The document discusses integrating quality into portfolio management. It describes how adaptive planning is necessary due to inherent uncertainty in software development. Traditional earned value management (EVM) expects full definition upfront and does not assert quality, but AgileEVM combines Agile practices with EVM to measure outcomes rather than outputs and prioritize to maximize business value. The presentation provides examples of how AgileEVM can be used to forecast releases and make decisions when commitments are at risk.
27. Agile partially supports
Portfolio Management
• Prioritize to maximize Agile
Business Value
• Effectively deliver to Agile
minimize costs
• Re-allocate resources
when costs are too high or
the benefit is too low
29. Earned Value
Over EAC
Total Allocated Budget Budget Estimate at Complete
Management Reserve
PMB
Project Management Baseline
Projected Slippage
$
Planned Value
Actual Cost
(PV)
(AC) (EV)
Earned Value
Time
Time Completion
Now Date
30. EVM Performance
Indicators
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
31. 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)
32. Weaknesses of
Traditional EVM
• Expects everything Ugh!
fully defined up front
• No assertion of quality
• Claiming value is earned
on intermediate
work products
33. Agile + EVM
• We want to measure +
Agile
EVM
outcomes, not outputs
• Prioritize to maximize Agile
Business Value
• Effectively deliver to Agile
minimize costs
• Re-allocate resources
when costs are too high or EVM
the benefit is too low
36. 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