I do a lot of teaching about Agile Software Development and the one question I receive time and time again is "How do I know when I'm Agile?". It's a rather simple question, and it's one that I have a simple answer for. First off, Agile is defined by a virtual piece of paper found here. If you follow the link and read what it has to say, you'll likely identify four core values listed in the middle of the page:
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
So, how do you know if you're "Agile"? Be honest with yourself and examine each core value, and where you fit on the scale, left or right. Are you Agile? Now think of your team's values. Is your team Agile? Your Department? It really is that simple. Agile is just a name wrapped around a few core values. Let's all remember that.