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Successfully Integrating Agile and Earned Value

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Increasing the Probability Program of Success (PoPS) by “Connect the dots” between Agile development methods and Earned Value Management.

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Successfully Integrating Agile and Earned Value

  1. 1. 1PMSC Quarterly Meeting, February 1–2, 2011,Fort Worth, TexasGlen Alleman – Lewis & FowlerMartin Radley – Carnegie Mellon Silicon ValleySUCCESSFULLYINTEGRATING AGILEWITH EARNED VALUEMANAGEMENTIncreasing the Probability Program of Success (PoPS) by “Connect the dots”between Agile development methods and Earned Value Management.
  2. 2. An Opening Thought†2 † Integrating Risk Management with Earned Value Management, NDIA, http://www.ndia.org/Divisions/Divisions/Procurement/Documents/PMSCommittee/CommitteeDo cuments/WhitePapers/Integrating_RM_with_EVM.pdf
  3. 3. A Sobering Fact For Software Intensive Defense Programs†3  In 115 of the 155 projects  135 believed that project (surveyed), project managers did management processes were not know what to do. flawed.  120 project managers  140 thought the Project overlooked the need to Managers goal was something implement a project other than the success of the management principle. project.  125 allowed constraints to be  145 said policies and imposed from higher levels that procedures prevented them from prevented them doing what they doing what they knew they know they should have done. should be doing.  130 did not believe that formal  150 said statutes prevented project management principle them from doing what they knew added any value. they should do. † "The core problem of project failure," by T. Perkins., CrossTalk, The Journal of Defense Software Engineering. Vol. 3, 11, p. 17. June 2006.
  4. 4. We’ve Down This Road Before …4 Develop
  5. 5. Now Is There Any Question Why We Need A Better Approach?5
  6. 6. Core Principles for “Connecting the Dots”6 Earned Value Management + Agile Measures of progress in units of Each iteration produces 100% “physical percent complete.” working products. Forecast of future performance Measure of performance in provided by past performance. units of product produced. A systems approach to the Increasing fidelity of product development of products and and problem understanding connecting Cost, Schedule, and takes place after each iteration Technical Performance. and release.
  7. 7. The Starting Point For Agile …7
  8. 8. We’ve All Seen This Before On Our Programs That Follow Strict EVMS†8 † John Rusk’s www.agilewiki.com
  9. 9. 12 Principles of the Agile Manifesto9
  10. 10. Key Imperatives For Any Project, No Matter What Management Method10  Increase delivered value to the customer.  Units of measure must be meaningful to all participants  Manage process and product risk as one.  Defined requirements match needed capabilities,  Measure of Effectiveness = Measures of Performance.  Proven Success using Agile approaches:  Involve the customer throughout,  First release shouldn’t be a surprise for customer.  Regular feedback + accurate status reporting,  Closed loop, flexible, responsive: enabling change.  Defer decision making to latest responsible moment,  Don’t try to decide everything up–front.
  11. 11. When We Say “Agile” What Do We Really Mean?11  Agile development?  Emerging requirements, implemented in iterations of 100% working solutions  Agile Project Management?  Management processes emerge in response to project needs.  Lean?  6 style management  Process improvement style management  Lean and Agile acquisition and systems engineering?  Defense AT&L, November–December 2010
  12. 12. Some Information Turns Out To Be Misinformation12 Popular Myths of Traditional Actual Fact in DoD Acquisition Methods (Agile’s Foil) † Assume all aspects can be 5000.02 incremental milestones with IMP defined prior to the start of work Events, Accomplishments and Criteria Requirements are frozen Rolling waves within each milestone Change is discouraged Change managed as capabilities evolve Not good at managing the DoD defines technical and programmatic unknown risk management Provides comfort in a Plan IMP / IMS evolves with rolling waves Probabilistic risk management with Uncertainty begets uncertainty specific handling strategies † Borland Agile briefing, and typical of the Agile Community
  13. 13. Provide managers with information at a practical level of summarization Relate time phased Alert project budgets to specific managers to potential contract tasks schedule and cost risk Enable statistical Provide a estimation of documented project completion costs performance trail Track and monitor Provide quantitative discrete project data for decision metrics making Communicate project status13
  14. 14. Our Path Forward For Today14  The core principles of using Agile on EVM programs.  We have everything we need for success, but we need to connect the dots.  Earned Value criteria  Agile software development methods  Technical Performance Measures  How does Agile connect with EVM?  Principles of EV and Agile.  The acquisition lifecycle.  The Agile lifecycle.  Joining these two.  Takeaways
  15. 15. What’s The Current State of EV?15  Program Managers many times make decisions on 45 day old data.  No “official” connection to product quality, technical performance, or fulfilled capabilities.  Even though the connection was there in C/SCSC, circa 1984.
