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Chris Gagne, an Agile Coach, discusses the importance of a working agreement in a team to enhance productivity and happiness. The agreement consists of ground rules set by the team, aimed at eliminating factors that hinder performance, such as distractions during meetings or tardiness at stand-ups. To create an effective working agreement, team members should brainstorm potential failures, prioritize the most significant risks, and establish specific rules to prevent them. This proactive approach can help teams to identify and address issues before they impact their work.