Fixed Price Agile Projects
Jesse Fewell, PMP, CST
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010 Permission is granted to PMI for PMI® Marketplace use only
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2009 Permission is granted to PMI for PMI® Marketplace use only
PMI Agile Community of Practice
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
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Fixed Price Agile Projects
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Jesse Fewell
Founder of PMI Agile Community of Practice
Senior Advisor, PMI-ACP℠ Agile Certification
Steering Committee, Software Extension to PMBOK® Guide
PMP with expert Agile Product & Project Certifications
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Setting Expectations
• Will not cover agile frameworks • Will not talk contracts [a different webinar]
Intermediate Level Talk
• Simple suggestions. Difficult actions. • There will be a MATH POP QUIZ
9 Techniques across 4 Scenarios
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Intro to Agile Values from agilemanifesto.org
over
over
over
over
Individuals & Interactions
Working Software
Customer Collaboration
Responding to Change
Processes & Tools
Comprehensive Documentation
Contract Negotiation
Following a Plan
That is, while there is value in the items on the right, we value the items on the left more.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Intro to Agile Values from agilemanifesto.org
over Customer
Collaboration Contract
Negotiation
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Intro to Agile Values from agilemanifesto.org
over Responding to Change
Performing to Plan
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Agenda
Proposal Execution
Contract
• High Level • Value Proposition
• Enforces Key Risk Areas
• Achieves Value • Within Risk Constraints
Time
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Proposal Execution
Contract
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
“An ounce of prevention is worth a pound of cure”
Proposal Execution
Contract
α
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
1. Have a “Definition of Done” before estimating
Scope Item For Each Feature
✔ Documentation
✔ Training
Security
High Availability
✔ Dynamic look and feel
✔ High Performance
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
2. Use the actual team to estimate
8 man months only
40 man months at least !!
Project Team Sales
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
3. Respect the estimate
IF you need to lower the bid to be competitive THEN • …maybe lower profit margins • …maybe take the project as loss-leader • …maybe offer in-kind exchange
DO NOT apply pressure and overtime to recover
profits !!
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
4. Separate success from number of features
ID Feature 1 Login 2 Export to Excel 3 Forgot Password … ….
213 User Preferences 214 Facebook integration 215 Synchronize music
ý
Measurable Success Criteria
-‐ New payroll system -‐ Automates 90% of
submitted workflows -‐ 80% of users satisfied
with interface -‐ Single Sign On -‐ No increase in
operational cost
þ
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
“Run a health check”
Proposal Execution
Contract
β
19
5. Diagnose The Problem
V=20/iteration
20
5. Diagnose The Problem
V=20/iteration
21
5. Diagnose The Problem
V=20/iteration
V=15/iteration
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
POP QUIZ
Proposal
• 210 Ideal Days • Two teams expected to
finish project in 6 monthly iterations
Re-Planning @ Kickoff
• Team re-estimates 250 Ideal Days for the same backlog
• Each team forecasts only 13 Ideal Days for the first iteration
1. How many more iterations have been added to the schedule? 2. If teams stay the same for the whole project, what is the
%increase in labor cost?
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
6. Use iterations to localize risk
Rqmts Arch Dev Test More risk
R Less risk
A T D R A T D R A T D
1 2 3
RLeast risk
1 2 3
ADT
RADT
RADT
RADT
RADT
RADT
RADT
RADT
RADT
Project Schedule
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Requirements Emergency !!
Proposal Execution
Contract
γ
25
Feature Est.
Login 5
Export to Excel 8
Forgot Password 3
Facebook Integration 20
User Preferences 13
7. Dynamic Scope Option
Feature Est.
Login 5
Export to Excel 8
Forgot Password 3
Facebook Integration 20
User Preferences 13
Original
Operations Log 13
New Skin 13
New
“You may replace any pending feature of equal
or lesser size”
26
8. Explain it in Money
Cost of Estimation
Units
Fixed Iteration Cost / Average Velocity =
27
8. Explain it in Money
Cost of Estimation
Units
Iteration Burn-‐rate/ Average Velocity
$715 day rate x 7 people x 10 day iteration / 25 story points
=
28
8. Explain it in Money
Cost of Estimation
Units
Iteration Burn-‐rate/ Average Velocity
$50,050 / 25 story points
$715 day rate x 7 people x 10 day iteration / 25 story points
=
29
8. Explain it in Money
Cost of Estimation
Units
Iteration Burn-‐rate/ Average Velocity
$50,050 / 25 story points
$715 day rate x 7 people x 10 day iteration / 25 story points
=
$2,002 per story point
30
Feature Est. $
Login 5 $10K
Export to Excel 8 $16K
Forgot Password 3 $6K
Facebook Integration 20 $40K
User Preferences 13 $26K
8. Dynamic Scope Option (in Dollars)
Feature Est. $
Login 5 $10K
Export to Excel 8 $16K
Forgot Password 3 $6K
Facebook Integration 20 $40K
User Preferences 13 $26K
Original
Operations Log 13 $26K
New Skin 13 $26K
New
“You may replace any pending feature of equal
or lesser size”
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
9. Use the contract to combat scope creep
Project Scope in Contract: • Uploading of Rights Managed Images:
• Require users to specify the licensed usage for an image by; Regions, Countries, Media Types
• Require users to provide additional comments or instructions on appropriate usage at the time of upload.
• Give users the ability to upload licensing documentation (in PDF or JPG format) at the time of the upload.
• Downloading of Rights Managed Images: • Limit access to images based on the region of the user. • Require users to acknowledge that the image
downloaded will be used in accordance with stated license rights.
• Send an alert email to a user who previously downloaded an image when that image’s rights have expired.
• Send an alert email to an identified corporate admin when a licensed image has been downloaded.
• Record the time and date of the user download and provide this data through a reporting mechanism
Backlog Est.
User preferred defaults for upload fields
8
Scan uploaded image files to determine image format
20
Upload metadata with images 5
Region-specific access 13
Auto email user when rights have expired
8
Report results sortable by each column
5
Which backlog items are not within scope?
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
Technical Emergency !!
Proposal Execution
Contract
δ
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
10. Stop over-engineering Less work Vs. More work
Experiment Vs. Implement Manual Vs. Automated
Buy Vs. Build Single User Vs. Multi User Generic UI Vs. Custom UI
Static Vs. Dynamic Unreliable Vs. Reliable
Source: Bill Wake, “Twenty ways to split”
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
The Impossible Becomes The Pitch
“I am the only project manager in the world, who can guarantee 100% on-schedule, on-budget. No problem.
….I am also the only one who will give you Dynamic Scope Option. In exchange for this low-risk flexibility, our contracts require a collaborative partnership over project success.”
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2010Permission is granted to PMI for PMI® Marketplace use only
It’s your choice
Bad Money Good Money
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Questions
Jesse Fewell
@jessefewell
www.jessefewell.com
37
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Top 5 Requirements for Programs that Deliver
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