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Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
Agile Contracts - AgilePrague2012
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Agile Contracts - AgilePrague2012

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Agile Contracts talk given in AgilePrague 2012, September 3rd

Agile Contracts talk given in AgilePrague 2012, September 3rd

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  • 1. AgileContracts? AgilePrague 2012 Johannes Brodwall, Principal Architect Steria Norway @jhannes
  • 2. Part I
  • 3. Motivation
  • 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. 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. Does «contract» make a difference?
  • 7. Hold on, I expected a much fancier UI for this. ?Customer Supplier
  • 8. Most common contracts: Fixed price Time and material
  • 9. Hold on, I expected a much fancier UI for this. CrapCustomer Supplier
  • 10. Hold on, I expected a much fancier UI for this. No problem, we’ll work some moreCustomer Supplier
  • 11. «Time and material»creates the most happiness
  • 12. «Time and material»creates the most happiness (Source: My best and worst projects)
  • 13. «Time and material»creates the most happiness (Also for customer!)
  • 14. So why care about the rest?
  • 15. Do you pay taxes?
  • 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. 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. Can Agile help?
  • 19. Customer collaboration over contract negotiation: • Contracts hurt• Big tax-funded projects are inevitable • Agile can help – but insufficient
  • 20. Part II
  • 21. PS2000 + Agile
  • 22. Typical Norwegian public sector project:«We need to replace huge system X…
  • 23. Typical Norwegian public sector project:«We need to replace huge system X… … we’d like to use Scrum»
  • 24. PS2000:«Target price»
  • 25. (Target price: Set a budget, report cost.Supplier & client splits difference)
  • 26. PS2000 + agile: «Colocated» «Sprints» «Sprint reviews» «Product owner» «Product backlog»
  • 27. … but also «Negotation phase» «Requirement phase»«Acceptance test phase»
  • 28. Whence PS2000?
  • 29. Contract standard from Norwegian Computing Association
  • 30. 2001: PS2000 with target price
  • 31. 2009: PS2000 + Agile
  • 32. Norwegian trends: • Active community • Meetups about contracts • Scrum certifications• Large and diverse consultancy industry
  • 33. Some project highlights
  • 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. 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. Smart move:Reliable product backlog using scenarios
  • 37. Big win:First release in use 1 year aftercontract, containing most used screen
  • 38. Big loss:Feature creep of individual user stories
  • 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. Smart move:Contract on price per release First release on T&M «Competing» suppliers
  • 41. Big win:Delievered what was needed Government is happy Users are happy
  • 42. Big loss:Full time requirement spec Hostile architecture team
  • 43. Customer collaboration over contract negotiation
  • 44. Reality:• We must compete • We must commit
  • 45. Part III
  • 46. Wishful contracts
  • 47. The source of our troubles
  • 48. 2 year - development UseFabulation Speculation Bungling Yelling Worrying
  • 49. 2 years - development UseFabulation Contract Price Ok? Deliverable ScopeSpeculation Bungling Yelling Worrying
  • 50. The problem
  • 51. 2 years - development UseFabulation Contract Price ScopeSpeculation Bungling Yelling Worrying
  • 52. A way out?
  • 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. Pricing: Unit pricing
  • 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. I need a screen shot for X. We want something simple. Ok. 2 kEUROCustomer Supplier
  • 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. We’ve spent the budget Stop!Customer Supplier
  • 59. But I wanted rounded corners, and gradients! No problem, butCustomer that means it’s no longer «simple» Supplier Oh, never mind.
  • 60. (I hate having this sort of discussions)
  • 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. Bidding: Competitive delivery
  • 63. Project reference Resumes Hourly rates Supplier Supplier Customer SupplierSupplier Supplier Pre- qualification Supplier
  • 64. SupplierSupplierSupplier
  • 65. 6-10 weeks SupplierSupplierSupplier
  • 66. Analysis Coding Supplier Analysis Analysis Coding CodingSupplier Analysis CodingSupplier
  • 67. Analysis Coding Supplier Analysis Analysis Coding CodingSupplier Analysis CodingSupplier
  • 68. Another model
  • 69. IMAGINE:Supplier Commitment: Δ☺ Δ$
  • 70. Questions and discussions
  • 71. Conclusion
  • 72. Customer collaboration over contract negotiation
  • 73. We need an answer for large investments
  • 74. Norway’s answer ain’t half bad
  • 75. Norway’s answer ain’t half bad
  • 76. But
  • 77. We can do better
  • 78. Thank you johannes@brodwall.com http://johannesbrodwall.com http://twitter.com/jhannes

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