This document discusses integrating earned value management (EVM), systems engineering, and Agile practices for program success. It outlines six steps for setting up an Agile program that is compliant with EVM validation: 1) establish an Epic-level product roadmap, 2) establish a product backlog and release plan, 3) conduct release planning, 4) assess capacity versus demand, 5) repeat planning until balanced, and 6) execute sprints. Integrating these frameworks creates the structures, artifacts, and information flows needed to execute a program from contract award through closeout.

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EVM World 2016
Setting up the Agile Program for EVM Compliant Validation, using
the Principles of Agile Systems Engineering
Dr. AnnMarie L. Oien
Lockheed Martin Space Systems Company
303.971.9285
annmarie.oien@lmco.com
Glen B. Alleman
Niwot Ridge LLC
303.241.9633
glen.alleman@niwotridge.com

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Opening
• Why are we here?
– Guidance exists on setting up EVMS, Systems
Engineering, and Agile activity for the program
– How do we relate the EVM, Systems Engineering,
and Agile artifacts to each other for program success?
• What will we learn?
– How to get from a DFARS contract award to active
Agile software development
• Why is this important?
– Integration of EVM, Systems Engineering, and Agile
creates framework for success
• What can we do with this knowledge?
– Execute a program from startup to closeout that
integrates EVM, Systems Engineering, and Agile that
increases the probability of success.

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Framing Assumptions†
• We work EIA-748-C programs
– We are adding Agile to those programs
– Agile is a SW Development method used on EIA-748-C
programs
• We work FAR 15 programs that have been awarded from our
Proposal that included using Agile
– Possible from an RFP that called out using Agile and EVM IAW
FAR 34.2/DFARS 234.2
• Capabilities Based Planning is the paradigm for Agile+EVM
– I need the Capability to fly 4 astronauts to ISS, stay 6 months
and come back safely
• Systems Engineering framework provides measures
meaningful to the decision maker
– MOE, MOP, TPM, KPP
• BOE’s are provided in Dollars and Hours
– Story Points are not in the IPMR
† “Identifying Acquisition Framing Assumptions Through Structured Deliberation,” Rand Corporation

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Artifacts of Success
• Program
– The Performance Measurement Baseline
contains all elements of the program’s work
needed for success
• Systems Engineering
– Traceable product decomposition to
measures of Effectiveness and Performance
• Agile Success
– Operational integration of the Program and
Systems Engineering for Agile Software
Development

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Artifacts for Program Success
Risk
SOW
Cost
WBS
IMP/IMS
TPM
PMB
❺ Deliverables defined in
the SOW, traced to the
WBS, with narratives and
Measures of Performance
(MoP)
❹ BCWS at the Work
Package level, rolled to the
Control Accounts showing
cost spreads for all work in
the IMS
❻ Measures of Performance
(MoP) for each critical
deliverable in the WBS and
identified in each Work
Package in the IMS, used to
assess maturity in the IMP
❶ The Products and Processes
in a “well structured”
decomposition, traceable to
customer’s needed capabilities
❷ IMS contains all the
Work Packages, BCWS,
Risk mitigation plans,
with traces to the IMP
measuring increasing
maturity through
Measures of
Effectiveness (MoE) and
Key Performance
Parameters (KPP)
❸ Technical and Programmatic Risks
Connected through the WBS, Risk
Register, IMP and IMS
The PMB is the Document of
Record for the Program
Performance is Measured
through the PMB
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The Reason to Integrate Agile & EVM
is Systems using EVM are Linear

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What is Agile in the Context of Software
Development?
Early and
Continuous Delivery
of Value
A Working System is
the Primary
Measure of Progress
Changing
Requirements are
Welcome
Frequent Delivery of
the Working System
Business People and
Developers Work
Together Daily
Individuals are
Motivated and
Empowered
Conversations are
Face-to-Face
Sustainable
Development is
Promoted by
Leadership
Continuous
Attention to
Technical Excellence
Simplicity in All
Things
Architecture,
Requirements, and
Designs Emerge
from Self-Organizing
Teams
Teams Regularly
Reflect on How to
Be More Effective

