In the end, governance is THE issue, because all of the other motivating factors flow from the governance structure. We have a very brief frame in the book called governance, and point out that most governance systems make agile development difficult. In a case study reported in the book, IBM found that they had to make significant changes to the governance system in order for agile to work.
I find governance to be a bigger problem in IT departments than line departments, because governance is often divorced from the value being realized. So often governance in IT means staying on budget - with no proof that this will deliver the most value and the high probability that it will not.
The book looks at the "Beyond Budgeting" movement for alternate governance mechanisms. Again, this is a brief section - if you are really interested, I recommend you look into some of the work of the Beyond Budgeting organization.
Author of Lean Software Development, Implementing Lean Software Development, and Leading Lean Software Development
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