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Managing project performance: alignment of Agile and traditional metrics

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Laimonas Lileika
Managing project performance: alignment of Agile and traditional metrics

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Managing project performance: alignment of Agile and traditional metrics

  1. 1. MANAGING PROJECT PERFORMANCE:Agile and Traditional Metrics Laimonas Lileika Project Manager October 11th, 2012
  2. 2. ABOUT MYSELFLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 2
  3. 3. PROBLEM STATEMENT Organization that has been committed to a Earned Value Management traditional project (EVM) serves as the basis for management for over management and project 50 years reporting in CSC Is it possible to map Agile metrics with traditional? In other words: is it possible to run the project using Agile methodology, and still report the project in accordance to the corporate CSC standards?Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 3
  4. 4. WTFLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 4
  5. 5. Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 5
  6. 6. AGENDA I. The role and types of metrics II. Traditional metrics overview III. Demonstration and Interpretation IV. Sum upLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 6
  7. 7. DISCLAIMER This is my personal interpretation based on experience, however not validated by… any… opinion leader. You might disagree with what you will hear/read, and that’s totally fine – I will wait for you to present next year your own findings.Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 7
  8. 8. THE RUTHLESS WORL OF METRICSLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 8
  9. 9. WHY DO WE USE METRICS ANYWAY?• Because we have to – Make business-decisions; – Provide meaningful information about important things; – Consider to change what/how we currently do; – Recognize the result and judge it; – To estimate the future;Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 9
  10. 10. GREAT VARIETY OF METRICS ACROSS BOTHMETHODOLOGIESAGILE METRICS TRADITIONAL METRICS• Story point burndown • Earned Value• Sprint burndown • Planned Value• Release burndown • Actual Costs• Velocity • Cost Variance• Story points completed • Schedule Variance• Running Tested Features (RTF) • Estimate at Completion• Business Value completed • Estimate to Complete• Work in progress • Performance Indexes: CPI; SPI• …….. • ……..Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 10
  11. 11. TYPES OF METRICS Productivity / Value Performance Predictability QualityLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 11
  12. 12. TYPES OF METRICS Productivity / Value Performance Predictability QualityLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 12
  13. 13. THE TRADITIONAL METRICSLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 13
  14. 14. EARNED VALUE MEASUREMENT• Creates an objective assessment of project status and likely outcome by measuring and reporting work accomplished.Message  I AM MEASURING WORK ACCOMPLISHED• EVM is about measuring project performance, comparing budgets to actuals in scope, schedule, and resourceMessage  I AM COMPARING BUDGETS TO ACTUALS• In the end, it’s not about value as “business value” – it’s value as in “actually done” – and the other nice word used for this is “earned”Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 14
  15. 15. 3 MAIN MEASUREMENTS Measurement Explanation Planned Value (PV) the amount of work planned to be accomplished Earned Value (EV) the value which is earned by the time the work is completed Actual Cost (AC) actual cost of work performed (money/hours)Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 15
  16. 16. COST VARIANCE FORMULA Explanation CV = EV - AC Tells me how many hours team is running behind or ahead the planned/budgeted hoursSHEDULE VARIANCE FORMULA Explanation SV = EV - PV Tells how many hours we are running behind or ahead the scheduleLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 16
  17. 17. PERFORMANCE INDEX NO. 1: CPI FORMULA Explanation CPI = EV / AC answers the question “are we spending more than we are creating”PERFORMANCE INDEX NO. 2: SPI FORMULA Explanation SPI = EV / PV answers the question “are we creating the value at the speed we expected?”Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 17
  18. 18. DEMONSTRATIONLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 18
  19. 19. PREREQUISITES FOR DEMONSTRATION• Earned Value will be measured at the very basic level – hours.• Scrum methodologyLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 19
  20. 20. 6 HOURS / DAY = 24 HOURS 1 2 3 4 5 6 7 8 9 10Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 20
  21. 21. Hours HoursDay Remaining Burnt 0 240 0 1 228 12 2 213 15 3 194 19 4 166 28 5 130 36 6 98 32 7 60 38 8 38 22 9 20 18 10 0 20Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 21
  22. 22. Actual Total Hours Hours Required Day Work Work EAC Remaining Burnt Burn Effort effortLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 22
  23. 23. Actual Total Hours Hours Required Day Work Work EAC Remaining Burnt Burn Effort effort 0 240 0 0 0 240 0Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 23
  24. 24. HOURS BURNED 4 HOURS TASK 1 6 ESTIMATED HOURS 2 REMAINING Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam tempus ACTUAL 6 WORK EFFORTLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 24
  25. 25. Actual Total Hours Hours Required Day Work Work EAC Remaining Burnt Burn Effort effort 0 240 0 0 0 240 0 1 228 12 24 24 252 24 TASK 1 6 TASK 2 12 TASK 3 6 2 6 4 Lorem ipsum dolor sit Lorem ipsum dolor sit Lorem ipsum dolor sit amet, consectetur amet, consectetur amet, consectetur adipiscing elit. adipiscing elit. adipiscing elit. Aliquam tempus Aliquam tempus Aliquam tempus 6 2x6 6Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 25
