![Page 1: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/1.jpg)
Portfolio Management with AgileEVM
Getting to Value Faster
Brent Barton & Chris Sterling
![Page 2: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/2.jpg)
Brent Barton - AgileEVM Inc.President, AgileEVM Inc.
More than 15 years software development in many roles as both employee and consultant for organizations from small start ups to multinational corporations
Former CTO. Active Agile Coach, Mentor, Certified Scrum Trainer
Actively involved in Agile Rollouts from small Product companies to very large IT organizations
Scrum Articles
“AgileEVM – Earned Value Management in Scrum Projects”, IEEE
“Implementing a Professional Services Organization Using Type C Scrum”, IEEE
“Establishing and Maintaining Top to Bottom Transparency Using the Meta-Scrum”, AgileJournal
“All-Out Organizational Scrum as anInnovation Value Chain”, IEEE
www.AgileEVM.com Email: [email protected]
Web: http://www.sterlingbarton.comBlog: http://www.gettingagile.com
Follow me on Twitter: @brentbarton
![Page 3: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/3.jpg)
Chris Sterling – AgileEVM Inc.Developer of AgileEVM ( www.AgileEVM.com ), a project portfolio decision support tool
Technology Consultant, Agile Consultant and Certified Scrum Trainer
Consults on software technology, Agile technical practices, Scrum, and effective management techniques
Innovation Games® Trained Facilitator
Open Source Developer and Consultant
Software technology, architecture, release management, monitoring, and design consulting for Agile Teams
Publishing book with Addison-Wesley called “Managing Software Debt” - due out Dec 2010
Email: [email protected]
Web: http://www.sterlingbarton.comBlog: http://www.gettingagile.comFollow me on Twitter: @csterwa
![Page 4: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/4.jpg)
In the next 90 minutes...
• Describe Project Portfolio Management
• Why Agile challenges business
• Compare Earned Value Management (EVM)
• Integrate into AgileEVM
• Workshop exercises
• Q&A
• AgileEVM demo (optional)
![Page 5: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/5.jpg)
Project Portfolio Management
![Page 6: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/6.jpg)
Project Portfolio Defined
A portfolio is a collection of projects or programs and other work that are grouped
together to facilitate effective management of that work to meet strategic business objectives.
source: PMI The Standard for Portfolio Management — Second Edition
![Page 7: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/7.jpg)
• We want to measureoutcomes, not outputs
• YES: Business Value
• not so much: Completed Projects
Project Portfolio Management
Time
BusinessValue
![Page 8: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/8.jpg)
Effective Project Portfolio Management
• Prioritization to maximize Business Value
• Effective delivery to minimize costs
• Re-allocation of resources when costs are too high or the benefit is too low
source: Cutter Journal
![Page 9: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/9.jpg)
Agile...from a business point
of view
![Page 10: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/10.jpg)
Strengths of Agile
• Assertion of quality by self-organizing teams
• Adaptive Planning
![Page 11: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/11.jpg)
Weaknesses of Agile
• Cost management is (mostly) missing
• Uses abstract measures
• Relative points
• Ideal days
• Velocity
These create business challenges
![Page 12: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/12.jpg)
Uh oh, Time to go...
Maybe it’s Geoff...
Can’t I just know when we can release and how much it will cost?
Earl, you can’t compare velocity of one team with another! Estimates
are relative and team specific...
It depends...
Agile is a pain in the @$$!
![Page 13: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/13.jpg)
Agile partially supports Portfolio Management• Prioritize to maximize
Business Value
• Effectively deliver to minimize costs
• Re-allocate resources when costs are too high or the benefit is too low
Agile
Agile
![Page 14: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/14.jpg)
Earned Value Management (EVM)
![Page 15: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/15.jpg)
Proj
ecte
d Sl
ippa
ge
Management Reserve
Earned Value
(PV)
Total Allocated Budget
TimeNow
CompletionDate
$PMB
EAC
Time
Over Budget
Planned Value
(AC)Actual Cost
Project Management Baseline
Estimate at Complete
(EV)Earned Value
![Page 16: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/16.jpg)
EVM Performance Indicators
CPI < 1 CPI = 1 CPI > 1
Under Budget On Budget Over Budget
SPI < 1 SPI = 1 SPI > 1
Ahead of Schedule On Schedule Behind Schedule
Cost Performance Index (CPI=EV/AC)
Schedule Performance Index (SPI=EV/PV)
![Page 17: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/17.jpg)
Strengths of EVM
• Integrates cost and schedule management
• Forecasts in financial units based on units used for actual cost
• Decades of use
• Part of PMBOK (ANSI/PMI 99-001-2008)
• Part of EVMS (ANSI/EIA-748-B-2007)
![Page 18: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/18.jpg)
Weaknesses of Traditional EVM
• Expects everythingfully defined up front
• No assertion of quality
• Claiming value is earned on intermediate work products
Ugh!
![Page 19: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/19.jpg)
Agile + EVM• We want to measure
outcomes, not outputs
• Prioritize to maximize Business Value
• Effectively deliver to minimize costs
• Re-allocate resources when costs are too high or the benefit is too low
Agile
Agile
EVM
Agile EVM+
![Page 20: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/20.jpg)
[Pause for Reflection]
![Page 21: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/21.jpg)
AgileEVM
![Page 22: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/22.jpg)
AgileEVM Background
• Mathematically proven that Release Dates based on average velocity (story points)≡ estimate at complete (dollars)
• Key Assumption: The ratio of (story points completed)/(total story points in a release) is a good measure of Actual Percent Complete
![Page 23: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/23.jpg)
Scenario 1: Commit
![Page 24: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/24.jpg)
![Page 25: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/25.jpg)
Scenario 2: Transform
![Page 26: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/26.jpg)
![Page 27: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/27.jpg)
![Page 28: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/28.jpg)
![Page 29: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/29.jpg)
Quality Criteria asserted by team
![Page 30: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/30.jpg)
Scenario 3: Kill
![Page 31: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/31.jpg)
![Page 32: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/32.jpg)
Saturn RC-1 Forecasts
Mercury Forecasts
What are some options?
![Page 33: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/33.jpg)
Q&A
![Page 34: Portfolio Management with AgileEVM - Vancouver 2010](https://reader034.vdocument.in/reader034/viewer/2022052321/554c709eb4c905f76f8b51e3/html5/thumbnails/34.jpg)
If you want to look at AgileEVM, we will demo or catch us
anytime.