Agile.Community.tw 2017/01 聚會

1. Agile Contract -- How To
By Pi-Hsing Chung

2. A Little Bit About Pi

3. A Little Bit About
u 15 Years I.T experience. 10 years in Canada.
u Practiced and led Agile Style projects starting from 2003.
u For the past 5 years in Taiwan as
u Business Analyst / I.T Business Analyst
u Information Systems and Information Security Auditor.
u Internal Auditor
u Participated in projects with names -- CMMI, ISMS, BPM,CRM, HRIS, and other
I.T / Management Systems.
u M.S MIS from University Of Illinois
u My name can be linked to CISA , CISM, ITIL, CSM, CSPO.

4. A Little Bit About This Sharing
uIt doesn’t matter whether you are
Doing Agile or Being Agile !
u“Agile approaches” are For The Future
uAND WE ARE ALL BENEFITED !

5. DOING AGILE AND BEING AGILE

6. Agile Is A Mindset
u“AGILE” IS NO SILVER BULLET !
u“AGILE” IS NO PANACEA !

7. MAKE PROPER DECISIONS

8. “AGILE” ALLOWS “SELF-ORGANIZATION”
uBUT …..
uThe nature of self-organization
happens in a clearly defined
framework.

9. “Agile” ALLOWS
Creative Freedom.
uONLY within A CLEARLY DEFINED
FRAMEWORK
uCreative freedom is allowed and
that this is IN FACT the only way
in which creative freedom can
happen.

10. Enough !
Let’s Begin !

11. BUSINESS ARE FULL OF
Risks ! Risks ! Risks !
u HOW MUCH DO YOU UNDERSTAND / TRUST YOUR CUSTOMERS ?
u HOW MUCH DO YOUR CUSTOMERS KNOW ABOUT / TRUST YOU ?
u HOW MUCH DO WE UNDERSTAND OURSELVES ?
u WRITTEN DOCUMENTS AND CONTRACTS ARE FOR PROTECTION !

12. THE WARRIORS (THE LEGAL STAFF)

13. THE WARRIORS IN LEGAL PRACTICE
usually …..
u Are trained to think the UNTHINKABLE.
u Think Software Projects as “A series of planned activities.”
u Don't like surprises and expect everything is relatively
predictable.
u The WARS THEY ARE FIGHTING are “Trench by Trench”, “Word
by Word.”

14. So, when do “Legal Warriors” know they
are doing a good job ?
u QUOTE :
WHEN YOU HAVE A CONTRACT NO ONE IS HAPPY
SIGNING IT !!! YOU KNOW YOUR JOB IS DONE.
u Contract is the Product under “Lose-Lose”
Mindset.

15. Under the mindsets, here comes the
Traditional Contract !
uAND CONTRACTS TEND TO DISTORT
BEHAVIOURS AND RESULTS.

16. What the TRADITIONAL CONTRACT
usually looks like ?
u “Fortune-Teller” Style.
u All requirements and features under requests, are
specified in details in the contract. Usually from
imagination.
u To Development Team, it means “Long, Mysterious, and
Painful journey”, for usually what’s written in contract
is always different from the reality.

17. What the TRADITIONAL CONTRACT
usually looks like ? (Fixed Price)
u Fixed Schedule
u Fixed Price
u Fixed Scope
u Changes : RFC, CCB.
u Collaborations don’t exist.
u Chance of failure is high
u Even all deliverables are fulfilled.
u Quality is usually a variable.

18. What the TRADITIONAL CONTRACT
usually looks like ? (Time and Material)
u Project will go as long as possible, till customer think the
goal is reached.
u Move Risk from suppliers to customers. For the uncertainty
is high.
u Does not incentivize supplier to be efficient (actually,
quite the reverse).
u Can be utilized as the contractual basis for agile
development with a little bit twist.

19. Under the TRADITIONAL CONTRACT
u AS THE PROJECT GOES….
u WE ALL KNOW BOSSES change their minds often, and HiPPOs
are always weighted.
u (HiPPO == Highest Paid Person's Opinion)
u The CCB usually is not established and is not functioned.

