Agile and fixed price Drupal projects

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Information about Agile and fixed price Drupal projects
Business & Mgmt

Published on March 7, 2014

Author: ManuelPistner


DRUPAL Projects! Agile? Fixed – Price? ...and HOW to succeed! 1/16

What Is a project ● Does not end in itself ● (Hopefully!) Clear goal ● Unique ● Start AND END (!) ● Limited resources 2/16

How To make projects successfull? ● Know, what you want (SMART) ● Spread the goals in your team ● Plan! (The way to your goals) => Remember: A goal without a plan is just a wish! 3/16

What To differentiate? ● Project management method ● Payment and delivery agreements ● Contract types => Each must be clear defined, all can be mixed with each other 4/16

Which PM methods exist? ● Agil (Scrum) ● Waterfall ● (... other derived methods) 5/16

Agile PM characteristics ● Requirements always change ● Iteration ("mini-projects") ● High flexibility ● Increasing business value each iteration 6/16

Agile PM Advanages ● Flexibility ● Product will adapt itself ● More value each iteration ● Quick first usable results 7/16

Agile PM Disadvantages ● Duration for the TOTAL project unknown ● TOTAL costs unknown ● Results are not clear from the beginning 8/16

Waterfall-model Characteristics ● Clear and specific requirements ● Project planed from the very beginning ● Step by step iterations ● V-Model derived 9/16

Waterfall-model Advantages ● Well known costs for clear requirements ● Predictable timeline ● Result is clear defined ● Highest possible project control 10/16

Waterfall-model Disatavantages ● Less flexibility ● Long planning phase ● Result may be unusable due to changing requirements 11/16

Payment-modalities When you will get paid ● ● Payment method is not related to PM method Clear agreement what needs to be done to get paid! 12/16

Which Price models exist? ● ● Fixed price (mostly contract for work and labor) - Fixed price for fixed delivery or service Price per hour (T&M) - Fixed price for a service unit (time) 13/16

Which Contracts exist ● Fixed price contract (Result owed) ● Time & Material (Just the work is owed) ● NOTHING ELSE! 14/16

What Always to clearify ● HOW the project will be managed ● WHO is responsible for WHAT ● WHAT is owed / needs to be delivered? ● WHEN you will be paid 15/16

Fixed-Price contract characteristics ● Clear and specific result is owed ● Extra costs because of flexibility ● Safety (result AND price are fixed) ● Conflicts because of change requests 16/16

Time & Material Characteristics ● Only working time owed ● No result owed ● Customer buys a team ● Conflicts because of „quiet“ extra costs 17/16

Which Variants exist? NONE! Only variation on project organisation 18/16

Which Variants exist? ● Fixed price without agility ● Fixed price for single iterations ● Agile fixed price ● Fixed price „for everything" and agile management (!) 19/16

Which Goals does each follow? ● ● Waterfall management and fixed price => Develop a clear specified product with fixed time and budget Agile management and price per hour => Develop an ideal (!) product respecting changes 20/16

Fixed price without agility Advantages Customer ● Safe budget, safe and fixed scope Provider ● Chance for profit ● Clear goals to get paid ● Planable for resources and finance 21/16

Fixed price without agile Disadvantages Customer ● High effort for conception and planning ● Planning / calculation with buffer ● No flexibility or more expenses Provider ● Increasing risk with less detailed specification 22/16

Fixed price for each iteration Advantages Customer ● Budget safety for each iteration ● Independency ● Flexibility Provider ● Opportunity for profit and less risk 23/16

Fixed price for each iteration Disadvantages Customer ● No total price for complete project Provider ● Low planning safety for resources and budget 24/16

Agile fixed price How does it work? Requirements with estimations can be changed by new requirements with the same estimation. 25/16

Agile fixed price What do you need? Well planned project requirements and estimations to make these requiremetns interchangable. 26/16

Agile fixed price Advantages Safety by fixed price for fixed feature set ● Flexibility by priorisation ● Transparency ● => Fair break down of risks and opportunities of project was set up the right way 27/16

Agile fixed price Disadvantages ● ● Change requests only with agreement of both parties Detailed specification required 28/16

Fixed price AND agile Fixed price for „all“ AND Agile management => Does not match, will never work! => Desaster for the project! 29/16

Fixed price and agile What does that mean? Fixed price for „all“ AND agile management => Changes are included in fixed price 30/16

Fixed price and agil What does that mean? 31/16

Fixed price and agile What will happen? ● When and why will you get paid? ● What needs to be done for the fixed price? ● When will the project end? 32/16

Fixed price and agile What will happen? Conclusion: The PROVIDER agrees to do EVERYTHING the customer wants and as long the customer wants him to do this. 33/16

Fixed price AND agile How will it end? ● More and more feature requests as changes cannot be avoid ● Budget overdue ● Quality will suffer ● Unsatisfied project partners 34/16

Fixed price What to keep in mind ● ● Fixed price = clear requirements Clear agreement WHAT needs to be done for WHICH price ● Warranty ● Specify acceptance and approval tests 35/16

Fixed price What to keep in mind Clear change request process ● Document project process ● RIGHTS and DUTIES for both project parties ● 36/16

Common mistakes To avoid „We don't need a contract“ ● „Just trust me“ ● „We will pay by progress“ ● „We want a web page such as XYZ“ ● „Design will be delivered later“ ● „No clear responsibilities“ ● „More developers = quicker results“ ● 37/16

Most mistakes In any case Have their origin in the planning, agreements and setup of the project! PLAN ● MESSURE ● COMMUNICATE ● ● Your goals well! 38/16

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