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Agile Contracts with Fixed Budgets

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Agile has become the mainstream methodology nowadays. Many companies who need some software to assist them in their business, insist on waterfallish artifacts like fixed budgets, fixed scope, project milestones. Alas, the customer wants a product he’ll be using everyday, but does not allow us to build a good quality product.
If we do not overcome the attachment for control, we will not be able to follow our passion to create great, working software. As long as there is Agile, there is hope!

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Agile Contracts with Fixed Budgets

  1. 1. Agile Contracting in a World with Fixed Budgetsbased on true stories byPiotr Zolnierek@pzol 2011-01- 18 pz@anixe .pl
  2. 2. THE PROBLEMS with corporations and waterfallAgile has become the mainstream methodology nowadays.Many companies who need some soft ware to assist themin their business, insist on waterfallish artifacts like fixedbudgets, fixed scope, project milestones. Alas, the customerwants a product he’ll be using everyday, but does not allowus to build a good quality product.If we do not overcome the attachment for control, we willnot be able to follow our passion to create great, workingsoft ware.
  3. 3. THE PROBLEMS with corporations and waterfall Fi xed Budge t e s, S c o p e , M ile s t o n C o n t rac tAgile has become the mainstream methodology nowadays. Projec t Pl anMany companies who need some soft ware to assist themin their business, insist on waterfallish artifacts like fixedbudgets, fixed scope, project milestones. Alas, the customerwants a product he’ll be using everyday, but does not allow Re q u i re me n tsus to build a good quality product. Sp e c ific at i o nIf we do not overcome the attachment for control, we willnot be able to follow our passion to create great, workingsoft ware.
  4. 4. „Walking on water and writingsoftware to specification is easy iftheyre frozen”- Edward V. Berard Law
  5. 5. WHAT COULD BE?
  6. 6. RECAll characters appearing in this work are real. Any resemblance to real persons, living or dead, is truly intentional.
  7. 7. SITUATION: NEW PRODUCT
  8. 8. No fixed scope!Did you notice!? THE FACTS
  9. 9. No fixed scope!Did you notice!? THE FACTS New unknown product
  10. 10. No fixed scope!Did you notice!? THE FACTS New unknown product Project Launch Date
  11. 11. No fixed scope!Did you notice!? THE FACTS New unknown product Total budget for whole Project Launch Date product
  12. 12. No fixed scope!Did you notice!? THE FACTS New unknown Contract product Total budget for whole Project Launch Date product
  13. 13. No fixed scope!Did you notice!? THE FACTS New unknown Contract product Total budget for whole Project Launch Date product this is Helmut
  14. 14. THE PRODUCT PLAN
  15. 15. THE PRODUCT PLAN Go analog for planning with product owner
  16. 16. THERELEASE PLAN
  17. 17. PROJECT PLAN milestone 1 UserIteration 1 Stories UserIteration 2 Stories milestone 2 UserIteration 3 Stories UserIteration 4 Stories
  18. 18. IT’S ALLABOUT THE TEAM
  19. 19. THE BUDGETCalculation7 iterations, 2 weeks each8 people on the team
  20. 20. THE BUDGETCalculation Add Risk Management7 iterations, 2 weeks each 10 iterations, 2 weeks (10d) each8 people on the team 8 people on the team
  21. 21. THE BUDGETCalculation Add Risk Management7 iterations, 2 weeks each 10 iterations, 2 weeks (10d) each8 people on the team 8 people on the team Fixed Budget 10 * 10 * 8 = 800 person days 80 person days / iteration
  22. 22. THE FACTS this is Heike
  23. 23. THE FACTSScope part of contract this is Heike
  24. 24. THE FACTSScope part of contract Cost per Feature this is Heike
  25. 25. THE FACTSScope part of contract Cost per Feature Project Launch Date this is Heike
  26. 26. THE FACTSScope part of contract Cost per Feature Total budget for whole Project Launch Date product this is Heike
  27. 27. Scope part of the contractYes, we can do it!
  28. 28. Total cost ofsprint 10000EUR We calculate the cost per feature3 User StoriesStory A – 8SPStory B – 5SPStory C – 13SPTotal 26SP
  29. 29. Total cost of Cost per SP 385EURsprint 10000EUR We calculate the cost per feature3 User StoriesStory A – 8SPStory B – 5SP 8 * 385EUR = 3080EURStory C – 13SP 5 * 385EUR = 1925EUR 13 * 385EUR = 5005EURTotal 26SP
  30. 30. Building fast as the wind the foundation, small working pieces of soft ware Proved trust! Took a risk! A lot of people do something similar.Суши!
  31. 31. The Big Messagecomes here,there is hopeWe can do it!
  32. 32. THANK YOU! Contact me pz@anixe.pl @pzol ps: we are hiring!

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