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Contracting for agile jenny tuohy

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Presentation at the recent SWWE branch seminar 27th September 2017

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Contracting for agile jenny tuohy

  1. 1. APM Agile Project Summit Contracting for Agile Jenny Touhy September 2017
  2. 2. 2PwC Agile will dominate … this cross–functional iterative approach to experience design and delivery will be a big shift – fraught with false starts and missteps along the way – but will successfully lay the groundwork for sustainable customer led innovation. Forrester’s 2017 Predictions
  3. 3. Use agile methods when: • there is consistently high levels of business engagement throughout. • resource are concentrated (local teams) and highly availability (and costly). • the governance context of the agile is mature and stable However, agile is not for all organisations all of the time 3 July 2017Agile Project Delivery Assurance PwC
  4. 4. PwC 4 Agile Project Delivery Assurance Contracting for agile
  5. 5. How to contract for Agile The most effective contract mechanism for Agile approaches depends on a number of factors, such as: Are we contracting an individual (e.g. Project Manager), a delivery team to work in-house, or an entire solution or application? How mature is the purchase organisation? Do they have any experience with the Agile methodology? What type of solution is being developed (as explored on the previous slides)? 5 Agile Project Delivery Assurance PwC
  6. 6. Time and Materials • More flexibility (if the scope is likely to change) • Allows for opportunities to be taken advantage of • Potential for best value and right solution delivery • Requires excellent control and Agile maturity • There is potential for expensive overruns Pros Cons Time and Materials is the best approach for procuring Agile development teams, but only when the organization has a high level of maturity in working in an Agile way. 6 Agile Project Delivery Assurance PwC
  7. 7. Fixed Price • Can provide certainty of cost • Can use standard contracts – no specific terms required • Useful when purchase organization’s Agile maturity is low • Solution may not meet requirements • Restricted flexibility • Still potential for cost overruns when renegotiation is required due to failed delivery Pros Cons Typically organisations will use this to hedge risk. It is not exactly an agile way of working 7 Agile Project Delivery Assurance PwC
  8. 8. Examples - contracting for agile PwC 8 July 2017Agile Project Delivery Assurance
  9. 9. Choosing the delivery method Project Size & Complexity Small, less complex Larger, more complex Customer Availability Available throughout and engaged Remote, or unable to commit involvement Level of integration with Internal Systems Low or stand alone system High, complex legacy systems, unknown Level of integration with External Systems Low or stand alone system High, complex landscape, unknown Potential for change in scope or requirements Flexible budget and timeframe Fixed budget and/or costs Time to Market Rapid deployment required, functionality can be built on later Fully functional system required within a defined timeframe End Users defined and engaged User landscape and involvement defined Users complex / unknown and not engaged Innovation required Future solution not defined, innovation possible and valued Existing system update, low value in innovation Customer / Business readiness Business is fully aware of agile methods and has prepared Not used agile, traditional with hierarchal governance Customer preference or requirement User defined (capabilities) User defined (functionality) Overall Agile Waterfall 9 Agile Project Delivery Assurance PwC
  10. 10. Example 1 – An ios based gaming application Project Size & Complexity Small, less complex Larger, more complex Customer Availability Available throughout and engaged Remote, or unable to commit involvement Level of integration with Internal Systems Low or stand alone system High, complex legacy systems, unknown Level of integration with External Systems Low or stand alone system High, complex landscape, unknown Potential for change in scope or requirements Flexible budget and timeframe Fixed budget and/or costs Time to Market Rapid deployment required, functionality can be built on later Fully functional system required within a defined timeframe End Users defined and engaged User landscape and involvement defined Users complex / unknown and not engaged Innovation required Future solution not defined, innovation possible and valued Existing system update, low value in innovation Customer / Business readiness Business is fully aware of agile methods and has prepared Not used agile, traditional with hierarchal governance Customer preference or requirement User defined (capabilities) User defined (functionality) Overall Agile Waterfall 10 Agile Project Delivery Assurance PwC
  11. 11. Example 1 – An ios based gaming application Project Size & Complexity Small, less complex Larger, more complex Customer Availability Available throughout and engaged Remote, or unable to commit involvement Level of integration with Internal Systems Low or stand alone system High, complex legacy systems, unknown Level of integration with External Systems Low or stand alone system High, complex landscape, unknown Potential for change in scope or requirements Flexible budget and timeframe Fixed budget and/or costs Time to Market Rapid deployment required, functionality can be built on later Fully functional system required within a defined timeframe End Users defined and engaged User landscape and involvement defined Users complex / unknown and not engaged Innovation required Future solution not defined, innovation possible and valued Existing system update, low value in innovation Customer / Business readiness Business is fully aware of agile methods and has prepared Not used agile, traditional with hierarchal governance Customer preference or requirement User defined (capabilities) User defined (functionality) Overall Agile Waterfall 11 Agile Project Delivery Assurance PwC
  12. 12. Example 2 – An ERP roll out in a large organisation Project Size & Complexity Small, less complex Larger, more complex Customer Availability Available throughout and engaged Remote, or unable to commit involvement Level of integration with Internal Systems Low or stand alone system High, complex legacy systems, unknown Level of integration with External Systems Low or stand alone system High, complex landscape, unknown Potential for change in scope or requirements Flexible budget and timeframe Fixed budget and/or costs Time to Market Rapid deployment required, functionality can be built on later Fully functional system required within a defined timeframe End Users defined and engaged User landscape and involvement defined Users complex / unknown and not engaged Innovation required Future solution not defined, innovation possible and valued Existing system update, low value in innovation Customer / Business readiness Business is fully aware of agile methods and has prepared Not used agile, traditional with hierarchal governance Customer preference or requirement User defined (capabilities) User defined (functionality) Overall Agile Waterfall 12 Agile Project Delivery Assurance PwC
  13. 13. Example 2 – An ERP roll out in a large organisation Project Size & Complexity Small, less complex Larger, more complex Customer Availability Available throughout and engaged Remote, or unable to commit involvement Level of integration with Internal Systems Low or stand alone system High, complex legacy systems, unknown Level of integration with External Systems Low or stand alone system High, complex landscape, unknown Potential for change in scope or requirements Flexible budget and timeframe Fixed budget and/or costs Time to Market Rapid deployment required, functionality can be built on later Fully functional system required within a defined timeframe End Users defined and engaged User landscape and involvement defined Users complex / unknown and not engaged Innovation required Future solution not defined, innovation possible and valued Existing system update, low value in innovation Customer / Business readiness Business is fully aware of agile methods and has prepared Not used agile, traditional with hierarchal governance Customer preference or requirement User defined (capabilities) User defined (functionality) Overall Agile Waterfall 13 Agile Project Delivery Assurance PwC
  14. 14. 14 Agile Project Delivery Assurance PwC Conclusion So which method of contracting for agile is best? -> It depends!
  15. 15. Download our Agile Project Delivery Assurance report Search: pwc uk agile project delivery: http://www.pwc.com/gx/en/services/audit-assurance/risk- assurance/game-changers/transformation-confidence/agile-project- delivery-confidence.html This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2017 PricewaterhouseCoopers LLP All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Jenny Tuohy PwC | Senior Manager – P3M Mobile: 07808 799447 email: jenny.f.tuohy@pwc.com For further discussion …

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