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Artifacts for System Engineering Success
Using Agile
Assembly, Test,
and Delivery
System
Architecture &
Capabilities
Iterative Agile Development
Emergent Design within the
Architecture
Requirements Derivation from
the Capabilities
KPPs
Operational
MOPs
Functional
TPMs
MOEs
Operational
Delivery &
Acceptance
Integration
Verification
Validation
Agile Development within Framework

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Artifacts for Agile Success
plan
demo
plan
demo demo
Capabilities
define
Requirements
Epic
Features
Stories
Product &
Release
Planning
Prioritizes
and assigns
Features to
Releases &
Stories to
near-term
Sprints
Near Term
To-do’s
SOW
IMP
Product
Roadmap
IMS PMB
Prioritized Product Backlog
Prioritized Sprint Backlog
Sprint Planning
Release Planning
Product
Backlog
plan
Sprint Backlog
CWBS

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Six Steps to Baselining the PMB
when Using Agile
Using the IMP when available
1. Establish Epics-level Product Roadmap based on needed
capabilities
Using the CWBS
2. Establish Product Backlog and Release Plan of Epics & Features
3. Conduct first Release Planning event: Decompose Features into
Stories, size work effort in Story Points or Hours, form prioritized
Sprint Backlog, assign stories to near-term Sprints.
4. Assess the capacity for work in the Cadence Release and Sprint:
more than demand for work in the Release/Sprint?
5. Repeat Steps 3 and 4 until demand equals release capacity for all
the Features in the Product Backlog and for all Stories in the Sprint
Backlog.
6. Execute the Sprint to produce deliverables in the CWBS
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1. Establish Epic-level Product
Roadmap based on needed capabilities
• The Product Roadmap is:
– Defined by the contract deliverables.
– Defined by the sequence of needed capabilities in the SOW,
SOO, and ConOps.
– Defined by interdependencies between parallel work streams
and externalities of the deliverables
• Each Epic spans one or more cadence releases to
produce the outcome capabilities.
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The Product Roadmap is the high-level view of what the project team intends
to deliver when for the most valuable product delivery. The Product Roadmap
provides only the high-level Epic view of the product being built. It does not
provide the Release Product Backlog or short term, more detailed view that
teams use to drive the work that occurs within a Cadence Release. †
† Agile Estimating and Planning, Mike Cohn, Pearson Education, 2006

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Product Roadmap
Epic A
ATP
Complete
Epic B
Epic C
Epic D
Customer Release 1
Epic A&B
Customer Release 2
Epic C&D
Program
Increment
Program
Increment
Program
Increment
Program
Increment
Program
Increment
Program
Increment
Cadence Release Calendar:

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2. Establish Product Backlog and
Release Plan of Epic-traceable Features
• The Product Backlog is:
– Defined by the contract deliverables.
– Traceable to the CWBS
– Defined by the sequence of needed capabilities in the SOW, SOO, and
ConOps.
– Defined by interdependencies between parallel work streams and
externalities of the deliverables
– Defined by acceptance criteria or Agile’s “Definition of Done”
• Each Feature spans multiple iterations within a cadence release to
produce the outcome Feature capabilities within an Epic.
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The Release Plan is the high-level view of how the project team intends to
deliver the most valuable product they can. The Release Plan provides only the
high-level view of the product being built. It does not provide the short term,
more detailed view that teams use to drive the work that occurs within a
Sprint. †
† Agile Estimating and Planning, Mike Cohn, Pearson Education, 2006

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Product Backlog
• Prioritized Features for Program
• Prioritized Stories for Cadence Release
Prioritized Product Backlog
Prioritized Sprint Backlog
Product Planning Assigns to Cadence #
Sprint Planning Assigns to Sprint # within Cadence

