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11/1/2012




AGILE CONTRACTING
Overcoming the legal departments Pavlov responses
11/1/2012




SANDER HOOGENDOORN
Capgemini
         Principal technology officer
         Global agile thought leader
         Chief architect Accelerated Delivery Platform
Other
         Author books on UML, agile (2)
         Author +200 articles
         Speaker +100 international conferences
         Microsoft Partner Advisory Council .NET
         Editorial boards & Advisory boards
Web
         www.sanderhoogendoorn.com
         www.ditisagile.nl | www.smartusecase.com
         @aahoogendoorn @ditisagile



 2    AGILE CONTRACTING
      ©2012 Capgemini. All Rights Reserved
11/1/2012




3   AGILE CONTRACTING
    ©2012 Capgemini. All Rights Reserved
11/1/2012




RUTGER ALSBACH

Capgemini
        Associate General Counsel




 4   AGILE CONTRACTING
     ©2012 Capgemini. All Rights Reserved
11/1/2012




AGENDA

What does being agile mean?
What does Legal uncertainty mean?
Living on a pink cloud
Legal bears on the road
Pavlov Lawyers
Situation 1. Classic RFP’s
Situation 2. Agile RFP’s
Situation 3. Greenfield
Where can agile go wrong legally?
Some legal advice

 5   AGILE CONTRACTING
     ©2012 Capgemini. All Rights Reserved
11/1/2012




WHAT DOES BEING AGILE MEAN?




 6   AGILE CONTRACTING
     ©2012 Capgemini. All Rights Reserved
11/1/2012




LIVING ON A PINK CLOUD
Scrumdamentalism and other anti-patterns. Yes, your agile projects can fail too
11/1/2012




           WHERE CAN AGILE GO WRONG?



   #SUCP                    Total #SUCP               w/o prod.support SUCP   Accepted        To accept   Approved   To approve
1400


1200


1000


 800


 600


 400


 200


   0                                                                              Iteration
        I…




       1…
       1…
       1…
       1…
       1…
       1…
       1…
       1…
       1…
       1…
       2…
       2…
       2…
       2…
       2…
       2…
       2…
       2…
       2…
       2…
       3…
       3…
       3…
       3…
       3…
       3…
       3…
       3…
       3…
       3…
       4…
       4…
       4…
       4…
       4…
       4…
       4…
       4…
       4…
       4…
       5…
       5…
       5…
       5…
       5…
       5…
       5…
       5…
       5…
       5…
       6…
       6…
       1
       2
       3
       4
       5
       6
       7
       8
       9




           8   AGILE CONTRACTING
               ©2012 Capgemini. All Rights Reserved
11/1/2012




LEGAL BEARS ON THE ROAD
How uncertainties result in cast-in-concrete contracts
11/1/2012




PAVLOV LAWYERS
Defining results versus defining process
11/1/2012




WHAT DOES LEGAL UNCERTAINTY MEAN?

Lawyers are often unfamiliar
with agile approaches
They want to know but are not sure
         How to weigh things
         (how to establish a breach of contract
         by lack of black-and-white requirements
         and acceptance)
         When to start yielding the sword
         (sending notices of default, etc.)
         Whose head(s) will be on the line
         (playing the blame game)
So, avoid them altogether?
         After all agile can’t go wrong, or can it?


 11   AGILE CONTRACTING
      ©2012 Capgemini. All Rights Reserved
11/1/2012




                                            SITUATION 1. CLASSIC RFP
                                 Projects could be better handled agile but client is unaware




12   AGILE CONTRACTING
     ©2012 Capgemini. All Rights Reserved
11/1/2012




                                                  SITUATION 2. AGILE RFP
                                            WITH CLASSIC REQUIREMENTS / T&C’S
                                     Client requires agile but is unaware of the consequences




13   AGILE CONTRACTING
     ©2012 Capgemini. All Rights Reserved
11/1/2012




                                                   SITUATION 3. GREENFIELD
                                            Client desires agile and is aware of the consequences




14   AGILE CONTRACTING
     ©2012 Capgemini. All Rights Reserved
11/1/2012




WHERE CAN AGILE GO WRONG LEGALLY?
Square contracts in a round (agile) approach
         Fixed price, fixed date, fixed results
         Binary acceptance, early escalation
         Using legalese for communication
Scrumdamentalism
         Obligations too non-committal or open-ended
         Absence of formal measurement of progress
         and results, lack of formal communication
         Nobody held accountable when something
         goes wrong, late escalation (or none at all)
Wrong incentives / KPI’s for teams and team
members
         What is the unit of payment? Hours, points?
         Obfuscation of financial drivers



 15   AGILE CONTRACTING
      ©2012 Capgemini. All Rights Reserved
11/1/2012




SOME LEGAL ADVICE

Beware of pink-cloud projects
Check your client / yourself as a client
         Does the client / the project need agile?
         Is the client ready for agile? Does the client need
         to be educated? Does he want that?

