2011 pmo symposium Bridging the Agile-to-PMO Communication Gap
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Bridging the AgiletoPMO Communica7on Gap Brent Barton, President, Agile Advantage, Inc.
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Traditional EVM makes no sense in software (and is potentially harmful) because claiming value earned based on intermediate work products--without an assertion of quality--does not provide reasonable forecasts. Agile provides an assertable and inspectable quality. Also, by ordering in terms of highest Business Value and risk considerations along with potentially shippable increments, I believe starts to include notions of value. Still, AgileEVM measures performance against plans (that can be re-baselined every iteration if needed). AgileEVM integrates cost management. Doing it well means not giving up what Agile offers: adaptive planning, quality.
Transcript of 2011 pmo symposium Bridging the Agile-to-PMO Communication Gap
Bridging the Agile-‐to-‐PMO Communica7on Gap
Brent Barton, President, Agile Advantage, Inc.
An Agile Story A PMO Story Scrum (An Agile Project Management Framework) Tradi<onal Earned Value Management Agile Earned Value Management (AgileEVM) Project Case Study Open Discussion
*Slides available via slideshare.net or gettingagile.com
An Agile Pilot ◦ One Scrum Team
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!
Value
Cost Savings
New Revenue
Compliance
Customer Sa<sfac<on
Employee Sa<sfac<on
Shareholder Value
Revenue Reten<on
Cost Savings
Employee Sa<sfac<on Customer Sa<sfac<on
New Revenue through efficiency
Next Annual Budget: Agile Program (Using Scrum) ◦ >$75 Million Project ◦ ~100 People involved ◦ Quarterly Roadmap
I am so Happy!
At the same <me as the “Big Agile” Program… ◦ Dissolved all PMOs ◦ Created a new ePMO ◦ Moved all Project Managers to ePMO
Newly Re-‐orged Project Manager innocently turned a project red (Scope, Schedule issues) ◦ 9 mee<ngs with VP’s and Sr. Directors ◦ Effec<vely trained this PM never to put projects in red
Scope
Schedule Cost
[Project] Por`olio management is the coordinated management of por`olio components to achieve specific organiza7onal objec7ves
Organiza<ons that do not link por`olio management to governance increase the risk that misaligned or low priority ini<a<ves will consume cri<cal resources
- Standard for Portfolio Management
Capitalize on opportuni<es Minimize the impact of threats
Respond to changes in the market
Reinforce focus on cri<cal opera<onal ac<vi<es
- Standard for Portfolio Management
Priori<za<on to maximize “Business Value”
Effec<ve delivery to minimize costs
Re-‐alloca<on of resources when costs are too high or the benefit is too low
Rolling wave planning is a form of progressive elabora<on planning where the work to be accomplished in the near term is planned in detail and future work is planned at a higher level of the WBS.
2008 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) — Fourth Edition
It is not possible to completely specify an interac<ve system. Wegner’s Lemma, 1995
Uncertainty is inherent and inevitable in sogware development processes and products. Ziv’s Uncertainty Principle, 1996
For a new sogware system the requirements will not be completely known un<l ager the users have used it. Humphrey’s Requirements Uncertainty Principle, c. 1998
Stack Ranked Priori<za<on based on Business Value and risk
Self organizing, cross-‐func<onal teams
Defini<on of Done Poten<ally Shippable Increments
Velocity Con<nuous Improvement
Priori<za<on to maximize Business Value
Effec<ve delivery to minimize costs
Re-‐alloca<on of resources when costs are too high or the benefit is too low
" Scrum " Scrum (but no cost management)
Management Reserve!
(PV)
Total Allocated Budget!
Time!Now!
Completion!Date!
$ PMB
EAC
Time
Planned Value
(AC) Actual Cost
Performance Management Baseline
Estimate at Complete
(EV) Earned Value
CPI < 1 CPI =1 CPI > 1
Over Budget On Budget Under Budget
SPI < 1 SPI =1 SPI > 1
Behind Schedule On Schedule Ahead of Schedule
Cost Performance Index (CPI=EV/AC)
Schedule Performance Index (SPI=EV/PV)
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)
Typical implementa<ons expect everything fully defined up front
No asser<on of quality Claiming value earned on intermediate work products
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Ugh!
A planning package is a holding account (within a control account) for budget for future work that it is not yet prac<cable to plan at the work package level. The planning package budget is <me-‐phased in accordance with known schedule requirements (due dates) for resource planning, and the plans are refined as detail requirements become clearer and the <me 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., mul<ple planning packages, for internal planning and control reasons.
-Earned Value Management Systems ANSI/EIA-748-B-2007
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 condi<ons. Each organiza<on must determine its own policies in this regard.
-Earned Value Management Systems ANSI/EIA-748-B-2007
Priori<za<on to maximize Business Value
Effec<ve delivery to minimize costs
Re-‐alloca<on of resources when costs are too high or the benefit is too low
" Scrum
" EVM (cost management but no benefit management)
" Scrum (but no cost management)
Value
Constraints (Schedule, Cost, Scope)
Quality
Source: Jim Highsmith
Strategic
Required to make good Decisions
Informs and Guides
Mathema<cally proven that Forecasts based on average velocity (story points)≡ es<mate at complete EAC (dollars)
Key Assump<on: The ra<o 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 http://ieeexplore.ieee.org/xpl/freeabs_all.jsp?arnumber=1667558
Release Baseline ◦ Budget (BAC) ◦ Ini<al Scope ◦ Start Date
Each Itera<on (Sprint) ◦ Points accepted by Product Owner meets Defini<on of Done ◦ Points add or removed from release scope ◦ Actual Cost
Now we can focus on Value…
Integrated Cost and Schedule informa<on provides beser insights than schedule alone
Focus on delivering value Constraints inform, not dictate outcomes Quality must be part of the decision process AgileEVM helps communicate by transla<ng points to dollars
President: Agile Advantage, Inc. Former CTO, Development Manager, PMO Manager, Agile Coach, Mentor, Cer<fied Scrum Trainer, ScrumMaster, Product Owner
Ac<ve prac<<oner delivering value using Agile and helping others do it; from small Product companies to very large IT organiza<ons
[email protected] www.agileadvantage.com Blog: gettingagile.com Twitter: brentbarton
" Ar<cles • “Manage Project Por`olios More Effec<vely by Including Sogware Debt in the Decision Process”, Cuser
Journal 2010 • “AgileEVM – Earned Value Management in Scrum Projects”, IEEE 2006 • “Implemen<ng a Professional Services Organiza<on Using Type C Scrum”, IEEE • “Establishing and Maintaining Top to Bosom Transparency Using the Meta-‐Scrum”, AgileJournal • “All-‐Out Organiza<onal Scrum as an Innova<on Value Chain”, IEEE
