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

2. Motivation

3. Agile Manifesto Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan

4. Customer collaboration over contract negotiation

5. Does «contract» make a difference?

6. Supplier Customer Hold on, I expected a much fancier UI for this. ?

7. Most common contracts: Fixed price Time and material

8. Supplier Customer Hold on, I expected a much fancier UI for this. Crap

9. Supplier Customer Hold on, I expected a much fancier UI for this. No problem, we’ll work some more

10. «Time and material» creates the most happiness

11. (Source: My best and worst projects)

12. Ability to adjust frequently creates happiness (Source: My best and worst projects)

13. So why care about the rest?

14. Do you pay taxes?

15. How should your government handle: We’re running out of money for pensions We need to change the rules! The current system is huge

16. How should govt spend your money? A big, state-run project Hire a random company to do it all Just pay consultants until it’s done

17. Can Agile help?

18. Customer collaboration over contract negotiation

19. PS2000 + Agile

20. Typical Norwegian public sector project: «We need to replace huge system X…

21. Typical Norwegian public sector project: «We need to replace huge system X… … we’d like to use Scrum»

22. PS2000: «Target price»

23. (Target price: Set a budget, report cost. Supplier & client splits difference)

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

25. … but also «Negotation phase» «Requirement phase» «Acceptance test phase»

26. Whence PS2000?

27. Contract standard from Norwegian Computing Association

28. 2001: PS2000 with target price

29. 2009: PS2000 + Agile

30. Norwegian trends: 2 Agile user groups with 100+ people at meetings from 2005 Conferences: Smidig 2007 + 2008 Networking: Devs PMs customers Meetups about contracts Scrum certifications Large and diverse consultancy industry

31. Some project highlights

32. In progress LARM: Domain:Electricity reserve power Application:Operator UI Internal Integration Project size:2 scrum teams plus support Organization:Supplier + Customer teams Colocated at customer site Team size:7 per team Duration:3 years (1,5 years left) Sprint length:3 weeks (customer present) Releases:3 times per year (in theory…) Contract:Target pricing for whole scope

33. ? Bid Apr, 2010 Negotiation Aug, 2010 Mar, 2010 Elaboration Nov, 2010 Release 1 Sprint May, 2011 Acceptance Production Sept, 2011 Elabor ation Sprint

34. Smart move: Reliable product backlog using scenarios

35. Big win: First release in use 1 year after contract, containing most used screen

36. Big loss: Feature creep of individual user stories

37. Completed PERFORM: Domain:State pension fund Application:Case worker UI External Integration Process flow Project size:12-14 scrum teams plus support Organization:Three suppliers with 3-6 teams Colocated at customer site Team size:10 per team Duration:3 years Releases:3 times per year Sprint length:3 weeks, with shared demo Contract:First release: Time & materials Subsequent: Target pricing per release

38. Smart move: Contract on price per release First release on T&M «Competing» suppliers

39. Big win: Delievered what was needed Government is happy Users are happy

40. Big loss: Full time requirement spec Hostile architecture team

41. Customer collaboration over contract negotiation

42. Reality: We must compete We must commit

43. Pure fabriaction IMAGINE: Project size:Some scrum teams with independent users and product owners Organization:Colocated at customer site Team size:6-8 per team Duration:3 years Sprint length:2 weeks, with shared demo Releases:Every month Bidding:Performance competition Contract:Target estimate per user story

44. Bidding: Competitive delivery

45. Supplier Customer Project reference Resumes Hourly rates Supplier Pre- qualification

46. Supplier

47. 6-10 weeks

48. Supplier Analysis Coding Delivery Analysis Coding Delivery Analysis Coding Analysis Delivery Supplier

49. Analysis Coding Delivery Analysis Coding Delivery Analysis Coding Analysis Delivery Supplier

50. Pricing: Customer sets budget

51. Menu: Simple GUI: 2 kEUR Complex GUI: 5 kEUR GUI with customer involvement: 10 kEUR Etc… (Or 2, 5, 20 story points)

52. Supplier Customer I need a screen shot for X. We want something simple. Ok. 2 kEURO

53. Supplier Customer Do you have anything to show for it? We’ve spent half the budget It’s not tested yet. Okay, I’m pulling the plug

54. Supplier Customer Stop! We’ve spent the budget

55. Supplier Commitment: Δ ☺ Δ $

56. Questions and discussions

57. Conclusion

58. Customer collaboration over contract negotiation

59. We need an answer for large investments

60. Norway’s answer ain’t half bad

61. We can do better

62. We must do better

63. Thank you johannes.brodwall@steria.no http://johannesbrodwall.com http://twitter.com/jhannes