Peter Stevens. Peter Stevens. 10 Risks that can sink your project and how Agility helps you master them

Ten Risks that can sink your project
Peter Stevens
© 2020 Peter Stevens
and how to
mitigate them
in the contract
UA Online PMDay 2020 Vol.3

Let’s break the internet!
Where are you from? What do you do?
Software Developer
Hardware Developer
Creative
Project Manager
Line Manager
C-Level Manager
something else

Meet Peter Stevens
“Mr. What Really Matters” © 2020 Peter Stevens
Build the Right Relationship Between
Sourcing and Agile Development Companies
PETER B. STEVENS
A Practitioner’s Guide to Creating the Right Contract
TEN AGILE
CONTRACTS

How to ask
Questions?
Photo © leonardo viti - Fotolia © 2020 Peter Stevens

Walter Stulzer
Executive Director
FutureWorks.ch
•All the goals
•Half the work
•¼ of the time

Every project is
a leap of faith

I’d like to show you how changing the
playing rules can enable dramatically
better results
Image: SpaceX at Unsplash

The risk of time and materials contracts is that – except
for the bill – you may never get anything.

For example, NASA Project Orion:
15 Years / $18.7 Billion / Total (Test-) Flight Time: 4h 36m
© 2020 Peter StevensQuelle: https://en.wikipedia.org/wiki/Orion_(spacecraft)

What would SpaceX do?
“…basically [SpaceX was] accomplishing
things in weeks that would take NASA years.
And we were all shocked at that.”
-- Garrett Reisman,
NASA Astronaut, heute SpaceX Advisor
© 2020 Peter StevensImage: Wikipedia

The Commercial Cargo Program paved the way for the
Commercial Crew program.
Orbital Sciences Cygnus SpaceX Falcon-9
© 2020 Peter StevensImages: Wikipedia, SpaceX

6 Years, $6.8 Billion,
Result: 2 Spacecraft, one is now in service
Boeing Starliner $4.3 Mia SpaceX Crew Dragon $2.5 Mia
© 2020 Peter StevensQuelle:
https://observer.com/2019/11/nasa-audit-boeing-spacex-iss-ccp-mission-spacecraft-budget/
Images: Wikipedia

What is the challenge of complex development projects?
Physical Construction IT, Software, Organizations
© 2020 Peter StevensImages: Unsplash

What is the challenge of complex projects?
You know what you need
You cannot know,
what you need
Leading a complex project is different
Images: Unsplash

How do we bring, quality, speed and complexity under
the same roof?
How does
Scrum manage
these risks?
What are the
risks of a
development
project?
Review: What
does it mean to
be agile?

CONTENT WARNING
MAY CONTAIN ADULT LANGUAGE OR
INCONVENIENT TRUTHS.
MANAGERIAL DISCRETION ADVISED

You may still do some projects traditionally.
Clarity possible - classical Complexity dominates - agile

How do we bring, quality, speed and complexity under
the same roof?
Review: What
does it mean to
be agile?

The first sentance and first principle define the agile
mindset
Learning
Collaboration
Purpose

How do we bring, quality, speed and digitalization under
the same room?
What are the
risks of a
development
project?
Review: What
does it mean to
be agile?

Risks that can kill your project
Source: Ten Agile Contracts, by Peter Stevens
Drawings by L. Quattri, used by permission

1. Delivery Risk

2. Time and Budget Risk

3. Scope Risk

4. Market Risk

5. Technical Risk

6. Social Risk

7. Dependencies

8. Stakeholder Risk

9. Change Management Risk

10. Wishful thinking

Wishful thinking is widespread
« The reality is that all estimates are lies.
« To get the business, the client has to pretend to know what
they want, and I have to pretend to know how much time
and money it will cost to deliver it.
« If we don’t play the game, I can’t get the business.
« Our relationship starts with a lie.»
Wiktor Żołnowski
Co-founder Pragmatic Coders
Customer Service Leader Award Winner
World Agility Forum 2019
© 2020 Peter Stevens Photo courtesy Pragmatic Coders

