Ashok PatraProject Manager| Tech Mahindra LtdBhubaneswar, Odisha, India
In general we consider a Fixed Priced project as something which has fixed scope and a price assigned. As more and more organisations are adopting agile for their project execution, can we have FP and AGILE go together ?
What are the risks we should consider up-front and how to mitigate those risks? Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
It seems most people stumble over the idea of fixed price/fixed time, instead of the more traditional fixed price/fixed scope.
As the vendor, I fix the price at the sprint level.
The client is in charge of prioritizing the scope (features). The client can purchase as little or as many sprints as they want. Each sprint has to be self-contained and stand on its own. That means it must include design, development, testing and (gasp!) documentation. Saving Changes...
I thought planning for each sprint there was a fixed price for what you will deliver. The product owner decides what would be included in the sprint from the product backlog. Saving Changes...
James MoutonSr. Portfolio Manager| OGE CorpEdmond, Ok, United States
Staying focused on "Value" is critical. A Fixed Price contract should have a value proposition for the customer...the project is an opportunity to maximize that value for the customer. Agile's incorporation of Empirical Process Control (transparency, inspection, and adaptation) creates the cadence and psychological safety to maximize the delivery of value for the Customer (big assumption is that the project is something that cannot be fully decomposed into work packages...if it can, Empirical Process Control is over processing). This is a hard leap for some to make (been there) but those that have done it know that staying focused on maximizing value for the Customer surprisingly maximizes value for the Customer.
A couple additional points to underscore:
1. Though there is usually some negotiation between the Team and the Product Owner, Product Owners don't decide what is in sprint. Ultimately, the Team has to decide what they will commit to delivering in the sprint.
2. Velocity and Story Points are not transferable from one Team to another for many of the reasons already stated. I would like to add a reference to Project Aristotle- https://www.inc.com/justin-bariso/google-s...ir-success.html 3. Fixed Price contracts for agile projects work if the parties (Team, Product Owner/Customer) acknowledge the scope will be negotiated throughout the project, the Team commits to working on whatever the Product Owner/Customer says is most important and all parties understand and have bought into the vision and the associated value proposition. Saving Changes...
