Goto night - Agile fix price contracts
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1. The document discusses agile fixed-price contracts for software projects, noting they can succeed but require knowing some "simple tricks." 2. Key factors for success include establishing rules, building trust, embracing change, and defining communication and contract elements up front. 3. Contracts should emphasize vision, initial scope, roles and processes rather than rigid requirements, and allow for scope negotiation between deliverables. Establishing governance through a steering committee also helps.
![Better is ...
“… can be made a success, but you
need to know the [rather simple]
tricks of the trade“](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-7-320.jpg)
![Scrum
Engage with the customer.
Better manage the unknown.
Be transparent [do you want that?] and hence
manage expectations.
Embrace change.
Discover challenges - or better impediments - early
in the project.](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-16-320.jpg)
![Complete lose of control
Complete lose of
2
TRUST
Causes a fall back into old patterns
[when it is too late]](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-20-320.jpg)
![3
Write down all missing
pieces in a contract
[guiding principles]](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-22-320.jpg)
![Typical project: Fix price contract using
agile methodology. Appendix … see
agilemanifesto.org bla bla bla
Contract: WHAT [you must achieve] in
DETAIL
Project: HOW [the heck are we going to
achieve all this?]](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-24-320.jpg)
![Much better
Contract: WHAT HOW [are we going to work
together] and what is our vision and our
INITIAL scope
Project: HOW WHAT [increments do we
need to build in order to achieve the vision]](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-25-320.jpg)
![With a nonexperienced customer
Start small. Exercise
discipline, communication,
reporting and change
management. Exercise around
user stories and acceptance
criteria [!]. Define what a
valuable and verifiable
increment represents](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-27-320.jpg)
![Instead of requirements and specs: vision
statements and initial scope through a story
map [!]
For estimation [we] use magic estimate.
Cone of uncertainty: Magic estimate for average and
worst case estimate.
Visualize risks on story map [technical and business risk].](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-30-320.jpg)
![Describe roles, artifacts and processes
[rules].
Clarify and exercise them [during a Sprint
Zero project].](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-32-320.jpg)
![One Project [Product] – many customers
Customer
Customers
Stakeholder [A]
Stakeholder B [us]
50%
50%
Product Owner
Engineering](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-34-320.jpg)
![Steering committee: There is only one Preso
Work done since last review.
Results.
Addressed risks and status of risks.
Status with respect to consensus.
Current scope in points [story map].
Scope change.
Cost and remaining budget [cost per point].
Assessment of the situation and recommended next steps.](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-38-320.jpg)
![Clarify Intellectual Property [IP] rights.
If
‘‘money for nothing’’ approaches don’t fit you may want
to use the IP for a product.](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-40-320.jpg)
![Financial aspects.
Billing - We are consistently invoicing on a
monthly basis [two sprints]. It keeps
everybody engaged ;-)](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-42-320.jpg)
![Operational excellence
Through a Continuous Inprovement Process [CIP].
Through external audits.
Through external consulting.
Our performance index: Velocity [points]](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-46-320.jpg)
![A Continuous Integration [CI] framework](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-47-320.jpg)
![Review your contracts and projects
Exercise based on an completed project
Measure your own scrum maturity level
[NOKIA test]
What’s
next](https://image.slidesharecdn.com/gotonight-agilefixpricecontractsv1-131212164927-phpapp01/85/Goto-night-Agile-fix-price-contracts-51-320.jpg)
Goto night - Agile fix price contracts
- 1. Trifork GOTO Night Agile fix price contracts in software projects 12. December 2013 / erwin.saegesser@nis.ch
- 2. Trifork GOTO Night „I don’t like the term agile fix price contracts“ 12. December 2013 / erwin.saegesser@nis.ch
- 3. Trifork GOTO Night „Agile fix price contracts Sometimes it’s better to withdraw from an opportunity“ 12. December 2013 / erwin.saegesser@nis.ch
- 4. Trifork GOTO Night „Agile fix price projects require a variable scope“ 12. December 2013 / erwin.saegesser@nis.ch
- 6. ... it leads to believe
- 7. Better is ... “… can be made a success, but you need to know the [rather simple] tricks of the trade“
- 11. Characteristics of projects New. Complex. Deliver a piece of software. Most probably the increments impact existing processes. Have more unknowns than knowns.
- 13. Why projects fail Lack of input. Incomplete specs. Changes. Unrealistic expectations. Source: Standish Group, 2009
- 14. Why projects fail Sounds like engagement, communication and process challenges …
- 15. Scrum
- 16. Scrum Engage with the customer. Better manage the unknown. Be transparent [do you want that?] and hence manage expectations. Embrace change. Discover challenges - or better impediments - early in the project.
- 17. But why do Scrum projects fail?
