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DRUPAL Projects! Agile? Fixed – Price?

...and HOW to succeed!

WhatIs a project

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● Does not end in itself

● (Hopefully!) Clear goal

● Unique

● Start AND END (!)

● Limited resources

HowTo make projects successfull?

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● 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!

WhatTo differentiate?

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● Project management method

● Payment and delivery agreements

● Contract types

=> Each must be clear defined, all can be mixed with each other

WhichPM methods exist?

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● Agil (Scrum)

● Waterfall

● (... other derived methods)

Agile PMcharacteristics

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● Requirements always change

● Iteration ("mini-projects")

● High flexibility

● Increasing business value each iteration

Agile PMAdvanages

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● Flexibility

● Product will adapt itself

● More value each iteration

● Quick first usable results

Agile PMDisadvantages

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● Duration for the TOTAL project unknown

● TOTAL costs unknown

● Results are not clear from the beginning

Waterfall-modelCharacteristics

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● Clear and specific requirements

● Project planed from the very beginning

● Step by step iterations

● V-Model derived

Waterfall-modelAdvantages

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● Well known costs for clear requirements

● Predictable timeline

● Result is clear defined

● Highest possible project control

Waterfall-modelDisatavantages

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● Less flexibility

● Long planning phase

● Result may be unusable due to changing requirements

Payment-modalitiesWhen you will get paid

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● Payment method is not related to PM method

● Clear agreement what needs to be done to get paid!

WhichPrice models exist?

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● 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)

WhichContracts exist

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● Fixed price contract (Result owed)

● Time & Material (Just the work is owed)

● NOTHING ELSE!

WhatAlways to clearify

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● HOW the project will be managed

● WHO is responsible for WHAT

● WHAT is owed / needs to be delivered?

● WHEN you will be paid

Fixed-Price contractcharacteristics

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● Clear and specific result is owed

● Extra costs because of flexibility

● Safety (result AND price are fixed)

● Conflicts because of change requests

Time & MaterialCharacteristics

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● Only working time owed

● No result owed

● Customer buys a team

● Conflicts because of „quiet“ extra costs

WhichVariants exist?

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NONE!

Only variation on project organisation

WhichVariants exist?

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● Fixed price without agility

● Fixed price for single iterations

● Agile fixed price

● Fixed price „for everything" and agile management (!)

WhichGoals does each follow?

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● 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

Fixed price without agilityAdvantages

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Customer● Safe budget, safe and fixed scope

Provider● Chance for profit● Clear goals to get paid● Planable for resources and finance

Fixed price without agileDisadvantages

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Customer● High effort for conception and planning● Planning / calculation with buffer● No flexibility or more expenses

Provider● Increasing risk with less detailed specification

Fixed price for each iterationAdvantages

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Customer● Budget safety for each iteration● Independency● Flexibility

Provider● Opportunity for profit and less risk

Fixed price for each iterationDisadvantages

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Customer● No total price for complete project

Provider● Low planning safety for resources and budget

Agile fixed priceHow does it work?

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Requirements with estimations can be changed by new requirements with the same estimation.

Agile fixed priceWhat do you need?

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Well planned project requirements and estimations to make these requiremetns interchangable.

Agile fixed priceAdvantages

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● 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

Agile fixed priceDisadvantages

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● Change requests only with agreement of both parties

● Detailed specification required

Fixed price AND agile

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Fixed price for „all“ AND

Agile management

=> Does not match, will never work!=> Desaster for the project!

Fixed price and agileWhat does that mean?

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Fixed price for „all“ AND

agile management

=> Changes are included in fixed price

Fixed price and agilWhat does that mean?

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Fixed price and agileWhat will happen?

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● When and why will you get paid?

● What needs to be done for the fixed price?

● When will the project end?

Fixed price and agileWhat will happen?

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Conclusion: The PROVIDER agrees to do EVERYTHING the customer wants and as long the customer wants him to do this.

Fixed price AND agileHow will it end?

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● More and more feature requests as changes cannot be avoid

● Budget overdue

● Quality will suffer

● Unsatisfied project partners

Fixed priceWhat to keep in mind

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● Fixed price = clear requirements

● Clear agreement WHAT needs to be done for WHICH price

● Warranty

● Specify acceptance and approval tests

Fixed priceWhat to keep in mind

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● Clear change request process● Document project process● RIGHTS and DUTIES for both project parties

Common mistakesTo avoid

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● „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“

Most mistakesIn any case

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Have their origin in the planning, agreements and setup of the project!

● PLAN● MESSURE● COMMUNICATE

● Your goals well!