Keep your negotiation value-centered and finish them in a second! – an #ExtremeContracts principle

This is a guest blog post by Jacopo Romei. Author of the Italian version of the book Extreme Contracts, and author of an upcoming book on the same topic in English.

A few years ago I managed to work less than a week for a 5-digit fee. The best part is that my customer was very happy to pay and didn’t even try to negotiate the price down: they just accepted my proposal as-is. Do you want to know how I did it? I just made my agreement value-centered. Read on for the details!

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Attract the right customers with another #ExtremeContracts principle: Customer Channel

This is a guest blog post by Jacopo Romei. Author of the Italian version of the book Extreme Contracts, and author of an upcoming book on the same topic in English.

We all know how easy it is to leave Netflix after having subscribed to their service.

Whenever you want to cancel the subscription, you just click a button and you are free, no questions, no tricks, no cheating.

You are free to use the service until the date you had paid for and you will be free to rejoin again, whenever you want. This feeling of freedom is a crucial part of Netflix branding, and was a key attractor for their first users. You read it on their homepage, clear and bold: “Watch anywhere. Cancel anytime.” It is a promise, second only to the one about the chance to see your favorite movies in full mobility on any device.

Now, imagine for a minute, what would happen if Netflix were to not keep their promises. Imagine that Netflix would ask for extra documentation before the user was allowed to leave, perhaps even setting a mandatory notice period, preventing users from quitting when too close to the subscription expiry date.

Imagine what would happen if Netflix wouldn’t actually allow you to “cancel anytime.” If this nightmare scenario was a reality, tons of disappointed friends would tell you that Netflix is not up to expectations, they would abandon the service with no intention to return, and they would actively discourage other people from subscribing in the first place! In the end, Netflix would see fewer users and less engagement.

The Anti-Netflix contract

The plot thickens…

Continue reading Attract the right customers with another #ExtremeContracts principle: Customer Channel

Building trust in negotiations – Talk to the Grinder, an #ExtremeContracts principle

This is a guest blog post by Jacopo Romei. Author of the Italian version of the book Extreme Contracts, and author of an upcoming book on the same topic in English.

In 2011 I had the ultimate bad experience that pushed me to investigate how I could craft better agreements with my customers. I had already spent months fighting a battle to bring home a web development project for a large Italian non-profit. Requirements were very volatile, the product owner—the person in charge of defining them and their priority—was candid enough to declare “I don’t understand anything about the web.” In general, in that organization, getting even the slightest focus on the project they had assigned to us seemed impossible.

We had set up an iterative development agreement to deliver working software every two weeks so that we could use it as an effective measure of progress. Iteration by iteration, we had tried to make sense out of the mess of requirements that kept emerging from the product owner and other random users, all the while hoping to converge on a successful conclusion of the project within the planned deadline. We had signed a fixed price agreement with a fixed delivery date. That meant—now I know—only one thing: they had the upper hand, and had no incentive to reduce the ever-growing volatility in their requirements. Unsurprisingly, the project ended up being very late, after the advance payment we got was way overspent.

“How can I avoid this in the future?” was the question I had to answer…

Continue reading Building trust in negotiations – Talk to the Grinder, an #ExtremeContracts principle

Generating options to change lose-lose contracts to win-win contracts and relationships, an #ExtremeContracts blog post

This is a guest blog post by Jacopo Romei. Author of the Italian version of the book Extreme Contracts, and author of an upcoming book on the same topic in English.

Contracts are usually designed around a unique way to deliver some effort, assuming there will only be one solution to the problem at issue.

This is wrong.

Not only conceiving more than one solution will enhance the chances to create a better one, but if we take into account some basic risk management principles, we may even help to shape a prosperous collaboration between us and our customers. In Extreme Contracts, we call this principle Optionality, and this is a story about how to see options where none seem to exist.

One problem, many solutions

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