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.

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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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