Portfolio Management with AgileEVM - Vancouver 2010


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This presentation provides a view into AgileEVM and how people can use this decision support tool along with good judgement to address recurring problems in software project portfolios today.

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Portfolio Management with AgileEVM - Vancouver 2010

  1. 1. Portfolio Management with AgileEVM Getting toValue Faster Brent Barton & Chris Sterling
  2. 2. Brent Barton - AgileEVM Inc. President,AgileEVM Inc. More than 15 years software development in many roles as both employee and consultant for organizations from small start ups to multinational corporations Former CTO. Active Agile Coach, Mentor, Certified Scrum Trainer Actively involved in Agile Rollouts from small Product companies to very large IT organizations Scrum Articles “AgileEVM – EarnedValue Management in Scrum Projects”, IEEE “Implementing a Professional Services Organization Using Type C Scrum”, IEEE “Establishing and Maintaining Top to Bottom Transparency Using the Meta-Scrum”,AgileJournal “All-Out Organizational Scrum as an InnovationValue Chain”, IEEE www.AgileEVM.com Email: brent@sterlingbarton.com Web: http://www.sterlingbarton.com Blog: http://www.gettingagile.com Follow me on Twitter: @brentbarton
  3. 3. Chris Sterling – AgileEVM Inc. Developer of AgileEVM ( www.AgileEVM.com ), a project portfolio decision support tool Technology Consultant,Agile Consultant and Certified Scrum Trainer Consults on software technology,Agile technical practices, Scrum, and effective management techniques Innovation Games® Trained Facilitator Open Source Developer and Consultant Software technology, architecture, release management, monitoring, and design consulting for Agile Teams Publishing book with Addison-Wesley called “Managing Software Debt” - due out Dec 2010 Email: chris@agileevm.com www.AgileEVM.com Web: http://www.sterlingbarton.com Blog: http://www.gettingagile.com Follow me on Twitter: @csterwa
  4. 4. In the next 90 minutes... • Describe Project Portfolio Management • Why Agile challenges business • Compare EarnedValue Management (EVM) • Integrate into AgileEVM • Workshop exercises • Q&A • AgileEVM demo (optional)
  5. 5. Project Portfolio Management
  6. 6. Project Portfolio Defined A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. source: PMI The Standard for Portfolio Management — Second Edition
  7. 7. • We want to measure outcomes, not outputs • YES: BusinessValue • not so much: Completed Projects Project Portfolio Management Time Business Value
  8. 8. Effective Project Portfolio Management • Prioritization to maximize BusinessValue • Effective delivery to minimize costs • Re-allocation of resources when costs are too high or the benefit is too low source: Cutter Journal
  9. 9. Agile... from a business point of view
  10. 10. Strengths of Agile • Assertion of quality by self-organizing teams • Adaptive Planning
  11. 11. Weaknesses of Agile • Cost management is (mostly) missing • Uses abstract measures • Relative points • Ideal days • Velocity These create business challenges
  12. 12. Uh oh,Time to go... Maybe it’s Geoff... Can’t I just know when we can release and how much it will cost? Earl, you can’t compare velocity of one team with another! Estimates are relative and team specific... It depends... Agile is a pain in the @$$!
  13. 13. Agile partially supports Portfolio Management • Prioritize to maximize BusinessValue • Effectively deliver to minimize costs • Re-allocate resources when costs are too high or the benefit is too low Agile Agile
  14. 14. EarnedValue Management (EVM)
  15. 15. ProjectedSlippage Management Reserve EarnedValue (PV) Total Allocated Budget Time Now Completion Date $ PMB EAC Time Over Budget PlannedValue (AC) Actual Cost Project Management Baseline Estimate at Complete (EV) EarnedValue
  16. 16. EVM Performance Indicators CPI < 1 CPI = 1 CPI > 1 Under Budget On Budget Over Budget SPI < 1 SPI = 1 SPI > 1 Ahead of Schedule On Schedule Behind Schedule Cost Performance Index (CPI=EV/AC) Schedule Performance Index (SPI=EV/PV)
  17. 17. 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)
  18. 18. Weaknesses of Traditional EVM • Expects everything fully defined up front • No assertion of quality • Claiming value is earned on intermediate work products Ugh!
  19. 19. Agile + EVM • We want to measure outcomes, not outputs • Prioritize to maximize BusinessValue • Effectively deliver to minimize costs • Re-allocate resources when costs are too high or the benefit is too low Agile Agile EVM Agile EVM +
  20. 20. [Pause for Reflection]
  21. 21. AgileEVM
  22. 22. 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
  23. 23. Scenario 1: Commit
  24. 24. Scenario 2:Transform
  25. 25. Quality Criteria asserted by team
  26. 26. Scenario 3: Kill
  27. 27. Saturn RC-1 Forecasts Mercury Forecasts What are some options?
  28. 28. Q&A
  29. 29. If you want to look at AgileEVM, we will demo or catch us anytime.