Agile Wake Up #3 : la contractualisation Agile
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The document discusses the challenges and methodologies for creating agile contracts in software development, highlighting the importance of balancing risks between clients and providers. It outlines different contract types such as time and materials, fixed-price, and agile contracts while emphasizing the need for collaboration and mutual understanding in contractual agreements. The conclusion stresses the growing trend of agile contracting and the need for a change in mindset among stakeholders to maximize returns on investments.
Agile Wake Up #3 : la contractualisation Agile
- 1. Ambition 2015 - 2017 Return of Experience How to contract Agile development ? (French ROX) laurent.delvaux@zenika.com @ldelvaux
- 2. Ambition 2015 - 2017 Laurent DELVAUX Living in Paris 2 children + a wife 37 years old Co-founder of Zenika (10yo-200p) Still love Coding and Agile too Try to spread Agile Contracts in France for 5 years And those days, working in Innovation
- 3. Ambition 2015 - 2017 1- State of the art of contracts and Agile compatibility (10 minutes) 2- What are the basic terms for a good Agile contract ? (30 minutes) 3- Q&A (10 minutes)
- 4. Ambition 2015 - 2017 Quick Recap What is Agile development ?
- 5. Ambition 2015 - 2017 Cancel Gift wrap Return Sprint 2-4 weeks Return Sprint goal Sprint backlog Potentially shippable product increment Product backlog CouponsGift wrap Coupons Cancel 24 hours
- 6. Ambition 2015 - 2017
- 7. Ambition 2015 - 2017 State of the Art Types of contracts
- 8. Ambition 2015 - 2017 « Standard phrase in a contract for (…) product development in which the employer agrees to pay the contractor based on the time spent by the contractor's employees to do the work. Generally used in projects in which it is not possible to accurately estimate the size of the project, or when it is expected that the project requirements would most likely change. Generally with a maximum amount fixed. » https://en.wikipedia.org/wiki/Time_and_materials
- 9. Ambition 2015 - 2017 Scope TimeCost
- 10. Ambition 2015 - 2017 “Contracts where the payment amount does not depend on resources used or time expended. Used by military/government contractors to put the risk on the side of the vendor, and control costs. However, historically when used for innovative projects, it often fails. Continue to be popular despite a history of failed projects. Some laws prefer fixed-price contracts, but, many maintain that such contracts are actually the most expensive, especially when the risks or costs are unknown.” https://en.wikipedia.org/wiki/Fixed-price_contract
- 11. Ambition 2015 - 2017 Scope TimeCost
- 12. Ambition 2015 - 2017
- 13. Ambition 2015 - 2017 T&M Contracts Fixed-Price Contacts Agile Contracts Able to stop and save money YES, perhaps NO YES Able to change the scope/priority YES, perhaps NO YES Penalty for … Client Provider Client & Provider Able to have an intermediate working product YES, perhaps NO YES Select Provider best Resources YES NO YES Guaranty a way of working together NO YES YES Risks are on … Client Provider Client & Provider
- 14. Ambition 2015 - 2017 How to create a such Agile Contract ? « Si vis pacem, para bellum » (If you want peace, prepare for war)
- 15. Ambition 2015 - 2017 - Idea : Fair contract => risks sharing - Approach - Strong commitment on each iteration. Well balanced penalty model - Mirror clauses to split risks - Impossible to describe everything - but compulsory to be much more detailed on process than a T&M or Fixed Price contracts - Classic issues consequences know by all. Ex : US not delivered, PO not enough available, project termination, … In collaboration with
- 16. Ambition 2015 - 2017 Scope TimeCost Clause 1 In the contract : Customer described the global vision/scope. Provider estimate Cost/Time based on today know Scope, that is certainly wrong/incomplete. We estimate it will take 10 iterations. And both sides already know that Scope will change. Declaration of Intent
- 17. Ambition 2015 - 2017 Scope TimeCost Provider Provision a Strike Force with a guaranteed way of proceed Customer Provision a PO who know Agile and respect practises Clause 2 In the contract : we will co-create your product together step by step, by Iterations with quick feedback cycle.