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Connecting the Dots Between Measures of Performance
WBS
Programmatic
KPPs TPMs
EVM
ETC
EAC
MoE
MoP
Technical and
Programmatic Risks
PE
SA
AC
KPP
Capabilities,
Epics, and
Features
Integrated
Master
Schedule
WP/PP
Product
Backlog
Physical Percent Complete
Features produce working products
measured at Month End for IPMR
EV EngineAgile Tool
Scheduling Tool

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3. Conduct Release Planning: Decompose
Features into Stories, size & prioritize
• Features deliver WBS products and services through Stories
that produce needed capabilities for the program.
• Team lays out out the Features and Stories against the WBS
product and services
• Team places highest priority, nearest term Stories into the
Sprint Backlog for first 1-2 Sprints of the Release
• Each Story
– Produces a single outcome to implement the Feature
– Takes 3-10 working days to complete – choose granularity of >3
Stories per Sprint (10-20 days’ length) for fast progress feedback
– Once100% complete, no revisiting the Story
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Requirements churn is a problem in Agile just as it is in Traditional projects. Tracked
through Sprint and Product Backlog Grooming, prioritization, tracing to CWBS

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4. Assess Capacity for Work Against
Estimated Demand for Work
• Compare demand for work against capacity for work
– Avoid assuming 100% capacity utilization; exponentially
increases work cycle times in product development
projects. Guidance suggests start at 80% and monitor.
• Assure sufficient capacity for the demand before
proceeding
• If demand higher than capacity, re–plan work to level
demand
• The Grooming of the Backlog is critical to controlling
the progress to plan
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Using the Closed loop control system of demand for work versus capacity for work
is performed on a weekly sampling basis. Watch for bow waves rising in Agile also.

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5. Repeat 3 and 4 Until Resources are
Balanced with Demand
• With available resources assess capability for work against the
demand for deliverables in the near and longer term
• In Agile Scrum, planning is one Sprint ahead; in Agile SAFe®,
planning is 1-2 Sprints ahead for Stories and 1 Cadence Release
ahead for Features
• In EVM based programs the PMB is for the entire Period of
Performance for the program. The Agile Product Roadmap spans
the program also
• Rolling Wave Planning is applied in the Integration of Agile with
EVM
• Increasing fidelity of Stories in Sprints and Features within
Releases is the basis for Rolling Wave Planning
Iterative assessment of demand and capacity for work assures performance of
the team can produce needed Capabilities as planned
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6. Execute the Sprints to produce
deliverables in the CWBS
• In standard Agile, Sprints are planned one at a time
– Sprints are planned for 10-20 work days each and fit inside the Cadence
Release Cycle, typically 3-6 Sprints
– Multiple Sprints form the Release
• Release develops – on time boxed cadence ‒ capabilities by a
needed milestone date
– One or multiple capabilities can be contained in a Release
– The capabilities can be demonstrated to or also delivered to a Customer
at a Release boundary
– Demonstration/Delivery is defined by the release business rhythm,
contractual obligations and Technical and Programmatic structure of
program
On Earned Value Management programs, BCWS is spread across Period of
Performance. Planning beyond one Sprint is needed to assure dependencies
identify and planned work meets needed scheduled deliveries of capabilities
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Measuring Physical Percent Complete

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Get off the Stage
• What did we learn?
– How we relate the EVM, Systems Engineering, and Agile
artifacts to each other for program success to get from DFARS
contract award to active Agile development
• Why is this important?
– Integration of EVM, Systems Engineering, and Agile creates the
framework for success
• What can we do with this knowledge?
– Execute a program startup within a framework and method that
integrates EVM, Systems Engineering, and Agile systems
• What can we do next?
– Build an integrated program framework for success: the
structures, artifacts, and information flows leveraging EVM,
Agile, and Systems Engineering practices

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