What is the Agile Manifesto? Principles, Values, and Career Insights

The Agile Manifesto, created in 2001, reshaped software development by prioritizing collaboration, adaptability, and customer satisfaction. Today, its principles remain essential as industries adopt faster, more flexible workflows. Companies like Spotify and Microsoft continue to leverage Agile to stay competitive and meet evolving customer needs.

In this blog, you’ll explore the core Agile Manifesto values and principles, its real-world applications, and how it shapes modern software development.

What is the Agile Manifesto and Why Was It Created?

The Agile Manifesto was created by developers who sought to overcome the limitations of traditional methodologies like Waterfall. Waterfall’s rigid, linear approach often led to delays in feedback, poor adaptability, and dissatisfied customers, with notable failures in large projects such as government IT initiatives that exceeded budgets and timelines.

For example, the UK’s National Health Service (NHS) IT project, which followed Waterfall, faced significant delays and cost overruns, ultimately resulting in its cancellation.

Agile, on the other hand, introduced an iterative and flexible approach, allowing for continuous integration and customer collaboration. By focusing on short development cycles, Agile enables faster responses to changes, resulting in more relevant, high-quality software delivered on time and within budget.

This shift allows teams to adapt quickly, minimizing the risks that Waterfall’s rigid structure often poses.

What Are the Core Agile Manifesto Values?

Companies that prioritize flexibility, collaboration, and customer satisfaction—such as software firms, startups, and product development teams—align closely with the four core Agile Manifesto values.

They are:

1. Individuals and interactions over processes and tools – Agile organizations value teamwork and communication, fostering adaptability over rigid workflows.

This is exemplified by Spotify’s Squad Model. Small, autonomous teams work closely together, adapting quickly to feedback and fostering innovation, ensuring that decisions are made swiftly without being hindered by bureaucracy.

2. Working software over comprehensive documentation – Companies seek fast, functional deliveries instead of getting bogged down in excessive planning.

Amazon applies this by frequently rolling out small updates, ensuring new features reach users faster, improving overall experience and responsiveness to market needs.

3. Customer collaboration over contract negotiation – Agile teams engage customers throughout development to ensure solutions meet real needs.

This is seen with Salesforce. By regularly engaging customers, they ensure their software adapts quickly to real needs, fostering stronger customer satisfaction and loyalty.

4. Responding to change over following a plan – Businesses in dynamic industries prefer agility to rigid roadmaps, adjusting to market shifts efficiently.

This is demonstrated by Netflix. The company has continually pivoted its business model, from DVD rentals to streaming, staying ahead of market changes and customer demands to maintain a competitive edge.

Also Read: Agile Methodology Steps & Phases: Complete Explanation

Agile Manifesto values help companies stay competitive, innovate quickly, and deliver high-quality products, but how do teams put them into practice? The 12 Agile Principles provide a clear framework for applying these values in real-world scenarios.

What Are the 12 Principles of the Agile Manifesto?

The 12 Agile principles support the four core values of the Agile Manifesto and are key to staying competitive in a fast-changing market. 

Traditional project management often leads to rigid structures, long development cycles, and products that no longer meet customer needs by the time they’re released. This is where the 12 Agile principles make their mark.

Let’s learn what these 12 Agile principles are:

1. Focus on customer satisfaction – Deliver valuable software early and continuously.

Amazon continuously deploys new features and updates based on customer feedback. Their rapid release cycles allow them to refine features and improve the user experience quickly, staying ahead of competitors and meeting ever-changing customer needs.

2. Welcome changing requirements – Adapt to evolving needs for a competitive edge.

Tesla exemplifies this by pushing over-the-air software updates to its cars, allowing for ongoing improvements in features and battery performance, even after the vehicle has been sold. This constant innovation helps them stay competitive in the rapidly evolving automotive market.

3. Deliver working software frequently – Release updates in short cycles, ensuring progress.

Spotify delivers small, incremental updates regularly. This frequent release schedule enables them to fix bugs, add features, and improve the user experience continuously, ensuring their product stays fresh and relevant.