20. Turns Out … In Taiwan, most of the time,
WE ALL PRACTICE
u Individuals and interactions over processes
and tools.
u Working software over comprehensive
documentation.
u Customer collaboration over contract
negotiation.
u Responding to change over following a plan

21. Turns Out … In Taiwan, most of the time
u MONEY FOR NOTHING !
u (PROJECT JUST CREATES THINGS THAT NO
ONE WANTS TO USE)
u CHANGE FOR FREE ! IF YOU STILL WANT TO
DO BUSINESS !
u (OVERTIME WORKS AND USUALLY WITHOUT
PAY)

22. To change the situation, Agile Contract
comes to rescue !
u Goal : Building Trust from within the company
to customers.
u A “Win-Win” Style Contract.
u A TRULY WORKABLE CONTRACT.

23. CROSS-FUNTIONAL TEAM FOR THE
CREATION OF AGILE CONTRACT
u BEFORE YOU CAN HAVE AN AGILE CONTRACT, YOU NEED
TO HAVE A CROSS-FUNCTINOAL TEAM.
u LEGAL STAFF ARE DEFINITLY INCLUDED !
u DON’T FORGET YOUR ACCOUNT MANAGER !

24. Points to emphasize on Agile to Legal
Staff and Account Manager
u How Agile can reduce risk (Interactions , Iterations)
u The Agile Manifesto and the Principles behind it.
u (Our highest priority is to satisfy the customer
through early and continuous delivery
of valuable software, etc.) in the RIGHT WAY.
u Iterative schedules and the delivery as well as the payment
cycle

25. Points to emphasize on Agile to Legal
Staff and Account Manager
u Adaptive planning is not traditional change
management. It’s a true PDCA cycle.
u Customer defined goal is the true driver of the
project, eliminating prescriptive lists of deliverables
is a must.
u Early termination of project can be positive!

26. AGILE CONTRACT
(OPTIONAL SCOPE CONTRACT)

27. Optional Scope Contract –
By Kent Beck and Dave Cleal
u Optional Scope Contract IS WITH
u Fixed Time
u Fixed Cost
u Fixed Quality
u The only variable is Scope.

28. Optional Scope Contract –
By Kent Beck and Dave Cleal
u Customers can change their minds
u Suppliers aren’t encouraged to sacrifice quality
as soon as something goes wrong
u Customers’ and suppliers’ interests are
contractually aligned
u The knowledge that both parties gain during the
project can influence the finished product.

29. Optional Scope Contract
Incremental delivery, regular payment.
u SET UP Fixed Price per iteration.
u Incremental delivery, regular payment.

30. Optional Scope Contract
Incremental delivery, regular payment.
HENCE
u Frequent opportunities for either party to abandon.
u Customer risk mitigated if highest priority features
are delivered first.
u Supplier risk mitigated by proving their value,
building relationship.

31. Optional Scope Contract
If with “TARGET COST”
u Set up “Target Cost” will make total cost a joint
responsibility.
u Since target cost is defined, so is the target price.
u Any costs above target shared fairly.
u Any savings under target also shared.

32. Set up price per story point or per use-
case
u NOT RECOMMENDED.
u Mismeasurements and possible abuse can easily
destroy THE TRUST FROM BOTH SIDES.

33. In the Contract (On customer)
u Specify Customer’s obligations
u Prioritize backlogs/items by Business Value.
u Mutually agreed estimates for all work items.
u Participate in each Sprint planning meeting (Scrum)
u Participate in writing the conditions of
satisfaction.(Scrum)
u Participate in each Sprint review meeting, and
provide timely feedbacks.(Scrum)

34. The TRUE “Money for Nothing” and
“Change for Free.”

35. In the Contract (On Customer)
Money FOR NOTHING
u Customers HAVE the option to terminate contract
at the end of ANY SPRINT. IF THEY THINK THE
PROJECT IS NO LONGER VALUABLE.
u CUSTOMER MIGHT HAVE TO PAY 20% OF THE
REMAINING CONTRACT.
u Customer should follow the agreed upon protocols
on project participation.

36. In the Contract (On customer)
CHANGE FOR FREE
u As long as the high level goal is not changed,
Customer can ask for changes on features as
desired.

37. Suggestions In the Contract
(On Supplier)
u Supplier should specify the “Total Value of the contract”.
u Rates for time and materials billings.
u Scope of the contract. ( Master Service Provided)
u Supplier is required to deliver at least 80% of the scope
with the "High Quality" Deliverables before the agreed
date.
u Accept that “High Quality” is “THE DEFINITION OF DONE
MADE BY CUSTOMER”.

38. Transparency is the KEY for success.
u Make Certain that all your team members know
the major part of the contract AND work together.
u BUILDING TRUST IS A PROGRESSIVE PROCESS.
u TRUST IS EASILY DESTROYED.

39. LIVE LONG AND PROSPER !