Contracting IT services in #agile #procurement #LEAN #bestpractice

Even in space engineering, financial world, life science – transformation and innovation pressure require more flexible approach. Governance of procurement poses a big challenge. Traditional, well planed “waterfall” is simply too slow. Here I share are some thoughts how to manage risk of costly CR (change requests), make procurement “lean” and learn across processes.

Recently I participated in an interesting meeting. A process so important for many of us - contracting of technology services, is significantly evolving. Unfortunately business, IT service providers, representatives of procurement departments and experts of agile methodologies confirmed, that the rate of change is uneven. Also this process - will be effective when expected effect occur in the shortest possible time. The aim of the meeting was therefore an attempt to discover the best way of contracting the IT services provided in agile methodologies.

Many times we perform in at least one of the roles:

• as [requesters] - we represent "core business",
• as [suppliers] – of information, infrastructure or agile technical teams,
• or between them [processors] - procurement, auditors, financial controllers, lawyers, ...

Although some of the participants focused on changing rather internal culture of procurement departments (from waterfall tradition to agile methods), I came to a more radical conclusion. Here is why:

I am inspired by the very positive results of transformation of legal departments that I had the opportunity to observe. I mean those of them that have focused on providing consultancy services instead of traditional, cascading operational processes.

In short: a lawyer dynamically enriches the value in a purchasing process, but does not run it and does not own it. It can therefore act in shorter intervals, with greater frequency and dynamics. A bit like a consultant in an individually defined "sprint".

One of great value hints is transparent separation in contracts into an unchanging part and a negotiable part.

I invite you to contact me and share feedback, as many see in their companies the need to speed up procurement. Contracting of IT services and all others, have to react to dynamic, unplanned needs. CR can be considered as unnecessary "waste". LEAN way of contracting agile IT services is possible.

#agile #procurement #innovation #LEAN #transformation #IT #technology #LLC #governance