3. PROBLEM STATEMENT
Organization that has
been committed to a
Earned Value Management
traditional project
(EVM) serves as the basis for
management for over
management and project
50 years
reporting in CSC
Is it possible to map Agile metrics
with traditional? In other words: is
it possible to run the project using
Agile methodology, and still
report the project in accordance
to the corporate CSC standards?
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 3
6. AGENDA
I. The role and types of metrics
II. Traditional metrics overview
III. Demonstration and Interpretation
IV. Sum up
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7. DISCLAIMER
This is my personal interpretation based on experience, however not
validated by… any… opinion leader.
You might disagree with what you will hear/read, and that’s totally fine –
I will wait for you to present next year your own findings.
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 7
8. THE RUTHLESS WORL OF METRICS
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 8
9. WHY DO WE USE METRICS ANYWAY?
• Because we have to
– Make business-decisions;
– Provide meaningful information about important things;
– Consider to change what/how we currently do;
– Recognize the result and judge it;
– To estimate the future;
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10. GREAT VARIETY OF METRICS ACROSS BOTH
METHODOLOGIES
AGILE METRICS TRADITIONAL METRICS
• Story point burndown • Earned Value
• Sprint burndown • Planned Value
• Release burndown • Actual Costs
• Velocity • Cost Variance
• Story points completed • Schedule Variance
• Running Tested Features (RTF) • Estimate at Completion
• Business Value completed • Estimate to Complete
• Work in progress • Performance Indexes: CPI; SPI
• …….. • ……..
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11. TYPES OF METRICS
Productivity /
Value
Performance
Predictability Quality
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 11
12. TYPES OF METRICS
Productivity /
Value
Performance
Predictability Quality
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 12
14. EARNED VALUE MEASUREMENT
• Creates an objective assessment of project status and likely outcome by
measuring and reporting work accomplished.
Message I AM MEASURING WORK ACCOMPLISHED
• EVM is about measuring project performance, comparing budgets to
actuals in scope, schedule, and resource
Message I AM COMPARING BUDGETS TO ACTUALS
• In the end, it’s not about value as “business value” – it’s value as in
“actually done” – and the other nice word used for this is “earned”
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15. 3 MAIN MEASUREMENTS
Measurement Explanation
Planned Value (PV) the amount of work planned to be
accomplished
Earned Value (EV) the value which is earned by the time
the work is completed
Actual Cost (AC) actual cost of work performed
(money/hours)
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 15
16. COST VARIANCE
FORMULA Explanation
CV = EV - AC Tells me how many hours team is
running behind or ahead the
planned/budgeted hours
SHEDULE VARIANCE
FORMULA Explanation
SV = EV - PV Tells how many hours we are running
behind or ahead the schedule
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17. PERFORMANCE INDEX NO. 1: CPI
FORMULA Explanation
CPI = EV / AC answers the question “are we spending
more than we are creating”
PERFORMANCE INDEX NO. 2: SPI
FORMULA Explanation
SPI = EV / PV answers the question “are we creating
the value at the speed we expected?”
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19. PREREQUISITES FOR DEMONSTRATION
• Earned Value will be measured at the very basic level – hours.
• Scrum methodology
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20. 6 HOURS / DAY = 24 HOURS
1 2 3 4 5 6 7 8 9 10
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22. Actual Total
Hours Hours Required
Day Work Work EAC
Remaining Burnt Burn
Effort effort
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23. Actual Total
Hours Hours Required
Day Work Work EAC
Remaining Burnt Burn
Effort effort
0 240 0 0 0 240 0
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24. HOURS
BURNED
4 HOURS
TASK 1 6 ESTIMATED
HOURS
2 REMAINING
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit. Aliquam
tempus
ACTUAL
6 WORK
EFFORT
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 24
25. Actual Total
Hours Hours Required
Day Work Work EAC
Remaining Burnt Burn
Effort effort
0 240 0 0 0 240 0
1 228 12 24 24 252 24
TASK 1 6 TASK 2 12 TASK 3 6
2 6 4
Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit
amet, consectetur amet, consectetur amet, consectetur
adipiscing elit. adipiscing elit. adipiscing elit.
Aliquam tempus Aliquam tempus Aliquam tempus
6 2x6 6
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42. TIME TO MAP AGILE WITH TRADITIONAL
Measurement Agile explanation Value
Planned Value Team’s capacity 240 hours
(PV)
Earned Value It is something be burn ∑Hours burnt
(EV)
Actual Cost (AC) Actual effort It is just the
same!
