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Chris Gagne, an Agile Coach, discusses the importance of a working agreement for teams to improve productivity and happiness. The working agreement is a set of ground rules created by the team to address issues that slow them down, such as distractions during meetings or tardiness at stand-ups. To create a working agreement, teams should brainstorm potential failure points, prioritize the most significant risks, and establish specific rules to prevent them. This approach helps teams identify and address key challenges effectively.