[Abstract]: Agile methodologies such as Extreme Programming (XP) have emerged as a major thrust in the computer software development arena. Almost contemporaneously, an organisational theory highly aligned with the values of agile methodologies has mutated from the ‘restructuring’ paradigm. This paper presents an overview of agile methodologies and the key features of the agile corporation, exploring the synergistic relationship they engender. The paper examines whether agile methodologies are used in practice and what organisational factors facilitate or inhibit their adoption. The paper concludes that agile methodologies are gaining widespread acceptance but there is often a misalignment with organisational culture and values. The importance of web systems have helped agile methods forge a place for themselves but there are still a number of factors mitigating against theirudlarge-scale success. In some corporations, agile methods need to be adapted to survive. In many others, their time will only come when changes in structure, culture and values have occurred.
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