Waterfall To Agile: Contracts and other Rough Edges

5th SCRUM meet up11-Feb-2014

Dimitris DimitrelosSenior Project Manager

Dienekis Information Systems S.A.Dimitris.dimitrelos@gmail.com

All Photographs by Christos Georgalas

christosg.org

The problem with contracts

Keep – you have to

Change – you can’t

Contract Types

• Fixed Cost• Cost Reimbursable• Time & material• Other…

Everybody loves Fixed Price Contracts

EasyRisk to YOUReally?they are here to STAY

FP + Waterfall + PM

More Analysis >> Better Estimation >> Detailed Contract >> Less Risk

Project Plan

Offer/Contract

Reqs/Analyse/Estimate

The estimation Paradox

• Low Risk vs. Getting the deal!• What’s it gonna be?

• Analysis Carries costs• Realistic pricing means

higher pricing

Can it go wrong?

UnderestimationScope changeChange management does not

workCustomer bullyingAnalysis fights

What if it goes wrong?

• Accountability >> Blame• Challenges Relationship• Options– Break the project– Take the hit– Formally renegotiate– Negotiate/threat/adjust/silently change

the contract

What should we do?

“I have a dream; the dream that IT professionals stop offering on fixed price bids. Because it is unethical, risky and untrustworthy to make that kind of hard-coded promises in a complex and fast-changing environment. It is… unprofessional. ”

 Gunther Verheyen

Fixed Price with SCRUM

• Do it with a friend…• …who wants to get

involved• Fixed Price, Schedule• Fixed Scope?

SCRUM for FP contracts

• Vagueness is your friend!• Propose SCRUM (just don’t call it that)• Find a product owner. Find a product owner. Repeat

until you have a product owner.• Product backlog: High level/must be complete• SCRUM• Deliver value / Let customer take lead• Watch your back(log)

Public sector?

• RFP (Διακήρυξη)• Analysis after the contract?• Use SCRUM instead• Key risk: Product owner

Why AGILE? (Vote)

A. Customer/Organization forced me toB. Have been burned by WaterfallC. Want to increase software qualityD. Want to reduce development timesE. Is a big trend in S/W project management

My experience

The nightmare

• New customer / High priority project

• Underestimation• Scope changed• Death March• Heading for the Rocks

The turnaround

• Stopped fighting change• Built Full Backlog• Planned for 1 month only• Released every 10 days• Self organization• Followed Contract time limit• Then, T&M

How did it go?

• Terrible, for 2 sprints

• Overcontrolled

• Overcommited

• Underdelivered

• Missed deadlines

• But then, it took off. Happy ending.

Other Rough Edges

Self organization

• PM will not let go• Team will not pick up• Tip: Take the leap of faith• LET GO!

Overcommiting

• Team is not used in estimating using buffers

• Tip: Teach them• Tip: Measure/Adjust

Customer involvement

• Keep customer involved• Needs to maintain a product log• Should Inspect and evaluate every

sprint outcome• Tip: Offer higher quality

Management Support

• Get Management support• Fear of “Loss of Control”• Fear of “Planning Block”• Tip: Another presentation

Thank you

All Photographs by Christos Georgalas

christosg.org