Agile: Sourcing and Supply

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Agile Sourcing and Supply
The Opportunities and the Challenges David
Shields, Managing Director, Government
Procurement Service Shaun Davey, CEO, IPL 21
November 2011
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Why Agile?

• Extensive successful use in private sector
• Traditional waterfall projects have a poor
  track record in public sector
• Reduces need for up-front solution definition
• Quick delivery of useable products
• User buy-in
• Reduced risk of project failure
• Encourages use of SMEs
• But not a panacea

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What is Agile?

• Applies to projects which are
• Modular
• Iterative
• Responsive to Change
• Users needs are central to the delivery
• Characterised by not having a fixed and detailed
  knowledge of the final solution at project
  initiation

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Government Commitment

• Cabinet Office ICT Strategy
• Government will apply agile methods to ICT
  procurement and delivery to reduce the risk of
  project failure. Agile methods allow projects to
  respond to changing requirements and ensure that
  the solutions meet business requirements.
• http//www.cabinetoffice.gov.uk/content/government
  -ict-strategy
• ICT Strategy Implementation Plan
• By 2014, Agile will reduce the average
  departmental ICT enabled change delivery
  timescales by 20.
• http//www.cabinetoffice.gov.uk/content/government
  -ict-strategy-strategic-implementation-plan

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Challenges

• Three significant barriers
• How can we Procure agile?
• The Expertise necessary to drive an agile process
• And the Culture required to make it a success

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Challenge 1 Procurement

• Under public sector procurement rules, how can
  you
• Compare agile solutions on a like-for-like basis?
• Procure the indefinite?
• Buy in an agile fashion?
• Know what it is going to cost?
• Control risk?
• Requires a fundamental change in the way
  suppliers are selected

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Challenge 2 Expertise

• Agile demands
• Continuity of user, commercial and technical
  input throughout the project
• Active participation from all parties
• Clarity of the vision
• Agility in decision making
• Skills need to be bolstered
• Client side
• Supplier side too

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Challenge 3 Culture

• Alien to public sector culture risk aversion
• I dont know what I am buying and I dont know
  what it will cost!
• How can I budget for that - My boss will laugh
  at me.
• Agile requires a willingness to
• Develop a close partnership with suppliers
• Delegate authority
• Trust others
• Requires a major cultural shift

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Response to challenge 1

• Procurement
• Focus on outcome based requirements
• Adopt Agile approach to supplier selection e.g
  G-Cloud procurement (simplified TCs, regular /
  shorter refresh cycles / less risk)
• Supplier evaluation to include capacity / ability
  / track record to deliver using an agile
  methodology / approach
• Lean procurement will reduce time to contract and
  simplify processes

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Response to challenge 2

• Expertise
• Senior buy-in support
• Skills gap analysis and training support
  (including Business, Procurement and ICT)
• Clear specification of skills (supplier client)
  required
• Continuity of skills and personnel from customer
  and supplier are made a contractual requirement
  ensuring skills transfer

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Response to challenge 3

• Culture
• Increase awareness of agile approach
• Use of agile practices proven success/benefits
  and familiar approach
• Early engagement of industry through professional
  bodies e.g. Intellect
• Shared risk e.g. rewarding early delivery whilst
  limiting customer exposure
• Focus on delivery of outcomes will enhance
  partnership approach and delivery

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Workshop Discussion
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Sources

• Cabinet Office ICT Strategy
• http//www.cabinetoffice.gov.uk/content/government
  -ict-strategy
• Cabinet Office ICT Strategy Strategic
  Implementation Plan
• http//www.cabinetoffice.gov.uk/content/government
  -ict-strategy-strategic-implementation-plan
• Institute for Government Report System Error
  Fixing the Flaws in Government IT
• http//www.instituteforgovernment.org.uk/publicati
  ons/23/
• Government and IT- "A Recipe For Rip-Offs" Time
  For A New Approach - Public Administration
  Committee
• http//www.publications.parliament.uk/pa/cm201012/
  cmselect/cmpubadm/715/71509.htmn117
• Why the Traditional Contract for Software
  Development is Flawed
• Susan Atkinson, Director Corporate and commercial
  groups, Gallenallience, CTLR Issue 7, 2010
• Agile will fail GovIT, says corporate lawyer
• http//www.computerweekly.com/blogs/public-sector/
  2011/04/agile-will-fail-govit-says-cor.html