From Bureaucracy to Agility: Implementing Agile Methodologies in German Public Institutions

Sammanfattning

Introduction Agile methodologies have gained significant traction in private sector organisations to improve responsiveness and service delivery, but their adoption in German Public Sector Organisations (PSOs) remains complex and evolving. This thesis explores the relationship between these methodologies and the unique constraints of the public sector, such as rigid hierarchies and regulatory requirements, which often hinder the transition to flexible working methods. Research Question The primary research question this study aims to answer is: “What are the organisational barriers and enablers to effective Agile collaboration between German public sector organisations and private IT companies?”. Additionally, the study investigates to what extent bureaucratic structures impact the ability of PSOs to provide continuous feedback in Agile software development projects. Method A comprehensive theoretical grounding forms the conceptual foundation of this research. Empirically, the study employs a thematic analysis of data collected from six semi-structured interviews, conducted primarily with consultants from private IT firms and one representative from a German federal ministry. Results The findings suggest that German PSOs often face challenges in embracing Agile practices due to siloed departments and formalised decision-making, which can hinder critical elements such as continuous feedback and iterative development. Consequently, PSOs frequently adopt a “partial agility” approach, incorporating superficial tools without institutionalising the underlying mindset. However, the results also indicate that collaboration is more effective when external IT partners act as intermediaries, hybrid models are adopted pragmatically, and committed “Agile champions” facilitate internal change. Discussion These findings highlight a persistent structural mismatch between Agile values and bureaucratic norms, particularly regarding procurement regulations that demand fixed deliverables. The study concludes that meaningful Agile transformation requires not only procedural adjustments but also structural reforms, including flexible contract models and the development of internal digital expertise. Future research should aim to incorporate more internal PSO perspectives to balance the views of external advisors.