Many software development organizations work within the bounds of contractual agreements where the limitations imposed by the “Iron Triangle” of fixed timelines, budgets, and scope challenge their ability to embrace change and focus on value delivery. Agile practitioners often comment that agile contracting is a difficult problem, but proven solutions are rarely presented. Rachel Weston and Chris Spagnuolo offer some tools they have used in their own agile contracting work to help agile practitioners deal with different contracting scenarios while promoting agile practices, protecting the development organization, and still providing value and protection to the client’s organization. Through a combined workshop and facilitated collaborative session, Rachel and Chris present new agile contracting tools that can be added to your toolbox. You will gain a deeper understanding of the problems associated with agile contracting as well as practical solutions for dealing with contracts in an agile manner.

1. chris spagnuolo Rally Software {agile contracting } rachel weston Rally Software

2. contractors

3. the chaos of waterfall

4. System Requirements Software Requirements Analysis Design Coding Testing Operations

5. projects successful only 35% of The Standish Group, 2006 Chaos Report

6. projects cancelled 31% of The Standish Group, 2006 Chaos Report

7. rarely or ever used 64% of features The Standish Group, 2006 Chaos Report

8. on the dollar software value 59 ¢ The Standish Group, 2006 Chaos Report

9. Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are value added 6% of work tasks

11. triangle the old iron schedule scope budget

12. software/idea consulting government/ highly regulated commercial for internal use maintenance/ support commercial for shrink wrap

13. agile manifesto the

15. {agile contracting challenges }

16. general observations

17. General Observations Clients not agile Don’t understand Suspicious/concerned agile clients not

19. suspicious concerned

20. {proposals and marketing }

21. competition the non-agile

23. visibility

24. projects successful only 35% of The Standish Group, 2006 Chaos Report

25. projects cancelled 31% of The Standish Group, 2006 Chaos Report

26. rarely or ever used 64% of features The Standish Group, 2006 Chaos Report

27. on the dollar software value 59 ¢ The Standish Group, 2006 Chaos Report

28. Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are value added 6% of work tasks

29. marketing sales and

32. { risk }

35. {change management }

36. change scope

40. {conflicting client practices }

41. Project Status Chart

42. dev teams joint

43. invoicing

44. {client involvement }

45. handle responsibility too much to

46. the pace client organization can’t handle

47. delayed acceptance feedback loops

49. testing user low

50. client without stand-ups

51. involvement product owner

52. client losing

54. {contractor responsibility }

55. teams distributed

56. iterations inconsistent

57. agile faking

58. client involve

59. {project closeout }

60. budget out of

61. done. done…

62. planning transition

63. {contracting strategies }

64. simplicity contract

65. {proposals and marketing }

66. sales force train your

67. project pilot

68. address waterfall upfront

69. projects successful only 35% of The Standish Group, 2006 Chaos Report

70. projects cancelled 31% of The Standish Group, 2006 Chaos Report

71. rarely or ever used 64% of features The Standish Group, 2006 Chaos Report

72. on the dollar software value 59 ¢ The Standish Group, 2006 Chaos Report

73. Lean Software Development: From Concept to Cash. Mary and Tom Poppendieck. Addison-Wesley, 2006. are value added 6% of work tasks

74. Check the Fit Establish Business Relationship Project Inception Discovery Assessment Iteration 0 Set up Project Infrastructure Target System Incremental delivery in time-boxed 2 week iterations Iteration 1 Iteration 2 Iteration 3 Iteration n agile engagement roadmap Adapted from David Chilcott

75. Check the Fit Establish Business Relationship Project Inception Discovery Assessment Iteration 0 Set up Project Infrastructure the focus is here Adapted from David Chilcott

76. Project Backlog Iteration Backlog Iteration 2 Weeks Daily Synch Product Increment iteration mechanics

77. stats cite agile

78. Agile Methodologies: Survey Results, by Shine Technologies, 2003 productivity 93% increased

79. Agile Methodologies: Survey Results, by Shine Technologies, 2003 quality 88% increased

80. satisfaction 83% improved Agile Methodologies: Survey Results, Shine Technologies, 2003 stakeholder

81. 49% reduced Agile Methodologies: Survey Results, Shine Technologies, 2003 costs

82. { risk }

83. shared risk

84. In our agile approach, budget and time select the requirements that can be delivered. Our clients have the ultimate project control and may declare their satisfaction with the application as a whole at any time in the development process. Our clients can decide that although there is budget remaining, the delivery team has met their objectives and can call the project complete.

85. On the flip side, although the total budget may be expended on a project, and all backlog items may not have been developed, our clients are guaranteed to have live, working functionality that is of the highest value to them due to the constant inspection and adaptation of the project backlog.

86. {change management }

87. bigger boxes looser scope

88. flexible scope over t&m

89. boundaries scope

90. guarantee bid doesn’t a date

91. velocity extrapolate from At our slowest velocity we’ll finish here At our average velocity we’ll finish here At our current velocity we’ll finish here Adapted from Mike Cohn

92. estimating fixed-date The line of hope The line of despair Will Have Might Have Won’t Have Adapted from Mike Cohn

93. estimating fixed-scope 120 ÷ 20 = 120 ÷ 15 = Adapted from Mike Cohn Total Story Points Desired 120 Low Velocity 15 High Velocity 20

95. estimating fixed-scope cost 120 ÷ 20 = 6 Iterations X $10,000 = $60,000 120 ÷ 15 = 8 iterations X $10,000 = $80,000 Total Story Points Desired 120 Low Velocity 15 High Velocity 20

96. slack build in with full disclosure

97. {conflicting client practices }

100. {client involvement }

101. responsibilities define roles and

102. product identify owner

103. {project closeout }

104. done define