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  1. Agile Contracts? AgilePrague 2012 Johannes Brodwall, Principal Architect Steria Norway @jhannes

  2. Part I

  3. Motivation

  4. Agile Manifesto Individuals and interactions over processes and toolsWorking software over comprehensive documentationCustomer collaboration over contract negotiationResponding to change over following a plan

  5. Agile Manifesto Individuals and interactions over processes and toolsWorking software over comprehensive documentationCustomer collaboration over contract negotiationResponding to change over following a plan

  6. Does «contract» make a difference?

  7. Hold on, I expected a muchfancier UI for this. ? Supplier Customer

  8. Most commoncontracts: Fixedprice Time and material

  9. Hold on, I expected a muchfancier UI for this. Crap Supplier Customer

  10. Hold on, I expected a muchfancier UI for this. No problem, we’llworksome more Supplier Customer

  11. «Time and material» createsthe most happiness

  12. «Time and material» createsthe most happiness (Source: My best and worstprojects)

  13. «Time and material» createsthe most happiness (Also for customer!)

  14. So whycareaboutthe rest?

  15. Do youpaytaxes?

  16. How shouldyourgovernment handle: We’rerunningoutofmoney for pensions Weneed to changetherules! The current system is huge

  17. How shouldgovt spend yourmoney? A big, state-run project? Hire a random company to do it all? Just payconsultantsuntilit’s done? “Just be agile”?

  18. Can Agile help?

  19. Customer collaborationover contract negotiation: Contracts hurt Big tax-funded projects are inevitable Agile can help – but insufficient

  20. Part II

  21. PS2000 + Agile

  22. Typical Norwegian publicsectorproject: «Weneed to replacehuge system X…

  23. Typical Norwegian publicsectorproject: «Weneed to replacehuge system X… … we’d like to useScrum»

  24. PS2000: «Target price»

  25. (Target price:Set a budget,report cost.Supplier & clientsplitsdifference)

  26. PS2000 + agile: «Colocated» «Sprints» «Sprint reviews» «Product owner» «Product backlog»

  27. … butalso «Negotationphase» «Requirementphase» «Acceptance test phase»

  28. Whence PS2000?

  29. Contract standard from Norwegian Computing Association

  30. 2001: PS2000 with target price

  31. 2009: PS2000 + Agile

  32. Norwegian trends: Active community Meetupsaboutcontracts Scrumcertifications Large and diverse consultancyindustry

  33. Someprojecthighlights

  34. LARM: In progress Domain:Electricity reserve power Application:Operator UI Internal Integration Project size: 2 scrum teams plus support Organization:Supplier + Customer teams Colocatedat customersite Team size: 7 per team Duration: 3 years (1,5 yearsleft) Sprint length: 3 weeks (customer present) Releases:3 times per year Contract: Target pricing for wholescope

  35. Mar, 2010 ? Apr, 2010 Bid Aug, 2010 Negotiation SIGNED Nov, 2010 Elaboration May, 2011 Sept, 2011 Sprint Release 1 Production Sprint Sprint Sprint Sprint Sprint Sprint Sprint Acceptance Elaboration Sprint Sprint Sprint

  36. Smart move: Reliable productbacklogusing scenarios

  37. Big win: First release in use 1 yearaftercontract, containing most used screen

  38. Big loss: Featurecreepofindividualuserstories

  39. PERFORM: Completed Domain: State pensionfund Application:Case worker UI External Integration Processflow Project size: 12-14 scrum teams plus support Organization: Three supplierswith 3-6 teams Colocated at customersite Team size: 10 per team Duration: 3 years Releases: 3 times per year Sprint length: 3 weeks, withshared demo Contract: First release: Time & materials Subsequent: Target pricing per release

  40. Smart move: Contractonprice per release First releaseon T&M «Competing» suppliers

  41. Big win: Delieveredwhatwasneeded Government is happy Users are happy

  42. Big loss: Full time requirementspec Hostilearchitecture team

  43. Customer collaborationover contract negotiation

  44. Reality: We must compete We must commit

  45. Part III

  46. Wishfulcontracts

  47. The sourceofour troubles

  48. 2 year - development Use Fabulation Speculation Bungling Yelling Worrying

  49. 2 years - development Use Contract Price Scope Deliverable Fabulation Ok? Speculation Bungling Yelling Worrying

  50. The problem