Understanding Agile Transformation With Critical Systems Heuristics in Soft Systems Methodology: A Study Case in Oil and Gas Company Operation

ABSTRACT Agile transformations in organizations are complex and multifaceted endeavours, heavily influenced by the cultural context in which they are undertaken. This paper underscores the pivotal role of cultural considerations in firms' agile transformation initiatives, affirming that agile transformation is, fundamentally, a cultural transformation. To address this, soft systems methodology (SSM) emerges as an action research methodology grounded in systems thinking, comprising two integral streams: the logical‐based stream and the cultural‐based stream. It aims to develop actions that are not only systematically feasible but also culturally desirable. This research employs semistructured interviews, focus group discussion (FGD) and observations as the primary research methodology. We strategically selected the critical systems heuristics (CSH) to enhance the analysis of intervention, social dynamics and political aspects within the organization. The analysis will facilitate the development of culturally desirable organizational changes. Specifically, CSH analysis delineates the boundaries within the transformation process, identifies key actors and resources in the agile journey, comprehends the motivating factors propelling change, elucidates metrics for measuring success and aligns stakeholders' worldviews. This study aims to fill the knowledge gap for researchers and industry practitioners on entering the problematic situation of agile transformation in the oil and gas industry by utilizing a robust multimethodological approach to action research and revealing crucial cultural factors that will be a guide for successful agile transformations in oil and gas operation organizations.