- 18. 1 A misperception and mostly a complete lack of rules
- 19. With it goes … … lack of discipline … lack of communication … lack of experience
- 20. Complete lose of control Complete lose of 2 TRUST Causes a fall back into old patterns [when it is too late]
- 21. What can we do to ease the pain?
- 22. 3 Write down all missing pieces in a contract [guiding principles]
- 23. Typical project: Fix price contract using agile methodology. Appendix … see agilemanifesto.org bla bla bla
- 24. Typical project: Fix price contract using agile methodology. Appendix … see agilemanifesto.org bla bla bla Contract: WHAT [you must achieve] in DETAIL Project: HOW [the heck are we going to achieve all this?]
- 25. Much better Contract: WHAT HOW [are we going to work together] and what is our vision and our INITIAL scope Project: HOW WHAT [increments do we need to build in order to achieve the vision]
- 26. As a non-experienced contractor w/o Scrum experience don’t bid for such a project at all 4
- 27. With a nonexperienced customer Start small. Exercise discipline, communication, reporting and change management. Exercise around user stories and acceptance criteria [!]. Define what a valuable and verifiable increment represents
- 28. Define the communication Fix bi-weekly meetings. Wednesday’s is a good choice. Define a ‘‘jour fix’’. Build a central glossary. 5
- 29. Contract ingredients Agile contracts do not differ from ‚normal’ contracts but they emphasize on other aspects 6
- 30. Instead of requirements and specs: vision statements and initial scope through a story map [!] For estimation [we] use magic estimate. Cone of uncertainty: Magic estimate for average and worst case estimate. Visualize risks on story map [technical and business risk].
- 32. Describe roles, artifacts and processes [rules]. Clarify and exercise them [during a Sprint Zero project].
- 33. Product Owner needs to be in the driver seat.
- 34. One Project [Product] – many customers Customer Customers Stakeholder [A] Stakeholder B [us] 50% 50% Product Owner Engineering
- 35. Clarify responsibility about the implementation: Shall we discuss the HOW?
- 36. It’s inevitable and very important to have a steering committee. Setup a two level controlling with project team and steering committee. The steering committee agrees upon agile artifacts.
- 37. Operational level Daily updates in Jira. Biweekly sprint demo/planning minutes through Confluence. Story map shall be updated after each sprint. On a more strategic level we report every three months.
- 38. Steering committee: There is only one Preso Work done since last review. Results. Addressed risks and status of risks. Status with respect to consensus. Current scope in points [story map]. Scope change. Cost and remaining budget [cost per point]. Assessment of the situation and recommended next steps.
- 40. Clarify Intellectual Property [IP] rights. If ‘‘money for nothing’’ approaches don’t fit you may want to use the IP for a product.
- 41. Describe project duration Ordinary termination. Early termination. Contract extension. and scope of delivery Targeted delivery: Solution ‘x’ consisting of artifacts from 1-n sprints. Minimum: All realized sprints to include source code. Documentation of the requirements in the form of a backlog.
- 42. Financial aspects. Billing - We are consistently invoicing on a monthly basis [two sprints]. It keeps everybody engaged ;-)
- 43. What can a contractor do? First and foremost ... do your homework! Be agile yourself 7
- 44. EBM EBL IBW EWZ EN Uster NIS AG EKZ Founded 1996 CKW 30 employees BKW Software and Swisscom Serviceprovider for Utilities 2 Dev Teams AEK AEN AEW EUG SAK EWS EWA AKONIS EW Flims Energie Thun SES SES EWZ-GR
- 45. EBM EBL AEK AEN IBW EWZ EN Uster EKZ AEW SAK EUG CKW BKW EWS EWA Swisscom AKONIS EW Flims Energie Thun EWZ-GR SES SES
- 46. Operational excellence Through a Continuous Inprovement Process [CIP]. Through external audits. Through external consulting. Our performance index: Velocity [points]
- 47. A Continuous Integration [CI] framework
- 48. 8 A structured allocation of resources and a process for pro-actively eliminating impediments
- 49. Planning Resource allocation Sprint Retrospective Demo Impediments Knowledgemanagement (every month) Backlog refinement Other Wednesday Wednesday Wednesday
- 50. 1 Rules 5 Communication 2 3 Trust Change behavior 6 7 Contract Homework 4 Build trust 8 Impediments
- 51. Review your contracts and projects Exercise based on an completed project Measure your own scrum maturity level [NOKIA test] What’s next
- 52. Trifork GOTO Night Agile fix price contracts can be a success - we all simply need to ‘do our homework’ ;-) 12. December 2013 / erwin.saegesser@nis.ch
- 53. aber uns out me erwin.saegesser@nis.ch certified scrum professional nis ag - Schweiz
- 54. Credits and Pictures agilemanifesto.org scrum.com agileproductdesign.com scrum.jeffsutherland.com www.wickie-film.de nasaimages.org flickr.com library of congress erikjohanssonphoto.com google.com