Agile Contracts - AgilePrague2012

697 views

Published on

Agile Contracts talk given in AgilePrague 2012, September 3rd

Published in: Technology, Health & Medicine
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
697
On SlideShare
0
From Embeds
0
Number of Embeds
17
Actions
Shares
0
Downloads
12
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Agile Contracts - AgilePrague2012

  1. 1. AgileContracts? AgilePrague 2012 Johannes Brodwall, Principal Architect Steria Norway @jhannes
  2. 2. Part I
  3. 3. Motivation
  4. 4. Agile ManifestoIndividuals and interactions over processes and toolsWorking software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan
  5. 5. Agile Manifesto Individuals and interactions over processes and tools Working software over comprehensive documentationCustomer collaboration over contract negotiation Responding to change over following a plan
  6. 6. Does «contract» make a difference?
  7. 7. Hold on, I expected a much fancier UI for this. ?Customer Supplier
  8. 8. Most common contracts: Fixed price Time and material
  9. 9. Hold on, I expected a much fancier UI for this. CrapCustomer Supplier
  10. 10. Hold on, I expected a much fancier UI for this. No problem, we’ll work some moreCustomer Supplier
  11. 11. «Time and material»creates the most happiness
  12. 12. «Time and material»creates the most happiness (Source: My best and worst projects)
  13. 13. «Time and material»creates the most happiness (Also for customer!)
  14. 14. So why care about the rest?
  15. 15. Do you pay taxes?
  16. 16. How should your government handle:• We’re running out of money for pensions • We need to change the rules! • The current system is huge
  17. 17. 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? • “Just be agile”?
  18. 18. Can Agile help?
  19. 19. Customer collaboration over contract negotiation: • Contracts hurt• Big tax-funded projects are inevitable • Agile can help – but insufficient
  20. 20. Part II
  21. 21. PS2000 + Agile
  22. 22. Typical Norwegian public sector project:«We need to replace huge system X…
  23. 23. Typical Norwegian public sector project:«We need to replace huge system X… … we’d like to use Scrum»
  24. 24. PS2000:«Target price»
  25. 25. (Target price: Set a budget, report cost.Supplier & client splits difference)
  26. 26. PS2000 + agile: «Colocated» «Sprints» «Sprint reviews» «Product owner» «Product backlog»
  27. 27. … but also «Negotation phase» «Requirement phase»«Acceptance test phase»
  28. 28. Whence PS2000?
  29. 29. Contract standard from Norwegian Computing Association
  30. 30. 2001: PS2000 with target price
  31. 31. 2009: PS2000 + Agile
  32. 32. Norwegian trends: • Active community • Meetups about contracts • Scrum certifications• Large and diverse consultancy industry
  33. 33. Some project highlights
  34. 34. 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
  35. 35. Mar, 2010 Apr,? 2010 Bid Aug, 2010 Negotiation SIGNED Nov, 2010 Elaboration Sprint May, Sept, 2011 2011 Release 1 Sprint Sprint Sprint Sprint Sprint Sprint Sprint Acceptance Production Elabor Sprint Sprint Sprint ation
  36. 36. Smart move:Reliable product backlog using scenarios
  37. 37. Big win:First release in use 1 year aftercontract, containing most used screen
  38. 38. Big loss:Feature creep of individual user stories
  39. 39. 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
  40. 40. Smart move:Contract on price per release First release on T&M «Competing» suppliers
  41. 41. Big win:Delievered what was needed Government is happy Users are happy
  42. 42. Big loss:Full time requirement spec Hostile architecture team
  43. 43. Customer collaboration over contract negotiation
  44. 44. Reality:• We must compete • We must commit
  45. 45. Part III
  46. 46. Wishful contracts
  47. 47. The source of our troubles
  48. 48. 2 year - development UseFabulation Speculation Bungling Yelling Worrying
  49. 49. 2 years - development UseFabulation Contract Price Ok? Deliverable ScopeSpeculation Bungling Yelling Worrying
  50. 50. The problem
  51. 51. 2 years - development UseFabulation Contract Price ScopeSpeculation Bungling Yelling Worrying
  52. 52. A way out?
  53. 53. 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
  54. 54. Pricing: Unit pricing
  55. 55. Menu:• Simple GUI: 20 kNOK• Complex GUI: 50 kNOK• GUI that customer decides how looks: 100 kNOK(Or 2, 5, 20 story points)
  56. 56. I need a screen shot for X. We want something simple. Ok. 2 kEUROCustomer Supplier
  57. 57. We’ve spent half the budget Do you have anything to show for it?Customer Nothing that is tested yet Supplier Okay, I’m pulling the plug
  58. 58. We’ve spent the budget Stop!Customer Supplier
  59. 59. But I wanted rounded corners, and gradients! No problem, butCustomer that means it’s no longer «simple» Supplier Oh, never mind.
  60. 60. (I hate having this sort of discussions)
  61. 61. But I wanted …! Oh, I guess we have to do it, thenCustomer No way! Change order! Hmm…we didn’t Supplier consider that when we gave the price
  62. 62. Bidding: Competitive delivery
  63. 63. Project reference Resumes Hourly rates Supplier Supplier Customer SupplierSupplier Supplier Pre- qualification Supplier
  64. 64. SupplierSupplierSupplier
  65. 65. 6-10 weeks SupplierSupplierSupplier
  66. 66. Analysis Coding Supplier Analysis Analysis Coding CodingSupplier Analysis CodingSupplier
  67. 67. Analysis Coding Supplier Analysis Analysis Coding CodingSupplier Analysis CodingSupplier
  68. 68. Another model
  69. 69. IMAGINE:Supplier Commitment: Δ☺ Δ$
  70. 70. Questions and discussions
  71. 71. Conclusion
  72. 72. Customer collaboration over contract negotiation
  73. 73. We need an answer for large investments
  74. 74. Norway’s answer ain’t half bad
  75. 75. Norway’s answer ain’t half bad
  76. 76. But
  77. 77. We can do better
  78. 78. Thank you johannes@brodwall.com http://johannesbrodwall.com http://twitter.com/jhannes

×