Agile

1. Agile Financial Operations
Stephen Milligan CPA PMP CSP

2. Financial
Management
Funding
Operation
s
Budgetin
g and
Cost
Accountin
g
Performanc
e
Manageme
nt
Reporting
and
Complianc
e

3. Where do
these
functions
currently
reside in Agile
environments?
Finance
Departmen
t
Project
Managers/PMO
Line Management

4. Impacts
Continuation of
Command and Control
environment
Higher
Costs
Mixed messages to
teams?

5. Agile
Financial
Hierarchy
Establish and Align Organizational Objectives and Key
Results
Define
Deliverables/Targets
Establish Delivery Team and Preliminary
Budget
Build Prioritized Product
Backlog
Model Value
Stream(s)
Create Forecasting
Models
Develop Release
Plan
Agile
Delivery

6. Establish and
Align
Organizational
Objectivesand
KeyResults
(OKR)
OKR (Objectives and Key Results) is
a goal
system used by Google and
others.
OKRs are frequently set, tracked,
and re- evaluated – usually quarterly.
OKRs target bold, ambitious goals
enabling teams to set challenging
goals.
A proper goal has to describe both what you
will achieve and how you are going to
measure its achievement.

7. OKRS
Objective: Increase user base
Key Results:
•Increase per day views to 1,000
•Total monthly unique views 45,000
Objective: Get validation that software is useful from
users
Key Results:
● Increase upgrade conversion rate to 10%
● 70% of newly acquired users answer survey
questions
Objective: Improve infrastructure
Key Results:
●Automate builds using Jenkins functionality O
Reduce time to deploy by 50%

8. Identify
Deliverables/Targets
• Work Breakdown Structure – defines what
must be created
• WBS Dictionary – documents the
detailed
definition of done for deliverables
• Options should be documented if
possible
• RACI information should be recorded
for each deliverable

9. RACI
• Who is Responsible for this
deliverable?
• Who is Accountable for this
deliverable?
• Who should be consulted regarding
this
deliverable?
• Who should be informed regarding
this deliverable?

10. Work Breakdown for Web
Project
WBS Dictionary
Deliverable Feature Value Acceptance Criteria RACI Need By
Date
Product
Backlo
g
Code
Registration Page $ 100,000.00
Create User ID and Password A1
Facebook Option A2
Google Option A3
Accept Payments $ 200,000.00
Visa, Master Card, AMEX B1
PCI Compliance B2
Secure storage B3
Support scanners for
attendance
$ 50,000.00
Physical scanner C1
Cell phone QR scanner C2

11. SetTeamand Initial Budget
01
Determine
which team
member roles
will be needed
to create
deliverables.
02
Understand
team run rate
(how much the
team will cost
per unit of
time)
03
Associate funding
with activity levels
04
Conduct interim
reviews and
adjust
accordingly

12. Element Data
Project name: Project name
Project#: xxxxx
Year: 2013
Expense Capital
Requested 0 0
Approved 0 0
Name Function Rate
Resource 1: Name 1 Function 100
Resource 2: Name 2 Function 100
Resource 3: Name 3 Function 100
Resource 4: Name 4 Function 100
Resource 5: Name 5 Function 100
Resource 6: Name 6 Function 100
Resource 7: Name 7 Function 100
Resource 8: Name 8 Function 100
Resource 9: Name 9 Function 100
Resource 10: Name 10 Function 100
Resource 11: Name 11 Function 100
Sample blank team budget
spreadsheet

13. Establish
Prioritized
Product
Backlog
Execution teams lead
backlog creation
Backlog items are keyed
to deliverables
Compliance functions
are engaged!
PO plays traditional role
in prioritization

14. TheWorld
WeLive In
V -
volatile
U -
uncertai
n
C -
comple
x
A –
ambiguou
s

15. Model ValueStream and Create Forecasts
1
Create a
Business
Process
Model
2
Document
value
stream(s)
3
Identify
where
variation may
occur
4
Use this
model to
forecast
dates and
costs

16. Process Model Based Forecast
Examples
Fixed $ 0.60 $ 0.03 $ 1.00 $ 0.37
Variable $0.691 $0.044 $0.982 $0.247
Price Range .55 to .70 .02 to .045 .92 to 1.05
St Dev 0.049
Min $ 0.262
Max $ 0.433
Monte Carlo
$ 0.646 $ 0.033 $ 1.037 $ 0.358
$ 0.653 $ 0.040 $ 1.041 $ 0.348
$ 0.690 $ 0.040 $ 1.011 $ 0.281
$ 0.567 $ 0.030 $ 0.994 $ 0.397
$ 0.632 $ 0.044 $ 0.938 $ 0.262
$ 0.575 $ 0.042 $ 1.031 $ 0.413
$ 0.634 $ 0.030 $ 0.982 $ 0.318
$ 0.568 $ 0.038 $ 1.038 $ 0.433
$ 0.681 $ 0.042 $ 1.037 $ 0.314
$ 0.654 $ 0.028 $ 0.992 $ 0.310
$ 0.625 $ 0.022 $ 1.009 $ 0.362
$ 0.626 $ 0.033 $ 1.004 $ 0.345
Buy Apples Sell Apples Profit
Purchase
Price
+ Transportation
Cost Sales
Price
Net Profit
Statistics
Mean $ 0.345
Scatter Chart
$0.500
$0.450
$0.400
$0.350
$0.300
$0.250
$0.200
$0.150
$0.100
$0.050
$-
0 2 4 6 8 10 12 14