4. Foster collaboration between stakeholders and developers – Maintain open communication for alignment.

Airbnb worked directly with hosts and travelers when redesigning its search feature. By collaborating closely with end users, they ensured the changes directly addressed real pain points, rather than making assumptions internally about what would work best.

5. Build projects around motivated individuals – Support and trust teams to get the job done.

Google’s policy of allowing employees to dedicate 20% of their time to passion projects has led to the creation of innovative products like Gmail and Google Maps. Trusting teams to explore creative ideas fosters motivation and drives breakthrough solutions.

6. Prioritize face-to-face communication – Encourage direct conversations for clarity and efficiency.

Pixar holds daily stand-ups where animators and directors discuss current progress and provide real-time feedback. This face-to-face communication ensures issues are addressed immediately and avoids misalignment that could result in costly rework.

7. Measure progress through working software – Functioning solutions define success, not just documentation.

Slack prioritizes working software over documentation by releasing beta versions of new features for real users to test. Feedback from actual users, rather than theoretical plans, helps the company measure success and improve the software continuously.

8. Maintain sustainable development – Ensure consistent pacing for long-term productivity.

Basecamp maintains a strict 40-hour workweek to avoid burnout, ensuring their team remains productive over the long haul. This approach focuses on steady progress rather than intense, unsustainable work bursts that may hinder long-term results.

9. Emphasize technical excellence – High-quality code and good design enhance agility.

Apple emphasizes high-quality code and intuitive design. Their rigorous attention to detail, from iOS updates to Mac performance optimizations, ensures smooth functionality, enhancing the overall agility of their software development process.

10. Keep things simple – Avoid unnecessary complexity to maximize efficiency.

Stripe became popular for its simple, clean API design that makes it easy for developers to integrate payment solutions. By avoiding unnecessary complexity, Stripe ensures that developers can quickly implement payments without getting bogged down in convoluted code.

11. Empower self-organizing teams – Allow teams to make decisions for better outcomes.

Spotify organizes its teams into self-managed squads, where each squad has the autonomy to make decisions about the features they are building. This autonomy allows squads to respond more effectively to the changes and deliver features that best meet user needs.

12. Regularly reflect for continuous improvement – Adjust processes based on team feedback.

Toyota’s Kaizen philosophy encourages continuous improvement by empowering employees at all levels to suggest small, incremental changes that lead to significant efficiency gains. This culture of feedback drives long-term innovation and process optimization.

By following these principles, Agile teams boost productivity, enhance collaboration, and respond effectively to change, ensuring project success.

Also Read: What is Agile Project Management? Everything You Need to Know

Agile principles guide teams, but their true power lies in execution. Let’s explore how businesses apply Agile daily to improve efficiency, collaboration, and adaptability.

How Is the Agile Manifesto Used Today?

Agile has expanded into finance, healthcare, manufacturing, and even government projects. While it started as an alternative to heavyweight project management methods, today, it competes with and complements other frameworks like Lean, DevOps, and Design Thinking.

Here’s how Agile is being used in modern businesses and how it stacks up against similar approaches:

1. Agile in Software Development (Still the Gold Standard, But Evolving)

How It’s Used Today: Most tech companies use Agile (Scrum/Kanban) to deliver features in sprints or through continuous deployment models. For example, most software development teams use Agile methodologies, according to a report by the Project Management Institute. 

Companies like Google, Microsoft, Amazon, and Spotify rely on Agile to quickly iterate and deploy software, with AI and automation being integrated into Agile workflows to reduce repetitive tasks and enhance productivity. Some organizations shift to Scaled Agile Frameworks (SAFe, LeSS, Nexus) to manage Agile across multiple teams and departments.

Comparison:

• Agile vs. Waterfall → Waterfall still exists in strictly regulated industries (aerospace, defense, government) where extensive documentation is mandatory. Agile, however, dominates in industries where speed and flexibility matter.
• Agile vs. DevOps → Agile focuses on iterative development, while DevOps extends Agile by integrating operations (CI/CD pipelines, automated testing, and deployment).

