teams need a clear line of sight to the people they’re building for, something that often gets lost in the shuffle in bigger organizations.
The key here is to help “Theory X people” see the bigger picture—that their work directly impacts the customer experience. This can be a powerful motivator, helping them shift toward a Theory Y mindset.
Navigating the Transition from Theory X to Theory Y
Helping these “Theory X people” adapt to an Agile environment takes time and coaching. It’s about shifting their mindset, helping them see that they are trusted, that their input is valuable, and that they have the capacity to contribute more meaningfully. But it can’t be forced—it requires careful guidance, support, and gradual exposure to this new way of working.
When people have been operating in a Theory X environment—where they’re used to being told what to do and having little responsibility—it can be tough to suddenly empower them. They’re often uncomfortable with the freedom that Agile brings. Even if you give them autonomy, they might not feel ready or trust themselves to make decisions. They’ve been conditioned to follow, not lead or collaborate.
This creates a challenge in Agile environments where empowerment and self-organization are key. These teams need time, support, and guidance to build confidence. Some may still prefer clear direction and structure, while others might resist empowerment altogether. The key is recognizing that, while Agile thrives on trust and autonomy, some people need a gradual transition to this new way of working, especially if they’ve spent years in a controlled environment.
The bottom line is this: you can introduce all the Agile ceremonies and practices you want, but if the culture doesn’t shift, you’re just going through the motions. It’s like playing a part without actually buying into the story. True transformation happens when everyone—from the execs to the teams—embraces this mindset shift.
How do you think this transition should be managed with those who are more used to that Theory X structure?
