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chris spagnuolo   Rally Software {agile  contracting } rachel weston  Rally Software
contractors
the chaos of waterfall
System Requirements Software Requirements Analysis Design Coding Testing Operations
projects successful only 35% of The Standish Group, 2006 Chaos Report
projects  cancelled 31% of The Standish Group, 2006 Chaos Report
rarely or ever used 64% of features The Standish Group, 2006 Chaos Report
on the  dollar software value  59 ¢ The Standish Group, 2006 Chaos Report
Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are  value added 6% of wo...
 
triangle the old iron schedule scope budget
software/idea consulting government/ highly regulated commercial for internal use maintenance/ support commercial for shri...
agile manifesto the
 
{agile contracting  challenges }
general observations
General Observations Clients not agile Don’t understand Suspicious/concerned agile clients not
 
suspicious concerned
{proposals and  marketing }
competition the non-agile
 
visibility
projects successful only 35% of The Standish Group, 2006 Chaos Report
projects  cancelled 31% of The Standish Group, 2006 Chaos Report
rarely or ever used 64% of features The Standish Group, 2006 Chaos Report
on the  dollar software value  59 ¢ The Standish Group, 2006 Chaos Report
Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are  value added 6% of wo...
marketing sales and
 
 
{ risk }
 
 
{change  management }
change scope
 
 
 
{conflicting  client practices }
Project Status Chart
dev teams joint
invoicing
{client  involvement }
handle responsibility too much to
the  pace client organization can’t handle
delayed acceptance feedback   loops
 
testing user low
client without stand-ups
involvement product owner
client losing
 
{contractor  responsibility }
teams distributed
iterations inconsistent
agile faking
client involve
{project  closeout }
budget out of
done. done…
planning transition
{contracting  strategies }
simplicity contract
{proposals and  marketing }
sales force train your
project pilot
address waterfall upfront
projects successful only 35% of The Standish Group, 2006 Chaos Report
projects  cancelled 31% of The Standish Group, 2006 Chaos Report
rarely or ever used 64% of features The Standish Group, 2006 Chaos Report
on the  dollar software value  59 ¢ The Standish Group, 2006 Chaos Report
Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are  value added 6% of wo...
Check the Fit Establish Business Relationship Project Inception Discovery Assessment Iteration 0 Set up Project Infrastruc...
Check the Fit Establish Business Relationship Project Inception Discovery Assessment Iteration 0 Set up Project Infrastruc...
Project Backlog Iteration Backlog Iteration 2 Weeks Daily Synch Product Increment iteration mechanics
stats cite agile
Agile Methodologies: Survey Results, by Shine Technologies, 2003 productivity 93% increased
Agile Methodologies: Survey Results, by Shine Technologies, 2003 quality 88% increased
satisfaction 83% improved Agile Methodologies: Survey Results, Shine Technologies, 2003 stakeholder
49% reduced Agile Methodologies: Survey Results, Shine Technologies, 2003 costs
{ risk }
shared risk
In our agile approach, budget and time select the requirements that can be  delivered.  Our clients have the ultimate proj...
On the flip side, although the total  budget may be expended on a project,  and all backlog items may not have been develo...
{change  management }
bigger  boxes looser scope
flexible scope over t&m
boundaries scope
guarantee bid doesn’t a date
velocity extrapolate from At our slowest velocity we’ll finish here At our average velocity we’ll finish here At our curre...
estimating fixed-date The line of hope The line of despair Will Have Might Have Won’t Have Adapted from Mike Cohn
estimating fixed-scope 120 ÷ 20 = 120 ÷ 15 = Adapted from Mike Cohn Total Story Points Desired 120 Low Velocity 15 High Ve...
 
estimating fixed-scope cost 120 ÷ 20 =  6 Iterations X $10,000 = $60,000 120 ÷ 15 =  8 iterations X $10,000 = $80,000 Tota...
slack build in with full disclosure
{conflicting  client practices }
 
 
{client  involvement }
responsibilities define roles and
product identify owner
{project  closeout }
done define
 
 
 
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Contracting for Agile Software Development

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Many software development organizations work within the bounds of contractual agreements where the limitations imposed by the “Iron Triangle” of fixed timelines, budgets, and scope challenge their ability to embrace change and focus on value delivery. Agile practitioners often comment that agile contracting is a difficult problem, but proven solutions are rarely presented. Rachel Weston and Chris Spagnuolo offer some tools they have used in their own agile contracting work to help agile practitioners deal with different contracting scenarios while promoting agile practices, protecting the development organization, and still providing value and protection to the client’s organization. Through a combined workshop and facilitated collaborative session, Rachel and Chris present new agile contracting tools that can be added to your toolbox. You will gain a deeper understanding of the problems associated with agile contracting as well as practical solutions for dealing with contracts in an agile manner.

