A Narrative Exploration of Project Governance in Agile Digital Transformation Projects in Germany

As complex and ambiguous environments heighten the need for innovation, many organisations pursue digital transformation. Agile methods are widely adopted to support this transformation, yet organisations often struggle to integrate Agile principles with governance structures designed for traditional, plan-driven environments.

This tension is particularly evident in Germany, where organisations often operate within formalised, hierarchical structures shaped by high uncertainty avoidance. Although project governance is recognised as a critical success factor, existing research remains largely grounded in plan-driven contexts and offers limited empirical insight into how governance is applied in Agile projects.

This research examines how Agile digital transformation projects are governed in Germany. It adopts a qualitative design grounded in a constructivist paradigm and follows an inductive approach using narrative inquiry. Eleven in-depth interviews were conducted with experienced project management practitioners who had led, supported or consulted on Agile transformation projects across several industries, reconstructed into narrative restories and analysed thematically.

The findings show that hybrid project and governance settings are the norm rather than the exception. Governance roles adapt dynamically across project phases, while intermediary roles emerge to translate between governance layers and Agile teams. Effective governance depends on trust-based collaboration and clearly defined boundaries for team autonomy, but shifts towards greater control in crises or multi-team settings.

These insights help project management practitioners understand how governance emerges in Agile settings and adapt it as projects evolve.