Also Read: Waterfall vs Agile: Difference Between Waterfall and Agile Methodologies

2. Agile in Product Development (Beyond Software)

How It’s Used Today: Agile principles have extended beyond software to physical product development. Automotive companies like Tesla use Agile for frequent software updates and rapid prototyping in hardware design. Consumer electronics giants like Apple and Samsung embrace Agile to shorten product cycles and enable quicker iterations, ensuring that products are updated and refined constantly.

Comparison:

• Agile vs. Lean → Agile focuses on small, iterative changes, while Lean eliminates waste and optimizes processes (Toyota’s Lean Manufacturing).
• Agile vs. Design Thinking → Agile delivers products iteratively, but Design Thinking focuses more on human-centered problem-solving before execution. Companies like IDEO and Apple combine both.

Also Read: Design Thinking – 6 Lessons in Innovation and Marketing Excellence

3. Agile in Business and Finance

How It’s Used Today: Agile is increasingly used in the finance sector to quickly develop financial products and services. Banks and fintech companies like JP Morgan, Revolut, and Stripe use Agile methodologies for developing mobile banking apps, fraud detection algorithms, and payment solutions.

Similarly, management teams now adopt Agile practices like OKRs (Objectives & Key Results) to improve strategic planning and enhance operational agility.

Comparison:

• Agile vs. Six Sigma → Six Sigma prioritizes error reduction and process control (good for manufacturing), while Agile focuses on speed and adaptability (better for digital products).
• Agile vs. Traditional Finance Management → Traditional finance works in fixed annual cycles, but Agile finance teams continuously adjust budgets and forecasts based on real-time market data.

Also Read: What is Six Sigma? 5 Steps of Six Sigma

4. Agile in Healthcare and Government

How It’s Used Today: In healthcare, hospitals use Agile to speed up drug trials, improve patient care processes, and optimize software such as electronic health records (EHR). 

In government, countries like the US, UK, and Australia have adopted Agile for digital government services, such as e-passports, tax systems, and public health applications.

Comparison:

• Agile vs. Bureaucratic Models → Traditional government projects use rigid contracts and slow approvals, while Agile speeds up public service improvements by allowing iterative feedback from citizens.

While other methodologies like DevOps, Lean, and Design Thinking have emerged, Agile remains the foundation for modern work processes. It evolves alongside technology, incorporating automation, AI, and cross-functional collaboration across industries. 

The biggest challenge? Scaling Agile beyond small teams while maintaining flexibility—a challenge that frameworks like SAFe and hybrid Agile-DevOps models are tackling today.

Also Read: Agile Framework: All You Need To Know

While Agile transforms workflows, it’s not without obstacles. Misinterpretation, resistance to change, and scalability issues can hinder success—let’s break them down.

Challenges and Criticisms of the Agile Manifesto

Implementing the Agile Manifesto comes with various challenges, especially when scaling or mismanagement occurs. Companies often struggle with misunderstanding Agile principles, adapting to new cultures, and applying frameworks like SAFe or LeSS effectively. Mismanagement can even lead organizations to abandon Agile. 

The table below highlights these challenges along with potential solutions:

Also Read: What is Agile Software Development?

Despite challenges, Agile remains a cornerstone of modern business. As industries evolve, its adaptability ensures continued relevance—let’s see why it still matters.

Why Is the Agile Manifesto Still Relevant Today?

The Agile Manifesto remains highly relevant because it addresses the core challenges that modern businesses face: speed, adaptability, and customer satisfaction.

Here's why Agile's relevance endures:

1. The Need for Speed in a Fast-Paced World

In today’s competitive markets, businesses can’t afford lengthy development cycles. According to the State of Agile Report, 95% of organizations use Agile practices, primarily to speed up product delivery and enhance project visibility. Agile’s focus on iterative delivery enables organizations to release products quickly, making them more responsive to market demands.

