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The audio portion of the conference may be accessed via the telephone or by using your computer's
speakers. Please refer to the instructions emailed to registrants for additional information. If you
have any questions, please contact Customer Service at 1-800-926-7926 ext. 10.
Presenting a live 90-minute webinar with interactive Q&A
Drafting Agile Software Development
Agreements: Guidance for Corporate
and Technology Counsel Evaluating Agile vs. Waterfall Development, Structuring Key
Provisions, Minimizing Contract Disputes
Today’s faculty features:
1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific
MONDAY, NOVEMBER 23, 2015
Paul H. Arne, Partner, Morris Manning & Martin, Atlanta
Anne M. Friedman, Of Counsel, DLA Piper, Los Angeles
Callum Sinclair, Partner, DLA Piper, United Kingdom
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Strafford Webinars
Drafting Agile Software
Development Agreements:
Guidance for Corporate and
Technology Counsel
Monday, November 23, 2015
PRESENTERS
Callum Sinclair, Partner, DLA Piper, United Kingdom:
https://www.dlapiper.com/en/uk/people/s/sinclair-callum/
Paul H. Arne, Partner, Morris, Manning & Martin LLP, Atlanta:
http://www.mmmlaw.com/our-people/employee-
directory/attorneys/paul-h.-arne
Anne Friedman, Counsel, DLA Piper, Los Angeles:
https://www.dlapiper.com/en/us/people/f/friedman-anne-m/
23 November 2015 Contracting for Agile - Update 6
Agenda
What is Agile?
Agile vs Waterfall
Agile Methodologies
Practical Customer Insights on Agile
Agile Contract Forms and Features
Challenges on Drafting Agile Contracts
Best Balance for Agile and Managing Risk
23 November 2015 Contracting for Agile - Update 7
Traditional: Waterfall Development
Gather requirements
Design
Build
Test
Implement
23 November 2015 Contracting for Agile - Update 8
Success?
0%
10%
20%
30%
40%
50%
60%
Successful Challenged Failed
26%
59%
15%
23 November 2015 Contracting for Agile - Update 9
Why So Bad?
52% of the time:
Lack of user input
Incomplete requirements and specifications
Changing requirements
Unrealistic expectations
Unclear objectives
New technology
23 November 2015 Contracting for Agile - Update 10
What is Agile?
Agile software development is
a group of software development methodologies
based on iterative and incremental development
where requirements and solutions evolve through
self- organizing, cross-functional teams
Examples of agile software development methodologies
Scrum
eXtreme Programming (XP)
DSDM
Usability/Feature Driven Development (UDD/FDD)
Contracting for Agile - Update 11 23 November 2015
The Agile Manifesto
Manifesto for Agile Software Development
We are uncovering better ways of developing software by doing it and
helping others do it. Through this work we have come to value:
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
That is, while there is value in the items on the right, we value the items
on the left more.
Kent Beck, Mike Beedle, Arie van Bennekum, Alistair Cockburn, Ward Cunningham, Martin Fowler, James Grenning,
Jim Highsmith, Andrew Hunt, Ron Jeffries, Jon Kern, Brian Marick, Robert C. Martin, Steve Mellor, Ken Schwaber, Jeff
Sutherland, Dave Thomas
© 2001, the above authors. This declaration may be freely copied in any form, but only in its entirety through this notice.
Contracting for Agile - Update 12 23 November 2015
Enter Agile
Embrace Change
Requirements can change at any time
Scope not finalized at front end
Timing?
Cost?
23 November 2015 Contracting for Agile - Update 13
Agile Disadvantages and Advantages
Disadvantages:
Can’t create detailed specifications
Can’t determine cost
Can’t determine time
Advantages:
IT’S MORE LIKELY TO SUCCEED!!!
