managing project performance: alignment of agile and traditional metrics

MANAGING PROJECT PERFORMANCE:

Agile and Traditional MetricsLaimonas LileikaProject Manager

October 11th, 2012

Laimonas Lileika | Agile Tour Vilnius 2012 2 April 10, 2023

ABOUT MYSELF


PROBLEM STATEMENT

Earned Value Management (EVM) serves as the basis for

management and project 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?

Organization that has been committed to a

traditional project management for over

50 years


WTF


I. The role and types of metrics

II. Traditional metrics overview

III. Demonstration and Interpretation

IV. Sum up

AGENDA


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.


THE RUTHLESS WORL OF METRICS


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;


GREAT VARIETY OF METRICS ACROSS BOTH METHODOLOGIES

AGILE METRICS

• Story point burndown• Sprint burndown• Release burndown• Velocity• Story points completed• Running Tested Features (RTF)• Business Value completed• Work in progress• ……..

TRADITIONAL METRICS

• Earned Value• Planned Value• Actual Costs• Cost Variance• Schedule Variance• Estimate at Completion• Estimate to Complete• Performance Indexes: CPI; SPI• ……..


TYPES OF METRICS

Productivity / Performance

QualityPredictability

Value


THE TRADITIONAL METRICS


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 resource

Message 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”


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)


COST VARIANCE

FORMULA Explanation

CV = EV - AC Tells me how many hours team is running behind or ahead the planned/budgeted hours

SHEDULE VARIANCE

FORMULA Explanation

SV = EV - PV Tells how many hours we are running behind or ahead the schedule


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?”


DEMONSTRATION


PREREQUISITES FOR DEMONSTRATION

• Earned Value will be measured at the very basic level – hours.• Scrum methodology


6 HOURS / DAY = 24 HOURS 1 2 3 4 5 6 7 8 9 10

240


Day Hours Remaining

Hours Burnt

0 240 01 228 122 213 153 194 194 166 285 130 366 98 327 60 388 38 229 20 18

10 0 20


Day Hours Remaining

Hours Burnt

Actual Work Effort

Total Work effort

EAC Required Burn


Day Hours Remaining

Hours Burnt

Actual Work Effort

Total Work effort

EAC Required Burn

0 240 0 0 0 240 0


TASK 1

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam tempus

6

6

2

HOURS ESTIMATED

HOURS REMAINING

ACTUAL WORK

EFFORT

4

HOURS BURNED


1 228 12 24 24 252 24

Day Hours Remaining

Hours Burnt

Actual Work Effort

Total Work effort

EAC Required Burn

0 240 0 0 0 240 0

TASK 1 TASK 2 TASK 3

Lorem ipsum dolor sit amet, consectetur

adipiscing elit. Aliquam tempus





6 12 6

6 2x6 6

2 6 4


1 228 12 24 24 252 24

2 213 15 24 48 261 36

Day Hours Remaining

Hours Burnt

Actual Work Effort

Total Work effort

EAC Required Burn

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

Day Hours Remaining

Hours Burnt

Actual Work Effort

Total Work effort

EAC Required Burn

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

Day Hours Remaining

Hours Burnt

Actual Work Effort

Total Work effort

EAC Required Burn

0 240 0 0 0 240 0


Day Hours Remaining

Hours Burnt

Actual Work Effort

Total Work effort EAC Required

Burn

0 240 0 0 0 240 01 228 12 24 24 252 242 213 15 24 48 261 363 194 19 26 74 268 454 166 28 27 101 267 505 130 36 32 133 263 466 98 32 36 169 267 347 60 38 24 193 253 268 38 22 24 217 255 129 20 18 24 241 261 14

10 0 20 24 265 265 20


25 HOURS OVER BUDGET!


TIME TO MAP AGILE WITH TRADITIONAL

Measurement Agile explanation Value

Planned Value (PV)

Team’s capacity 240 hours

Earned Value (EV)

It is something be burn ∑Hours burnt

Actual Cost (AC) Actual effort It is just the same!


DayHours

Remaining = ETC

Hours Burnt

Actual Work Effort

AC EAC PV EV CV SV CPI SPI

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 1,00


TASK 1


6

6

2

PLANNED VALUE

ESTIMATE TO COMPLETE

ACTUAL WORK

EFFORT

4

EARNED VALUE


TASK 1


6

6

2

HOURS ESTIMATED

HOURS REMAINING

ACTUAL WORK

EFFORT

4

HOURS BURNED


Hours Remaining

= ETCHours Burnt

Actual Work Effort

Total Work

effort = AC

EAC PV EV CV SV CPI SPI

240 0 0 0 240 0 0 0 0 228 12 24 24 252 24 12 -12 -12 0,50 0,50213 15 24 48 261 48 27 -21 -21 0,56 0,56194 19 26 74 268 72 46 -28 -26 0,62 0,64166 28 27 101 267 96 74 -27 -22 0,73 0,77130 36 32 133 263 120 110 -23 -10 0,83 0,9298 32 36 169 267 144 142 -27 -2 0,84 0,9960 38 24 193 253 168 180 -13 12 0,93 1,0738 22 24 217 255 192 202 -15 10 0,93 1,0520 18 24 241 261 216 220 -21 4 0,91 1,020 20 24 265 265 240 240 -25 0 0,91 1,00


SPI < 1 means behind schedule (EV < PV)SPI = 1 means on schedule (EV = PC)SPI > 1 means ahead of schedule (EV > PV)

CPI < 1 means over budget (EV < AC)CPI = 1 means on budget (EV = AC)CPI > 1 means below budget (EV > AC)


TRADITIONAL AND AGILE PERFORMANCE METRICS

DayIdeal Hours Burndown

Ideal daily hours burn

Hours Remaini

ngHours Burnt

Actual Work Effort

Total Work effort

EACRequir

ed Burn

PV EV CV SV CPI SPI

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 0,730,775 120 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 0,911,00


SO IN THE END…


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 Hours


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?

65 April 10, 2023

Thank You

managing project performance: alignment of agile and traditional metrics

Documents

value ev

value pv

value measurement

value sprint burndown

completion business

complete work

reporting work

timethe work