A classical approach to development defines a series of
milestones on the way to a finished product
Shippable
ProductVision Milestone
Milestone
Milestone
Image © 2009-2019 Peter Stevens
Licensed CC-BY-NC-ND

Scrum introduces one constraint: at least every 30 days the
team has to produce a version of the product that could be
shipped and can be reviewed
Shippable
ProductVision
Maximum 30 days

Vision
Potentially
Shippable
Product
Every sprint, the Scrum Team reviews their progress and
direction with stakeholders
Maximum 30 days
Review:
Product with
Stakeholders

Vision
Potentially
Shippable
Product
This enables fine-grained decision making about what to
do next…
Maximum 30 days
Review
Product with
Stakeholders
What
brings
value?
Planning:
What to do?
How to do it?

Shippable
ProductVision
Potentially
Shippable
Product
…and virtually eliminates delivery risk at the end of the
project
Maximum 30 days
Review
Product with
Stakeholders
What
brings
value?
Planning:
What to do?
How to do it?

Lieferbares
ProduktVision
Potenziell
lieferbares
Produkt
Scrum was designed to minimize the risks of product
development
Maximum 30 Tage
Review:
Produkt mit
Stakeholdern
Was
bringt
Wert?
Planung:
Was / Wie?

Bosch: Park distance control for locomotives
Prototype, validate, improve, improve,
improve & ship
41Copyright 2006-2020 Joe Justice however please recognize noted attributions.
@JoeJustice0 Joe@WIKISPEED.com

Bosch: First prototype to shipping product
in 5 weeks
42Copyright 2006-2020 Joe Justice however please recognize noted attributions.
@JoeJustice0 Joe@WIKISPEED.com

Shippable
ProductVision
Potentially
Shippable
Product
Extreme Manufacturing
accelerates product development further
Maximum 1 week
Review
Product with
Stakeholders
What
brings
value?
Planning:
What to do?
How to do it?

Let’s eliminate some wishful thinking:
Digitalization is Software and Software is Complex

An agile approach is essential

Your Scrum team offers:
Scrum Master & Development Team Scope and Risk Management A version to test in the market
or sell every sprint
Giftbox icon made by Freepik from www.flaticon.com

Your Scrum team expects:
Constructive Feedback
at each Sprint Review
An empowered Product Owner Active Stakeholders
Giftbox icon made by Freepik from www.flaticon.com

Tips for collaboration between stakeholders and a
development organization (with or without a contract)

Any collaboration
based on fixed-scope
is not agile

Collaboration based
on variable scope can
be agile

A Sprint is to your project what a brick is to your
wall: A building block with uniform dimensions
© 2020 Peter StevensPhoto by Paweł Czerwiński on Unsplash

Option 1: Buy what the
supplier is delivering

Option 2: Offer the
produce or service that the
customer needs

Tips for an agile relationship
As
Supplier
As
Client

• Align with the risk management
of your framework
• Product Owner by Client with
Decision-Making Authority
• Every Sprint Produces a Release
Candidate
• Client supplies Chief
Impediments Removal Officer
• Contracts with fixed scope are
not in your interest
As
Client

• Your first goal
• Deliver a working release candidate
every sprint
• Include the collaboration
framework as part of your quote
• e.g. Scrum
• Supply Scrum Master and
Development Team
• 100% dedicated to the project
As
Supplier

For more tips
Build the Right Relationship Between
Sourcing and Agile Development Companies
PETER B. STEVENS
A Practitioner’s Guide to Creating the Right Contract
TEN AGILE
CONTRACTS
Scrum, Product Owner, Personal Agility, and
Executive Led Transformation workshops:
https://saat-network.ch/course-calendarhttps://tencontracts.com

Questions?
How does it fit?
• What did you learn?
• What surprised you?
• How is this different that
what you are doing today?
Photo © leonardo viti - Fotolia © 2020 Peter Stevens

Peter Stevens. Peter Stevens. 10 Risks that can sink your project and how Agility helps you master them

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Peter Stevens. Peter Stevens. 10 Risks that can sink your project and how Agility helps you master them