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Agile Public Procurement in Lithuania


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This is a free presentation from the public event Agile Tour 2012 Vilnius.

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Agile Public Procurement in Lithuania

  1. 1. The impossible is often the untried (Jim Goodwin)Money for nothin and chicks for free… (Dire Straits)
  2. 2.  Articulate the Global Efficiency Problem Prove that Agile Can be 1 of Solutions Draft the Strategic Roadmap Initiate the Change
  3. 3.  LR Law on Public Procurement Public Procurement Office  Ministry of Economy  E-Procurement Strict Procedures & Regulations Focus on Transparency & Control IT Services in 2011  272.3M LTL  391 tenders
  4. 4.  Legal Overcomplication Corruption Fierce Competition Public Claims & Lawsuits Kill the Projects Procurement Redundancies Questionable Efficiency
  5. 5. Questionable Efficiency
  6. 6.  LR Law on Public Information Resources LR Public IS Development Methodology LR Public IS Establishment and Legalization Rules IT Resources Ownership  Ministry of Justice  Ministry of Interior  Ministry of Transport and Communications Public IT Supervisor  Information Society Development Committee  Ministry of Transport and Communications E-Government Concept Supervisor  Ministry of Interior Long Term Legal Sequences  Program -> Study -> Requirements -> Tender -> Project
  7. 7.  CAPEX “SaaPA” – Software as a political asset Big Boys’ Club Outdated IS Development Methodology Requirements Over Goals Public IT Undefined Complexities Overdefined Simplicities Lack of Competence Redundancies Unusable Systems
  8. 8. EU / TechnicalGovernment Feasibility specification Procurement Tender Contract Analysis study and specification Program reglaments 1-3 years 0,5 year
  9. 9.  Focus on HOW do organizations buy  Not WHAT do they buy  Not IS THAT REALLY NEEDED  Not IS THAT REALLY WORKING Lack of Championship for Change  Disperse Ownership among 3 Ministries Public IT Procurement Lack of Economic Motivation for Change  Financing models Now  Buyers Not Interested  Sellers Not Interested AGILE CANNOT HELP ALONE
  10. 10. Future is Closer Than Appears
  11. 11.  SMART COUNTRY, GOOD TO LIVE AND WORK  Smart community  Smart economy  Smart governance PM Quotes  2015 Nordic Baltic Hi-Tech Service Hub  2030 3 mln innovative citizens National Progress Program No IT strategy 
  12. 12. Solution!
  13. 13.  No Need To Define The Indefinite Faster Study to Project Lifecycle Faster and Usable GO LIVE Requirements Aligned To Reality Stop When It’s Enough  “Wrong Jungle” Suppliers’ Risk Management Innovation Enablement  Indefinite  Quota for Failure
  14. 14. The long road from it-works-somewhere ... … to it-will work for us
  15. 15.  Effective Practices and Federal Challenges in Applying Agile Methods  Government Accountability Office Report, 2012, July 32 Effective Practices Agile methods begin to be more broadly used in federal development projects Ongoing effort by the Federal CIO Council to develop guidance on modular development Ongoing effort to promote modular development in the federal government Ensure that the experiences of those who have used Agile development are shared broadly
  16. 16.  Contracting to Support Modular Development  , 2012, June Integrated Program Team Responsibilities 3 Investment Levels & Sample Structure Contract Approaches Payment Strategies
  17. 17.  Governance for Agile Delivery  National Audit Office report, 2012, July Agile Adoption Guides Agile Adoption Targets & KPIs 2013: Agile delivery in 50% of major programs 2014: Reduce the average delivery time in these programs by 20%
  18. 18.  “Systemic flaws in traditional methods”  Institute for Government , 2011, March Low user satisfaction, difficult to operate Late delivery and failure with expected benefits High costs to make simple system changes Obsolescent systems (technologically)
  19. 19.  Government ICT Strategy  Cabinet Office, 2011, March Prevents from creating large ICT programs Promotes Agile methods to reduce waste and the risk of failure 2-Year Agile Adoption Roadmap Pilot projects in all departments Capability and approach to Agile Identify core technology to underpin Agile ICT procurement to increase SME provision Centre of Excellence for fast start-up of Agile projects
  20. 20.
  21. 21. Whitebook: PRINCE2 combined with Scrum
  22. 22.  PRINCE2  Business case driven  Project board, Stakeholders roles  Management by exception  Management stages  Tolerances  Product based planning  Work packages / Procurement  Project assurance Agile  Focus on business needs  Collaboration  Delivery of working increments  Timeboxes  Quality Built-in 100% Compatible
  23. 23. By Jens Hoffman, “PRINCE2 + AGILE = SUCCESS”,
  24. 24.  Contracting to Support Modular Development  , 2012, June Indefinite delivery / quantity contracts Single contract with options Successive contracts Performance-based Work Statements Fixed-price contracts and task orders Cost-reimbursement contracts Time-and-materials contracts Incentive contracts Hybrid contracts Money for Nothing & Change for Free  Jeff Sutherland, Ph.D., Chairman, Scrum Training Institute
  25. 25. Including: Why Public Procurement in the EU is not Agile Organizational culture is now the single largest barrier to the adoption of the agile approach
  26. 26. Agile in Public IT Projects NOW
  27. 27.  Agile Under Cover Nor Welcome Neither Forbidden  Will & Skills Development Practices 100% Compatible Agile Under Cover:  Goals and Value orientation  Official & Unofficial Iterations  Official & Unofficial Reviews  Always Deliver Usable Software  Plan Releases as for Commercial Product Ask Vaida Masiulionytė
  28. 28. Future is Closer Than AppearsFUTURE AGILIZATION
  29. 29. • Lithuanian Strategy 2030 • • National progress program (NPP) • Goals and priorities for ministries2012 • Performance control system • Pre-commercial procurements & Innovative projects • Public sector processes efficiency improvement2013+ projects
  30. 30. NPP “Smart economy” Ministry of EconomyHigh added value oriented, Environment conducive to integral economy economic growth Measurement Innovative Availability of of economic technological information efficiency projects (open data) Agile Zone
  31. 31.  No premature definitions and lock-ins Clouds & Simplified procurement on demand IT as a Service General economic advantage Possible GO LIVE in 1 month Open Data LT: Open Source is not about Linux! Faster to integrate & reuse Less documentation needed No supplier lock-in
  32. 32. • Update LR Public IS Development Methodology • Require Measurable Goals, Scenarios, Priorities • Require Release Plan / GO LIVE roadmap 2012 • Recommend PRINCE2 and Agile combination • Update or extend LR Law on Public Procurement for information systems • Recommendations and guidelines for Agile in Public IT Procurement • Recommendations on Agile contracting and payments 2013 • Simplify legal side of serial co-purchases or cancellation on-demand • Pilot Agile projects in government organizations • Agile Mandatory for Innovation projects and Pre-commercial procurement • New paradigm projects: Agile + IT as a Service + Open Source + Open Data2013/14 • Rework of LR Law on Public Information Resources
  33. 33.  Articulate the Global Efficiency Problem Prove that Agile Can be 1 of Solutions Draft the Strategic Roadmap Initiate the Change