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Chris Gagne, an Agile Coach, discusses the importance of a working agreement in improving team productivity and happiness. This agreement is a set of ground rules created and followed by the team to address issues that slow them down. To create an effective working agreement, start by identifying potential failure points and prioritize the most significant risks. Establish specific rules to prevent these risks, such as limiting distractions during meetings or addressing tardiness. By using reverse psychology and focusing on key issues, teams can create a successful working agreement.