Managing client expectations is key when undertaking fixed price agile projects. It is important to educate clients on agile principles like flexibility for changes and iterative delivery. All expectations around scope, schedule, acceptance criteria, and change management should be clearly documented and agreed upon. Regular communication through progress updates, demos and reports helps align expectations by keeping clients aware of progress and importance of their inputs. Careful planning and transparency can help complete the project on budget while over-delivering on client needs.

1. Managing Client Expectations
in Fixed Price Agile Projects
Andrey Prosov
Kyiv Project Management Day
Oct-13, 2018

2. About me
• Senior PM/COO in Insoft Global
• 10+ experience in R&D and Project
Management
• Product/Consulting Development
https://www.linkedin.com/in/andrey-prosov-b458b743/

3. Reasons Why Projects Fail

4. Top 5 Reasons Why Projects Fail by a
Consulting Company
• #5 – Wrong team members
• #4 – Poor project planning
• #3 – No project charter
• #2 – Lack of executive support
• #1 – Poor communication

5. How To

6. Fixed Price Contract & Expectations
Fixed Price Contract: “… the buyer pays
regardless of the seller's costs…”
In addition to the fixed price:
• fixed scope,
• fixed schedule.
The type of work predictable.
The requirements are well defined and not
likely to change.

7. Agile Manifesto

8. Clients Expectations From Fixed Price Agile Project
•Deliver better results
•Flexibility to absorb change
•Visibility of progress
•Get something that better meets
their needs
•Implement features early

9. When IT Company may face Fixed Price Agile Project
•Trust
•Client’s Budget
•Tender rules
•Client wants reduce his risks
•Sales Technique
•IT company just needs this
contract

11. Use Cases
•Validation example
•Failed demo

12. Resentment (Чувство обиды)

13. Algorithm of Resentment
Setting Expectations
Observation of Actual behavior
Comparison
Make Decision About Reaction
https://psych.sgmu.com.ua/

14. Setting Expectations
•Why Agile
•Educate your client
•Acceptance criteria
•Change Management
Agreement
•Get everything in writing
•Learn to say No

15. Why Agile

16. 5 Whys
Why
Why
Why
Why
Why

17. Educate your client (and project team)

18. Acceptance criteria

19. Change Management Agreement
• “Change requests” vs “Exchange
requests”
• Do not make medium and big changes
without charging a client
• Make simple changes without
charging a client
• Any change in scope has to be
documented in a change order

20. Get everything in writing
How a Writer Project Manager
Make Money Writing Online
not to fail the project

21. Learn to say No
• Ask for clarification
• Explain what’s going to happen next
• Reframe the “no” using positive
language
• Keep your response simple:
(i.e. Maybe = Yes or Maybe = No?)
• Offer alternatives

22. Observation of Actual behavior
• Progress updates
•Breakdown project into iterative deliveries
• Maximize meetings, collaboration and review
sessions
•Ensure the client is kept aware of importance of
their deliverables
• Use a collaborative web-based project tool

23. Trust and Transparency Matrix
https://stratoplan.ru/

24. Comparison
•Reports & Demo
•Acceptance of your
deliverables
•Be very clear on your
responsibilities after delivery

25. If Something Goes Wrong

26. Making Decision About Reaction
• Acceptance of deliverables
• The scope of testing must be undoubtedly defined
• Be very clear on your responsibilities after delivery

27. Use Cases
•Validation example
•Failed demo
We said
everything was OK.
We said that the story
was still progress

28. Tips and Lessons Learned
•Be upfront about any changes
•Set expectations about how your
team functions
•Be transparent about what can be
accomplished
•Over communicate
•Under-promise but over-deliver

29. Five Factors That Lead to Successful Projects
•Smart People
•Smart Planning
•Open Communication
•Careful Risk Management
•Strong Project Closure

30. Sources
• https://www.pmi.org/learning/library/project-success-client-expectation-
alignment-6357
• https://dzone.com/articles/you-will-thank-us-5-good-reasons-why-agile-should
• https://symetris.ca/blog/5-tips-managing-client-expectations
• https://psych.sgmu.com.ua/
• https://stratoplan.ru/
• https://tisquirrel.me/2015/05/03/fixed-price-projects-and-agile-or-the-scariest-
nightmare/
• https://ru.wikipedia.org/wiki/Саногенное_мышление
• https://blog.hubspot.com/agency/managing-client-expectations
• https://www.helpscout.net/helpu/how-to-say-no/