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Agile: Sourcing and Supply

Explore the benefits of Agile methodologies in public sector procurement, challenges faced, and strategies to overcome them based on insights from industry experts. Learn how to navigate the complexities of Agile sourcing to optimize project outcomes.

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Agile: Sourcing and Supply

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  1. Agile: Sourcing and Supply • The Opportunities and the Challenges • David Shields, Managing Director, Government Procurement Service • Shaun Davey, CEO, IPL • 21 November 2011

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. Challenge 3: Culture • Alien to public sector culture – risk aversion • “I don’t know what I am buying and I don’t 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

  9. Response to challenge 1 • Procurement • Focus on outcome based requirements • Adopt Agile approach to supplier selection e.g G-Cloud procurement (simplified T&Cs, 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

  10. 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

  11. 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

  12. Workshop Discussion

  13. 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/publications/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.htm#n117 • 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

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