Do you wonder about what’s changing and what’s staying the same as we transition from traditional to Agile contracts within the Partner ecosystem? After enduring long, traditional contractual agreements with partners, this shift can seem overwhelming and full of uncertainty. Numerous factors are at play, including organizational vision, partner management strategy, engagement models, and risk-sharing.
In this article, I want to highlight one of the most discussed yet challenging aspects of Agile contracts: schedules. Despite being signed and agreed upon, schedules continue to be a critical area even during the contract execution.
To define it simply, schedules are legal documents that capture mutual agreements and understandings between the parties in written form. Given that partnerships can cover a broad range of collaboration subjects, there are a variety of schedule documents. To better understand the impact on these schedules in the shift from traditional to Agile contracts, let’s delve into the details.
Drawing from my experience in writing Agile contracting frameworks for several European clients, I will share insights on how this transition impacts various contractual documents, especially schedules. Along with schedules, there are many other legal documents covering different areas of agreement, such as GRAs, Strategic Agreements, Statements of Work (SOW), and more. However, schedules are where the most significant mutual agreements are found.
The good news in transitioning to Agile contracts is that not all schedules need to be rewritten from scratch. Some schedules undergo substantial revisions, while others may only require minor updates.
I attempted to classify the schedules into three broad categories based on the degree of changes required and the intensity of partner alignment needed throughout the process. These categories help to better understand the impact of the transition to Agile contracts and the varying levels of adaptation required for different types of schedules. The three categories are as follows:
High Impact & High Alignment Schedules:
- Strategic Intentions of Relationship
- Target Operating Model & Governance
- Operations & Maintenance
- SLA’s
- Pricing & Commercial Principles
- Transition Plan
- Guarantees
- SOW Principles
- Data & AI Policies
The primary reason behind the significant changes in these schedule documents is the shift from traditional to Agile ways of working, driven by rising expectations from partnerships in an increasingly competitive market and the cost pressures of recent years. This shift has a profound impact on partnership structures, affecting organizational setup, delivery, financial commitments, and distributed governance through Agile Service Level Agreements (SLAs) and operational support. As a result, each of the schedules below must be carefully crafted and aligned with the partner, keeping in mind the following factors:
- Organizational Agile ways of working and global team setups
- SDLC (Software Development Life Cycle) and operational principles
- The engagement model designed for win-win collaboration
In recent years, the introduction of data-driven steering and Artificial Intelligence (AI) has further accelerated speed and efficiency. Consequently, the Data & AI schedule must clearly reflect the use of AI technology, ensuring alignment with ethical guidelines and compliance frameworks.
Moderate Impact & Moderate Alignment Schedules:
- Services
- Personnel Principles
- Exit & Transfer
- Consultancy & Advisory Services
- Security & Control Requirements
- Data Protection & Privacy
- Change Control Adherence
- Digital Work Place
- ESG
These schedules are primarily adapted based on the scope of the engagement—whether it involves services, products, or applications—and the associated assets, including material, non-material, and human resources. This includes considerations for capacity ramp-ups, ramp-downs, and, when necessary, people transfers. Certain schedules, such as Exit and Consultancy Services, need to be adjusted based on factors like the type of engagement model, contract duration, and the handover of assets.
When a globally distributed team setup is part of the transition, the Digital Workplace schedule becomes crucial. It must address the infrastructure setup (hardware, software, etc.) and ensure operating environment standards are met. In these setups, data privacy and protection are especially critical to maintaining trust and ensuring secure collaboration across regions. In the past decade, Environmental, Social, and Governance (ESG) considerations have increasingly become a key investment category for many organizations. Therefore, agreements related to ESG commitments, along with their gradual expansion and governance, need to be thoroughly outlined in the ESG schedule to ensure that these values are upheld throughout the partnership.
Low Impact & Low Alignment Schedules:
- Subcontracting Principles
- Diversity, Equity and Inclusion
- Resource & Assets Transfer
- Definitions
Some schedules require relatively fewer adaptations and less alignment between the parties. These schedules are typically driven by organizational policies and are applicable over a longer time frame. However, if an organization decides to fully outsource its business or part of its operations, schedules like Resource & Assets Transfer and Subcontracting may have a significant impact. These schedules will need to clearly address the agreement between the parties involved to ensure smooth transitions and operations.
Ultimately, the key takeaway is that not all schedules are created equal in Agile contracts. Some schedules will demand significant attention and alignment, while others may remain relatively unchanged. Impact on schedules is also influenced by the choice of engagement model for collaboration.
It’s important to remember that these schedule documents are designed to facilitate a mutually agreed-upon collaborative environment between organizations, rather than to restrict or dictate terms during collaboration. Schedules should evolve alongside the partnership’s growth, adapting as needed. Agile contracts, by design, enable organizations and their partners to continually adapt their working ecosystems, fostering an environment where maximum value can be created through a win-win partnership.