  16. 16. We Have The DoD Lifecycle And It’s Iterative and Incremental – Sort Of16
  17. 17. We Can Connect Agile With Earned Value Program Management Activities17 CAMs Work Packages Program Teams Rolling Waves Program Program Events
  18. 18. 18 11 EVM Criteria and Agile Starting with the 32 criteria, let’s use the core 11 criteria to connect with Agile. Let’s look at of the details of these 11 criteria.
  19. 19. Our Path Starts With The 32 Criteria Of ANSI / EIA–748–B19  The 32 EVM Criteria are all designed to deliver value.  These 11 are the basis of “connecting the dots.”
  20. 20. Here’s A Quick Look at the Connections20# EVM Criteria Agile Approach1 Define WBS Features and Stories define tasks2 Identify Organization Self organizing teams5 Integrate WBS and OBS Self organized teams with a customer6 Schedule Work Iterations and Releases7 Identify Products & Milestones Working software at the end of iterations8 Set time phased budget Fixed length iterations and releases16 Record direct costs Fixed staff = Level of Effort23 Determine variances Velocity measures missed features25 Sum data and variance Missed features moved to next iteration26 Manage action plans Replan missed features, adjust velocity28 Incorporate changes Replan missed features, adjust velocity
  21. 21. A Take Away†21 † Integrating Risk Management with Earned Value Management, NDIA, http://www.ndia.org/Divisions/Divisions/Procurement/Documents/PMSCommittee/CommitteeDo cuments/WhitePapers/Integrating_RM_with_EVM.pdf
  22. 22. Our Final Message22
  23. 23. 2.1.a: Define Authorized Work Elements 23Define the authorized work elements for the program. A work breakdown structure(WBS), tailored for effective internal management control, is commonly used in this process. EVMIG Objective Evidence Agile Objective Evidence for EV Work Breakdown Structure (WBS).  Road Map & Release Plan consisting of Capabilities, Product Backlog & Iteration Backlog. WBS dictionary (may or may not be used, but  WBS dictionary: agile user stories are a method to reconcile the statement of work deliverables that you can measure “done” for, to the WBS structure must be demonstrated). therefore user stories satisfy wbs dictionary.
  24. 24. 2.1.b: Identify Program Organizational Structure 24Identify the program organizational structure, including the major subcontractors responsible foraccomplishing the authorized work, and define the organizational elements in which work will beplanned and controlled. EVMIG Objective Evidence Agile Objective Evidence for EV Organization Breakdown Structure (OBS).  CAM just builds a team as usual, but the team needs to be persistent, and not interchangeable parts. OBS intersections with the WBS.  Team hierarchy definition with resources associated with their sub–teams.  Done at the level of granularity to support the basis of estimate (BOE).  Persistent teams are needed to apply throughput benchmarks to product backlogs to validate plans.
  25. 25. 2.1.e: Integrate WBS and OBS 25Provide for integration of the program work breakdown structure and the program organizationalstructure in a manner that permits cost and schedule performance measurement by elements ofeither or both structures as needed. EVMIG Objective Evidence Agile Objective Evidence for EV Control accounts.  Evidence that the CA meets the 90% discrete work rule.  Defend schedule & cost performance at the CA level?  Agile CA = one release.  Actuals captured at the story level. Responsibility Assignment Matrix (RAM).  Done at too high a level for the SW development approach to make a difference. Contract Performance Reports (CPRs), if  Given an objective of X stories in iteration Y, applicable. completed stories are earned; all unearned return to backlog and a new ETC is developed from the benchmarks & backlog.
  26. 26. 2.2.a: Schedule the Work26Schedule the authorized work in a manner which describes the sequence of work and identifiessignificant task interdependencies required to meet the requirements of the program. EVMIG Objective Evidence Agile Objective Evidence for EV Integrated network schedules including master,  CAM’s agile roadmap becomes the auditable intermediate (if any), and detailed schedules. intermediate schedule demonstrating significant accomplishments (SA). MRP or ERP schedules, or planned order  Each task in IMS has associated resources. reports. Control account plans (may be separate plans  CAM creates schedules compliant to DCMA or detail schedules). 14 point assessment. Work authorization documents.  Nothing different.
  27. 27. 2.2.b: Identify Products and Milestones 27Identify physical products, milestones, technical performance goals, or other indicators that will beused to measure progress. EVMIG Objective Evidence Agile Objective Evidence for EV Integrated schedules including master,  Agile dev performance reporting follows the intermediate (if any), and detailed schedules approved program system description that identify contract milestones and key  Apportioned technical performance milestones events. to reduce risk & roll up intermediate technical performance. MRP or ERP production planned order reports.  Not relevant to sw development. Control account plans (may be separate plans  Not relevant to sw development because we or detail schedules) are reporting tasks as physical % complete, which will automatically roll up.
