Earned Value in Agile: The Definition of Done in Agile - Kjetil Strand


Published on

This is one of many excellent presentations given over the last three years of the eVa in the UK series. They can also be found in the archive at: http://evaintheuk.org/archive along with back-copy video footage in http://evaintheuk/pmchannel
EVA19, the long established Earned Value conference, has this year described its theme as looking at a project management ‘ABC’ – Agile, Benefits and Complex.
The four day event, which returns to the Armourers Hall, runs from the 19th to 22nd of May with the flagship conference being held on 20th and 21st May and workshops before and after.
The conference will look at how this ‘ABC’ can be made to work within a portfolio and how agile fits into major and minor projects. It will investigate how to manage the relationship between portfolio benefits and project budgets, and whether complex projects even exist.
Conference organiser and APM chairman, Steve Wake says:
“Currently there is little evidence that this ‘ABC’ is being effectively deployed and managed. This conference aims to address that concern through EVA’s trademark blend of learning and professional development. Case studies and unusual presentations, delivered by top-notch speakers and experienced practitioners, will again engage and entertain the audience.
We’ve used string quartets to illustrate points in the past and this year we will be using a Blues band for the first time.”
Speakers across the two days include many familiar faces from the APM events programme including; Adrian Pyne of the APM ProgM SIG ‘Changing the project wasteland with a portfolio culture that works,’ APM Honorary Fellow Tim Banfield Director at the Major Projects Authority and Stephen Jones, Sellafield and Planning Monitoring and Control Specific Interest Group (PMC SIG) and Carolyn Limbert of the APM PMC SIG to talk about agile, benefits and complex.
Peter Taylor, the Lazy Project Manager will be presenting on “The project manager who smiled” and the ever popular Stephen Carver will present the leadership lessons that can be learnt from Alfred the Great.
In addition, there will be speakers from AIRBUS, TfL, Bloodhound, Heathrow T2 and London Tideway Tunnels.
The conference will be supplemented by a number of workshops being held at the Chartered Institute of Arbitrators, Bloomsbury Square on Monday 19th and Thursday 22nd May 2014.
'eVa in the UK' http://evaintheuk.org is building a reputation, brand and a learning legacy for the Project Management Profession. The event series is now in its nineteenth year. It is almost as if it all kicked-off when Steve Wake was in short trousers and knights roamed the land on their chargers!
#eva19 is an excellent example of Listening, Learning and Leading #apmLLL in action, and great opportunity for professional development.
I would encourage anyone who is interested in 'Building a better Project Manager,' to take a look at the web site book your place and get involved.

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Earned Value in Agile: The Definition of Done in Agile - Kjetil Strand

