Agile-based fixed price projects are tricky to manage and pose unique challenges. This presentation is a small endeavor to help people understand these challenges and possible ways in which to work around them. Many thanks to all sources mentioned.

1. Agile in Fixed Price Projects
Kurush P. Wadia
12th November, 2010

2. Contracts are about protection
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3. Agile is about trust
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4. 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
While there is value in items on the right, we value the items on
the left more.
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5. Customers usually…
… want to know what their
total costs are
… are conscious of
both, schedule and
cost
… want measurable business
value using the developed
software
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6. Excellent relationships and
successful projects…
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7. But when things go wrong…
• For customer
• Loss of business value
• Scope changes
• For seller
• Extra effort
• Unhappy customer
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8. Prerequisites for Fixed Price
Inputs and requirements have to be clear
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9. Prerequisites for Fixed Price
Risks and dependencies have to be minimal
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10. Feasibility & Assumptions
Technical
Feasibility
User Friendly
Design
Business
Requirements
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11. Planning for the Project
Feature list in Scope Statement drives the
estimates for:
– Scope in terms of Story Points
– Project duration in terms of Months/Weeks
– Cost in terms of €
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12. Principles Of Agile Not To Be
Compromised
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13. Agile teams therefore need to…
Put the right people on the team
(customer and development)
Determine and communicate
business value upfront
Set a project completion date
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14. Contracts could be framed around…
… goals rather than targets based on
money and time available
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15. Contracts could be framed around…
Profits Possibility to switch to T&M
in case assumptions in the
contract turn invalid
Fixed Price Time &
Material
Time
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16. Spirit of the Contract…
We'll collaborate together Thank you! This will help
to define the best set of us do justice to your
detailed features to go live business needs and be
with, on that date, for that open to any changes that
price. might come in the future.
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17. Introducing DSDM
• Dynamic Systems Development Method
• Some key tenets
– There will always be business change
– You can move forward as soon as enough is known
– Timeboxed iterations help us meet an unmovable
deadline
– Prioritize using MoSCoW principle
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18. DSDM Philosophy
Traditional DSDM
Features Fixed Cost Time
Quality Quality
Time Cost Variable Features
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19. DSDM Lifecycle
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20. DSDM Organization

21. Technique in DSDM – MoSCoW
Principle
• MoSCoW Principle
– Must – has to be done (60-
75%)
Must
– Should – important but may
be worked around short-term
Should
(20%)
– Could – may be left out if
Could
necessary (20%)
– Won’t – add to the list to be Won’t
done next time
Out of scope
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22. Quality in DSDM
• Quality is planned from the start
– Product Quality Criteria
• Facilitated Workshops
• Continuous focused user involvement
• Reviews
– Prototypes
– Supporting documents
• Testing through the lifecycle
• Base-lined requirements
• Configuration management
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23. Risks in DSDM
• Several extra roles
• Existing roles need additional tasks
• Additional risks
• Additions to phases
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24. Summary
• Weigh pros and cons of Agile in fixed price so as
not to lead to scope changes
• Feasibility study is vital
• DSDM can provide flexibility with control but has
additional roles, phases, and tasks to it
• Quality should never be compromised
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25. Questions?
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