When I make my “Nuke the backlog” argument (use goals not backlogs to drive work, throw away the long term backlog and generate the work you need to do from the goals) there will often be someone in the room who says:
“We are a digital agency, our clients come to us with a list of features, a backlog, and ask us to deliver it. We can’t throw away the backlog.”
This is a fair point, and if you are an agency for hire, this has long been the model: clients list features they want, agencies quote for each item, the cheapest wins the work and everyone is happy.
The idea that you can write down everything you want is baked into our procurement processes. It means that before you can ask the question “how long will it take?” or “how much will it cost?” you have to spend time and money saying what “it” is.
Although if we are being honest, it is only after signing the contract that things go horribly wrong. The client never really knew what they wanted, the requirements gathering process didn’t satisfy them, when they see something (a bit of solution or an invoice) they get new insights and “change their mind.”
If you haven’t read my tongue-in-cheek “Dear customer” letter now would be a good time to do so.
I am not disputing that this “feature factory for hire” model is the way a lot, most, of the industry works. Nor am I disputing that for your company right now, or even for yourself, to move away from this model is a big ask.
The first problem is the race to the bottom: if you are competing on price then there is always someone, somewhere, that will offer to do it for less. And if you cut yourself to the bone to win the work you are making it less likely there will be a successful outcome. Economists call this “winner’s curse.”
Unfortunately, as an industry we have trained our clients to believe there is an unavoidable gap between awarding the contract and seeing the outcome. Which means, by the time the client realises something is wrong, they have spent so much money it is a career ending decision to admit it is wrong.
So, what is the solution?
We need to change the rules of the game. Are you a tailor or an image consultant?
Is your digital agency competing on price? Are you just making suits?
If you want a better way you need to rethink how you sell, you need to work with objectives and outcomes. Throw the requirements document away and nuke the backlog. Think holistically, consider this an all in process. You aren’t just building the features a client wants, you are helping them towards their business goals.
Now there are two problems here. That is a more difficult sell, you need to get involved sooner and few people really know how to do it. (Everyone claims they can but they usually end up selling features.)
Second, not every client is ready for it. Client’s have been conditioned to think technical types want big long documents – and so have their procurement people. So you have to say No to some clients. That is scary, especially for a small agency that lives one deal at a time.
The good news is: there are clients out there who are open to working in new ways. Offer up something different. Most agencies don’t, most agencies are racing to the bottom so you have less competition.
Otherwise, you will be forever competing on price and racing to the bottom.
