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Introduction of an Agile Governance
Pierre E. NEIS
feedback, tools and metrics
Who am I?
Scrum / sKale
CoachPMO ConsultantCspo, psp
Luxembourg
11th PMI BeNeLux Day
11th PMI BeNeLux Day
Agenda
1. Governance Goals
2. Agile?
3. Agile Governance Goals
4. Agile EVM
4
Organisation’s Onion
Governance
Portfolio
Roadmap
Product
Release
Sprint
Day
Team + ScrumMaster
Chief Product Owner
CIO
Vis
ion
Road
ma
pA
dd
ed
Valu
e +
Velo
city
11th PMI BeNeLux Day
11th PMI BeNeLux Day
11th PMI BeNeLux Day
Governance Goals?Business
alignment
Business Value
Creation
Portfolio Managem
ent
Resources Manageme
nt
Performance Management
Risk Managem
ent
Standards
Maturity
11th PMI BeNeLux Day
Goals in details
11th PMI BeNeLux Day
Agile?
11th PMI BeNeLux Day
Declaration of Interdependence
Engaging Customers
Improve Effectiveness
R.O.I.
Boost Performanc
e
11th PMI BeNeLux Day
Wealth
Employee EngagementEmpowered, committed and
happy employees
Customer Satisfaction
Serve the Customer
Value Creation
Maximize ROI and optimize
cash flow
Agile is…Objectiv
es
11th PMI BeNeLux Day
Agile Governance Goals
Leadership actions
Customers
Processes
AutonomyResponsibility
Transparency
Governance
Aligning management processes with leadership actions
Goals Rewards Planning Controls Resources Coordination
11th PMI BeNeLux Day
Utopia?
Club Project Community
Mesh Manageme
nt Regulation
Individualism
Partitioning Centralism
collaboration
formalisation
Agile Governanc
e
André Robitaille’s Organisation Communication Model
A buzz ???
11th PMI BeNeLux Day
1972 Greiner’
s Law
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Org
anis
ati
onal Siz
e
Organisational Age
LeadershipCrisis
AutonomyCrisis
ControlCrisis
StaffCrisis
UnknownCrisis
Growth throughCreativity
Growth throughDirection
Growth throughDelegation
Growth throughCollaboration
Growth throughCoordination
Evolutionary phase
Revolutionary phase
11th PMI BeNeLux Day
Agile + Governance = [sKale]
[sKale] is a framework to develop your organization as a team.
Interactions Self-organisationCo-evolution Co-
production
11th PMI BeNeLux Day
… so What ? …. Figures?
Co-production
Co-evolution
Self-organisation
Interactions
11th PMI BeNeLux Day
Agile Project Managers are concerned with two key performance indicators
Backlog
Size
Velocit
y
11th PMI BeNeLux Day
AGILE EVM
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Objectives
We want to measure the Outcome not the Outputs
Business Value
11th PMI BeNeLux Day
Process
Prioritization to maximize Business Value
Efficient shipping to minimize costs
Redistribution of resources when costs are too high or profits too low.
11th PMI BeNeLux Day
Integrates Cost and Schedule Performance
Financial forecasts based on actual cost : Consumed Costs, Consuming Rate, Time
Allocation, etc.
Unlike the velocity, the Actual Cost is the cumulative Team Costs
Follow the ANSI standard (ANSI/EIA -748)
Key Earned Value Management (EVM) Concepts
11th PMI BeNeLux Day
Scrum: Metrics
Business Value and
riskSelf organizing,
cross-functional
teams
Definition of Done
Potentially Shippable Increments
Velocity
11th PMI BeNeLux Day
Metrics & Calculations
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Metrics
Must have: clear metrics to help estimate added value, ROI and Delivery
Should have: a standard who’s been agile by nature
Could have: simple metrics to get understandable by all company levels (standard)
Won’t have: fragmented processes
The Metrics within Scrum
Backlog Size Velocity per Sprint/Iteration
Number of Sprints/Iterations
to deliver the Project
11th PMI BeNeLux Day
What we want?
Integrating Cost and Schedule Performance
Financial forecasts based on actual cost : Consumed Costs, Consuming Rate, Time
Allocation, etc.
Unlike the velocity, the Actual Cost is the cumulative Team Costs
11th PMI BeNeLux Day
Using the AgileEVM approach
11th PMI BeNeLux Day
EVM SCRUM AgileEVM
We want to measure
AC –Actual Cost PV –Planned Value EV –Earned Value BAC –Budget at Complete EAC –Estimate at Complete CPI –Cost Performance Index SPI –Schedule Performance Index
11th PMI BeNeLux Day
Calculation (example)
11th PMI BeNeLux Day
Calculation
11th PMI BeNeLux Day
Number of completed iteration
Number of planned
iterations
Expected Percent
Complete
Expected Percent
CompleteTotal Budget
Planned Value for a
given iteration
Calculation
11th PMI BeNeLux Day
Total Number of Story Points
completed
Total Number of Story Points
planned
Actual Percent Complete
Actual Percent
Complete
Total Budget
Earned Value
Inputs
Start Date Budget At Complete Planned Sprints Sprint Lengths Planned Release Story Points + Variables
▪ Story Points Completed▪ Story Points Added▪ Actual Cost▪ Current Sprint
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New Metrics: CPI
Cost Performance Index (CPI) gives measure of efficiency: ▪ CPI = EV/AC▪ In the example, CPI = 35.000/65.000 = 0.53
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CPI > 1 CPI = 1 CPI < 1
Under budget On budget Over budget
EV>AC EV=AC EV<AC
New Metrics: SPI
Sheduled Performance Index (SPI), compares EV with PV: ▪ SPI = EV/PV▪ In the example, CPI = 35.000/43.750 = 0.80
11th PMI BeNeLux Day
SPI > 1 SPI = 1 SPI < 1
Ahead on Schedule On Schedule Behind Schedule
EV>PV EV=PV EV<PV
AgileEVM: Summary
Earned Value > Actual Costs You spend less than expected
Actual Costs > Earned Value You spend more than expected
Earned Value< Planned Value You go over the schedule and deliver late
Earned Value>= Planned Value Great, you're even
ahead
11th PMI BeNeLux Day
Conclusion 1
Using simple Agile Metrics provides objective analysis to share with teams, management and customers.
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Source: Tamara Sulaiman (InfoQ), Hubert Smits (rally SW)
Conclusion 2
The early warnings of AgileEVM validates changes to release plans and provides business with the opportunity to make priority trade-off decisions early in the project lifecycle.
11th PMI BeNeLux Day
Source: Tamara Sulaiman (InfoQ), Hubert Smits (rally SW)
That was my introduction to Agile Governance
11th PMI BeNeLux Day
11th PMI BeNeLux Day
Questions?
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Thanks
11th PMI BeNeLux Day
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