1. AgileEVM
Delivering Value within Constrained Systems
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
slideshare.net
or
geHngagile.com
2

3. ! Robert
Gates,
the
United
States
Secretary
of
Defense,
in
a
September
2008
speech,
said,
“Our
convenAonal
modernizaAon
programs
seek
a
99%
soluAon
in
years.
Stability
and
counterinsurgency
missions—the
wars
we
are
in—require
75%
soluAons
in
months.
Agile
Methods:
Selected
DoD
Management
and
AcquisiAon
Concerns,
Carnegie
Mellon
University,
October
2011,
p.
ix
©2011
Agile
Advantage,
Inc.
All
rights
reserved.
3

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

7. ! #
Lives
saved
! Simple
to
Use
! Secure
! ?
Value
©2011
Agile
Advantage,
Inc.
All
rights
reserved.
7

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

9. ! Time
and
Materials
(T
&
M)
! Fixed
Price
! Cost
Plus
IncenAve
Fee
! IDIQ/Delivery
orders
• or
task
orders
These
are
cost-­‐based!
©2011
Agile
Advantage,
Inc.
All
rights
reserved.
9

10. Strategic
Value
Required
to
Informs
and
make
good
Guides
Decisions
Quality
Constraints
(Schedule,
Cost,
Scope)
Source:
Jim
Highsmith
10

11. We
are
uncovering
beqer
ways
of
developing
sorware
by
doing
it
and
helping
others
do
it.
Through
this
work
we
have
come
to
value:
Individuals
and
interacAons
over
processes
and
tools
Working
sorware
over
comprehensive
documentaAon
Customer
collaboraAon
over
contract
negoAaAon
Responding
to
change
over
following
a
plan
That
is,
while
there
is
value
in
the
items
on
the
right,
we
value
the
items
on
the
ler
more.
hqp://agilemanifesto.org/
©2011
Agile
Advantage,
Inc.
All
rights
reserved.
11

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

22. ! Now
we
can
focus
on
Value…
22

23. ! Because
the
performance
measurement
baseline
(PMB)
is
expressed
as
“number
of
story
points
planned”
rather
than
at
the
level
of
specific
tasks,
it
allows
course
correcAons
to
be
made
without
disrupAon
or
re-­‐baselining
of
the
PMB.
! This
addresses
the
criAcism
expressed
in
the
Defense
AcquisiAon
Reform
Findings
and
RecommendaAons
(DARFAR)
report
regarding
the
inability
of
tradiAonal
EVMS
to
idenAfy
issues
related
to
“contract
requirements
that
uqerly
failed
to
meet
warfighter
needs”
[House
Armed
Services
Commiqee
2010].
Agile
Methods:
Selected
DoD
Management
and
AcquisiAon
Concerns,
Carnegie
Mellon
Urniversity,
October
2011,
p.
63
©2011
Agile
Advantage,
Inc.
All
ights
reserved.
23

24. 24

25. ! Integrated
Cost
and
Schedule
informaAon
provides
beqer
insights
than
schedule
alone
25

26. 26

27. 27

28. 28

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