Agile Contracts

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Agile Contracts as presented at Agile Riga Day 2012, March 17th

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Agile Contracts

  1. 1. AgileContracts? Agile Riga Day 2012 Johannes Brodwall, Principal Architect Steria Norway @jhannes
  2. 2. Motivation
  3. 3. Agile ManifestoIndividuals and interactions over processes and toolsWorking software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan
  4. 4. Customer collaboration over contract negotiation
  5. 5. Does «contract» make a difference?
  6. 6. Hold on, I expected a much fancier UI for this. ?Customer Supplier
  7. 7. Most common contracts: Fixed price Time and material
  8. 8. Hold on, I expected a much fancier UI for this. CrapCustomer Supplier
  9. 9. Hold on, I expected a much fancier UI for this. No problem, we’ll work some moreCustomer Supplier
  10. 10. «Time and material»creates the most happiness
  11. 11. «Time and material»creates the most happiness (Source: My best and worst projects)
  12. 12. So why care about the rest?
  13. 13. Do you pay taxes?
  14. 14. How should your government handle:• We’re running out of money for pensions • We need to change the rules! • The current system is huge
  15. 15. How should govt spend your money? • A big, state-run project • Hire a random company to do it all • Just pay consultants until it’s done
  16. 16. Can Agile help?
  17. 17. Customer collaboration over contract negotiation
  18. 18. PS2000 + Agile
  19. 19. Typical Norwegian public sector project:«We need to replace huge system X…
  20. 20. Typical Norwegian public sector project:«We need to replace huge system X… … we’d like to use Scrum»
  21. 21. PS2000:«Target price»
  22. 22. (Target price: Set a budget, report cost.Supplier & client splits difference)
  23. 23. PS2000 + agile: «Colocated» «Sprints» «Sprint reviews» «Product owner» «Product backlog»
  24. 24. … but also «Negotation phase» «Requirement phase»«Acceptance test phase»
  25. 25. Whence PS2000?
  26. 26. Contract standard from Norwegian Computing Association
  27. 27. 2001: PS2000 with target price
  28. 28. 2009: PS2000 + Agile
  29. 29. Norwegian trends: • 2 Agile user groups with 100+ people at meetings from 2005 • Conferences: Smidig 2007 + 2008• Networking: Devs <-> PMs <-> customers • Meetups about contracts • Scrum certifications • Large and diverse consultancy industry
  30. 30. Some project highlights
  31. 31. LARM:Domain: Electricity reserve powerApplication: Operator UI Internal IntegrationProject size: 2 scrum teams plus supportOrganization: Supplier + Customer teams Colocated at customer siteTeam size: 7 per teamDuration: 3 years (1,5 years left)Sprint length: 3 weeks (customer present)Releases: 3 times per yearContract: Target pricing for whole scope
  32. 32. Smart move:Reliable product backlog using scenarios
  33. 33. Big win:First release in use 1 year aftercontract, containing most used screen
  34. 34. Big loss:Feature creep of individual user stories
  35. 35. PERFORM:Domain: State pension fundApplication: Case worker UI External Integration Process flowProject size: 12-14 scrum teams plus supportOrganization: Three suppliers with 3-6 teams Colocated at customer siteTeam size: 10 per teamDuration: 3 yearsReleases: 3 times per yearSprint length: 3 weeks, with shared demoContract: First release: Time & materials Subsequent: Target pricing per release
  36. 36. Smart move:Contract on price per release First release on T&M «Competing» suppliers
  37. 37. Big win:Delievered what was needed Government is happy Users are happy
  38. 38. Big loss:Full time requirement spec Hostile architecture team
  39. 39. Customer collaboration over contract negotiation
  40. 40. Reality:• We must compete • We must commit
  41. 41. IMAGINE:Project size: Some scrum teams with independent users and product ownersOrganization: Colocated at customer siteTeam size: 6-8 per teamDuration: 3 yearsSprint length: 2 weeks, with shared demoReleases: Every monthBidding: Performance competitionContract: Target estimate per user story
  42. 42. Bidding: Competitive delivery
  43. 43. Project reference Resumes Hourly rates Supplier Supplier Customer SupplierSupplier Supplier Pre- qualification Supplier
  44. 44. SupplierSupplierSupplier
  45. 45. 6-10 weeks SupplierSupplierSupplier
  46. 46. Analysis Coding Supplier Analysis Analysis Coding CodingSupplier Analysis CodingSupplier
  47. 47. Analysis Coding Supplier Analysis Analysis Coding CodingSupplier Analysis CodingSupplier
  48. 48. Pricing: Customer sets budget
  49. 49. I need a screen shot for X. We want something simple. Ok. 2 kEUROCustomer Supplier
  50. 50. We’ve spent half the budget Do you have anything to show for it?Customer It’s not tested yet. Supplier Okay, I’m pulling the plug
  51. 51. We’ve spent the budget Stop!Customer Supplier
  52. 52. Supplier Commitment: Δ☺ Δ$
  53. 53. Questions and discussions
  54. 54. Conclusion
  55. 55. Customer collaboration over contract negotiation
  56. 56. We need an answer for large investments
  57. 57. Norway’s answer ain’t half bad
  58. 58. Norway’s answer ain’t half bad
  59. 59. We can do better
  60. 60. Thank you johannes.brodwall@steria.no http://johannesbrodwall.com http://twitter.com/jhannes

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