The first time I was managing a product where the Development team adopted agile methods, I didn’t even realize it until we had to deliver a bug fix. I was amazed to find that not only could we deliver the bug fix, but we also had the option of including additional functionality that had already been built and tested!
It takes two ingredients to make a smooth transition to using agile development methodologies to build products people want to buy.
First, the Product Manager needs to deliver a prioritized list of requirements. Those requirements have to focus on urgent, pervasive problems that people are willing to pay to have solved. They have to provide context so that Development understands enough to build the right solution.
Second, your Development team has to include a design role. SOMEONE needs to translate market problems into a specification. They need to design the right solution, and figure out how to break the work into sprints. This step needs to be done by people who understand the market requirements, and also understand how to design really good products.
If you are providing market-driven, prioritized requirements with appropriate context, and your Development team understands and respects the art of design, the switch to agile should be smooth….so smooth, you might not even notice!
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