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Agile Procurement ABE22.pptx
The document discusses adopting agile principles and practices for procurement processes. It proposes that procurement is similar to where software development was around 2000, wanting more effectiveness while managing significant risk. Traditional procurement is sequential and siloed with long lead times, while an agile or "Lean Agile Procurement" approach advocates being collaborative, emergent learning with shorter cycles. The document outlines challenges like misunderstandings, delays and disconnects that a LAP approach aims to address through cultural fit, collaboration, exploration and adaptive partnerships between procurement and suppliers.
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Agile Procurement ABE22.pptx
- 1. Agile Procurement Foundation forAgile Delivery
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- 4. What is Procurement? •Procurementis the activities to identify, select and obtain the goods and services an organisation needs to support its operations.
- 7. Thesis •Agile Procurement isroughly where adaptive delivery (aka Agile) was around 2000. •There is a desire to be more effective •There is a significant amount of risk in procurement
- 8. Have you everbeen challenged with? •Misunderstood the selection criteria •Silos •Delays •Change Management •Disconnect between change request and bug •Misalignment on outcomes
- 9. The time tolearn challenge 6 – 12 months Idea Specific- ation Offer Contract On- boarding Delivery
- 11. Sound familiar? Manifesto forAgile Software Development • Individuals and interactions over processes and tools • Working software over comprehensive documentation • Customer collaboration over contract negotiation • Responding to change over following a plan Agile Contract Manifesto • Tangible outcomes more than specified deliverables • Clarity and simplicity more than complexity and completeness • Adaptive partnerships more than static relationships • Joint ownership more than risk-driven accountability https://agilemanifesto.org/ https://agilecontractmanifesto.org/
- 12. Lean Agile Procurement Traditional(Predictive) •Sequential •Siloed/transactional •Long lead and cycle time •All requirements up front •Frequent delay/wait LAP (empirical) •Collaborative •Shorter lead and cycle time •Emergent learning •Fast feedback
- 13. Using LAP •Establishing culturalfit •Creating the conditions to collaborate •Collaborative exploration •Adaptive partners
- 15. Preparing for theBig Room Evaluation •Clear purpose •Education – how this is different •Key players in the room •Non Disclosure Agreement (NDA) in place •Clear Request for Information (RFI)
- 17. So …. Risks •Fear ofchange •Fear of Loss of IP •Uncertainty around process Benefits •Fast time to learn •Short Feedback loops •Establish cultural fit •Shorter cycle time •Less cost of delay
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