Distributed Agile Teams: Management Methodology, Roles and Tools

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Damien Filiatrault
Founder & CEO
A computer in a desktop with a remote team connected in a video call

As workplaces re-evaluate remote, hybrid, and in-office policies, the question of whether distributed software development teams are as effective as in-person ones is being debated. 

But early research shows that remote software teams might be good for business. An MIT Sloan Management study of 80 software development teams found that distributed teams can outperform co-located ones. What’s more, the researchers found that distributed teams tended to be more diverse, which increased their problem-solving capacity.

Individuals with specialized skills know they can work effectively from anywhere while maintaining a better work-life balance. Employers should consider this a win. According to IBM, people who work remotely are 50% more productive. What’s more, organizations that embrace remote teams are able to break free from the geographic limitations of sourcing talent. This means they can cast a wider net to attract and retain the best-quality talent at lower costs. 

Companies like Wordpress.com, Basecamp, Github, Treehouse, Upworthy, Stack Exchange and many more are 100% distributed. The number of companies adopting some form of remote models is growing. According to a 2022 study conducted by Buffer, 72% of respondents said that their company was planning on permanently allowing some form of remote work.

Survey results comparing companies that allow remote work in 2021 and 2022

Yet some companies are reluctant to transition to a distributed model. They argue that geographic and time zone differences create communication challenges, which inhibit collaboration and slow growth. Other detractors feel it’s impossible to develop company culture with a distributed model. 

Yet the trend points to a future where remote software development teams are, if not the norm, at least commonplace. In my view, we should learn to embrace it.

At Scalable Path, we’ve been using the distributed agile approach since 2010. For us, distributed teams is key to client satisfaction and talent retention. When the right tools and methodologies are in place, software can be built more efficiently and with higher quality, and the teams are happier doing it.

In this article, I’ll share what I’ve learned about creating culture and cohesion in a remote setting. I’ll also break down how Scalable Path leverages an agile approach to managing distributed development teams. 

Table Of Contents

Originally published on Oct 29, 2015Last updated on Feb 29, 2024

Key Takeaways

What is a distributed team in Agile?

An agile distributed team is a model in which employees are remotely located in multiple places and use agile methodologies to collaborate on their projects. This model is widely used across companies of all sizes.

What are the benefits of distributed agile teams?

There are many benefits to distributed agile teams. Research has shown that distributed teams tend to be more diverse, which can help enhance problem-solving abilities. Moreover, companies that embrace remote teams can cast a wider net when hiring, rather than being constrained to their geographic region. This can help attract and retain high-quality talent at lower costs.

What are the challenges for distributed teams in agile?

Some companies are hesitant to transition to a distributed agile model. Often, they cite geographic and time zone differences can create communication challenges, hinder collaboration, and impede growth. They also contend that it’s difficult to develop a cohesive company culture. With a thoughtful approach, however, these challenges can be mitigated.