Portfolio Management with AgileEVM Getting to Value Faster Brent Barton & Chris Sterling
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Portfolio Management with AgileEVM
Getting to Value Faster
Brent Barton & Chris Sterling
Brent Barton - AgileEVM Inc.President, AgileEVM Inc.
More than 15 years software development in many roles as both employee and consultant for organizations from small start ups to multinational corporations
Former CTO. Active Agile Coach, Mentor, Certified Scrum Trainer
Actively involved in Agile Rollouts from small Product companies to very large IT organizations
Scrum Articles
“AgileEVM – Earned Value Management in Scrum Projects”, IEEE
“Implementing a Professional Services Organization Using Type C Scrum”, IEEE
“Establishing and Maintaining Top to Bottom Transparency Using the Meta-Scrum”, AgileJournal
“All-Out Organizational Scrum as anInnovation Value Chain”, IEEE
www.AgileEVM.com Email: [email protected]
Web: http://www.sterlingbarton.comBlog: http://www.gettingagile.com
Follow me on Twitter: @brentbarton
Chris Sterling – AgileEVM Inc.Developer of AgileEVM ( www.AgileEVM.com ), a project portfolio decision support tool
Technology Consultant, Agile Consultant and Certified Scrum Trainer
Consults on software technology, Agile technical practices, Scrum, and effective management techniques
Innovation Games® Trained Facilitator
Open Source Developer and Consultant
Software technology, architecture, release management, monitoring, and design consulting for Agile Teams
Publishing book with Addison-Wesley called “Managing Software Debt” - due out Dec 2010
Email: [email protected]
Web: http://www.sterlingbarton.comBlog: http://www.gettingagile.comFollow me on Twitter: @csterwa
In the next 90 minutes...
• Describe Project Portfolio Management
• Why Agile challenges business
• Compare Earned Value Management (EVM)
• Integrate into AgileEVM
• Workshop exercises
• Q&A
• AgileEVM demo (optional)
Project Portfolio Management
Project Portfolio Defined
A portfolio is a collection of projects or programs and other work that are grouped
together to facilitate effective management of that work to meet strategic business objectives.
source: PMI The Standard for Portfolio Management — Second Edition
• We want to measureoutcomes, not outputs
• YES: Business Value
• not so much: Completed Projects
Project Portfolio Management
Time
BusinessValue
Effective Project Portfolio Management
• Prioritization to maximize Business Value
• Effective delivery to minimize costs
• Re-allocation of resources when costs are too high or the benefit is too low
source: Cutter Journal
Agile...from a business point
of view
Strengths of Agile
• Assertion of quality by self-organizing teams
• Adaptive Planning
Weaknesses of Agile
• Cost management is (mostly) missing
• Uses abstract measures
• Relative points
• Ideal days
• Velocity
These create business challenges
Uh oh, Time to go...
Maybe it’s Geoff...
Can’t I just know when we can release and how much it will cost?
Earl, you can’t compare velocity of one team with another! Estimates
are relative and team specific...
It depends...
Agile is a pain in the @$$!
Agile partially supports Portfolio Management• Prioritize to maximize
Business Value
• Effectively deliver to minimize costs
• Re-allocate resources when costs are too high or the benefit is too low
Agile
Agile
Earned Value Management (EVM)
Proj
ecte
d Sl
ippa
ge
Management Reserve
Earned Value
(PV)
Total Allocated Budget
TimeNow
CompletionDate
$PMB
EAC
Time
Over Budget
Planned Value
(AC)Actual Cost
Project Management Baseline
Estimate at Complete
(EV)Earned Value
EVM Performance Indicators
CPI < 1 CPI = 1 CPI > 1
Under Budget On Budget Over Budget
SPI < 1 SPI = 1 SPI > 1
Ahead of Schedule On Schedule Behind Schedule
Cost Performance Index (CPI=EV/AC)
Schedule Performance Index (SPI=EV/PV)
Strengths of EVM
• 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)
Weaknesses of Traditional EVM
• Expects everythingfully defined up front
• No assertion of quality
• Claiming value is earned on intermediate work products
Ugh!
Agile + EVM• We want to measure
outcomes, not outputs
• Prioritize to maximize Business Value
• Effectively deliver to minimize costs
• Re-allocate resources when costs are too high or the benefit is too low
Agile
Agile
EVM
Agile EVM+
[Pause for Reflection]
AgileEVM
AgileEVM Background
• Mathematically proven that Release Dates based on average velocity (story points)≡ estimate at complete (dollars)
• Key Assumption: The ratio of (story points completed)/(total story points in a release) is a good measure of Actual Percent Complete
Scenario 1: Commit
Scenario 2: Transform
Quality Criteria asserted by team
Scenario 3: Kill
Saturn RC-1 Forecasts
Mercury Forecasts
What are some options?
Q&A
If you want to look at AgileEVM, we will demo or catch us
anytime.
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