{"id":26171,"date":"2025-01-22T12:31:37","date_gmt":"2025-01-22T12:31:37","guid":{"rendered":"https:\/\/wsqua.advanceworks.ai\/?page_id=26171"},"modified":"2025-02-13T12:49:13","modified_gmt":"2025-02-13T12:49:13","slug":"output-driven","status":"publish","type":"page","link":"https:\/\/advanceworks.ai\/pt\/delivery-models\/output-driven\/","title":{"rendered":"Output Driven"},"content":{"rendered":"\t\t
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It Delivery Models - Output Driven<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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When it comes to software development, clients often want to share the risks with their suppliers and find ways to minimize them.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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While penalties can cover financial risks, they don\u2019t always guarantee the quality of what\u2019s being delivered. Traditional models like Fixed-price or Time & Materials don\u2019t fully commit to ensuring high-quality outcomes either.<\/p>

The Output-Driven delivery model<\/strong> is different. It\u2019s all about delivering real value with measurable results that align with your business needs. Rooted in agile and iterative development<\/strong> practices, this model focuses on short delivery cycles, quality, and speed.<\/p>

Why Choose Output-Driven?<\/strong><\/p>

Unlike traditional models, the Output-Driven approach makes both the client and supplier responsible for the project\u2019s success. It pushes for collaboration, where the supplier is driven to meet clearly defined goals and performance indicators. The focus isn\u2019t just on completing tasks\u2014it\u2019s about delivering real results that matter to the business. This approach builds a sense of shared ownership and accountability.<\/p>

Another key advantage is flexibility. This model adapts as your business needs evolve, without sacrificing speed or quality. So, no matter how fast things change, your project stays on track and relevant.<\/p>

How Does It Work?<\/strong><\/p>

The Output-Driven model is all about deliverables. In each iteration, the client validates the quality of what\u2019s delivered and only pays for what\u2019s approved. This way, the client always has control over what they\u2019re paying for. This model works for both new projects and ongoing application management.<\/p>

Instead of contracting for an entire project or a team, the client contracts for specific deliverables. By combining this with agile methodologies<\/strong>, you can use story points to estimate the complexity of each task, which helps set pricing. Deliverables can include things like UX\/UI design or testing, and the client can choose whether to have their own teams handle certain parts. This makes sure everything is delivered just as the client needs, with a focus on quality every step of the way.<\/p>

How to Implement the Output-Driven Model<\/strong><\/p>

Step 1: Set Up the Contract<\/strong><\/p>

First things first, you need a solid contract between the supplier and the client. This contract outlines the project management framework\u2014Agile is the preferred choice, but it can also be adapted to Interactive Waterfall. The contract should cover:<\/p>

  • Definition of Done (DoD)<\/strong>: When and how each deliverable is considered finished.<\/li>
  • Definition of Ready (DoR)<\/strong>: When a requirement or user story is clear enough to move into the development backlog.<\/li><\/ul>

    An estimation matrix<\/strong> also needs to be established. This matrix ensures that all development teams provide consistent estimates. It\u2019s important that this matrix reflects the client\u2019s unique situation and is agreed upon during or before the contracting phase. The goal is to keep everything fair and clear for all teams involved.<\/p>

    Finally, you need to set up the delivery velocity baseline<\/strong>. This helps define how many deliverables will be completed in each sprint or iteration, allowing everyone to plan and track progress accurately.<\/p>

    Step 2: Calibration Phase<\/strong><\/p>

    Once the contract is in place, there\u2019s a calibration phase where teams fine-tune their approach to meet the estimation matrix and delivery expectations. This period is key to making sure everything runs smoothly. It allows the teams to adjust their estimates and delivery speeds based on real-world challenges and capacities.<\/p>

    The calibration phase helps catch any issues early on, ensuring smoother, more predictable deliveries in future sprints. At the end of this phase, both sides can revisit the contract to make any necessary tweaks.<\/p>

    Step 3: Execution Phase<\/strong><\/p>

    Now it\u2019s time to execute. This is when the project gets underway, following the agreed framework. During this phase:<\/p>

    • New backlog entries are estimated based on the Definition of Ready (DoR).<\/li>
    • The contract\u2019s progress and the quality of deliverables are regularly reviewed.<\/li>
    • KPIs are applied, and adjustments to team velocity are made as needed to keep everything on track.<\/li><\/ul>

      The focus here is on refining the process as the project moves forward, ensuring every deliverable meets the set standards.<\/p>

      \u00a0<\/strong><\/p>

      Conclusion<\/strong><\/p>

      The Output-Driven delivery model<\/strong> requires a close partnership between the client and the supplier. Success hinges on mutual trust, commitment, and clear communication. By focusing on business outcomes rather than just tasks, this approach ensures high-quality deliverables that can adapt to changing business needs.<\/p>

      At AdvanceWorks<\/strong>, we\u2019re committed to delivering with both quality and dedication. We understand how to make this model work for our clients, ensuring successful outcomes every time.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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