Integrating Agile software development and Earned Value Management can be straightforward when there is a clear line between the Performance Measurement Baseline (PMB) and the sprints and tasks of the Agile process. Both measure progress as physical percent complete, with Agile producing working products at the end of each iteration to gain feedback. Connecting the two involves measuring Agile's definition of "value" in terms of Earned Value's definition of value earned for each release. This provides credible estimates of cost and schedule to help manage large, complex programs.

1. +
Integrating Agile Software Development (Agile) on
EarnedValue Management Programs
Starting with an EIA–748–C compliant Earned Value Management System,integrating an Agile Software
Development Lifecycle (Agile) is straight forward when there is a Bright Line between the
Performance Measurement Baseline (PMB) and the Sprints andTasks of the Agile Software
Development Process.
AGILE AT SCALE
for
FAR 34.2 / DFARS 234.2
Acquisition Programs
V10.0
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016

2. +
Performance–Based Project Management®
is a registered trademark of Niwot Ridge, L.L.C.
Performance–Based Project Management ® ISBN 978–0–8144–3331–7
is a publication of American Management Association,
Copyright © 2014
CMMI® is a Registered Trademark of Carnegie Mellon University,
Pittsburg, PA
All material in this document is Copyright © 2002 ― 2016
Glen B. Alleman, Niwot Ridge L.L.C.
This publication may not be reproduced, stored on a retrieval system, or
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Send requests for reuse to glen.alleman@niwotridge.com
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016

3. + Table of Contents
§ Content Page
0 Executive Overview 5
1 Introduction 21
2 Opening Background 76
3 Start With The End in Mind 138
4 Framing Assumptions 151
5 Foundations of Earned Value and Agile 192
6 Performance Planning and Measurement 220
7 Connecting the Dots Between Agile and EVM 262
8 The Requirements Elicitation Problem 308
9 Planning, Estimating, and Budgeting 331
10 Building the PMB for an Agile Project 370
11 Dependency Management in Agile 399
12 Risk Management on Agile Programs 410
13 Change Control in Agile and EVM 459
14 Physically Connecting the Dots 516
15 The Dark Side and EVM and Agile 527
16 Failure Modes of Agile + Earned Value Management 545
17 Maturity Models for Agile and Earned Value Management 600
18 Root Cause Analysis 638
19 Agile Contracts 704
20 Conclusion 705
21 Resources 726
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016

4. + Getting Started
Robert Gates,the UnitedStates Secretary of Defense,in a
September 2008 speech,said,
Our conventional modernization programsseek a 99%
solution in years. Stability and counterinsurgency
missions—the wars we are in—require 75% solutions in
months.The challenge is whether in our bureaucracy and
in our minds these two different paradigmscan be made
to coexist
‒ Gates,R.M.Speech to National Defense University
(Washington,D.C.) Monday,September 29,2008.
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016

5. +
0. Executive Overview
Earned Value Management and Agile Software Development have
much in common.The most important is progress to plan is
measured by Physical Percent Complete with tangible evidence of
working products at the end of planned period of performance.
For software intensive system of systems,agile development
provides powerful tools for producing working software on
frequent boundaries to gain needed customer feedback to assure
the program is going in the right direction.
5
There are only two phases to a big program:
Too early to tell and too late to stop!
‒ Mr.Blaise Durante,Deputy Assistant Secretary
(Acquisition Integration),U. S.Air Force
Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016

6. +
Integrating Earned Value and Agile Development provides credible
EAC and ETC for large Software Intensive System of Systems needed
to manage in the Fog of Emergence
Why Integrate Agile Development
and Earned Value Management?
Navigation
Communications
Fire Control
Engine Controls
Counter Measures
Visualization
Flight Controls
Life Support
6
Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

7. + What Do We Mean When We Say
Agile?
† Dr. Ashton Carter, Under Secretary of Defense for Acquisition, Technology and Logistics, Sep/Oct, 2010Defense AT&L
Pembroke Welsh Corgi in a goat herding competition, Boulder County Fair, Longmont Colorado.
Chubby body, short legs, not “lean,” but able to turn “inside the loop” of the sheep = “agile?”
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

