Presentation at the recent SWWE branch seminar 27th September 2017

1. APM Agile Project Summit
Contracting for Agile
Jenny Touhy
September 2017

2. 2PwC
Agile will dominate … this cross–functional
iterative approach to experience design and
delivery will be a big shift – fraught with false
starts and missteps along the way – but will
successfully lay the groundwork for sustainable
customer led innovation.
Forrester’s 2017 Predictions

3. Use agile methods when:
• there is consistently high levels of business
engagement throughout.
• resource are concentrated (local teams) and
highly availability (and costly).
• the governance context of the agile is mature
and stable
However, agile is not for all
organisations all of the time
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July 2017Agile Project Delivery Assurance
PwC

4. PwC 4
Agile Project Delivery Assurance
Contracting for agile

5. How to contract for Agile
The most effective contract mechanism for Agile approaches depends on a
number of factors, such as:
Are we contracting an individual (e.g.
Project Manager), a delivery team to work
in-house, or an entire solution or
application?
How mature is the purchase organisation?
Do they have any experience with the Agile
methodology?
What type of solution is being developed
(as explored on the previous slides)?
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6. Time and Materials
• More flexibility (if the scope is likely
to change)
• Allows for opportunities to be taken
advantage of
• Potential for best value and right
solution delivery
• Requires excellent control and
Agile maturity
• There is potential for expensive
overruns
Pros Cons
Time and Materials is the best approach for procuring Agile development teams, but
only when the organization has a high level of maturity in working in an Agile way.
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Agile Project Delivery Assurance
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7. Fixed Price
• Can provide certainty of cost
• Can use standard contracts – no
specific terms required
• Useful when purchase organization’s
Agile maturity is low
• Solution may not meet requirements
• Restricted flexibility
• Still potential for cost overruns when
renegotiation is required due to failed
delivery
Pros Cons
Typically organisations will use this to hedge risk. It is not exactly an agile
way of working
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8. Examples
- contracting for agile
PwC 8
July 2017Agile Project Delivery Assurance

9. Choosing the delivery method
Project Size &
Complexity
Small, less complex Larger, more complex
Customer Availability
Available throughout and
engaged
Remote, or unable to commit
involvement
Level of integration
with Internal Systems
Low or stand alone system
High, complex legacy
systems, unknown
Level of integration
with External Systems
Low or stand alone system
High, complex landscape,
unknown
Potential for change in
scope or requirements
Flexible budget and timeframe Fixed budget and/or costs
Time to Market
Rapid deployment required,
functionality can be built on
later
Fully functional system
required within a defined
timeframe
End Users defined and
engaged
User landscape and
involvement defined
Users complex / unknown and
not engaged
Innovation required
Future solution not defined,
innovation possible and valued
Existing system update, low
value in innovation
Customer / Business
readiness
Business is fully aware of agile
methods and has prepared
Not used agile, traditional with
hierarchal governance
Customer preference
or requirement
User defined
(capabilities)
User defined
(functionality)
Overall Agile Waterfall
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Agile Project Delivery Assurance
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10. Example 1 – An ios based gaming application
Project Size &
Complexity
Small, less complex Larger, more complex
Customer Availability
Available throughout and
engaged
Remote, or unable to commit
involvement
Level of integration
with Internal Systems
Low or stand alone system
High, complex legacy
systems, unknown
Level of integration
with External Systems
Low or stand alone system
High, complex landscape,
unknown
Potential for change in
scope or requirements
Flexible budget and timeframe Fixed budget and/or costs
Time to Market
Rapid deployment required,
functionality can be built on
later
Fully functional system
required within a defined
timeframe
End Users defined and
engaged
User landscape and
involvement defined
Users complex / unknown and
not engaged
Innovation required
Future solution not defined,
innovation possible and valued
Existing system update, low
value in innovation
Customer / Business
readiness
Business is fully aware of agile
methods and has prepared
Not used agile, traditional with
hierarchal governance
Customer preference
or requirement
User defined
(capabilities)
User defined
(functionality)
Overall Agile Waterfall
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Agile Project Delivery Assurance
PwC

11. Example 1 – An ios based gaming application
Project Size &
Complexity
Small, less complex Larger, more complex
Customer Availability
Available throughout and
engaged
Remote, or unable to commit
involvement
Level of integration
with Internal Systems
Low or stand alone system
High, complex legacy
systems, unknown
Level of integration
with External Systems
Low or stand alone system
High, complex landscape,
unknown
Potential for change in
scope or requirements
Flexible budget and timeframe Fixed budget and/or costs
Time to Market
Rapid deployment required,
functionality can be built on
later
Fully functional system
required within a defined
timeframe
End Users defined and
engaged
User landscape and
involvement defined
Users complex / unknown and
not engaged
Innovation required
Future solution not defined,
innovation possible and valued
Existing system update, low
value in innovation
Customer / Business
readiness
Business is fully aware of agile
methods and has prepared
Not used agile, traditional with
hierarchal governance
Customer preference
or requirement
User defined
(capabilities)
User defined
(functionality)
Overall Agile Waterfall
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Agile Project Delivery Assurance
PwC

12. Example 2 – An ERP roll out in a large organisation
Project Size &
Complexity
Small, less complex Larger, more complex
Customer Availability
Available throughout and
engaged
Remote, or unable to commit
involvement
Level of integration
with Internal Systems
Low or stand alone system
High, complex legacy
systems, unknown
Level of integration
with External Systems
Low or stand alone system
High, complex landscape,
unknown
Potential for change in
scope or requirements
Flexible budget and timeframe Fixed budget and/or costs
Time to Market
Rapid deployment required,
functionality can be built on
later
Fully functional system
required within a defined
timeframe
End Users defined and
engaged
User landscape and
involvement defined
Users complex / unknown and
not engaged
Innovation required
Future solution not defined,
innovation possible and valued
Existing system update, low
value in innovation
Customer / Business
readiness
Business is fully aware of agile
methods and has prepared
Not used agile, traditional with
hierarchal governance
Customer preference
or requirement
User defined
(capabilities)
User defined
(functionality)
Overall Agile Waterfall
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Agile Project Delivery Assurance
PwC

13. Example 2 – An ERP roll out in a large organisation
Project Size &
Complexity
Small, less complex Larger, more complex
Customer Availability
Available throughout and
engaged
Remote, or unable to commit
involvement
Level of integration
with Internal Systems
Low or stand alone system
High, complex legacy
systems, unknown
Level of integration
with External Systems
Low or stand alone system
High, complex landscape,
unknown
Potential for change in
scope or requirements
Flexible budget and timeframe Fixed budget and/or costs
Time to Market
Rapid deployment required,
functionality can be built on
later
Fully functional system
required within a defined
timeframe
End Users defined and
engaged
User landscape and
involvement defined
Users complex / unknown and
not engaged
Innovation required
Future solution not defined,
innovation possible and valued
Existing system update, low
value in innovation
Customer / Business
readiness
Business is fully aware of agile
methods and has prepared
Not used agile, traditional with
hierarchal governance
Customer preference
or requirement
User defined
(capabilities)
User defined
(functionality)
Overall Agile Waterfall
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Agile Project Delivery Assurance
PwC

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Conclusion
So which method of contracting for
agile is best?
-> It depends!

15. Download our Agile Project Delivery Assurance report
Search: pwc uk agile project delivery:
http://www.pwc.com/gx/en/services/audit-assurance/risk-
assurance/game-changers/transformation-confidence/agile-project-
delivery-confidence.html
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Jenny Tuohy
PwC | Senior Manager – P3M
Mobile: 07808 799447
email: jenny.f.tuohy@pwc.com
For further discussion …