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Agile Contracting Manifesto? Lean Gathering #1 Malmö 2011-04-14 Anders Sixtensson
Contracts/Measurement creates behavior What is the desired behavior for a Purchaser and a Supplier leading to increased profit for both parties?
A “good” Purchaser can formulate a clear purpose/goal understands what gives value and when to release break down "the whole" into shippable parts and to rank these parts relative each other is present and gives prompt feedback to Supplier 3
A “good” Supplier delivers potentially shippable parts, early and frequently, and continuously do this better and better can adapt and handle change understands the end-user and pro-actively come up with new ideas and innovation self organize in best possible way to solve problems 4
How about the win-win and increased profit for both parties? Purchaser – wants to pay less for same value as yesterday Supplier – wants to get more payment for same effort/investment as yesterday Obvious = Only way to go is more value delivered with less effort!
A good contract model should promote Purchaser to be a “good” one and allow to cancel when “good enough” is achieved changes and new ideas to be ordered Supplier to be a “good” one and assure that the Supplier get economical benefits if/when improvements or innovation or early cancellation happens
Agile Contracting Manifesto? Maximize win-win over minimizing loss or riskPay for value or result over paying for cost or effortCustomer collaboration over contract negotiation Joint problems over “mine” and “your” problems That is, while there is value in the items on the right, we value the items on the left more
Examples Fixed price TRs and bonus/fine if delivered outside defined “window” Fixed price Features based on joint size estimates S/M/L/XL …..
Questions Typical waste in non-Agile contracts? “How much will it cost in total – I have a limited budget.” “When are you ready – when can I promise the marketing team to start sell?” “What will I get when the assignment is over?” .....