The role of the first line manager in a Scaled Agile organization A Case Study at Volvo Cars Corporation

The global business environment requires organizations to be more flexible and adaptive to changes. Agile was designed for this purpose, originating from small software companies. Large established firms looking for a solution are trying to take advantages of the Agile benefits. The size of these firms however require a different approach than the one developed for small software companies, and this approach could be Scaled Agile. Scaled Agile are combining Lean and Agile principles to suit large firms. However, the management theory of traditional, Agile and Scaled Agile organizations is in part contradictory. When large organizations with traditional organizational structures undergo a Scaled Agile transformation, there is uncertainty about what happens to the traditional line manager. The purpose of this thesis is to map out how a traditional and hierarchical management role can be implemented into a Scaled Agile organizational structure, focusing on Volvo Cars Corporation, VCC, and using three additional organizations to provide a contrast. This has been conducted through a qualitative case study totaling 16 interviews aiming to answer the following research questions: (1) How has the line management structure changed when going through a Scaled Agile transformation? and (2) What tasks and responsibilities have been removed respectively emerged and what does this require of a first line manager in a Scaled Agile organization? To answer these research questions, this thesis covers theory concerning the characteristics of traditional, Agile and Scaled Agile organizations and their respective management styles. The collected interview data was compiled and categorized under Changes in organizational structure, The interplay between PO, ScM and FLM (first line manager), Line manager responsibilities and Challenges of the line manager. The main part of the findings concerns VCC. The findings from the three additional organizations are categorized under the same headings. All four organizations had started implementing Scaled Agile, but their approach varied substantially. This thesis concludes that line managers are still needed in a Scaled Agile organization. Their roles however have to change in order to align with Agile practices. By doing so the first line manager loses technical responsibilities but becomes more involved in HR, interpersonal tasks and transformation work. The organizations investigated chose to keep the line structure almost as it was before the transformation, but still expected individuals to change their way of working. This makes the mindset of the individual all the more important to the success of a Scaled Agile transformation, however the findings implies that an individual with an Agile mindset can positively influence those around them. In the four organizations, the Scaled Agile approach has changed the distribution of power between some of the Agile roles compared to original Agile methods. This thesis advise that the first line manager embrace their increasingly HR related role by letting go of product responsibilities, embracing more HR, developing individuals and becoming a servant leader.