Learn the basis for applying agile software development techniques to business operations and processes. Presentation given by Rick Walters to the National Contract Management Association, North Texas Chapter, January, 2017.

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Lean & Agile: Opportunities for
Contract Management and Administration
Rick Walters
January 2017
Presented for the
National Contract Management Association
North Texas Chapter

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Working Definitions
The presentation will cover a sampling of concepts and tools from Lean and Agile practices.
2
Maximize
Customer
Value
Systematic
methods for the
elimination of
waste within an
organization’s
systems
Iterative, highly
collaborative
project and
software
development
methods
Lean Agile
Agile Manifesto
Agile Scrum
Software Development
Self-organizing Teams
Lean Manufacturing
Six Sigma Quality
Process Improvement
Quality Circles

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78 of 80 days removed from process
80% less errors
75% lower overhead
Michael Hammer
(michael_hammer@hammerandco.com) is the founder of Hammer and
Company, a management research and education firm based in Cambridge,
Massachusetts.
Photo: http://www.hammerandco.com/
Harvard Business review
Reengineering Work: Don’t Automate,
Obliterate, Michael Hammer
From the July-August 1990 Issue
Agile contributing to 3x
improvement in project
success rates.
Agile Projects are More Successful than Traditional Projects, Anthony Mersino, Aug. 2016
and Standish Group Chaos Studies.

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Rethink rules and assumptions
about how work is done
Apply new techniques and
tools to engage your customer
and your team
Achieving
breakthroughs

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Agenda
Presentation: Lean and
Agile concepts, tools,
techniques and examples
Discussion: Opportunities
for application in Contract
Management

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TEDxRainier - Joe Justice - WikiSpeed
High Efficiency and Road Legal
Prototype in 3 months
10th place of over 100
https://www.youtube.com/watch?v=x8jdx-lf2Dw&list=PL1AC4FFCAEAC422FA (~10 min)

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Achievement
High Efficiency
Road Legal
Functional Prototype, 3 Mo.
10th of over 100
Breakthroughs
Development cycle
10-25 years 7 day cycles
Car body cost and time
$36,000, three months $800, 3 days
Tool cost
$100MM
$89 ban saw,
home-made CNC router
Engagement
44 People
4 countries

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CMBOK Foundational Competencies
Desktop Reference Guide to the
Contract Management Body of Knowledge
NCMA, July 2015
Before During After

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ContractManagementProfession
Gains
• Electronic systems (vs paper)
• Standardized, processes,
templates
• Supplier on-boarding
• Electronic approval signatures
• Elimination of paper PO,
electronic acknowledgement
Challenges, Opportunities
• Forms in triplicate, why not enter
one place, one time
• Purchase order cycle time too long
• Supplier collaboration
• Kanban board for complex products
• ISO 9000 prescriptive
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Lean and Agile
concepts illustrated in the video
Development
cycle time
Distributed
collaborative
teams
Reduce
waste and
errors
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Manifesto for Agile Software Development
We are uncovering better ways of developing software by doing it and
helping others do it. Through this work we have come to value:
Individuals and interactions over processes and tools
Working software over comprehensive documentation
Customer collaboration over contract negotiation
Responding to change over following a plan
That is, while there is value in the items on
the right, we value the items on the left more.
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© 2001, the above authors
this declaration may be freely copied in any form,
but only in its entirety through this notice.
Learn – Adapt Control
People Artifacts
Kent Beck
Mike Beedle
Arie van Bennekum
Alistair Cockburn
Ward Cunningham
Martin Fowler
James Grenning
Jim Highsmith
Andrew Hunt
Ron Jeffries
Jon Kern
Brian Marick
Robert C. Martin
Steve Mellor
Ken Schwaber
Jeff Sutherland
Dave Thomas

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Development cycle time:
drives delivery and learning
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2-4 Week plan
Learn and adjust every day
Learn and adjust every 2-4 weeks
Deliver working
product
every 2-4 weeks
Agile Scrum Lifecycle
Overall plan

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Distributed collaborative teams
Scrum
Roles
Scrum
Master
Product
Owner
Development
Team
Structured interactions and communications tools
Product Planning
Sprint Planning
Daily Stand-up (15 min.)
– What did you accomplish since the last meeting?
– What are you working on until the next meeting?
– What is getting in your way or keeping you
from doing your job?
Sprint Review
Sprint Retrospective
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Learn and adjust every day

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Visualizing Workflow – Scrum Board
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To Do | Doing | Review | Done

