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How much, or what type of a common purpose do Agile teams need to be in order for Agile to work properly?

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I think we can all imagine an Agile team comprised of cross-functional team members working together on a product, executing sprints, with everyone working towards a common goal.  Perhaps that's the ideal situation, and when we have that it can be wonderful.  And, I bet that those of you who believe strongly in Agile also believe that it can be applied to a very wide variety of situations.  But I am wondering if my organization is trying to stretch it too far and apply it in a situation where it's not the best fit. 


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