8. + What Is The Real Goal of Any
Method – Agile or Traditional?
Increase The Probability of Program Success
1.0 Communications and Computing Infrastructure
1.1 Acquisition, Logistics and Technology Enterprise Systems and
Services (ALTESS)
1.2 Army Knowledge Online (AKO)/Defense Knowledge Online (DKO)
1.3 Computer Hardware, Enterprise Software, and Solutions (CHESS)
1.4 Defense Communications and Army Transmissions Systems (DCATS)
1.5 Defense Messaging System-Army (DMS-A)
1.6 Defense Wide Transmission Systems (DWTS)
1.7 Force Projection Enablers (FPE)
1.8 Information Technology Systems (ITS)
1.9 Installation Information Infrastructure Modernization Program (I3MP)
1.10 Land Mobile Radio (LMR)
1.11 Network Enterprise Services (NES)
1.12 Network Service Center (NSC)
1.13 Satellite Communications Systems (SCS)
1.14 Vehicular Intercom Systems (VIS)
1.15 Wideband Control (WC)
2.0 Logistics
2.1 Army Enterprise Systems Integration Program (AESIP)
2.2 Global Combat Support System-Army (GCSS-Army)
2.3 Joint-Automatic Identification Technology (J-AIT)
2.4 Logistics Modernization Program (LMP)
2.5 Movement Tracking System (MTS)
2.6 Transportation Information Systems (TIS)
3.0 Human Capital
3.1 Army Human Resource System (AHRS)
3.2 Distributed Learning System (DLS)
3.3 Force Management System (FMS)
3.4 HR Solutions
3.5 Installation Management Systems-Army (IMS-A)
3.6 Integrated Personnel and Pay – Army (IPPS-A)
3.7 Reserve Component Automation Systems (RCAS)
4.0 Finance
4.1 General Fund Enterprise Business System (GFEBS)
5.0 Medical
5.1 Medical Communications for Combat Casualty Care (MC4)
6.0 Acquisition
6.1 Acquisition Business (AcqBusiness)
7.0 Biometrics
7.1 Department of Defense (DoD) Biometrics (DoD Biometrics)
7.2 Biometrics Enabling Capability (BEC)
7.3 Tactical Biometric Systems (TBS)
Army PEO EIS
1.1 Acquisition,Logistics, and
TechnologyEnterpriseSystems
and Services (ATLESS)
Guidance to
increasing the
PoPs
Seek ways to increase the
Probability of Program Success not just apply new methods
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

9. Do these
sound
familiar?
9Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

10. + Is The Department of Defense Ready To
Embrace Agile Methodologies?
It seems so…
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

11. + While seeking to fulfill the
directives of NDAA §804 …
Plus a few more … FAR 52.234-2,34.201,34.202,OMB Memo(s) M-05-23,M-04-24,DFAR 252.234–
7002,DoD Instruction (DoDI) 5000.02,Defense Acquisition Guidebook, Chapter 11,Section 11.3.1.3.
… let’s not forget these directives too.
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

12. + Rule for Earning Value in Agile
Each Release in Agile is a
“value earning” opportunity
The next step is to connect
Agile’s definition of “value”
with Earned Value’s definition
of valueBusiness Value ÙÚ EV
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

13. Before Going Further, Let’s Bust Some Myths
13Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016

14. + A Few Myths of Defense
Acquisition†
† “Modern Acquisition Myths, “ Capt. Dan Ward, USAF, Program Management., Mar/Apr, 2003
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

15. + 3 Ways To “Connect the Dots”
Earned Value Management Agile
Both EV and Agile Measure Progress as
Physical Percent Complete
1. Measures progress in units of
“physical percent complete.”
1. Each iteration produces 100%
working products.
2. Forecast future performance
using past performance.
2. Forecast performance in units
of products produced.
3. Take a systems approach to
the development of products
by connecting Cost, Schedule,
and Technical Performance.
3. Increasing fidelity of product
and problem understanding
occurs after each Sprint and
Release.
15
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

16. + 12 Principles of the Agile
Manifesto
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

17. + 11 Critical Criteria for Earned
Value Management
n The 32 EVM Criteria are all designed to deliver value.
n These 11 are the basis of “connecting the dots.”
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

18. + Here’s A Quick Look at the
Connections
# EVM Criteria Agile Approach
1 Define WBS Features and Stories define tasks
2 Identify Organization Self organizing teams
5 Integrate WBS and OBS Self organized teams with a customer
6 Schedule Work Iterations and Releases
7 Identify Products &
Milestones
Working software at the end of iterations
8 Set time phased budget Fixed length iterations and releases
16 Record direct costs Fixed staff = Level of Effort
23 Determine variances Velocity measures missed features
25 Sum data and variance Missed features moved to next iteration
26 Manage action plans Replan missed features, adjust velocity
28 Incorporate changes Replan missed features, adjust velocity
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview

19. But First, Let’s Look At The Business Management Practices …
…That Must To Be Present Before Connecting Agile and EVM
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Provide managers with
information at a practical
level of summarization
Relate time phased
budgets to specific
contract tasks
Enable statistical
estimation of
completion costs
Track and monitor
discrete project
metrics
Communicate
project status
Provide
quantitative data
for decision making
Provide a
documented project
performance trail
Alert project
managers to potential
schedule and cost risk
Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016

20. +
… By providingactionable informationin units of measure
meaningful to the decision makers
Agile + EVM is a Tool to Increase
Probability of Program Success …
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Performance–Based Project Management®
, Copyright© Glen B. Alleman, 2002 ― 2016
0. Executive Overview