Embed Size (px)
Citation preview
Agile in Public Procurement
ProjectsAleksej Kovaliov, TEO LT, Agile Lietuva
The impossible is often the untried (Jim Goodwin)
Me
• Aleksej Kovaliov• aleksej.kovaliov @ gmail.com
• https://www.linkedin.com/in/aleksejkovaliov• http://www.slideshare.net/akovaliov • http://www.bdcinstitutas.lt/autorius/23 • http://akovalyov.wordpress.com/
What first comes to you mind when you hear….
Some stereotypes. Any resemblance to real persons, projects and organizations, living or dead, is purely coincidental
…Public Procurement
• Low Efficiency and High Waste• Legalized Over-complication• Fierce Competition • Claims & Lawsuits• Corruption
DEREK HUETHERZombie procurement
…Public IT Projects
• High CAPEX• Fixed price & Fixed scope & Fixed deadlines• Unqualified Customer• Requirements Over Goals• Undefined Complexities• Overdefined Simplicities• Outdated Architectures• Poor Usability• “SaaPA” – Software as a Political Asset• Big Boys’ Club• Redundancies
DEREK HUETHERZombie procurement
Infinitely Long Requirements Lifecycles
EU / Government
Program
Feasibility study
Technical specification
Procurement specification Tender Contract Analysis
1-3 years 0,5 year
0,5-1,5 yearimplementation
Barriers for Improvements
• Legal Focus on HOW do organizations buy• Not WHAT do they buy
• Lack of the Championship for Change• Disperse ownership among ministries• Top-to-bottom Command and Control
• Lack of Economic Motivation for Change• EU Financing models• Buyers Not Interested• Sellers Not Interested
How Can Agile Help?
• No Need To Define The Indefinite• Faster Study to Project Lifecycle • Faster and Usable GO LIVE• Quota for Intermediate Mistakes• Requirements Aligned To Reality• Stop When It’s Enough• Suppliers’ Risk Management• Innovation Enablement
http://blog.projectassistants.com/tag/agile-methodology/
Not Easy, but Still Possible to be Agile
http://mathtourist.blogspot.com/2011/05/riding-on-square-wheels.html
Situation in Lithuania
Public IT Procurement in 2013
• IT Services etc.• 298,2M LTL = 86,3M EUR• 447 purchases
• Software and Information Systems• 102,1M LTL = 29,6M EUR• 225 purchases
http://www.vpt.lt/vpt/uploaded/2014/vp/Informacija%20apie%202013%20m.%20viesuosius%20pirkimus.pdf
Legal Background
• Law on Public Procurement• Law on Information Assets• Information Systems Lifecycle Methodology (AGILE included!)
• Ministry of Justice• Ministry of Transport and Communications• Ministry of Interior
• Information Society Development Committee• Ministry of Transport and Communications
• Public Procurement Office• Ministry of Economy
• Focus on Transparency & Control
Agile Under Cover … - 2014
• Not Forbidden, Not Welcomed• Mandatory External Waterfall 99%• Rare Agile at Home• Unofficial Intermediate Reviews and Product Owners
• Agile Lietuva Association, www.agile.lt• Agile Alliance• Scrum Alliance• Agile Lean Europe Network
Legally Agile 2014 - ….
• Information Systems Lifecycle Methodology • Appendix#1: Implementation Approaches #3: Iterative-incremental• Appendix#2: Recommendations
Scope Detail requirements
Waterfall Modular Iterative-incremental
Big Defined X X
Undefined X X
Small Defined X
Undefined X
Government Service Design Manual
But How Would It Work?
http://www.condenaststore.com/-sp/Great-but-how-is-he-in-bed-New-Yorker-Cartoon-Prints_i8541755_.htm
Ken Schwaber says…Scrum’s principle
is “the art of the possible,”
not “you give me what I paid for, when you said that you’d
deliver it.”
http://www.incrementor.com/agilenyc/past-events/2010-2/110310-ken-schwaber/
Agile Project Management with Scrumby Ken SchwaberMicrosoft Press © 2004
Agile Waterfalls
Typical Milestones in Public IT Project
Approach1: Agile Under Cover
Approach2: Project-as-a-Product
+• Plan as a Product to Market
• Strategic Roadmap• Beta Milestones• Go Live Milestones• Draw a Poster!
• PjM Formalities is a just a Package• Filter Real Goals and Priorities• Slice the Scope• Cut the Redundancies
Map BETAs to Waterfall Milestones
Product Release Plan / Roadmap (example)
Prioritized Features Alpha1 Alpha2 Alpha3 Alpha4 Alpha5 Alpha6
Data exchange module Beta1
Documents and tasks module Beta1
Execution module Beta1
Control module Beta1
Operator module Beta1
User provisioning module Beta1
Bendrųjų klasifikatorių posistemis Beta1
Utilities modules Beta1
Documentation
IT Platform
“Product” is growing with every releaseThe same features are being improved with every releaseBacklog is filled in with scenarios
Split BETAs to Agile Sprints for Each Milestone
1 2 3 4 5 6In
tern
al in
DEV
En
viro
nmen
t
Exte
rnal
in
DEV
En
viro
nmen
t
Alpha6XAlpha2X Alpha4X
Alpha4Alpha1 Alpha2 Alpha3 Alpha6Alpha5
Exte
rnal
in
PRO
DEn
viro
nmen
t
BETA1
BETA 1Candidate
Approach3: Standard Methodologies
• PRINCE2 – Management and Control• Business Justification• Stakeholder Engagement• Management Control and Direction• Manage by Stages• Manage by Exception
• Agile DSDM (Atern) – Delivery and Development• Focus on Business Needs• Deliver on Time• Collaborate• Build Incrementally from Firm Foundations• Develop Iteratively• Demonstrate Control
Whitebook: PRINCE2 combined with Scrum
Waterfall PRINCE2 is Agile
Controlling a Stage, Managing a Stage Boundary, Directing a Project
Managing Product Deliveryhttp://www.slideshare.net/apmg-inter/prince2-agile-management-delivery-apmginternational-webinar
Agile Procurement
Fundamental Changes
• In the Way Suppliers are Selected and Contracted• Selecting a Supplier and not a solution
• Thinking Business Outcomes rather than Detailed Requirements• Goals over Requirements
• Public Procurement Regulations• From Transparent to Transparent + Efficient
Agile Contracts <> Risky Contracts
Risk CustomerIn-house
Team
Outcome Based Contract
for Supplier
Waterfall Approach
Agile Apporach
http://www.westminster-briefing.com/fileadmin/westminster-briefing/pastevents/IPL.pdf
T&M
T&M
Risk Reward Fixed Price
Fixed PriceFor Fixed Effort
Volume-based:Fixed Price for committed
+Velocity/Price for additional
More Agile Contracts Types
• Contracting to Support Modular Development• http://www.whitehouse.gov , 2012, June
• Indefinite delivery / quantity contracts• Single contract with options• Successive contracts• Performance-based Work Statements
• Fixed-price contracts and task orders• Cost-reimbursement contracts• Time-and-materials contracts• Incentive contracts• Hybrid contracts
What Next?
Roadmap
Past
• Start Using Agile in Public IT Projects• Update LT Public IS Development Methodology
2014
• Recommendations and Guidelines • Educating the Institutions and Suppliers
2014+
• Feasibility Study of the Agile Public Procurement model for LT
???
• Update LT Law on Public Procurement• Update LT Law on Public Information Resources
Thank you! Questions?
