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

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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 ...

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.

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

  • 1. Bridging  the  Agile-­‐to-­‐PMO  Communica7on  Gap     Brent  Barton,  President,  Agile  Advantage,  Inc.
  • 2.   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
  • 3.   An  Agile  Pilot   ◦  One  Scrum  Team  
  • 4. 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!  
  • 5. 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  
  • 6.   Next  Annual  Budget:      Agile  Program  (Using  Scrum)   ◦  >$75  Million  Project   ◦  ~100  People  involved   ◦  Quarterly  Roadmap   I  am  so   Happy!  
  • 7.   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  
  • 8. ScopeSchedule Cost
  • 9.   [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
  • 10.   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
  • 11.   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  
  • 12.   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
  • 13.   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  
  • 14.   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  
  • 15.   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  
  • 16. 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!
  • 17. 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
  • 18.   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)  
  • 19.   Typical  implementa<ons   expect  everything  fully   Ugh!   defined  up  front    No  asser<on  of  quality    Claiming  value  earned  on   intermediate  work   products   19
  • 20.   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
  • 21.   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
  • 22.   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)
  • 23. Value Strategic  Required  to  make  good   Informs  and   Guides   Decisions   Quality Constraints (Schedule, Cost, Scope) Source: Jim Highsmith
  • 24.   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
  • 25.   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  
  • 26.   Now  we  can  focus  on   Value…  
  • 27.   Integrated  Cost  and  Schedule  informa<on  provides   beser  insights  than  schedule  alone  
  • 28.   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  
  • 29.   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  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