How can you see the result if all you see is effort?

That's why we count (on) the result(s) not the effort to get there

Ambidexter Management is not focused alone on the amount of work it does but on the outcome of the work in terms of added value for the client. Ambidexter Management stands for what is does and will therefor engage in a performance based contract if the cllient so desires.

 

Fixed price approach

There are two approaches regarding fixed price contracts

• Scoping
• Time boxing

Scoping

Getting into a scoped fixed price contract requires a thorough analysis of the assignment. We need to be able to fully specify, estimate and plan the project. This means that the requirements need to be real business requirements and that they need to be fully known before hand. There needs to be a solid and valid business case. Changes will only be allowed within the pre-approved change budget. For every change an impact analysis will be performed. Once the change budget is exhausted, there will be no change requests allowed unless the change budget is changed.  The scoping process itself will always be time-material based.

Time boxing

This approach is best suited when the scope and requirements are not fully known. Our experience is that this is generally the case. The scope and requirements are determined at the beginning of the project. During the project two of the triple constraints, namely time and cost are fixed. The project is divided into equal time boxes.  At the beginning of every, say two month period, the final scope and requirements for that period are determined. 85% of that scope will be guaranteed, the remaining 15% will be variable. (MoSCoW principle: Must, Should, Could and Would have)

We prefer the time boxing approach because in most cases the scope and requirement are not or can not be known fully at the beginning of the project. This approach also delivers the majority of requirements on time and within budget. It also allows for changes of insights and in general has a higher level of overall satisfaction. Scope fixed projects on the other hand tend to turn into word picking over intentions and meanings. Operation successful, patient deceased.

Besides all that, a fixed-price contract is a contract between two parties for their mutual benefit. Both parties have rights and responsibilities and these must be divided fairly between the two parties. If either of the parties does not feel treated fairly, I do not enter into the contract. The contract should clearly state the responsibilities of both parties. E.g. the client should deliver some information by a certain date, provide feedback within a certain timeframe. The project manager should deliver some results by a certain date, make the products comply with certain quality criteria.
More important than the contract is the working relationship of the customer and the provider:

• Is there a good level of communication?
• Do both parties trust each other?
• Are both parties willing to perform their part of the job?
• Does everyone realize the commitment he/she is making?
• Do both parties have the necessary time, knowledge and authority to do their job well?
• Is there a willingness to solve the problems that will inevitably arise?
• Is everyone committed to making a success of this project?

The process to get into fixed price contract, scoping, will be time and material based consisting of an open and mutual talk, analysis, discussion and, negotiation process.