Kharkiv Project Management Day (10.03.2018) Андрій Просов Managing Client Expectations in Fixed Price Agile Projects by Andrey Prosov (10.03.2018)

1. Managing Client Expectations
in Fixed Price Agile Projects
Andrey Prosov
Kharkiv Project Management Day
Mar-10, 2018

2. About me
• COO/Senior PM in Insoft Global
• 12+ experience in R&D and Project
Management
• PhD
• Certified Scrum Master
• ISTQB Certification
https://www.linkedin.com/in/andrey-prosov-b458b743/
prosov@gmail.com

3. Agenda
• Fixed price vs Agile mindset
• Reasons for Fixed Price Agile Projects
• How to address a Managing Client Expectations
• Tips and Lessons Learned

4. Fixed Price Contract
The PMBOK® Guide, 6th Edition
(PMI, 2017):
• Fixed Price Contract as “a type
of fixed price contract where the
buyer pays the seller a set
amount (as defined by the
contract), regardless of the
seller's costs.”

5. Fixed Price Contract Expectations
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

6. Agile Manifesto
processes and tools
Individuals and
interactions
over
following a plan
Responding to
change
over
www.agilemanifesto.org
comprehensive
documentation
Working software over
contract negotiation
Customer
collaboration
over

7. Clients Expectations From Fixed Price Agile Project
• They’ve heard that it delivers better results
• They want the flexibility to absorb change
• They want visibility of progress
• They believe they will get something that better meets
their needs
• They want the option to implement features early
Fixed-price contracts are the highest risk to the supplier and
the lowest risk to the client

8. When IT Company may face Fixed Price Agile Project
• New client – a low level of trust
• Limited budget of a client
• Tender with a State owned company
•Client wants Agile and wants to reduce his risks
• Fixed Price Agile Is a Sales Technique
• IT company just needs this contract
“Agile software development fits nicely with fixed price contracts”
Jurgen Appelo

10. Use Cases
•Validation example
•Failed demo

11. How To

12. Resentment (Чувство обиды)
Чувство обиды возникает вследствие
рассогласования ожиданий о должном
поведении обидчика с тем, как он себя вёл в
действительности.

13. Resentment (Чувство обиды)
Setting Expectations
Observation of Actual behavior
Comparison
Make Decision About Reaction
https://психолог.чувствопокоя.укр/

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

15. Why Agile

16. Educate your client (and project team)

17. 5 Whys
Why
Why
Why
Why
Why

18. Acceptance criteria
•Clearly define the criteria if the client has not
•The scope of testing must be undoubtedly defined
and acceptance criteria specified

19. Change Management Agreement
• The initial requirements do not contain sufficient details or clarity
• “Change requests” vs “Exchange requests”
• Do not make medium and big changes without charging a client
• Make simple change without charging a client
• It’s better to expand terms than increase a team
• Any change in scope has to be documented in a change order, and
funded as provided for in the overall contract.

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
•Regular, clear and meaningful progress updates
•Breakdown project into releasable 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
• What is important for the customer?
• What is the most important (schedule, cost,
product)?
• Need to make an assessment:
• Will the delay in the work affect the whole project?
• Review the priorities
• Estimate what can be done to catch up
• Create several options
• Go to communicate with the customer

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. Tips and Lessons Learned

28. Tips and Lessons Learned
•Set goals, and point to these goals during every
single conversation
•Be upfront about any changes to shared plans
•Set expectations about how your team functions
•Be transparent about what can be accomplished
•Over communicate
•Under-promise but over-deliver

29. 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://психолог.чувствопокоя.укр/
• https://stratoplan.ru/
• https://ru.wikipedia.org/wiki/Саногенное_мышление
• https://blog.hubspot.com/agency/managing-client-expectations
• https://www.helpscout.net/helpu/how-to-say-no/