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Ambition 2015 - 2017
Return of Experience
How to contract Agile development ?
(French ROX)
[email protected] @ldelvaux
Ambition 2015 - 2017
Laurent DELVAUXLiving in Paris2 children + a wife37 years old
Co-founder of Zenika (10yo-200p)
Still love Coding and Agile tooTry to spread Agile Contracts in France for 5 yearsAnd those days, working in Innovation
Ambition 2015 - 2017
1- State of the art of contracts and Agile compatibility (10 minutes)
2- What are the basic terms for a good Agile contract ? (30 minutes)
3- Q&A (10 minutes)
Ambition 2015 - 2017
Quick Recap
What is Agile development ?
Ambition 2015 - 2017
CancelGift wrap
Return
Sprint2-4 weeks
Return
Sprint goal
Sprint backlog
Potentially shippableproduct increment
Productbacklog
CouponsGift wrapCoupons
Cancel
24 hours
Ambition 2015 - 2017
Ambition 2015 - 2017
State of the Art
Types of contracts
Ambition 2015 - 2017
« Standard phrase in a contract for (…) product development in which the employer agrees to pay the contractor based on the time spent by the contractor's employees to do the work.
Generally used in projects in which it is not possible to accurately estimate the size of the project, or when it is expected that the project requirements would most likely change.Generally with a maximum amount fixed. »
https://en.wikipedia.org/wiki/Time_and_materials
Ambition 2015 - 2017
Scope
TimeCost
Ambition 2015 - 2017
“Contracts where the payment amount does not depend on resources used or time expended. Used by military/government contractors to put the risk on the side of the vendor, and control costs. However, historically when used for innovative projects, it often fails.Continue to be popular despite a history of failed projects. Some laws prefer fixed-price contracts, but, many maintain that such contracts are actually the most expensive, especially when the risks or costs are unknown.”
https://en.wikipedia.org/wiki/Fixed-price_contract
Ambition 2015 - 2017
Scope
TimeCost
Ambition 2015 - 2017
Ambition 2015 - 2017
T&MContracts
Fixed-Price Contacts
AgileContracts
Able to stop and save money YES, perhaps NO YES
Able to change the scope/priority YES, perhaps NO YES
Penalty for … Client Provider Client & Provider
Able to have an intermediate
working productYES, perhaps NO YES
Select Providerbest Resources YES NO YES
Guaranty a way of working together NO YES YES
Risks are on … Client Provider Client & Provider
Ambition 2015 - 2017
How to create a such Agile Contract ?
« Si vis pacem, para bellum »(If you want peace, prepare for war)
Ambition 2015 - 2017
- Idea : Fair contract => risks sharing- Approach
- Strong commitment on each iteration. Well balanced penalty model
- Mirror clauses to split risks
- Impossible to describe everything- but compulsory to be much more detailed on
process than a T&M or Fixed Price contracts- Classic issues consequences know by all. Ex :
US not delivered, PO not enough available, project termination, …
In collaboration with
Ambition 2015 - 2017
Scope
TimeCost
Clause 1
In the contract : Customer described the global vision/scope. Provider estimate Cost/Time based on today know Scope, that is certainly wrong/incomplete. We estimate it will take 10 iterations. And both sides already know that Scope will change.
Declaration of Intent
Ambition 2015 - 2017
Scope
TimeCost
ProviderProvision a Strike
Force with a guaranteed way
of proceed
CustomerProvision a PO
who know Agile and respect
practises
Clause 2
In the contract : we will co-create your product together step by step, by Iterations with quick feedback cycle.
Ambition 2015 - 2017
Scope
TimeCosts
Clause 3In the contract : for each Iteration, the client will do his best to provide INVEST US. Provider commit to a Scope/Cost and Time.
Change
Cost for a 3 weeks Iteration with 5 dev team = 45k€
Ambition 2015 - 2017
0 €
1 000 €
2 000 €
3 000 €
4 000 €
5 000 €
6 000 €
1 2 3 4 5 6 7 8
Cost variation
Régie
Forfait
zFactory
Daily Cost 600 €
Gradient / Slope(by contract) 0,6
Fixed cost 360 €Variable cost 240 €
Initial estimation 4 days
Real time spent T&M Fixed Bob Martin1 day 600 € 2 400 € 1 320 €2 days 1 200 € 2 400 € 1 680 €3 days 1 800 € 2 400 € 2 040 €4 days 2 400 € 2 400 € 2 400 €5 days 3 000 € 2 400 € 2 760 €6 days 3 600 € 2 400 € 3 120 €7 days 4 200 € 2 400 € 3 480 €8 days 4 800 € 2 400 € 3 840 €
Clause 3
Rule applied US by US
Ambition 2015 - 2017
- Usual clause in Client Contracts- “At any time, the Client can immediately
terminate the contract without any compensation for the Provider”
- Reciprocal attention version ? Unbelievable !- Simple and effective to find a better balanced
clause. Try to find the solution ?
Also called “mirror clauses”, this type of clauses help to align Client and Providercommon vision and mutual interest
Ambition 2015 - 2017
•Product owner•ScrumMaster•Team
Roles
•Sprint planning•Sprint review•Sprint retrospective•Daily scrum meeting
Ceremonies
•Product backlog•Sprint backlog•Burndown charts
Artifacts
Clauses
Ambition 2015 - 2017
Teams are located in a unique place Ceremonies were held, decisions are
made and communicated PO not present during Sprint Planning, no
prioritization, no iterative acceptance tests Common issue : Retrospective removal to
« save time » No action plan or following of Retrospective No respect of the Sprint timebox to deliver
more US …
Clauses
Ambition 2015 - 2017
Roles and responsibilities are known and respected Sprint Backlog modification during the Sprint Sprint Backlog fixed without dev team
commitment (ex : by planning poker) No anticipation no prioritization of next Sprints No management by the PO of the global cost and
scope (ex : no MVP) TIPS : if the PO brakes a rule, dev team switch to T&M until the next Sprint Planning ceremony
Clauses
Ambition 2015 - 2017
For each principle :+1 pts : if the contract helps to respect it0 pts : if it doesn’t help but doesn’t break it
-20 pts : if it breaks/prevent the principle
http://www.agilemanifesto.org/iso/he/principles.html
Hope you will get 12 pts
Ambition 2015 - 2017
Ambition 2015 - 2017
The only acceptable dissatisfaction from the Client should be « the product is not moving fast enough » No surprise about Developed Feature No surprise about Remaining Time No surprise about Money spent No surprise about Quality provided
Ambition 2015 - 2017
Conclusion
Ambition 2015 - 2017
• Not yet very frequent but trendy• Highly promoted by steering committees,
business and IT teams (>>> Innovation)• Slow down by buyers and jurists
• Change mind-set from « what i’m buying ? to reduce the cost » « why i’m buying ? to maximize the ROI of spent money »
• Difficult to make Buyers, Lawyers, Jurist, Business and Dev teams work together on building a contract that promote ROI
• It can take 6 months to 1 year… or fail
Ambition 2015 - 2017
• Each Agile Contract is Unique (per client)• Can’t be a simple copy/paste• An asset for Customer, enabling innovation• It must be a co-creation• Today, we even provide this co-creation as a
set of Services (trainings + consulting + lawyers), for Clients and even Providers (potentially our competitors)
Ambition 2015 - 2017
Q & A ?