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  27. 27. Actual Total Hours Hours Required Day Work Work EAC Remaining Burnt Burn Effort effort 0 240 0 0 0 240 0 1 228 12 24 24 252 24 2 213 15 24 48 261 36Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 27
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  29. 29. Actual Total Hours Hours Required Day Work Work EAC Remaining Burnt Burn Effort effort 0 240 0 0 0 240 0 1 228 12 24 24 252 24 2 213 15 24 48 261 36 3 194 19 26 74 268 45Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 29
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  36. 36. Actual Total Hours Hours Required Day Work Work EAC Remaining Burnt Burn Effort effort 0 240 0 0 0 240 0 1 228 12 24 24 252 24 2 213 15 24 48 261 36 3 194 19 26 74 268 45 4 166 28 27 101 267 50 5 130 36 32 133 263 46 6 98 32 36 169 267 34 7 60 38 24 193 253 26 8 38 22 24 217 255 12Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 36
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  40. 40. Actual Hours Hours Total Work Required Day Work EAC Remaining Burnt effort Burn Effort 0 240 0 0 0 240 0 1 228 12 24 24 252 24 2 213 15 24 48 261 36 3 194 19 26 74 268 45 4 166 28 27 101 267 50 5 130 36 32 133 263 46 6 98 32 36 169 267 34 7 60 38 24 193 253 26 8 38 22 24 217 255 12 9 20 18 24 241 261 14 10 0 20 24 265 265 20Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 40
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  42. 42. TIME TO MAP AGILE WITH TRADITIONAL Measurement Agile explanation Value Planned Value Team’s capacity 240 hours (PV) Earned Value It is something be burn ∑Hours burnt (EV) Actual Cost (AC) Actual effort It is just the same!Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 42
  43. 43. Hours Actual Hours Day Remaini Work AC EAC PV EV CV SV CPI SPI Burnt ng = ETC Effort 0 240 0 0 0 240 0 0 0 0 1 228 12 24 24 252 24 12 -12 -12 0,50 0,50 2 213 15 24 48 261 48 27 -21 -21 0,56 0,56 3 194 19 26 74 268 72 46 -28 -26 0,62 0,64 4 166 28 27 101 267 96 74 -27 -22 0,73 0,77 5 130 36 32 133 263 120 110 -23 -10 0,83 0,92 6 98 32 36 169 267 144 142 -27 -2 0,84 0,99 7 60 38 24 193 253 168 180 -13 12 0,93 1,07 8 38 22 24 217 255 192 202 -15 10 0,93 1,05 9 20 18 24 241 261 216 220 -21 4 0,91 1,02 10 0 20 24 265 265 240 240 -25 0 0,91 1,00Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 43
  44. 44. EARNED VALUE 4 PLANNED TASK 1 6 VALUE ESTIMATE TO 2 COMPLETE Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam tempus ACTUAL 6 WORK EFFORTLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 44
  45. 45. HOURS BURNED 4 HOURS TASK 1 6 ESTIMATED HOURS 2 REMAINING Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam tempus ACTUAL 6 WORK EFFORTLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 45
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  58. 58. Total Hours Actual Hours WorkRemaining Work EAC PV EV CV SV CPI SPI Burnt effort = = ETC Effort AC 240 0 0 0 240 0 0 0 0 228 12 24 24 252 24 12 -12 -12 0,50 0,50 213 15 24 48 261 48 27 -21 -21 0,56 0,56 194 19 26 74 268 72 46 -28 -26 0,62 0,64 166 28 27 101 267 96 74 -27 -22 0,73 0,77 130 36 32 133 263 120 110 -23 -10 0,83 0,92 98 32 36 169 267 144 142 -27 -2 0,84 0,99 60 38 24 193 253 168 180 -13 12 0,93 1,07 38 22 24 217 255 192 202 -15 10 0,93 1,05 20 18 24 241 261 216 220 -21 4 0,91 1,02 0 20 24 265 265 240 240 -25 0 0,91 1,00Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 58
  59. 59. SPI < 1 means behind schedule (EV < PV) CPI < 1 means over budget (EV < AC)SPI = 1 means on schedule (EV = PC) CPI = 1 means on budget (EV = AC)SPI > 1 means ahead of schedule (EV > PV) CPI > 1 means below budget (EV > AC) Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 59
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  61. 61. TRADITIONAL AND AGILE PERFORMANCE METRICS Ideal Ideal Hours Actual Total Requir Hours daily HoursDay Remaini Work Work EAC ed PV EV CV SV CPI SPI Burnd hours Burnt ng Effort effort Burn own burn 0 240 240 240 0 0 0 240 0 0 0 0 0 1 216 24 228 12 24 24 252 24 24 12 -12 -12 0,500,50 2 192 24 213 15 24 48 261 36 48 27 -21 -21 0,560,56 3 168 24 194 19 26 74 268 45 72 46 -28 -26 0,620,64 4 144 24 166 28 27 101 267 50 96 74 -27 -22 0,730,77 5 120 24 130 36 32 133 263 46 120 110 -23 -10 0,830,92 6 96 24 98 32 36 169 267 34 144 142 -27 -2 0,840,99 7 72 24 60 38 24 193 253 26 168 180 -13 12 0,931,07 8 48 24 38 22 24 217 255 12 192 202 -15 10 0,931,05 9 24 24 20 18 24 241 261 14 216 220 -21 4 0,911,02 10 0 24 0 20 24 265 265 20 240 240 -25 0 0,911,00Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 61
  62. 62. SO IN THE END…Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 62
  63. 63. TO SUM UP – IT IS POSSIBLE TO MAP! TRADITIONAL AGILE Teams tend to earn things Teams tend to burn things Planned value (PV) Team’s capacity (TC) Earned value (EV) Burned value (BV) Actual cost (AC) Actual cost (AC) Estimate to Complete (ETC) Remaining Hours Estimate at Completion = AC + ETC EAC = AC + Remaining HoursLaimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 63
  64. 64. THOUGHTS TO CONSIDER• Why not measure the value using story points instead of hours? Story points have much more to do with value than hours;• How do we report the whole project and not the iteration?• What about Earned Value Management and Business Value Management?Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 64
  65. 65. Thank You October 15, 2012 65
  66. 66. Laimonas Lileika | Agile Tour Vilnius 2012 October 15, 2012 66

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