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

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Steven Gruyters 2020 Project Management Symposium CONTRACTING IN AN AGILE WORLD

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Page 1: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Steven Gruyters2020 Project Management Symposium

CONTRACTING IN AN AGILE WORLD

Page 2: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Agenda

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

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Page 3: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Do not have the skillset / capability / experience

Additional capacity

Not allowed to do yourself

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Page 4: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

CustomerRequirements / user stories

Non functional requirements / deliverables

Acceptance criteria

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Page 5: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

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

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Page 6: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

FixedPrice

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Timeand

Material

Bonus / Penalty

Page 7: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

AgileEmbrace change

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ContractDefined scope, price,

date

Page 8: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

AgileEmbrace change

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ContractDefined scope, price,

date

Can lead to mismatched expectations

Page 9: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Project execution

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Page 10: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

PaymentBonus / penaltyCustomer satisfactionFuture work

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Page 11: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

PaymentBonus / penaltyCustomer satisfactionFuture workVendor profitability goalsVendor performance goalsVendor sales goals

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Page 12: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Maximumvalue

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Minimum acceptable amount

of work

Page 13: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Maximumvalue

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Minimum acceptable amount

of work

Can lead to short term thinking

Page 14: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Profitability at risk

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Page 15: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Reducecost profile

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ChallengeScope

Page 16: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Referencing the contract

Cherry picking scope

Challenging sizing / complexity

Limiting access to the team

Unexpected people changes16

Page 17: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Focus on clarity during the bid

Clarify what constitutes a change

Spot “Get out of jail free” cards

Understand vendor organization

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Page 18: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

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Page 19: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

Start from a place of trust

Put yourself in their shoes

Focus on long term success

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Page 20: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

You cannot be successful

without the vendor, and

they cannot be successful

without you

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Page 21: CONTRACTING IN AN AGILE WORLD...CONTRACTING IN AN AGILE WORLD Agenda •Why are you contracting work •Bid / negotiation phase •Project execution •How to recognize and address

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

[email protected]@ZZEEPartnersBethesda, MD