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Agile Contracting Manifesto


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Anders Sixtenssons presentation from Lean Tribe Gathering #1

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Agile Contracting Manifesto

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