How to manage agile fixed-price projects?
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The document discusses managing agile fixed-price projects and explores the integration of traditional and agile project management methodologies. It emphasizes the importance of effective control, proper planning, and the role of the product owner while identifying potential pitfalls and solutions for successful implementation. The conclusion highlights that agility is controllable when projects are appropriately set up, benefiting from trust and communication.
How to manage agile fixed-price projects?
- 1. How to manage agile fixed-price projects? Tassilo Kubitz 10.04.2017
- 2. Tassilo Kubitz • 1969 / Berlin • Meteorologist • 20 years – IT / Software development / Team lead / Project lead • Head of Competence Center Project Management akquinet tech@spree GmbH
- 3. akquinet tech@spree GmbH • Part of the akquinet AG (IT consultancy) • Individual software development projects • Across the industry • Industry 4.0 / Enterprise Mobility, e.g. • Production planning (knitting machines) • Remote maintenance (glove boxes) • Fleet management (forklift) • Flexible project management (from traditional to agile)
- 4. Who has experiences with… • …the classical / traditional approach? • …agile methods? • …both „worlds“?
- 5. Agenda • Agile meets classic – Can one combine that? • Why is only the product owner to be strangled? • How to manage agile fixed-price projects? • Pitfalls • Conclusion
- 6. Agenda • Agile meets classic – Can one combine that? • Why is only the product owner to be strangled? • How to manage agile fixed-price projects? • Pitfalls • Conclusion
- 7. The agile fixed-price… Is that a contradiction? Why?
- 8. Agile meets classic – Can one combine that? Yegor Bugayenko 12 Mistakes in agile manifesto The Manifesto doesn't say anything about the cost of development and that's probably because it was written by those who make money (programmers), not those who spend it (customers).
- 9. Agile meets classic – Can one combine that? 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 why not combine?Over does not mean instead!
- 10. Agile meets classic – Can one combine that? • There is no generally correct procedure - there is always only appropriate procedure • The border from traditional to agile is fluent… • So why not combine? by Baf Kurtulaj
- 11. Agile meets classic – Can one combine that? • The Requirements of our customers • Compliance with a budget limit • Plannability of deadline and costs • Flexibility throughout the project • Lightweight change management • So why not combine? – agile – agile – traditional – traditional
- 12. Agile meets classic – can one combine that? The agile fixed-price project is possible!
- 13. The agile fixed-price project… • Where is the agility? • User Story • Iterations • New feature requests • Where is the streering? • Preliminary planning • Choosing the next story • Adaption of the roadmap • Where is the fixed price? • Budget frame • Implementation in fixed-price
- 14. Agenda • Agile meets classic – Can one combine that? • Why is only the product owner to be strangled? • How to manage agile fixed-price projects? • Pitfalls • Conclusion
- 15. Why is only the product owner to be strangled? • The „traditional“ PM says about controlling/steering… => To keep time and cost, you have to change scope/quality… Quality Time Cost Scope
- 16. Why is only the product owner to be strangled? • The product owner… • represents the client and thus all stakeholders • attends the daily scrums to get informed (passively) • is ready to answer the questions of the team • maintains the product backlog • prioritizes the product backlog items so that the business value of the product is maximized and the possibility of early releases of core functionality to achieve a rapid return on investment
- 17. Why is only the product owner to be strangled? • The product owner is responsible for • ensuring that the correct requirements are in the product backlog => Very high business domain knowledge • for the fact that they are processed in a meaningful order => Technology decisions require architectural knowledge • And now he has to be responsible for dates and budget…
- 18. Agenda • Agile meets classic – Can one combine that? • Why is only the product owner to be strangled? • How to manage agile fixed-price projects? • Pitfalls • Conclusion
- 19. How to manage agile fixed-price projects? • Effective control means… • …always know where you are and where you want to go • …make changes to the plan possible at any time to get where you want to go
- 20. Where you want to go to? • If the project is cut right from the beginning, then it will be easier to control… • Setup with the benefit of a requirement with an impact map • Structuring the roadmap with the story map • Adjust the roadmap with the Kano model By Craigwbrown - Own work, CC BY-SA 3.0 www.impactmapping.org Winnipeg Agilist
- 21. Make changes to the plan possible „parallelize the waterfall“ - time2market Analysis/Design Implementation Acceptance Feature 1 Feature 2 Feature 3 Earlier releases
- 22. Make changes to the plan possible Prioritize with Lean Management – design2cost Analysis/Design Implementation Feature 1 Feature 2 Feature 3 Reduced costs and earlier releases Acceptance
- 23. How to manage agile fixed-price projects? • Premilinary Planning • Big Picture • Impact Map • Story Map • First roadmap • Rough estimate • Pick a story • User Stories • Estimation • Use the roadmap • Implementation • Priorization • Omitting • Adding • Estimation Continuous recording and evaluation of budget and deadlines!!
- 24. Agenda • Agile meets classic – Can one combine that? • Why is only the product owner to be strangled? • How to manage agile fixed-price projects? • Pitfalls • Conclusion
- 25. Pitfalls… • The project must fit! This method is not suitable for any project • Communication expenditure (for changing the plan) Flexibility costs and needs a separate cost center! • Understanding and trust for the process (the agile mindset) does not come about the paper called "contract" Simulation of the procedure in a workshop (don‘t forget the role purchase) Start with smaller budgets or define exit points after each release
- 26. Agenda • Agile meets classic – Can one combine that? • Why is only the product owner to be strangled? • How to manage agile fixed-price projects? • Pitfalls • Conclusion
- 27. Conclusion • Agility is controllable when the project is set up accordingly • benefit and value (Impact Mapping…) • Method is suitable for traditional thinking customers • time2market • design2cost • Applicable when trust is present • internal projects • further development projects
- 28. This is the end… Thank you! The final discussion is open
- 29. Sources • http://agilemanifesto.org • https://dzone.com/articles/twelve-mistakes-in-agile-manifesto • https://www.linkedin.com/pulse/why-stacey-matrix-model-can-help-understand-agile-baf-kurtulaj-mba • https://www.impactmapping.org/ • http://winnipegagilist.blogspot.de/2012/03/how-to-create-user-story-map.html • https://commons.wikimedia.org/w/index.php?curid=23262780 • https://de.slideshare.net/iku165/d42-ma2015-tassilokubitzagilefestpreisprojekte