Published in: Business, Technology
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Contracting for Agile Software Development

  1. 1. chris spagnuolo Rally Software {agile contracting } rachel weston Rally Software
  2. 2. contractors
  3. 3. the chaos of waterfall
  4. 4. System Requirements Software Requirements Analysis Design Coding Testing Operations
  5. 5. projects successful only 35% of The Standish Group, 2006 Chaos Report
  6. 6. projects cancelled 31% of The Standish Group, 2006 Chaos Report
  7. 7. rarely or ever used 64% of features The Standish Group, 2006 Chaos Report
  8. 8. on the dollar software value 59 ¢ The Standish Group, 2006 Chaos Report
  9. 9. Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are value added 6% of work tasks
  10. 11. triangle the old iron schedule scope budget
  11. 12. software/idea consulting government/ highly regulated commercial for internal use maintenance/ support commercial for shrink wrap
  12. 13. agile manifesto the
  13. 15. {agile contracting challenges }
  14. 16. general observations
  15. 17. General Observations Clients not agile Don’t understand Suspicious/concerned agile clients not
  16. 19. suspicious concerned
  17. 20. {proposals and marketing }
  18. 21. competition the non-agile
  19. 23. visibility
  20. 24. projects successful only 35% of The Standish Group, 2006 Chaos Report
  21. 25. projects cancelled 31% of The Standish Group, 2006 Chaos Report
  22. 26. rarely or ever used 64% of features The Standish Group, 2006 Chaos Report
  23. 27. on the dollar software value 59 ¢ The Standish Group, 2006 Chaos Report
  24. 28. Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are value added 6% of work tasks
  25. 29. marketing sales and
  26. 32. { risk }
  27. 35. {change management }
  28. 36. change scope
  29. 40. {conflicting client practices }
  30. 41. Project Status Chart
  31. 42. dev teams joint
  32. 43. invoicing
  33. 44. {client involvement }
  34. 45. handle responsibility too much to
  35. 46. the pace client organization can’t handle
  36. 47. delayed acceptance feedback loops
  37. 49. testing user low
  38. 50. client without stand-ups
  39. 51. involvement product owner
  40. 52. client losing
  41. 54. {contractor responsibility }
  42. 55. teams distributed
  43. 56. iterations inconsistent
  44. 57. agile faking
  45. 58. client involve
  46. 59. {project closeout }
  47. 60. budget out of
  48. 61. done. done…
  49. 62. planning transition
  50. 63. {contracting strategies }
  51. 64. simplicity contract
  52. 65. {proposals and marketing }
  53. 66. sales force train your
  54. 67. project pilot
  55. 68. address waterfall upfront
  56. 69. projects successful only 35% of The Standish Group, 2006 Chaos Report
  57. 70. projects cancelled 31% of The Standish Group, 2006 Chaos Report
  58. 71. rarely or ever used 64% of features The Standish Group, 2006 Chaos Report
  59. 72. on the dollar software value 59 ¢ The Standish Group, 2006 Chaos Report
  60. 73. Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are value added 6% of work tasks
  61. 74. Check the Fit Establish Business Relationship Project Inception Discovery Assessment Iteration 0 Set up Project Infrastructure Target System Incremental delivery in time-boxed 2 week iterations Iteration 1 Iteration 2 Iteration 3 Iteration n agile engagement roadmap Adapted from David Chilcott
  62. 75. Check the Fit Establish Business Relationship Project Inception Discovery Assessment Iteration 0 Set up Project Infrastructure the focus is here Adapted from David Chilcott
  63. 76. Project Backlog Iteration Backlog Iteration 2 Weeks Daily Synch Product Increment iteration mechanics
  64. 77. stats cite agile
  65. 78. Agile Methodologies: Survey Results, by Shine Technologies, 2003 productivity 93% increased
  66. 79. Agile Methodologies: Survey Results, by Shine Technologies, 2003 quality 88% increased
  67. 80. satisfaction 83% improved Agile Methodologies: Survey Results, Shine Technologies, 2003 stakeholder
  68. 81. 49% reduced Agile Methodologies: Survey Results, Shine Technologies, 2003 costs
  69. 82. { risk }
  70. 83. shared risk
  71. 84. In our agile approach, budget and time select the requirements that can be delivered. Our clients have the ultimate project control and may declare their satisfaction with the application as a whole at any time in the development process. Our clients can decide that although there is budget remaining, the delivery team has met their objectives and can call the project complete.
  72. 85. On the flip side, although the total budget may be expended on a project, and all backlog items may not have been developed, our clients are guaranteed to have live, working functionality that is of the highest value to them due to the constant inspection and adaptation of the project backlog.
  73. 86. {change management }
  74. 87. bigger boxes looser scope
  75. 88. flexible scope over t&m
  76. 89. boundaries scope
  77. 90. guarantee bid doesn’t a date
  78. 91. velocity extrapolate from At our slowest velocity we’ll finish here At our average velocity we’ll finish here At our current velocity we’ll finish here Adapted from Mike Cohn
  79. 92. estimating fixed-date The line of hope The line of despair Will Have Might Have Won’t Have Adapted from Mike Cohn
  80. 93. estimating fixed-scope 120 ÷ 20 = 120 ÷ 15 = Adapted from Mike Cohn Total Story Points Desired 120 Low Velocity 15 High Velocity 20
  81. 95. estimating fixed-scope cost 120 ÷ 20 = 6 Iterations X $10,000 = $60,000 120 ÷ 15 = 8 iterations X $10,000 = $80,000 Total Story Points Desired 120 Low Velocity 15 High Velocity 20
  82. 96. slack build in with full disclosure
  83. 97. {conflicting client practices }
  84. 100. {client involvement }
  85. 101. responsibilities define roles and
  86. 102. product identify owner
  87. 103. {project closeout }
  88. 104. done define

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