Adapts to changed market conditions
Better user input
23 November 2015 Contracting for Agile - Update 14
Agile and SaaS
Reduce risk of code change
Quicker response to user and market needs
Testing is easier (one infrastructure)
Makes training an ongoing process, in small increments
Error corrections are easier
23 November 2015 Contracting for Agile - Update 15
Characteristics and Drivers
Core Characteristics
High level statement of product vision
Summary of software functionality in non-static User Stories
Iterative development process
Short cycles for analysis of requirements, design, implementation
and testing
Ongoing involvement of customer in development process
Rapid code reviews
Limited project documentation by services provider
Drivers
Commercial
Technical
23 November 2015 Contracting for Agile - Update 16
Waterfall & Agile Compared
QA1 QA2 QA3 QA4
23 November 2015 Contracting for Agile - Update
Design
Build
Test
Deploy
Features
Features
Features
Features
Deploy
17
Scrum Methodology – User Stories
As a [role]
I want that [feature]
so that [benefit]
23 November 2015 Contracting for Agile - Update
As a brand manager, I want the
ability to be able to view our
company's twitter stream
directly within Microsoft
Outlook so that I can readily
identify any bad publicity
18
Agile Methodology – Product Backlog
23 November 2015 Contracting for Agile - Update
Product Backlog
19
Scrum Methodology – key characters
Product Owner
Controls the Product Backlog
Identifies which User Stories
are retained and which are
discarded
Prioritises User Stories
Scrum Master
Manages the development
team
Monitors progress using a
Burn Down Chart
Project Manager in disguise!
23 November 2015 Contracting for Agile - Update 20
Scrum Methodology – Creating the Release Backlog
23 November 2015 Contracting for Agile - Update
Product Backlog
21
Scrum Methodology – Release
Backlog
23 November 2015 Contracting for Agile - Update
Release Backlog
1 Day 4 hours
3 Days 2 hours
3 Days
8 Days
4 hours 4 hours
5 Days
Estimated Work Effort = 22 days
22
Scrum Methodology - Sprints
23 November 2015 Contracting for Agile - Update
SPRINT 1 SPRINT 2 SPRINT 3
23
Scrum Methodology – Monitoring
End of each Sprint
Ship-ready
functionality tested
time estimate exceeded = project likely to overrun
23 November 2015 Contracting for Agile - Update
LATE!
On Time
24
Scrum Methodology – Daily Scrum
Every morning and chaired by Scrum
Master
15 minutes only
Don't get comfortable!
What's been done since last meeting
Obstacles encountered
Solutions to overcome each obstacle
Sprint Retrospective at the end of
each Sprint to identify how to
improve process
23 November 2015 Contracting for Agile - Update 25
Development Agreement for Agile
Normal Software Development Agreement (risky)
Plus:
Scope: uncertain
Timing: uncertain
Cost: uncertain
Attitude — We prefer:
“Customer collaboration over contract negotiation”
23 November 2015 Contracting for Agile - Update 26
Success Rates
0%
10%
20%
30%
40%
50%
60%
Successful Challenged Failed
43% 45%
12%
26%
59%
15%
Agile
Waterfall
23 November 2015 Contracting for Agile - Update 27
Normal Contract Risk Reduction
Personnel
Initial
Replacement
New
Governance
Reporting
23 November 2015 Contracting for Agile - Update 28
Agile Contract Forms and Features
Danish KO3
Norwegian PS2000
Swedish IT and Telecoms Industry template
Practical Law Company
Flexible Contracts
DLA Piper template
23 November 2015 Contracting for Agile - Update 29
Agile Features for Risk Reduction
Delivery of Working/Useable Code
“Our highest priority is to satisfy the customer through early and
continuous delivery of valuable software.”
Change Control
“Welcome changing requirements, even late in development.”
Participation
“Business people and developers must work together daily
throughout the project.”
Scope?
Time?
Cost?
23 November 2015 Contracting for Agile - Update 30
Challenges on Contract Drafting
Preserving balance between flexibility and certainty
Agreement on scope
Description of process within project cycles
Allocation of duties and responsibilities – service provider's
responsibility for project success
Governance and level of customer resource commitment
Risk and liability
Agreement on quality and related responsibilities
Pricing arrangement – fixed price arrangements
Consequences of interim acceptance
Walk away scenarios – consequences on project investment
23 November 2015 Contracting for Agile - Update 31
Best Balance?
Informed Risk/Benefit Analysis at outset
Flexible RFP and Business Case documentation
Early supplier engagement and embedding of teams
Objectives clearly stated in preamble
Closer attention to governance, process schedules
Consider limited controls
Contracted Minimum Viable Product
Capped Costs for stages or overall MVP
Project Longstop Date
Technical design should ensure working product at each stage
23 November 2015 Contracting for Agile - Update 32