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Agile is not the goal, but means

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So we sit in the room and discuss the transformation plan for a company which was working in a waterfall manner for nearly a decade. The final goal is to switch to iterative development with somewhat small iteration (let's say, 3 weeks). The "only" problem we had is that we have 3 weeks if manual regression, and it does not really fit the plan. We have options: Long waterfall-like sprint, where the first half of the sprint we develop features, second half - test them Series of short sprints and one "hardening"/"release" sprint dedicated to regression when we finally decide to release things.  There's a third obvious option, which is to decrease regression time, but no-one seems to have knowledge about how it can be done in the next 5 years. So this gets dropped. "We need to have potentially shippable increment each sprint, "hardening" sprints are not Agile!" - says one man in a room. Well, that may be true. Maybe