Public sector organizations are moving from digitalization toward digital transformation. However, this fast-paced and fundamental transformation can be difficult to manage with traditional approaches. One solution is the application of agile methods and adaptive governance. Currently, it is not clear whether the agile mindset can be successfully adopted by public sector organizations, which value stability over agility. To provide a much-needed example of how the agile approach can be introduced in the context of the public sector, this paper presents the findings of a single case study of a municipal IT department. The case shows how the IT department adopted an agile IT management approach in response to the growing demand for digital services and the effects of the digital transformation inside the IT department and throughout the municipality. The findings reveal that introducing agile IT management in public sector IT departments can help improve operational flexibility, collaboration, and customer service despite barriers, such as traditional operational structures, and resistance to change. Consequently, bottom-up agile experiments can drive large-scale agile transformations, especially if such transformations are also accepted at the organizational level.
Shadow IT Management Concept for Public Sector