Agile and fixed-price project: How to raise the subject?

One of the keys to the success of digital projects lies in the adequacy of the project monitoring method according to the objectives to be reached. We note that in the current context, we must demonstrate both flexibility and rigor. This observation leads many companies to choose the fixed-price contractual mode in order to guarantee budget and deadlines. However, how can we remain flexible, demonstrate provable advancement and respect time constraints? The solution then lies in the adaptation of project management methodologies in between Waterfall and Agile.

Explanations with Yann Dagorn, Head of Managed Application Services, Fujitsu Luxembourg.

Waterfall vs Agile

These two methodologies oppose two different visions of project delivery in terms of scope management. Indeed, the Waterfall approach emphasizes a defined scope and a strong rigidity in the management, favoring this method for fixed-price contracts. Unlike Agile, which provides flexibility but considers the scope as an adjustment variable from one sprint to another, facilitating change management.

Hybridization

It then becomes interesting to attempt to extract the best from each method to achieve a "hybridization". It is then necessary to identify the distinctive advantages or assets of each to ensure optimal progress and respect of time and financial constraints.

This starts with the scope management. An Agile backlog structure is adopted to allow a flexible shaping but requires beforehand workload estimations. In addition, a Product Owner has to be assigned to ensure an effective backlog management, not only to guarantee the integrity of the scope, but also to avoid scope creep (this phenomenon is often one of the weaknesses of the agile methodology). His role is also to ensure the most effective transmission of information to the development team.

The backlog management implemented in this way makes it easy to adopt a sprint delivery strategy that includes the benefits of the Agile methodology in terms of visibility and validation of deliverables. Thus, frequent deliveries of testable and verifiable modules are established, guaranteeing optimal monitoring on the progress of each sprint and on the whole project.

It remains clear that follow-up meetings remain mandatory but are now coordinated with sprint activities. Weekly follow-up meetings are a minimum in addition to special ceremonies, such as the sprint review in which progress is demonstrated.

Let's be pragmatic, however, a fixed-price project requires a significant monitoring workload. As a result, the omnipresent Project Manager in Waterfall delivery and absent in Agile remains absolutely necessary in this type of hybrid approach. His role then evolves from single-headed management to working closely with the Product Owner to find the right balance for the perfect team coordination, deal with impediments and meet backlog requirements.

This duo then becomes the keystone on which the project's stakeholders, including the steering committee and the development team can rely.

Expected benefits

The expected benefits of this hybridization of project delivery methodologies are numerous and concern several areas of activity. We can note among these, the optimized and modular management of the project scope, frequent deliveries, a demonstrable product, better overall monitoring of progress and costs and, above all, quality delivery on time.

Change management, on the other hand, is always present because any project is subject to evolutions. However, it is facilitated by this improved scope management and the flexibility that sprint delivery brings. Thus, the impacts of a change request can be analyzed, allowing a possible integration during a future sprint.

A team collaboration

The objective seems simple on paper and hybridization a very attractive solution, but this should not minimize the workload of the Project Manager and Product Owner in achieving the result. Indeed, the practical and technical aspects remain but the time constraint of a fixed price project puts additional stress on the entire team.

It is therefore necessary to pay attention to cohesion and awareness of the purpose-led team to achieve a common goal. This balance cannot be found without a human-centred management, an essential element to combine performance and quality.

In conclusion

The hybridization of Waterfall and Agile project delivery methodologies brings many advantages in the development of fixed-price projects and is a real solution to achieve the expected result within the fixed timeframe. Having development teams managed in a human-centered way and with a strong will to reach a common goal.