I like this idea of how integration tests in software development show you that everything is working and connected together properly.
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I think it’s interesting to consider how a deposit may serve a similar function across the financial space & contractual space.
1. Alignment across business units
In really small organizations, everyone is in tight communication. Finance knows what engineering is doing. In medium to large organizations, there can be a disconnect. Engineering may be 100% ready to start today, but finance is not ready. In some cases finance may not even know a consultant is being hired. Each case is different.
Some CTOs get this right away, and are already ahead of the request. While others might ask, “Well we’re ready to get going today, do you really need the deposit first? Because that might take some time.”
My thinking is, yes the engineering department is ready, but the organization is *not* completely ready. And it’s better that there be alignment across the organization. Ironing out that alignment, helps avoid other problems later on.
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2. Organization or disorganization
Sometimes there is complete alignment, the contract is already ready, and the whole org really is ready to go. In other cases there can be some disfunction. For instance the lawyers have a lot of hoops that want us to jump through, in terms of a contract.
In other cases finance may only cut checks on a certain day of the month, or only pay 30 days after receiving an invoice. There are a lot of different policies. By insisting that we receive a deposit, however small, we iron out these things early.
If the engineering manager or CTO hiring you promises one thing, but finance has a policy against that, you’ll want to know early to avoid misunderstandings.
The amount of a deposit is really irrelevant. It’s all about getting ducks in a row. Both in terms of what may be required of you the vendor, and what the company’s policies may be when onboarding consultants.
By ironing out these issues early, the customer is showing some faith in you as a vendor. They want you in particular, and will do what they need to, to make it work.
4. We want you to rush, but we don’t
I’ve encountered many cases where engineering was “ready” but finance was not. It’s tough. From the perspective of the CTO it may be a moot point to get stuck on.
My thought is to hold the frame of two organizations working together. When the organization has alignment that hiring this engineering resource is a priority, it will get things done that it needs to.
5. Stress tests or organizational integration tests
In software testing, we have something called an integration test. It might be confirming that a login works, or a certain page can load. Behind the scenes that test requires the database to be running, the queuing system to work, an API call to return successfully, and so on. A lot of moving parts all have to be working for that test to succeed.
In a very real way, a deposit is the financial equivalent of an integration test. It confirms that we’re all aligned in the ways we need to, and are ready to get started.