If the work in a project complies with all Guidance (aka is
Compliant) then we have no problems. If not and some work does not comply with
some Guidance (aka is Non-Compliant) then a Transformation Debt™ Agreement
(TDA) is created. The TDA details three things:
Cost of Compliance - What is
preventing the project from complying with the guidance and what does the
project need to be given to allow the project to comply and therefore convert
the work from Non-Compliant to Compliant.
Cost of Non-Compliance - What
issues and risks going forward will this Non-Compliance create for the
Cost of Remediation - What will
it cost the Enterprise to become Compliant in the future (assuming the project
is not allowed to do what is required now to become Compliant).
In simple terms:
The Cost of Compliance - What
will it cost the project to do the right things now.
If the project is not granted the
Cost of Compliance:
The Cost of Non-Compliance -
What pain will the Enterprise have to endure going forward, until we incur
Cost of Remediation - What will it cost the
Enterprise later to fix it.
But why is it called an “Agreement” rather than an
“Assessment” or “Waiver” or something else?
Originally Pragmatic call it a “Waiver”, but that word did
not truly reflect what it was. The reason we call it a Transformation Debt™
Agreement, is because it really is an agreement! An agreement by management
that they agree to provide the resources required to satisfy the guidance, or
that they agree to accept the recurring cost of non-compliance and potentially
the future cost of remediation. Another way to think about it, since it is
possibly incurring debt, it is similar to a loan agreement, where you detail the
loan amount, what the interest is, and what it will cost to pay off the loan in