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Chris Gagne, an Agile Coach, discusses the importance of a working agreement in improving team productivity and happiness. The agreement is a set of ground rules created by the team to address common issues that slow down progress, such as distractions during meetings or lateness to stand-ups. To create a working agreement, teams should identify potential failure points, prioritize risks, and establish specific rules to prevent them. Reverse psychology can help teams proactively address issues and establish a more efficient and cohesive working environment.