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Reduce Waste and Errors
8 Wastes of Lean - TIM WOODS
T Transport – Moving people, products & information
I
Inventory – Storing parts, pieces, documentation ahead of
requirements
M Motion – Bending, turning, reaching, lifting
W Waiting – For parts, information, instructions, equipment
O
Over production – Making more than is IMMEDIATELY
required
O
Over processing – Tighter tolerances or higher grade
materials than are necessary
D Defects – Rework, scrap, incorrect documentation
S
Skills – Under utilizing capabilities, delegating tasks with
inadequate training
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Alternative acronym:
Process Excellence Network
The 8 Deadly Lean Wastes – DOWN TIME
Contributor: Jason McGee-Abe
Posted: 08/12/2015
Originally was 7 “muda” Japanese term for waste.
Lean Manufacturing - Wikipedia
Sprint Planning
Test Driven
Development
Daily Stand-ups
Wikispeed examples

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Summary of Lean and Agile principles and practices
Lean1 Agile2
• Lean – Eliminate Waste for efficiency: reduce
steps and cycle time in a process
• Six Sigma – Reduce variation for effectiveness:
Eliminate defects from a customer perspective
• Individuals and interactions over processes and tools
• Working software over comprehensive documentation
• Customer collaboration over contract negotiation
• Responding to change over following a plan
• Process Mapping
• TIM WOODS or DOWNTIME
• Root Cause Analysis (Fishbone Diagram)
• Statistical Analysis
• Control Charts
• RACI – Responsible, Accountable, Consulted,
Informed
• Product owner – represents client/market
• Product backlog – dynamic and prioritized
• Scrum Master – Orchestrate the Agile process
• Sprints (Plan, Review, Retrospective)
• Daily stand-ups – Rapid learning and adaptation
• Self-organizing empowered teams
• Burn-down charts
Techniques,ToolsPrinciples
Bold: Some of the items discussed in the presentation, directly or indirectly.
1. Adapted from Wikipedia definitions for Lean and Six Sigma 2. From the Agile Manifesto agilemanifesto.org

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Application for Contract Management
Group
• Examples of Lean or Agile concepts or techniques that
could enable gains listed
Table discussions (10 min)
• Discuss at your tables
– What are some ideas about how Lean or Agile concepts or
techniques could be applied or combined to address the
challenges or opportunities?
– Alternatively, what are some concepts or techniques you would
like to learn more about?
• Refer to handouts with concepts and techniques
Report out (10 min)
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ContractManagementProfession
Gains
• Electronic systems (vs paper)
• Standardized, processes,
templates
• Supplier on-boarding
• Electronic approval signatures
• Elimination of paper PO,
electronic acknowledgement
Challenges, Opportunities
• Forms in triplicate, why not enter
one place, one time
• Purchase order cycle time too long
• Supplier collaboration
• Kanban board for complex products
• ISO 9000 prescriptive
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Examples of Lean or Agile concepts or techniques
that could enable gains such as these.
How could Lean or Agile concepts or techniques be applied?
Or, which concepts would you like to learn more about?

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Resources
• Contact centers of excellence within your organization for guidance or support
• A few representative organizations offering training and or certifications
 ASQ - asq.org
› Lean Six Sigma
 PMI – Project Management Institute - www.pmi.org
› PMI Agile Certified Practitioner (PMI-ACP)®
 ScrumAlliance - www.scrumalliance.org
› Certified Scrum: Master, Developer, Product Owner, Team Coach, etc.
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Accelerate your Career
tie-ins across topics
Best Practices (Oct) Change Management (Nov) Lean-Agile (Jan)
The 10 Best Practices in
Contract Management
Change Management and
Contract Administration
Lean / Agile practices in
Contract Management and
Administration
Conduct benchmarking for
process and technology ideas
to simplify, streamline and
improve results
Implement change
management for effectiveness
in existing processes or
improved adoption and
sustainability of new ideas
Explore core concepts of Lean
and Agile and imagine how
they might be applied to our
challenges and opportunities
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Reference

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Notes and references
• References in comments and photos throughout these slides are from the TEDxRainier talk by Joe
Justice and information in the WikiSpeed website (www.wikispeed.org).
• Michael Hammer (michael_hammer@hammerandco.com) is the founder of Hammer and Company, a
management research and education firm based in Cambridge, Massachusetts.
 Harvard Business Review: Reengineering Work: Don’t Automate, Obliterate, Michael Hammer. From the July-
August 1990 Issue
• Manifesto for Agile Software Development (agilemanifesto.org)
• TIM WOODS and DOWN TIME
 Also known as 7 “muda” - Lean Manufacturing - Wikipedia
 Process Excellence Network: The 8 Deadly Lean Wastes – DOWN TIME, Contributor: Jason McGee-Abe.
Posted: 08/12/2015
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