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Agile Turkey Summit 2018 - Agile Contracting done RIGHT: What we can learn from Startups by Mirko Kleiner
This document discusses applying agile principles to procurement and contracting processes. It provides an example case study of a company that used agile procurement to develop an offering with three suppliers over two days instead of the typical multi-month process. Key aspects of the agile procurement approach included empowering cross-functional teams, aligning around customer needs through workshops, and conducting public reviews of supplier solutions to provide rapid feedback and decision making. The case study demonstrated that this approach led to significantly faster timelines, lower effort, and more customer involvement compared to traditional request for proposal processes. Challenges and best practices of the agile procurement approach are also reviewed.
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Agile Turkey Summit 2018 - Agile Contracting done RIGHT: What we can learn from Startups by Mirko Kleiner
- 1. Agile Contracting doneRIGHT! What can we learn from Startups Mirko Kleiner, co-founder flowdays © All rights reserved
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- 3. Procurement on Disruption Learningsfrom the field applying lean-agile Procurement Mirko Kleiner, co-founder flowdays © All rights reserved
- 4. complicated uncertaincertain uncertain WHAT (Need) HOW (Solution) simple chaotic Know your environment! complex Source:The Stacey Matrix by Ralph Stacey Agile
- 5. Trends in Agility EcosystemAgility BusinessImpact Business Agility - Agility along the whole supply chain Personal Agility Team Agility Company Agility Source: flowdays.net, by Mirko Kleiner
- 6. –Joe Justice, CreatorScrum@Hardware, Scrum Inc Having just one supply chain is like a PC with a single-threaded processor “ „
- 7. Source: ardmediathek.de, 8.2016 Volkswagen.The Car. NO
- 8. Biggest Suppliers: Revenue2015 in Germany, Billions € VW-Factories in Germany
- 9. Source: ge.com, 2016 thefirst shoe made almost entirely by robots Adidas 3D-printed Aircraft Engine
- 10.
- 11.
- 12. Contracting today Start Partnership Customer Value Cost-ofDelay Bild Quellen: netdna-cdn.com, slideshare.net/PeteFrey1, robertfreund.de, silicon.de Time-to-Market RfP1.0 (Request for Proposal)
- 13. lean-agile Procurement Start PartnershipTime-to-Market Vision Value at Customer RfP3.0 (Request for Participation)
- 14. Reduce WASTE &create FOCUS before today Collaboration Bild Quelle : strategyzer.com, Business Model Canvas by Alexander Osterwalder
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- 16. Business Model Canvas Lean Procurement Canvas Lean-agile Procurement Approach Days instead of Months Bild Quelle : localsearch 2017 ✓
- 17. Case Study: CKWGroup Source: CKW, public Review / Pocathon 2018 2 Days 3 Suppliers 1 Room 2 Public Reviews Kickstart + + + = Source: loopjamaica.com
- 18. NOW Initialization, Alignment &Empowerment of the x-functional team Source: CKW, public Review / Pocathon 2018
- 19. Initialization Team setup / empowerment Source:CKW, public Review / Pocathon 2018 NOW
- 20. NOW Initialization, Alignment &Empowerment of the x-functional team Source: CKW, public Review / Pocathon 2018
- 21. ✓ ✓ ✓ ✓ ✓ ✓ Guess Guess Guess GuessGuess Guess GuessGuess Guess validate
- 22. Jourfix Initialization Team setup / empowerment 2ndEvaluation Day 1st Evaluation Day Preperation Big group workshop customer needs Source: CKW, public Review / Pocathon 2018 NOW
- 23. Big Group Workshop- Customer Needs Quelle CKW, public Review / Pocathon 2018Source: CKW, public Review / Pocathon 2018
- 24. Initialization Team setup / empowerment Preperation Biggroup workshop customer needs Invitation sent Invitation of vendors inkl. Briefing / NDA 2nd Evaluation Day 1st Evaluation Day Source: CKW, public Review / Pocathon 2018 NOW Jourfix holidays season
- 25. Initialization Team setup / empowerment Peer-feedback Decision/ sign off agile contract 2nd Evaluation Day Finalization of offer / building customer needs / 2nd public review 1st Evaluation Day Draft of offer / building customer needs / 1st public review Preperation Big group workshop customer needs Invitation sent Invitation of vendors inkl. Briefing / NDA Contract sent Draft of agile contract sent incl. critical questions Source: CKW, public Review / Pocathon 2018 Jourfix NOW holidays season
- 26. Big Group Product/ Partner Evaluation Workshop Source: CKW, public Review / Pocathon 2018
- 27. Big Group Product/ Partner Evaluation Workshop Source: CKW, public Review / Pocathon 2018
- 28. Big Group Product/ Partner Evaluation Workshop Source: CKW, public Review / Pocathon 2018
- 29. Source: CKW, publicReview / Pocathon 2018
- 30. Public Reviews Source: CKW,public Review / Pocathon 2018
- 31.
- 32. –Ursula Sury, licjur, Die Advokatur AG The lean procurement canvas is an agile contract “ „
- 33. Initialization Peer-feedback 2nd Evaluation Day 1st EvaluationDay Preperation Invitation sent Contract sent ~2.1 FTE (cycle time buyer) 2 Days x ~2-7 FTE (cycle time vendor) Source: CKW, public Review / Pocathon 2018 5 weeks (lead time) Jourfix Timing & Effort holidays season
- 34. Outcomes classic RfI /RfP lean-agile Procurement 6 MonthsBusiness Case to Contract 5 Weeks 400% FASTER 1st Info to Decision 2-3 Months 3 Weeks 400% FASTER Customer Involvement 3 Months 3 Days 2’800% FASTER Effort ~4-5 FTE 2.1 FTE 50% LESS Decision to Contract same day 1’000% FASTER 1-2 Months Source: CKW, public Review / Pocathon 2018
- 35. Challenges ✓ UNCERTAINTY feelswrong ✓ TRANSPARENCY hurts ✓ CAPACITY of people is a question of priority ✓ HANDLING 3 vendors in parallel ✓ STAY in the driver seat ✓ LEGAL asks for a Template ✓ BREAK with old patterns ✓ MINDSHIFT - we’re all human
- 36. Good Practices ✓ STARTwith WHY ✓ LET the team find THEIR way! ✓ INVEST in agile knowledge & leadership ✓ INSIST in management buy-in & empowerment ✓ INSIST in a stable team with >40% assignment ✓ KNOW practices in big group moderation ✓ INVEST in a good supplier briefing ✓ BOOK facilities early & INVITE suppliers early too ✓ INVEST enough time in a good collaboration- & pricing model, the base for an agile contract ✓ PREPARE a draft of the agile contract in advance ✓ ENCOURAGE people to stay LEAN & say NO
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- 38. "Mirko Kleiner, +41(0) 79 601 19 90 • mirko@flowdays.net Thank you