What can go wrong in a Lean Agile Procurement system?

Facebook
Twitter
LinkedIn

Navigating the Risks of Lean Agile Procurement

Lean Agile Procurement (LAP) has revolutionized the way organizations approach their procurement processes. However, as with any methodology, it’s crucial to understand and mitigate potential risks. This blog post will delve into the various risk management strategies within Lean Agile Procurement, ensuring you choose the right partners and manage your procurement process effectively.

Understanding Lean Agile Procurement Risks

The Core Risks of Procurement

Procurement, whether traditional or agile, inherently carries risks. These risks revolve around:

  • Partner selection
  • Time to start
  • Dynamic partnering

By addressing these aspects strategically, you can mitigate risks and optimize your procurement outcomes.

Partner Selection: The First Line of Defense

Self-Selection by Partners

One of the fundamental aspects of Lean Agile Procurement is the big room planning. During this phase, potential partners participate in collaborative sessions to understand the scope and approach of the project. Interestingly, this process naturally filters out unsuitable partners.

Why Self-Selection Works
  • Authenticity Check: Many partners claim to be agile, but their true nature is revealed during the big room planning. If they struggle to adapt to the agile approach, they essentially disqualify themselves.
  • Engagement Levels: Partners who are genuinely agile will engage proactively, whereas others will show reluctance or unavailability.

Practical Steps to Ensure Effective Partner Selection

  1. Host Big Room Planning Sessions: Invite all potential partners.
  2. Observe Engagement: Note who participates actively and who resists the agile approach.
  3. Shortlist: Based on their engagement and adaptability, shortlist partners who align with your agile goals.

Time to Start: Evaluating Early Performance

Running Multiple Partners Initially

Once you’ve completed the big room evaluation and selected partners, the next step is to commence product development. A key strategy here is to run multiple partners initially, despite the associated costs.

Benefits of Running Multiple Partners

  • Performance Evaluation: In the first cycle (two to four weeks), you can compare partners’ performances.
  • Identifying True Agility: Determine who delivers a “done” increment and engages effectively.

How to Implement This Strategy

  1. Initiate Multiple Partners: Start with several partners concurrently.
  2. Set Evaluation Criteria: Define clear metrics for performance evaluation.
  3. Review and Decide: After the first cycle, review their outputs and engagement levels to select the best-performing partners.

Dynamic Partnering: Leveraging Collaborative Expertise

Establishing Collaborative Partnerships

Dynamic partnering is another crucial aspect of Lean Agile Procurement. This can be established either during the big room evaluation or the initial development phase. The goal is to leverage the expertise of multiple organizations to deliver the best product.

Advantages of Dynamic Partnering

  • Expertise Leverage: Utilize the strengths of different partners.
  • Enhanced Innovation: Collaborative efforts often lead to innovative solutions.
  • Maximized ROI: Delivering a superior product ensures better returns.

Steps to Establish Dynamic Partnering

  1. Identify Potential Collaborations: During big room evaluations, identify partners with complementary skills.
  2. Formulate Collaborative Agreements: Set up frameworks for collaboration.
  3. Monitor and Adapt: Continuously monitor the partnerships and adapt as necessary to maintain effective collaboration.

Contractual Framework: Balancing Flexibility and Compliance

Master Services Agreement (MSA)

In Lean Agile Procurement, the contractual framework plays a critical role. Typically, this involves a Master Services Agreement (MSA) that ensures legal compliance and sets the foundation for all engagements.

Components of an Effective MSA

  • Legal Compliance: Address issues like GDPR, payment terms, and InfoSec.
  • Framework for Engagements: Define the overarching terms and conditions.
  • Exit Criteria: Clearly outline the criteria for terminating the partnership if needed.

Statement of Work (SOW) for Each Cycle

Alongside the MSA, each cycle or project phase will have a specific Statement of Work (SOW).