- 18. Ambition 2015 - 2017 Scope TimeCosts Clause 3 In the contract : for each Iteration, the client will do his best to provide INVEST US. Provider commit to a Scope/Cost and Time. Change Cost for a 3 weeks Iteration with 5 dev team = 45k€
- 19. Ambition 2015 - 2017 0 € 1 000 € 2 000 € 3 000 € 4 000 € 5 000 € 6 000 € 1 2 3 4 5 6 7 8 Cost variation Régie Forfait zFactory Daily Cost 600 € Gradient / Slope (by contract) 0,6 Fixed cost 360 € Variable cost 240 € Initial estimation 4 days Real time spent T&M Fixed Bob Martin 1 day 600 € 2 400 € 1 320 € 2 days 1 200 € 2 400 € 1 680 € 3 days 1 800 € 2 400 € 2 040 € 4 days 2 400 € 2 400 € 2 400 € 5 days 3 000 € 2 400 € 2 760 € 6 days 3 600 € 2 400 € 3 120 € 7 days 4 200 € 2 400 € 3 480 € 8 days 4 800 € 2 400 € 3 840 € Clause 3 Rule applied US by US
- 20. Ambition 2015 - 2017 - Usual clause in Client Contracts - “At any time, the Client can immediately terminate the contract without any compensation for the Provider” - Reciprocal attention version ? Unbelievable ! - Simple and effective to find a better balanced clause. Try to find the solution ? Also called “mirror clauses”, this type of clauses help to align Client and Provider common vision and mutual interest
- 21. Ambition 2015 - 2017 •Product owner •ScrumMaster •Team Roles •Sprint planning •Sprint review •Sprint retrospective •Daily scrum meeting Ceremonies •Product backlog •Sprint backlog •Burndown charts Artifacts Clauses
- 22. Ambition 2015 - 2017 Teams are located in a unique place Ceremonies were held, decisions are made and communicated PO not present during Sprint Planning, no prioritization, no iterative acceptance tests Common issue : Retrospective removal to « save time » No action plan or following of Retrospective No respect of the Sprint timebox to deliver more US … Clauses
- 23. Ambition 2015 - 2017 Roles and responsibilities are known and respected Sprint Backlog modification during the Sprint Sprint Backlog fixed without dev team commitment (ex : by planning poker) No anticipation no prioritization of next Sprints No management by the PO of the global cost and scope (ex : no MVP) TIPS : if the PO brakes a rule, dev team switch to T&M until the next Sprint Planning ceremony Clauses
- 24. Ambition 2015 - 2017 For each principle : +1 pts : if the contract helps to respect it 0 pts : if it doesn’t help but doesn’t break it -20 pts : if it breaks/prevent the principle http://www.agilemanifesto.org/iso/he/principles.html Hope you will get 12 pts
- 25. Ambition 2015 - 2017
- 26. Ambition 2015 - 2017 The only acceptable dissatisfaction from the Client should be « the product is not moving fast enough » No surprise about Developed Feature No surprise about Remaining Time No surprise about Money spent No surprise about Quality provided
- 27. Ambition 2015 - 2017 Conclusion
- 28. Ambition 2015 - 2017 • Not yet very frequent but trendy • Highly promoted by steering committees, business and IT teams (>>> Innovation) • Slow down by buyers and jurists • Change mind-set from « what i’m buying ? to reduce the cost » « why i’m buying ? to maximize the ROI of spent money » • Difficult to make Buyers, Lawyers, Jurist, Business and Dev teams work together on building a contract that promote ROI • It can take 6 months to 1 year… or fail
- 29. Ambition 2015 - 2017 • Each Agile Contract is Unique (per client) • Can’t be a simple copy/paste • An asset for Customer, enabling innovation • It must be a co-creation • Today, we even provide this co-creation as a set of Services (trainings + consulting + lawyers), for Clients and even Providers (potentially our competitors)
- 30. Ambition 2015 - 2017 Q & A ?