Guiding the Product Owner on Vendor Selection for Custom Software

In a situation where a multinational corporation is considering purchasing custom software for a novel problem, it’s crucial for the Product Owner to make informed decisions about vendor selection. As a Scrum Master, your role is to guide the Product Owner through the complexities of this process, ensuring that the principles of Scrum are upheld while also considering the practicalities of working with external vendors.

Exam Question

A multinational corporation prefers purchasing commercial software over building it in-house. Currently, they have a need for custom software for a novel problem with about 58 features. The Product Owner has decided to float a request for proposal (RFP). The vendor selection will be based on the best proposal that meets 58 features, within 8 months, and the cost of no more than $1.5m.

You are a Scrum Master in the corporation. The Product Owner is looking for your guidance. As a Scrum Master, how will you guide the Product Owner?

Explanation

Considerations for Vendor Selection in a Scrum Context

• Focus on Flexibility and Adaptability:
  Guidance: Encourage the Product Owner to consider vendors that are willing to work iteratively and incrementally. The complexity and novelty of the problem suggest that the requirements might evolve over time. Vendors who are open to adapting their approach based on feedback from the Scrum Team and stakeholders will likely be more successful in delivering value.
  Example: Instead of focusing solely on the 58 features, the RFP should include criteria for assessing how the vendor will handle changing requirements or new insights that emerge during the development process.
• Emphasize Collaboration and Communication:
  Guidance: Strong communication between the Scrum Team, the Product Owner, and the vendor is essential. The Product Owner should prioritize vendors who demonstrate a commitment to regular communication, transparency, and collaboration.
  Example: The RFP could ask vendors to outline their communication plan, including how they will engage with the Product Owner and the Scrum Team throughout the project.
• Quality Over Quantity:
  Guidance: While meeting all 58 features is important, the quality of the delivered software should not be compromised. Advise the Product Owner to evaluate vendors based on their ability to deliver high-quality Increments that meet the Definition of Done.
  Example: The Product Owner could include quality metrics in the RFP and request vendors to explain their approach to ensuring the software’s reliability, security, and performance.
• Consider the Vendor’s Agile Experience:
  Guidance: Vendors with experience in Agile approaches, particularly Scrum, are more likely to align with the corporation’s desired approach to software development. This experience can be a significant advantage, as it ensures that the vendor understands the importance of iterative development, transparency, and continuous improvement.
  Example: The RFP could ask vendors to provide case studies or references from previous Agile projects, highlighting their ability to deliver software iteratively and respond to changing requirements.

Managing the Constraints: Time, Cost, and Scope

• Time:
  Guidance: Given the 8-month timeline, it’s essential to assess the vendor’s ability to deliver the most critical features first. The Product Owner should ask vendors to provide a phased delivery plan that prioritizes the highest-value features.
  Example: The Product Owner could request that vendors outline how they will ensure the timely delivery of the most critical features, with the flexibility to adjust the scope based on progress and feedback.
• Cost:
  Guidance: The $1.5m budget is a significant constraint. Encourage the Product Owner to explore how vendors can optimize their processes to deliver within this budget while maintaining quality.
  Example: The Product Owner could ask vendors to provide a detailed cost breakdown and explore options for phased payments tied to the delivery of key milestones.
• Scope:
  Guidance: While the initial 58 features are important, the Product Owner should consider the potential need for scope adjustment as the project progresses. Vendors who can work flexibly within the scope will be better equipped to deliver value.
  Example: The RFP could include a requirement for vendors to describe their approach to managing scope changes and ensuring that the project remains aligned with the corporation’s goals.

Relevance to the PSM III Exam

In the PSM III exam, understanding how to guide a Product Owner in complex, real-world scenarios is crucial. This includes balancing the principles of Scrum with practical considerations, such as vendor selection and managing constraints.

Key Takeaways

• Flexibility and Adaptability: Encourage the Product Owner to prioritize vendors who are willing to work iteratively and adapt to changing requirements.
• Collaboration and Communication: Emphasize the importance of strong communication and transparency between the vendor, Scrum Team, and stakeholders.
• Quality: Ensure that the RFP includes criteria for assessing the quality of the software, not just the quantity of features delivered.
• Agile Experience: Vendors with experience in Agile approaches are more likely to align with the corporation’s approach and deliver value effectively.

Conclusion

As a Scrum Master, your role in guiding the Product Owner through vendor selection is to ensure that the principles of Scrum are upheld while also considering the practicalities of the project. By focusing on flexibility, collaboration, quality, and Agile experience, the Product Owner can make an informed decision that aligns with the corporation’s goals. For more insights into Scrum practices and to prepare for the PSM III exam, visit our Scrum Master PSM III™ Exam Prep.