Impact: Agile helps companies adapt to market shifts and customer feedback rapidly, allowing products to stay relevant and avoid becoming obsolete before they even reach customers.

2. Emphasis on Customer-Centricity

With customers increasingly expecting personalized and responsive services, Agile’s emphasis on continuous customer collaboration ensures that products evolve based on real-time feedback. For example, Spotify uses Agile’s feedback loops to deliver regular updates based on user input, ensuring that new features meet customer needs.

Impact: Agile enables companies to stay closely aligned with customer needs, ensuring products are consistently valuable and relevant.

3. Flexibility in a Rapidly Changing Environment

The business environment is constantly evolving—whether due to technological changes, new regulations, or global events like the COVID-19 pandemic. During the pandemic, companies such as Zoom used Agile to quickly pivot their focus, expanding features to support the sudden surge in remote work.

Impact: Agile ensures businesses remain flexible, allowing them to respond to sudden changes without derailing entire projects, enabling them to remain competitive in unpredictable conditions.

4. Focus on Cross-Functional Collaboration

Today’s complex problems require solutions that span multiple areas of expertise. For example, Airbnb used Agile’s cross-functional collaboration approach when redesigning its search functionality. Developers, designers, and product managers worked closely with users (hosts and travelers) to create an intuitive design that solved real-world problems.

Impact: Agile promotes a holistic approach to problem-solving, where teams from different functions—development, design, marketing—collaborate to deliver the best possible product.

5. Encouraging Continuous Improvement

The demand for innovation is stronger than ever, and companies like Toyota continue to refine their processes through Agile’s principle of continuous improvement. Toyota’s use of Kaizen (continuous improvement) is rooted in Agile principles and allows teams to constantly iterate on product designs and processes.

Impact: By fostering continuous reflection and improvement, Agile helps businesses maintain a competitive edge by continually enhancing processes, products, and services.

6. Scalability in a Global, Distributed Workforce

With the rise of remote and distributed teams, Agile’s emphasis on autonomous, self-organizing teams allows businesses to scale operations without losing flexibility. Tools like Jira, Slack, and Zoom make it easier to maintain communication and collaboration, even when teams are geographically dispersed.

Impact: Agile’s decentralized decision-making allows businesses to scale efficiently, empowering teams to make decisions quickly while keeping them aligned and responsive across multiple locations.

7. Compatibility with Emerging Practices (DevOps, Lean, Design Thinking)

Agile is compatible with modern frameworks like DevOps for continuous integration and continuous delivery (CI/CD), Lean for waste reduction, and Design Thinking for user-centric innovation. For instance, Amazon integrates Agile with DevOps to ensure continuous delivery of software updates, optimizing both development and operational efficiency.

Impact: Agile serves as the foundation for many other methodologies, creating a seamless integration of tools that enhances end-to-end development and delivery processes.

As companies across industries face increasing pressure to innovate, adapt, and deliver value, the Agile principles continue to provide a flexible, scalable, and effective approach to achieving those goals.

Also Read: 60 Must Know Agile Methodology Interview Questions & Answers: Ultimate Guide 2025

Agile remains essential for businesses navigating rapid change, but truly mastering it requires the right guidance. upGrad offers expert-led courses that provide the knowledge and hands-on experience needed to apply Agile effectively.

How Can upGrad Help You Understand the Agile Manifesto?

upGrad, South Asia’s leading EdTech platform, offers specialized courses in project management that provide a deep dive into the Agile Manifesto. It helps learners understand Agile principles, frameworks like Scrum and Kanban, and how to apply them in real-world projects. 

With over 10M+ learners trained, upGrad equips individuals with the skills needed to excel in Agile-driven environments.

Here are some relevant courses to enhance your learning journey:

• Post Graduate Certificate in Product Management
• SAFe 6.0 Product Owner Product Manager (POPM) Certification
• PMP Certification Training Course
• Advanced General Management Program
• Post Graduate Diploma in Management

You can also get personalized career counseling with upGrad to guide your career path, or visit your nearest upGrad center and start hands-on training today!

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Reference:
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