17. Rang
e
.2 to.5
days
0.0312 to
0.0625
1 to 5
days
1 to 5
days
1 to 2
days 20 to
50%
.5 to 1
day
.2 to.3 .5 to 1
day
.1 to.25
5 to 7
hours
Estimate 0.45 0.04 2.17 1.33 1.86 0.3
1
0.2
4
0.2
2
0.4
1
0.4
3
0.2
3
0.2
1
0.3
9
0.2
1
0.2
3
0.2
3
0.2
1
0.2
0.94 0.24 0.87 0.11 5.79 10.15 Min 6.90
0.29 0.05 1.18 2.55 1.53 0.81 0.23 0.67 0.13 6.15 8.87 Max 16.66
0.32 0.05 2.60 1.19 1.37 0.72 0.23 0.84 0.25 5.50 10.19 Mean 12.36
0.41 0.06 3.04 2.06 1.60 0.71 0.28 0.63 0.13 6.21 10.95 Std dev 2.54
0.24 0.03 2.70 4.36 1.82 0.54 0.26 0.62 0.19 6.06 13.81
0.24 0.03 4.06 3.86 1.57 0.65 0.28 0.53 0.14 6.11 14.21
0.48 0.06 2.54 1.69 1.45 0.71 0.27 0.86 0.18 5.59 10.98
0.42 0.04 2.50 3.30 1.36 0.74 0.21 0.61 0.24 5.81 12.38
0.31 0.04 2.55 4.17 1.81 0.85 0.20 0.99 0.24 5.69 14.77
0.42 0.04 4.68 4.85 1.64 0.71 0.27 0.92 0.14 6.49 16.18
0.44 0.04 1.50 2.93 1.84 0.82 0.29 0.67 0.22 5.34 12.16
0.28 0.06 1.77 4.46 1.01 0.64 0.22 0.64 0.17 5.81 12.05
0.41 0.03 2.26 1.03 1.02 0.68 0.21 0.65 0.15 6.88 6.90
0.48 0.05 3.73 4.95 1.27 0.94 0.23 0.89 0.19 6.26 15.60
0.50 0.03 3.76 3.58 1.92 0.98 0.25 0.77 0.21 5.49 16.66
0.40 0.06 3.13 3.15 1.01 0.54 0.28 0.69 0.21 6.25 11.74
0.20 0.05 3.71 4.43 1.31 0.89 0.26 0.86 0.23 6.75 13.51
0.30 0.05 2.06 2.17 1.24 0.57 0.25 0.61 0.11 5.22 10.77
0.28 0.05 1.69 1.85 1.92 0.75 0.24 0.77 0.16 6.49 9.01
0.42 0.04 1.08 4.99 1.40 0.54 0.25 0.74 0.18 5.58 13.42
0.29 0.03 3.40 4.64 1.75 0.52 0.21 0.56 0.19 5.91 15.22
Value
Strea
m
BA prep
user
story
Refin
e
with
team
Select
for
Sprint
backlog
Develo
p
story
Test
story
Bug freq Bug fix
Deploy
and
Integrat
e
Bug fix
Deploy
and
Releas
e
workin
g day
Total
elapse
d time
Forecastwithout DevOps

18. 0
1
2
3
4
5
6
7
8
7.9 to
8.9
9 to
9.99
10 to
10.99
11 to
11.99
12 to
12.99
13 to
13.99
14 to
14.99
15 to
15.99
16 to
16.99
17 to
17.99
18 to
18.99
Story Completion Forecast
How Many Days Will It Take to Complete Each User story
(per FTE)

19. Plansbased
on averages
are wrong on
average
Value stream mapping is a lean
management tool that helps visualize
the steps needed to take from product
creation to delivering it to the end-
customer.
Schedule management activities should
focus on identifying and removing lean
waste (over- processing, overproduction,
waiting, inventory, rework, movement and
transportation)
Plans should be based on the probable
range of outcomes.

20. GoodReference

21. Develop ReleasePlan
Use prioritized
product backlog and
forecast results to
create a realistic
release plan.

22. Agile Delivery
Team
create
s estimates
Definition of done
includes
compliance
Agile EVM used
to
track results

23. Agile EVM
• Agile Earned Value management
• Analysis combines Deliverables (WBS), Product Backlog and,
Release Plan
• Release plan documents the order in which deliverables are
expected and thereby Planned Value
• Value is earned when Deliverables/Features are completed according
to the definition of done.
• The Release burn down/up is used to identify potential schedule
variance

24. Earned Value Analysis for Web Project
WBS Dictionary Sprint
Completed
Earned
Value
Number of Sprints
x
Run Rate (AC)
Cost
Variance
Schedule
Variance
Deliverable Feature Value Acceptance
Criteria
RACI
Produc
t
Backlo
g Need By Date
Code
Registration Page
Create User ID and
Password Facebook
Option
Google Option
$100,000.00
50000
30000
20000
5/1/2019
A
1
A
2
A
3
4 $
6 $
8 $
50,000
30,000
20,000
$
$
$
44,000
22,000
22,000
$
$
$
6,000
8,000
(2,000
)
Accept Payments
Visa, Master Card,
AMEX PCI
Compliance
Secure storage
$200,000.00
100000
55000
45000
7/1/2019
B
1
B
2
B
3
14 $
17 $
100,000
55,000
$
$
110,400
55,200
$
$
(10,400)
(200)
Support scanners for attendance
Physical scanner
Cell phone QR scanner
$ 50,000.00
25000
25000
9/30/2019
C
1
C
2
Team run rate per 2 week
Sprint
$ 11,000

25. Important
R
equired
Changes
• Agile team participation begins in the
budget process
• PO participates in project/product
inception phase
• Deliverables identified and documented
up front
• Forecasts are based on business process
models
• Compliance is engaged early in the process
• Agile EVM is used to track/report on project

26. Questions?
Steve@agilious.com