Agile Contracting

Many customers are not capable of collaborating – and that limits their ability to innovate.

That is one of the key conclusions that came from my discussion yesterday with Jesper Langemark, seasoned IP attorney and developer of a model contract for agile software development. Jesper’s observations very closely mirror my own. A big problem is that most customer organizations lack  adequate follow-through from supplier selection and negotiation, to supplier and contract  management. The hand-over from pre-award to post-award is often poorly defined and the accountability for outcomes frequently confused. As a result – and I say this from experience – it is sometimes impossible to reach decisions on critical performance issues.

This topic was raised because we were discussing agile contracts – the type of arrangement that is critical to innovation. Increasingly, it is recognized that such developments benefit from a collaborative, risk-sharing arrangement, but as Jesper highlighted, this demands committed resources and streamlined decision processes. Agile and innovative relationships will encounter challenges, issues and opportunities. And many customers – especially those in the public sector – simply do not allocate the right resources and do not ensure appropriate authorities.