  1. 1. 20.06.2011 • © PROMIS AS 1 Earned Value in Agile: The Definition of done in Agile Software development EVA 16, London, June 14th – 15th Kjetil Strand, Promis AS
  2. 2. 20.06.2011 • © PROMIS AS 2 Outline of the talk • Background – Earned Value Analysis in Agile • Work Breakdown Structure in Agile • A Project Execution Model based on PS2000 Agile • The Control Gate following each Sprint: Definition of Done • An Estimation Model based on the Execution Model • A practical example: Cashing in and Monitoring Earned Value
  3. 3. 20.06.2011 • © PROMIS AS 3 Earned Value Analysis in Agile Projects • Some resistance against Earned Value Analysis in the agile community • Some regard established project management knowledge areas as waterfall (you have to establish a project budget) • This talk will demonstrate that Earned Value analysis fits well together with agile practises • We present a framwork within which earned value could be monitored throughout the history of agile software development projects
  4. 4. 20.06.2011 • © PROMIS AS 4 Work Breakdown Structure in Agile The two main levels in the project plan are epics and user stories The project scope is described by epics (high level user stories) The project budget is distributed on this epics level Further detailing on the user story level (product backlogs) and the sprint task levels Full tracability top down and bottom up on cost and progress
  5. 5. 20.06.2011 • © PROMIS AS 5 The execution model in PS2000 Agile Analysis of Needs Approval phase Detailed planning Analysis and design Testing Development Progress Iterative construction phase Cg1 Cgn Cg2 PMS 0 Epics ready for analysis Solution Description PMS 1 User stories ready for construction- PMS 2 User stories ready for approval PMS 3 User stories in production • 4 Principal Milestones (PMS 0 – 3) • A Control gate (Cgn) for each iteration
  6. 6. 20.06.2011 • © PROMIS AS 6 Large projects: The Execution Model is repeated for each release R1 R2 R3 R4 Releases Time Analysis of Needs Approval phase Progress Iterative Construction phase Cg Cg Cg PMS 0 Solution Description PMS 1 User stories ready for construction PMS 2 User stories ready for approval PMS 3 User stories in production Epics ready for analysis
  7. 7. 20.06.2011 • © PROMIS AS 7 SCRUM: Each sprint is an iteration
  8. 8. 20.06.2011 • © PROMIS AS 8 Detailed planning, analysis and design Testing Development The Anatomy of the Sprint in PS2000 Agile -What did you do? -What will you do? -Any obstacles?24 h Sprint Backlog Planning Decomposed by the team The delivery in the Control gate – running software and definition of done Prioritized Product Backlog Cg
  9. 9. 20.06.2011 • © PROMIS AS 9 The Control gate • By the end of the sprint, the teams demonstrate running software to the product owner(s) • Furthermore, to check if a user story meets Definition of done, it must pass a Control gate The sprint Cg • The Control gate meeting is usually executed 2-4 working days after sprint demo (by this time, the teams have already executed sprint planning for the next sprint) • In the Control gate process and the Control gate meeting a lot of representatives from the Customer side are participating: Product Owners, Test, Architecture, Operations, and project management • In the Control gate meeting the Customer gives feedback on all parameters of ‘Done’ to the Vendor
  10. 10. 20.06.2011 • © PROMIS AS 10 Definition of Done • The user stories are verified on a stable test environment • Do the user stories meet the acceptance criteria? • Is the software well documented (user documentation, system documentation, installation and operations documentation)? The sprint Cg • Are the tests documented? • Is the code of good quality? • Are other architectural constraints and guidelines met? • All these requirements should be fulfilled to meet the definition of done • The control gate meeting itselt may handle a number of delivered user stories in a relatively short time (e.g., 30 user stories in 15 minutes)
  11. 11. 20.06.2011 • © PROMIS AS 11 An Estmation Model with Build Estimate as the Main Driver Build Estimate Analysis and detailed design System and integration testing Bug fixing Scrum seremonies Functional guidance 30 % 30 % 20 % 10 % 10 % Analysis of Needs Solution Description Approval and Completion Construction Sumconstruction 22 % 22 % 16 % System implementation – X % of project cost Administration and Management – Y % of project cost Technical support, environments – Z % of project cost SumhoursderivedfromBuild Duration Sumhoursderived Sumhours Build = Development, Unit testing, deployment and documentation
  12. 12. 20.06.2011 • © PROMIS AS 12 An implementation of the Estimation Model
  13. 13. 20.06.2011 • © PROMIS AS 13 Mapping the estimation model to earned value in the principal milestones Earned value in each principal milestone is computed according to the estimation model Nothing else than progress on epics and user stories count as earned value Other activities in the project are considered useful only to the degree that they support progress on epics and user stories Milestone Earned value Epics not started on 0% Epics ready for solution description (PMS 0) 11 % User stories ready for construction (PMS 1) 31 % User stories ready for approval (PMS 2) 86 % User stories in production (PMS 3) 100% Analysis of Needs Approval phase Detailed planning Analysis and design Testing Development Progress Iterative construction phase Cg1 Cgn Cg2 PMS 0 Epics ready for analysis Solution Description PMS 1 User stories ready for construction - PMS 2 User stories ready for approval PMS 3 User stories in production
  14. 14. 20.06.2011 • © PROMIS AS 14 Control gates verify that user stories are ‘Done’ • When approved of in the control gate, we may cash in 86% of the budgeted value of the user story (according to this implementation of the estimation model) • User stories not approved of, are not cashed in • These user stories remain on EV = 31% of budgeted value, together with other user stories still in construction • These user stories are returned to the product backlog and prioritized for the ongoing or future sprints • Most commonly, the team will commit to deliver these user stories in the ongoing sprint, in addition to the commitment from their sprint planning • When passing the control gate, only the approval phase and system implementation remain – these activities are estimated to 14% of project cost (according to this implementation of the estimation model)
  15. 15. 20.06.2011 • © PROMIS AS 15 The framework is applied in a large system development project • A project in the Norwegian public sector • Duration 2008 – 2012, worth more than 100 MILL € • 3 vendors, 13 parallell sprint teams • The execution model in this project is based on the PS2000 agile contracting standard • The framework has been a partly success, but with some challenges
  16. 16. 20.06.2011 • © PROMIS AS 16 Local CPI tends to vary from sprint to sprint
  17. 17. 20.06.2011 • © PROMIS AS 17 The last 22 sprints in the aforementioned project Date Sprint Local CPI Accum- ulated CPI EAC 14.01.2010 31 1,717 1,072 905 239 418 28.01.2010 32 1,239 1,081 900 386 434 18.02.2010 33 0,971 1,075 908 533 357 10.03.2010 34 1,059 1,074 907 062 519 13.04.2010 35 0,803 1,060 910 828 360 06.05.2010 36 1,066 1,060 908 928 974 27.05.2010 37 0,843 1,051 912 736 258 17.06.2010 38 0,762 1,040 918 163 248 10.08.2010 39 0,545 1,009 931 881 303 30.08.2010 40 0,520 0,994 939 354 719 20.09.2010 41 0,254 0,967 953 541 642 14.10.2010 42 1,491 0,992 934 825 418 09.11.2010 43 1,275 1,001 929 130 556 30.11.2010 44 0,625 0,990 935 510 853 21.12.2010 45 1,401 1,002 949 578 123 13.01.2011 46 0,823 0,997 953 357 009 02.02.2011 47 1,008 0,998 961 012 906 02.03.2011 48 1,307 1,006 955 300 378 17.03.2011 49 0,732 0,999 959 641 416 08.04.2011 50 1,029 1,000 957 193 635 06.05.2011 51 0,700 0,992 962 920 388 26.05.2011 52 1,399 1,002 955 401 148
  18. 18. 20.06.2011 • © PROMIS AS 18 Pros & Cons of the presented framework On the one hand… On the other… • The framework is easy to implement and maintain • No special tools are needed: • Budgeted hours on epics and user stories • Issue tracking system like Jira to provide the status of epics and user stories after each sprint • A time tracking system to gather the actual worked project hours on a weekly basis • Robust enough to provide the information needed on project progress • During sprints 37 - 41 from the previous slide, the local CPI deteriorated considerably • This was mainly due to a prolonged approval phase of the largest release in the project • Large variations in local CPI (and because of this, in the EAC), may be hard to communicate to the steering committee