contracting in an agile world...contracting in an agile world agenda •why are you contracting work...

Steven Gruyters2020 Project Management Symposium

CONTRACTING IN AN AGILE WORLD

Agenda

•Why are you contracting work•Bid / negotiation phase•Project execution•How to recognize and address challenges•Wrap up•Q&A

2

Do not have the skillset / capability / experience

Additional capacity

Not allowed to do yourself

3

CustomerRequirements / user stories

Non functional requirements / deliverables

Acceptance criteria

4

CustomerRequirements / user stories

Non functional requirements / deliverables

Acceptance criteria

VendorRequirements vague and open to interpretation

Little or no context of Business process / IT landscape

Challenged to estimate the work

5

FixedPrice

6

Timeand

Material

Bonus / Penalty

AgileEmbrace change

7

ContractDefined scope, price,

date

AgileEmbrace change

8

ContractDefined scope, price,

date

Can lead to mismatched expectations

Project execution

9

PaymentBonus / penaltyCustomer satisfactionFuture work

10

PaymentBonus / penaltyCustomer satisfactionFuture workVendor profitability goalsVendor performance goalsVendor sales goals

11

Maximumvalue

12

Minimum acceptable amount

of work

Maximumvalue

13

Minimum acceptable amount

of work

Can lead to short term thinking

Profitability at risk

14

Reducecost profile

15

ChallengeScope

Referencing the contract

Cherry picking scope

Challenging sizing / complexity

Limiting access to the team

Unexpected people changes16

Focus on clarity during the bid

Clarify what constitutes a change

Spot “Get out of jail free” cards

Understand vendor organization

17

18

Start from a place of trust

Put yourself in their shoes

Focus on long term success

19

You cannot be successful

without the vendor, and

they cannot be successful

without you

20

This talk represents the personal views and opinions of the speaker.It does not reflect the position of past or present employers or clients

Steven Gruyters

ZZEEPartners.comSteven@ZZEEPartners.com@ZZEEPartnersBethesda, MD