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 42
44. EARNED
VALUE
4 PLANNED
TASK 1 6 VALUE
ESTIMATE TO
2 COMPLETE
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit. Aliquam
tempus
ACTUAL
6 WORK
EFFORT
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 44
45. HOURS
BURNED
4 HOURS
TASK 1 6 ESTIMATED
HOURS
2 REMAINING
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit. Aliquam
tempus
ACTUAL
6 WORK
EFFORT
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 45
62. SO IN THE END…
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63. TO SUM UP – IT IS POSSIBLE TO MAP!
TRADITIONAL AGILE
Teams tend to earn things Teams tend to burn things
Planned value (PV) Team’s capacity (TC)
Earned value (EV) Burned value (BV)
Actual cost (AC) Actual cost (AC)
Estimate to Complete (ETC) Remaining Hours
Estimate at Completion = AC + ETC EAC = AC + Remaining Hours
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64. THOUGHTS TO CONSIDER
• Why not measure the value using story points instead of hours? Story
points have much more to do with value than hours;
• How do we report the whole project and not the iteration?
• What about Earned Value Management and Business Value
Management?
Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 64
Our good old friend – waterfallHow many of you are using this methodology at your daily work?WHO AGREES THAT MANAGING PROJECT PERFORMANCE IS NOT AN EASY THING TO DO?HOW MANY PROJECT MANAGERS WE HAVE IN AUDIENCE?HOW MANY SCRUM MASTERS?HOW MANY PRODUCT OWNERS?
But it is not about having numbers, it is about making good use of numbers
I am not going to dive into measuring the quality of the project. We are purely going to focus pocus on the project performance.
I am not going to dive into measuring the quality of the project. We are purely going to focus pocus on the project performance.
SO THIS IS THE MOST INTERESTING PART FOR THE AGILE PEOPLE LOL
SO WHEN WE HAVE THESE 3 MEASUREMENTS IN PLACE, WE, AS PROJECT MANAGERS, CAN DO AMAZING THINGS
SO WHEN WE HAVE THESE 3 MEASUREMENTS IN PLACE, WE, AS PROJECT MANAGERS, CAN DO AMAZING THINGS
SO WHEN WE HAVE THESE 3 MEASUREMENTS IN PLACE, WE, AS PROJECT MANAGERS, CAN DO AMAZING THINGS
The Earned Value will be measured in hours – this means we will focus on value, expressed in hours instead of currency
Let me ask you, who goes ahead using this simple approach to manage performance with Scrum?Ok, but have you any idea how many hours your people have actually spent to deliver what was initially planned?Of course, you may not, asyou just don’t care you don’t pay people overtime or in hourly rateWell if you do pay hourly rate to your resources you probably will want to add the actual effort here.
WE CREATED SOME STUFF WHICH CAN BE EVALUATED IN 27 HOURS, BUT WE ACTUALLY USED 48 HOURS TO CREATE THAT VALUE
OVERTIME HAS STARTED IN ORDER TO CATCH UPPAY ATTENTION TO THE ‘REQUIRED BURN’ METRIC
EVALUATES THE REQUIRED VALUE FOR THE NEXT SPRINTEAC IS RAISING AND GIVES US A REALLY BAD TREND
SO LET US MOVE COUPLE OF STAND UPS FURTHER TO THE TIME WHERE THE TEAM GETS BACK ON TRACK
THE OVERTIME STOPPED AND THE AC ALMOST ARE EQUAL TO VALUE WHICH WAS CREATED
SO WHAT DO WE HAVE HERE?IT’S A ZORO SIGN!!!
So if we just zoom a little the top of the picture you can notice – the initial plan was to use 240 hours and we ended up with 265
Let us take a closer look:Yes, we burned all 240 hours in 10 days, so we delivered what we’ve been committed to However, we planned to ‘spend’ 240 hours on it, but we actually spent 265: assumption team has underestimated
AND THIS IS THE KEY MESSAGEWe planed to deliver something which had the value of 240 hours – PV – this is our approved budget assigned to the iterationWe tracked actual effort – just the same as used in traditional wayTotal amount of hours burnt gives us the Earned Value.So let us run the same iteration with the same progress, using the same input, just with traditional metrics
Total work effort I renamed into the AC
Waterfall people tend to earn things, not to burn
CV = EV – ACSV = EV - PV
YOU TELL ME THE HOURS YOU BURNED, AND THE ACTUAL EFFORT, I GIVE YOU ALL PERFORMANCE METRICS IN ONE TABLE