As the Department of Defense focuses on "delivering 75% solutions in months [instead of] 100% solutions in years" Agile is finding its way into big, traditionally managed programs. This event http://www.afei.org/events/2A01/Pages/default.aspx specifically addresses Agile in Defense. This presentation was an invitation following a successful meeting at the ADAPT meeting.
How to Get Started in Social Media for Art League City
Earned Value Management and Agile Tips for Success
1. Earned Value Management and Agile
Tips for Success
Brent Barton, President, Agile Advantage, Inc.
2. ! The
Problem
! An
Agile
Story
! Contracts
vs
Value
! Scrum
(An
Agile
Project
Management
Framework)
! TradiAonal
Earned
Value
Management
! Agile
Earned
Value
Management
(AgileEVM)
! Project
Case
Study
! Open
Discussion
*Slides
available
via
NDIA,
slideshare.net
or
geKngagile.com
2
6. This is the best,
simplest, easiest to use
applica=on we have
ever go@en in both
Customer Care and the
Retail Stores!
Whatever you all did, I
want more of that!
7. Cost
Employee
SaAsfacAon
Savings
Customer
SaAsfacAon
Revenue
New
RetenAon
Revenue
Cost
Savings
New
Revenue
through
efficiency
Shareholder
Value
Value
Compliance
Employee
Customer
SaAsfacAon
SaAsfacAon
7
9. The
primary
purpose
of
the
[EVMS]
system
is
to
support
program
management*
Scope
Schedule
Cost
9
* Earned Value Management Systems ANSI/EIA-‐748-‐B-‐2007
14. ! It
is
not
possible
to
completely
specify
an
interacAve
system.
Wegner’s
Lemma,
1995
! Uncertainty
is
inherent
and
inevitable
in
soqware
development
processes
and
products.
Ziv’s
Uncertainty
Principle,
1996
! For
a
new
soqware
system
the
requirements
will
not
be
completely
known
unAl
aqer
the
users
have
used
it.
Humphrey’s
Requirements
Uncertainty
Principle,
c.
1998
14
15. ! Stack
Ranked
PrioriAzaAon
based
on
Business
Value
and
risk
! Self
organizing,
cross-‐
funcAonal
teams
! DefiniAon
of
Done
! PotenAally
Shippable
Increments
! Velocity
! ConAnuous
Improvement
15
17. Total Allocated Budget!
EAC
EsAmate
at
Complete
Management Reserve!
PMB
Performance Management Baseline
$
Planned
Value
(PV)
Actual
Cost
(AC)
(EV)
Earned
Value
Time
Time! Completion!
Now! Date!
17
18. Cost Performance Index (CPI=EV/AC)
CPI < 1 CPI =1 CPI > 1
Over Budget On Budget Under Budget
Schedule Performance Index (SPI=EV/PV)
SPI < 1 SPI =1 SPI > 1
Behind Schedule On Schedule Ahead of Schedule
18
19. ! Integrates
cost
and
schedule
management
! Forecasts
in
financial
units
based
on
units
used
for
actual
cost
! Decades
of
use
! Part
of
PMBOK
(ANSI/PMI
99-‐001-‐2008)
! Part
of
EVMS
(ANSI/EIA-‐748-‐B-‐2007)
19
20. ! Typical
implementaAons
Ugh!
expect
everything
fully
defined
up
front
! No
asserAon
of
quality
! Claiming
value
earned
on
intermediate
work
products
20
21. ! A
planning
package
is
a
holding
account
(within
a
control
account)
for
budget
for
future
work
that
it
is
not
yet
pracAcable
to
plan
at
the
work
package
level.
The
planning
package
budget
is
Ame-‐phased
in
accordance
with
known
schedule
requirements
(due
dates)
for
resource
planning,
and
the
plans
are
refined
as
detail
requirements
become
clearer
and
the
Ame
to
begin
work
draws
nearer.
A
program
may
elect
to
break
the
work
assigned
to
a
control
account
into
smaller
groupings
of
tasks,
i.e.,
mulAple
planning
packages,
for
internal
planning
and
control
reasons.
-‐Earned Value Management Systems ANSI/EIA-‐748-‐B-‐2007
21
22. ! There
is
no
standard
advance
planning
look-‐
ahead
period
(i.e.,
a
planning
“horizon”
or
“window”)
for
conversion
of
planning
packages
into
work
packages
that
is
appropriate
for
all
programs
or
condiAons.
Each
organizaAon
must
determine
its
own
policies
in
this
regard.
-‐Earned Value Management Systems ANSI/EIA-‐748-‐B-‐2007
22
24. ! MathemaAcally
proven
that
Forecasts
based
on
average
velocity
(story
points)≡
esAmate
at
complete
EAC
(dollars)
! Key
AssumpAon:
The
raAo
of
(story
points
completed)/(total
story
points
in
a
release)
is
a
good
measure
of
Actual
Percent
Complete
Sulaiman,
Barton,
Blackburn
“AgileEVM
-‐
earned
value
management
in
Scrum
projects,”
2006
hpp://ieeexplore.ieee.org/xpl/freeabs_all.jsp?arnumber=1667558
24
25. ! Release
Baseline
• Budget
(BAC)
• IniAal
Scope
• Start
Date
! Each
IteraAon
(Sprint)
• Points
accepted
by
Product
Owner
– meets
DefiniAon
of
Done
• Points
add
or
removed
from
release
scope
• Actual
Cost
25
34. ! Focus
on
delivering
value
! Constraints
inform,
not
dictate
outcomes
! Quality
must
be
part
of
the
decision
process
! AgileEVM
helps
communicate
by
translaAng
points
to
dollars
• Can
provide
alternaAves
to
contracAng
challenges
34
35. ! Focus
on
frequent
feedback
cycles
to
determine
which
75%
is
correct
! Focus
on
value
delivery,
informed
by
constraints
and
quality
! If
you
only
touch
it
once,
you
are
not
iteraAng.
Beper
to
make
small
failures
and
learn
rather
than
suffering
big
failures.
! Replace
(un-‐learn)
some
company
EVMS
policies
to
support
adapAve
planning
! AgileEVM
helps
balance
defined
plans
and
adapAve
planning
for
delivering
value
35
36. ! President:
Agile
Advantage,
Inc.
! Former
CTO,
Development
Manager,
PMO
Manager,
Agile
Coach,
Mentor,
CerAfied
Scrum
Trainer,
ScrumMaster,
Product
Owner
! AcAve
pracAAoner
delivering
value
brent@agileadvantage.com
using
Agile
and
helping
others
do
www.agileadvantage.com
it;
from
small
Product
companies
to
Blog:
geKngagile.com
very
large
organizaAons
Twiper:
brentbarton
! ArAcles
• “Manage
Project
Por€olios
More
EffecAvely
by
Including
Soqware
Debt
in
the
Decision
Process”,
Cuper
Journal
2010
• “AgileEVM
–
Earned
Value
Management
in
Scrum
Projects”,
IEEE
2006
• “ImplemenAng
a
Professional
Services
OrganizaAon
Using
Type
C
Scrum”,
IEEE
• “Establishing
and
Maintaining
Top
to
Bopom
Transparency
Using
the
Meta-‐Scrum”,
AgileJournal
• “All-‐Out
OrganizaAonal
Scrum
as
an
InnovaAon
Value
Chain”,
IEEE