  28. 28. 2.2.c: Set Time Phased Budget 28Establish and maintain a time–phased budget baseline, at the control account level, against whichprogram performance can be measured. Initial budgets established for performance measurementwill be based on either internal management goals or the external customer negotiated targetcost including estimates for authorized but undefinitized work. EVMIG Objective Evidence Agile Objective Evidence for EV Control account plans.  Time phased budget created for the current iteration(s) and future work. Summary level planning  Agile summary level planning documented in road map. packages. Comprises capabilities, features and stories  Agile planning packages driven by persistent teams with proven benchmarks. Performance Measurement  Is there a target threshold for future work as described in a baseline. PMB? Within 10% OTB? Undistributed budget logs.  Does this have anything to do with SW dev approach? Notification to the customer of  Does this have anything to do with SW dev approach? an over–target baseline. Work authorization document.  Does this have anything to do with sw dev approach?
  29. 29. 2.3.a: Record Direct Costs 29Record direct costs in a manner consistent with the budgets in a formal system controlled by thegeneral books of account. EVMIG Objective Evidence Agile Objective Evidence for EV Reconciliation of project costs with the  CAM would follow program direction on accounting system. these.  These are not impacted by sw dev approach Actual costs are reported at the control  Not impacted by SW development account level at a minimum. approach. Reconciliation of subcontract reported actual  Not impacted by SW development costs to subcontract payments. approach. Internal and external performance reports for  Not impacted by SW development subcontractors. approach. Subcontractor control account plans, when  Not impacted by SW development utilized. approach.
  30. 30. 2.4.b: Determine Variances 30Identify, at least monthly, the significant differences between both planned and actual scheduleperformance and planned and actual cost performance, and provide the reasons for the variancesin the detail needed by program management. EVMIG Objective Evidence Agile Objective Evidence for EV Variance analyses (budget based schedule  Can track & report variances per the variances and cost variances). approved program system description Management action plans.  Actionable recovery plans per issue. Updated schedule task completion and cost–  Scrum Agile has a POD and Plan for at–completion forecasts. Iteration.  CAM’s monthly EAC reporting follows the approved program system description Project schedules and schedule analysis  PM tracks the dynamic backlog, which will go outputs. up and down based on sponsor feedback
  31. 31. 2.4.d: Summarize Variances 31Summarize the data elements and associated variances through the program organization and/orwork breakdown structure to support management needs and any customer reporting specified inthe project. EVMIG Objective Evidence Agile Objective Evidence for EV Variance analyses.  There is nothing in Agile’s approach to SW development that precludes reporting variances at the WP level.  Agile is more dynamic than EVM so variances are less the issue than the evolving baseline, as approved in governance. The sponsor will want to track accumulating business value and variances to total product needs. Schedule and cost performance  Similar – but measures of performance not usually in reports. dollars Management action plans.  Similar – but less formal. Collaborative discussion of what actions to take include the customer. Updated schedule and cost  Similar – but less formal. Planning processes include the forecasts. customer.
  32. 32. 2.4.e: Implement Management Plan 32Implement managerial action taken as the result of earned value information.EVMIG Objective Evidence Agile Objective Evidence for EV To–Complete Performance  TCPI = Work Remaining / Cost Remaining ((BAC – BCWPcum) / Index (TCPI). (EAC – ACWPcum)). In Agile, work remaining is the product backlog. Backlog is BAC – BCWP. Independent completion  No longer used in 2010 estimates. Risk management data  Qualitative Risk Burn–down Chart (risk rating) and similar metrics. Management action plans  Agile approach called Commitment Based Planning – where the and review briefings. SCRUM team makes and meets its time phase BCWS commitments.  Any team, when behind, gives voice to the customer when evaluating/reweighting the triple constraint. Variance analyses.  This is an issue of cost mgmt and system description would define when and where team members would bill
  33. 33. 2.5.a: Incorporate Changes (1)33Incorporate authorized changes in a timely manner, recording the effects of such changes in thebudgets and schedules. EVMIG Objective Evidence Agile Objective Evidence for EV Contractual change documents.  Bug reports, new user stories, but not necessarily cost sized.  User stories above baseline are tracked as new scope (with a valid BOE) and require BCWS Change control logs (management reserve,  New or materially altered features or stories are undistributed budget, performance changes. measurement baseline, and contract budget base). Control account/work package/planning  Product and iteration backlogs are frozen during package plans. the development period
  34. 34. 2.5.a: Incorporate Changes (2) 34Incorporate authorized changes in a timely manner, recording the effects of such changes in thebudgets and schedules. EVMIG Objective Evidence Agile Objective Evidence for EV Master schedules, intermediate schedules  Iterations and evolutionary planning at the (if any), and detailed schedules. detailed levels merges with the end to end planning for agile. Statement of work, WBS, and WBS  Customer owner and Planning processes identify dictionary. requires work and its description. Work authorization documents.  Planning sessions, authorize a set of Stories to be developed during the iteration. Management reports (contract  Big Visible Charts, “sticky notes” display performance reports or other applicable progress to plan for the agile team. management reports).

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