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
slideshare.net
or
geHngagile.com
2
5. This is the best,
simplest, easiest to use
applica1on we have
ever go7en in both
Customer Care and the
Retail Stores!
Whatever you all did, I
want more of that!
6. Employee
SaAsfacAon
Cost
Savings
Customer
SaAsfacAon
Revenue
New
RetenAon
Revenue
Cost
Savings
New
Revenue
through
efficiency
Shareholder
Value
Compliance
Value
Employee
Customer
SaAsfacAon
SaAsfacAon
6
8. The
primary
purpose
of
the
[EVMS]
system
is
to
support
program
management*
Scope
Schedule
Cost
8
* Earned Value Management Systems ANSI/EIA-‐748-‐B-‐2007
12. ! It
is
not
possible
to
completely
specify
an
interacAve
system.
Wegner’s
Lemma,
1995
! Uncertainty
is
inherent
and
inevitable
in
sorware
development
processes
and
products.
Ziv’s
Uncertainty
Principle,
1996
! For
a
new
sorware
system
the
requirements
will
not
be
completely
known
unAl
arer
the
users
have
used
it.
Humphrey’s
Requirements
Uncertainty
Principle,
c.
1998
12
13. ! Stack
Ranked
PrioriAzaAon
based
on
Business
Value
and
risk
! Self
organizing,
cross-‐
funcAonal
teams
! DefiniAon
of
Done
! PotenAally
Shippable
Increments
! Velocity
! ConAnuous
Improvement
13
14. 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!
14
15. 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
Ahead of
Behind Schedule On Schedule
Schedule
15
16. ! 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)
16
17. ! Typical
implementaAons
Ugh!
expect
everything
fully
defined
up
front
! No
asserAon
of
quality
! Claiming
value
earned
on
intermediate
work
products
17
18. ! 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
18
19. ! 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
19
20. ! 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
hqp://ieeexplore.ieee.org/xpl/freeabs_all.jsp?arnumber=1667558
20
21. ! 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
21
29. ! 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
29
30. ! President:
Agile
Advantage,
Inc.
! Former
CTO,
Development
Manager,
PMO
Manager,
Agile
Coach,
Mentor,
CerAfied
Scrum
Trainer,
ScrumMaster,
Product
Owner
! AcAve
pracAAoner
delivering
value
using
Agile
and
helping
others
do
it;
from
small
Product
companies
to
brent@agileadvantage.com
very
large
organizaAons
www.agileadvantage.com
Blog:
geHngagile.com
Twiqer:
brentbarton
! ArAcles
• “Manage
Project
Por•olios
More
EffecAvely
by
Including
Sorware
Debt
in
the
Decision
Process”,
Cuqer
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
Boqom
Transparency
Using
the
Meta-‐Scrum”,
AgileJournal
• “All-‐Out
OrganizaAonal
Scrum
as
an
InnovaAon
Value
Chain”,
IEEE