As we get a lot of questions about Service Block from new clients, we thought it would be easier to list some Q&As to try to explain how they work:
Q: What is a Service Block?
A: A Service Block is an amount of R20k, R30k, R50k, R100k, R150k or R200k that is paid to Sequential IT to be used for working on one or more Sprints.
Q: What is a Sprint?
A: A Sprint is a named collection of Work Items that total between 15 and 20 Estimated Man Days (EMDs). The selection of Work Items for a Sprint is determined and prioritized by the Client. If the Client wants to add further work items and the Sprint exceeds 20 EMDs then the Client will need to remove other work items until the EMD level is at or below 20. The Client will make use of the Time Sheet to track and monitor the Sprint(s). Each sprint will contain a named Project Leader from each party. These may be the same or different people for each sprint.
Q: How does a Service Block relate to a Sprint?
A: A Service Block is an amount of R20k, R30k, R50k, R100k, R150k or R200k that is paid to Sequential IT to be used for working on one or more Sprints. It allows us to align resources for the Sprint. A Sprint will have a Blended day rate agreed before it is started, and will consume the Service Block at that rate. However, once a Service Block is depleted, no more work can commence on the Sprint until another Service Block is purchased. The average Blended day rate at of H2 2023 is R6k per day, but this could change if senior SMEs are required.
Q: Is a Sprint a fixed cost project?
A: No. A Sprint is simple a smaller piece of work that makes it easier to track progress from the client’s perspective
Q: Are the Estimated Man Days of the Sprint Items guaranteed to the client?
A: No. These are used for like on like comparison only to create a Sprint of no more than 20 EMDs
Q: Is a Sprint a fixed time project?
A: No. If a 3 EMD Work Item ends up taking 4 days instead of 3 then 1 day is added to the sprint. The Client and the Project manager will evaluate this weekly and may remove sprint items, but that extra day will be deducted from the Service Block.
Q: I purchased R30k a Service Block to migrate my clients. The sprint is not completed, but the Service Block is depleted. Why am I being asked for a second Service Block?
A: The Service Block and the Sprints are 2 separate items. The Service Block is there to align and prepare resources for the Sprint before it starts, and to fund the Sprint as it goes. Once a Service Block is depleted, no more work can commence on the Sprint until another Service Block is purchased. In this example the R30k service block reserved 5 days. If the Sprint was estimated at 5 days but on day 5 requires another day, then another Service Block would be required.
Q: I purchased R30k a Service Block to migrate my clients. Will this be one Sprint?
A: It depends. We have to take into account the complexity and what the success criteria are.
- Is there any complexity other than simply moving the client attributes from one database to another?
- Do we need to replay the FICA docs and remediate
- Is the data in a structured format
- Is a GAP analysis required
- Is there any financial data
- Is there any historical data
Sprints are no more than 20 man days, so we will try to break the Migration down into manageable chunks. If there answer to any of the questions above is yes, then you will probably need one or more Service Blocks.
Q: I purchased R100k a Service Block. I got a Proposal with a 20 EMD estimate and a blended rate of R6k. Will this Block cover it.
A: No. This Service Block would equate to 16.67 days so another Service Block will be required closer to the time. Remember, the Service Block is there to align and prepare resources for the Sprint before it starts, and to fund the Sprint as it goes. Once a Service Block is depleted, no more work can commence on the Sprint until another Service Block is purchased.