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Chris Gagne, an Agile Coach, discusses the importance of a working agreement in teams to improve productivity and happiness. The working agreement is a set of ground rules created and followed by the team. Teams may identify issues like distractions in meetings or late attendance as productivity hindrances. To create a working agreement, teams list potential failures, prioritize risks, and develop rules to mitigate them. For example, setting a rule to prevent distractions during meetings.