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On Principles of Agile

Agile software development is a group of software development methods in which requirements and solutions evolve through collaboration between self-organizing, cross-functional teams. It promotes adaptive planning, evolutionary development, early delivery, continuous improvement and encourages rapid and flexible response to change. Note-It is a conceptual framework that focuses on frequently delivering small increments of working software.

The Agile Manifesto,^[1] which first laid out the underlying concepts of Agile development, introduced the term in 2001.

Manifesto for Agile Software Development

We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:

Individuals and interactions over processes and tools 

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

That is, while there is value in the items on the right, we value the items on the left more.

We follow these principles:

1. Our highest priority is to satisfy the customer through early and continuous delivery of valuable software. 
2. Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage. 
3. Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale. 
4. Business people and developers must work together daily throughout the project. 
5. Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done. 
6. The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. 
7. Working software is the primary measure of progress. 
8. Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace indefinitely. 
9. Continuous attention to technical excellence and good design enhances agility. 
10. Simplicity--the art of maximizing the amount of work not done--is essential. 
11. The best architectures, requirements, and designs emerge from self-organizing teams. 
12. At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly.  

More information on history, background and implications: http://en.wikipedia.org/wiki/Agile_software_development