Create a trusted relationship
Avoid cast-in-concrete contracts
         Allow for new insights
         Allow for lenience in billing
         Contract the process over results

Ensure continuous professional
communication

 16   AGILE CONTRACTING
      ©2012 Capgemini. All Rights Reserved
11/1/2012




REFERENCES AND QUESTIONS
sander.hoogendoorn@capgemini.com | rutger.alsbach@capgemini.com | @aahoogendoorn | @ditisagile
www.sanderhoogendoorn.com | www.ditisagile.nl | www.smartusecase.com | www.accelerateddeliveryplatform.com

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Agile Contracting. Overcoming your Lawyers Pavlov Responses

  • 1. 11/1/2012 AGILE CONTRACTING Overcoming the legal departments Pavlov responses
  • 2. 11/1/2012 SANDER HOOGENDOORN Capgemini Principal technology officer Global agile thought leader Chief architect Accelerated Delivery Platform Other Author books on UML, agile (2) Author +200 articles Speaker +100 international conferences Microsoft Partner Advisory Council .NET Editorial boards & Advisory boards Web www.sanderhoogendoorn.com www.ditisagile.nl | www.smartusecase.com @aahoogendoorn @ditisagile 2 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 3. 11/1/2012 3 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 4. 11/1/2012 RUTGER ALSBACH Capgemini Associate General Counsel 4 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 5. 11/1/2012 AGENDA What does being agile mean? What does Legal uncertainty mean? Living on a pink cloud Legal bears on the road Pavlov Lawyers Situation 1. Classic RFP’s Situation 2. Agile RFP’s Situation 3. Greenfield Where can agile go wrong legally? Some legal advice 5 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 6. 11/1/2012 WHAT DOES BEING AGILE MEAN? 6 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 7. 11/1/2012 LIVING ON A PINK CLOUD Scrumdamentalism and other anti-patterns. Yes, your agile projects can fail too
  • 8. 11/1/2012 WHERE CAN AGILE GO WRONG? #SUCP Total #SUCP w/o prod.support SUCP Accepted To accept Approved To approve 1400 1200 1000 800 600 400 200 0 Iteration I… 1… 1… 1… 1… 1… 1… 1… 1… 1… 1… 2… 2… 2… 2… 2… 2… 2… 2… 2… 2… 3… 3… 3… 3… 3… 3… 3… 3… 3… 3… 4… 4… 4… 4… 4… 4… 4… 4… 4… 4… 5… 5… 5… 5… 5… 5… 5… 5… 5… 5… 6… 6… 1 2 3 4 5 6 7 8 9 8 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 9. 11/1/2012 LEGAL BEARS ON THE ROAD How uncertainties result in cast-in-concrete contracts
  • 10. 11/1/2012 PAVLOV LAWYERS Defining results versus defining process
  • 11. 11/1/2012 WHAT DOES LEGAL UNCERTAINTY MEAN? Lawyers are often unfamiliar with agile approaches They want to know but are not sure How to weigh things (how to establish a breach of contract by lack of black-and-white requirements and acceptance) When to start yielding the sword (sending notices of default, etc.) Whose head(s) will be on the line (playing the blame game) So, avoid them altogether? After all agile can’t go wrong, or can it? 11 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 12. 11/1/2012 SITUATION 1. CLASSIC RFP Projects could be better handled agile but client is unaware 12 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 13. 11/1/2012 SITUATION 2. AGILE RFP WITH CLASSIC REQUIREMENTS / T&C’S Client requires agile but is unaware of the consequences 13 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 14. 11/1/2012 SITUATION 3. GREENFIELD Client desires agile and is aware of the consequences 14 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 15. 11/1/2012 WHERE CAN AGILE GO WRONG LEGALLY? Square contracts in a round (agile) approach Fixed price, fixed date, fixed results Binary acceptance, early escalation Using legalese for communication Scrumdamentalism Obligations too non-committal or open-ended Absence of formal measurement of progress and results, lack of formal communication Nobody held accountable when something goes wrong, late escalation (or none at all) Wrong incentives / KPI’s for teams and team members What is the unit of payment? Hours, points? Obfuscation of financial drivers 15 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 16. 11/1/2012 SOME LEGAL ADVICE Beware of pink-cloud projects Check your client / yourself as a client Does the client / the project need agile? Is the client ready for agile? Does the client need to be educated? Does he want that? Create a trusted relationship Avoid cast-in-concrete contracts Allow for new insights Allow for lenience in billing Contract the process over results Ensure continuous professional communication 16 AGILE CONTRACTING ©2012 Capgemini. All Rights Reserved
  • 17. 11/1/2012 REFERENCES AND QUESTIONS sander.hoogendoorn@capgemini.com | rutger.alsbach@capgemini.com | @aahoogendoorn | @ditisagile www.sanderhoogendoorn.com | www.ditisagile.nl | www.smartusecase.com | www.accelerateddeliveryplatform.com