Benefits of SOW

  • Clarity: Provides clear expectations and deliverables for each phase.
  • Flexibility: Allows for adjustments based on the cycle’s outcomes.
  • Risk Mitigation: Ensures that each phase is assessed independently, allowing for timely interventions.

Conclusion: Mitigating Risks in Lean Agile Procurement

Lean Agile Procurement, while transformative, is not without its risks. However, by strategically managing partner selection, evaluating early performance, and fostering dynamic partnerships, you can mitigate these risks effectively. The contractual framework, comprising an MSA and SOWs, further ensures compliance and clarity, paving the way for successful procurement outcomes.

Key Takeaways

  • Host Big Room Planning: Use this to filter out non-agile partners.
  • Run Multiple Partners Initially: Evaluate their performance in the early stages.
  • Leverage Dynamic Partnerships: Utilize the strengths of different partners for better results.
  • Establish a Strong Contractual Framework: Ensure legal compliance and clear expectations with an MSA and SOWs.

By implementing these strategies, you can navigate the risks associated with Lean Agile Procurement and achieve successful, agile procurement outcomes. 🌟


Feel free to reach out if you need more insights or guidance on implementing Lean Agile Procurement in your organization! 🚀

Connect with Advanced Product Delivery.

APD offer private, tailored training courses as well as business agility and coaching. Our public training courses are delivered by practicing Agilists: Product Owners, Scrum Masters and coaches who are expert trainers and facilitators.

Whether you are looking to become a #scrummaster or #agilecoach, we have a range of internationally certified and recognised #agiletraining courses that are perfect for you. Visit Professional Scrum Training courses for more information.

If you are looking for professional, deeply experienced and skilled #agilecoaches and #agileconsultants to help you transition from traditional #projectmanagement to #agile #productdevelopment, we’ve got the ideal team to help you make that transition a success. Visit our Agile Coaching section to find out more about us.

If you have identified Lean Agile Procurement as a great opportunity to enhance #agility within your organization, visit the Lean Agile Procurement Training course or Lean Agile Procurement coaching page.

#agile #scrum #agilecoach #agileconsultant #agiletraining #agilescrumtraining #scrumtraining #scrumcertification #scrummaster #productowner #leanagileprocurement #apd #businessagility #organizationalagility #productdevelopment #projectmanagement #agileprojectmanagement #agileproductdevelopment

You may also like...

ImageNameSummaryPriceBuy
2024-06-24 Lean Agile Procurement Credential 1 Course

In the modern business ecosystem, procurement isn’t just about purchasing—it’s about strategic alignment, agility, and value creation. Introducing the Lean Agile Procurement Course, where traditional procurement meets the agile world, empowering professionals to navigate the complexities of modern sourcing with precision, efficiency, and adaptability.

Original price was: £1,495.00.Current price is: £995.00. + VAT
2024-09-09 Lean Agile Procurement Credential 1 Course

In the modern business ecosystem, procurement isn’t just about purchasing—it’s about strategic alignment, agility, and value creation. Introducing the Lean Agile Procurement Course, where traditional procurement meets the agile world, empowering professionals to navigate the complexities of modern sourcing with precision, efficiency, and adaptability.

Original price was: £1,400.00.Current price is: £995.00. + VAT
2024-11-13 Lean Agile Procurement Credential 1 course

In the modern business ecosystem, procurement isn’t just about purchasing—it’s about strategic alignment, agility, and value creation. Introducing the Lean Agile Procurement Course, where traditional procurement meets the agile world, empowering professionals to navigate the complexities of modern sourcing with precision, efficiency, and adaptability.

Original price was: £1,400.00.Current price is: £995.00. + VAT

Latest Blog Posts

Lean Agile Procurement

Lean Agile Procurement Coaching Overview

Transform Your Procurement Process with Lean Agile Procurement Introduction In today’s fast-paced business environment, traditional procurement processes often fall short. Lean Agile Procurement (LAP) offers

Read More »