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!

Cost   Employee Sa<sfac<on Savings   Customer Sa<sfac<on Revenue New Reten<on Revenue   Cost Savings   New Revenue through eﬃciency Shareholder Value Value Compliance Employee Customer Sa<sfac<on Sa<sfac<on

  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

ScopeSchedule Cost

  [Project] Poròlio management is the coordinated management of poròlio components to achieve specific organiza7onal objec7ves   Organiza<ons that do not link poròlio 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 "   Scrum  Eﬀec<ve delivery to "   Scrum (but no minimize costs cost management)  Re-‐alloca<on of resources when costs are too high or the beneﬁt is too low

Total Allocated Budget! EAC Estimate at Complete Management Reserve! PMB Performance Management Baseline$ Planned Value (PV) Actual Cost (AC) (EV) Earned Value Time Time! Completion! Now! Date!

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 > 1Behind Schedule On Schedule Ahead of Schedule

  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 Ugh! deﬁned up front   No asser<on of quality   Claiming value earned on intermediate work products 19

  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 "   Scrum  Eﬀec<ve delivery to "   Scrum (but no minimize costs cost management) "    Re-‐alloca<on of resources when costs are too high EVM (cost management but no or the beneﬁt is too low benefit management)

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

  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; brent@agileadvantage.com www.agileadvantage.com from small Product companies to very Blog: gettingagile.com large IT organiza<ons Twitter: brentbarton"   Ar<cles •  “Manage Project Poròlios 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

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2011 pmo symposium Bridging the Agile-to-PMO Communication Gap

by Brent Barton

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