1

2Fixed Price – it’s too often a reality

Why is it a reality?

Customer wants to know the cost

Customer wants to reduce the risk of an initial engagement

It may be required for a tender

3Cons – that’s easy

Customer wants value for money (maximise scope)

BUT

Supplier wants profit (minimise cost/work)

Iron triangle - fixed price, fixed date, fixed scope

Estimate is an educated guess – not a plan

Fixed Price Scope wars

Review – focuses on did we do it right to spec

4Pros – there are some!

Known backlog that you can fully size - Awesome!

Can plan early and with clear rate of progress, rate of scope increase

Review - can be used to understand direction, fix misunderstandings early, train client in evolution of the software

Scrum solves much of the management issues - manage scope, manage expectations, manage delivery date.

5Some things are always the same

Sprint planning – just the same.

Retro – just the same

Stand ups, velocity, all artefacts – just the same

Review - focuses on differences in understanding and potentially client sign off.

6What we did

Backlog management

Scope creep and in/out scope discussions part of backlog prioritisation and management

Extra work – on the end

Contentious/undefined items – on the end.

Reviews

Internal - every sprint (sanity checking progress, discus work)

Client UAT - every 2-3 sprints

7How it worked

Within 2 months – fully sized backlog. Problem: Needed 100 points. Getting 70.

Started discussing the problem and managing expectations early.

Pressure doesn't work

Team conflict, point inflation

Team committing to sprint backlog

were still asked for more => can lower quality.

8It worked

We managed the expectations early.

Scrum made this project successful.

New plan

Delivered release for fixed date, reduced scope

Delivered release for remaining fixed scope

Client got what they needed.

9If you must fixed price - do Scrum

If you must do fixed price - do Scrum.

It does work!

Be courageous - avoid the temptation to throw out the process.

Be open - manage expectations early and continuously!

Maintain the commitment, focus and respect for the team and the project

10Questions?

Questions?

Comments?