Agile governance v1.2

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


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




Governance Goals?Business

alignment

Business Value

Creation

Portfolio Managem

ent

Resources Manageme

nt

Performance Management

Risk Managem

ent

Standards

Maturity


Goals in details


Agile?


Declaration of Interdependence

Engaging Customers

Improve Effectiveness

R.O.I.

Boost Performanc

e


Wealth

Employee EngagementEmpowered, committed and

happy employees

Customer Satisfaction

Serve the Customer

Value Creation

Maximize ROI and optimize

cash flow

Agile is…Objectiv

es


Agile Governance Goals

Leadership actions

Customers

Processes

AutonomyResponsibility

Transparency

Governance

Aligning management processes with leadership actions

Goals Rewards Planning Controls Resources Coordination


Utopia?

Club Project Community

Mesh Manageme

nt Regulation

Individualism

Partitioning Centralism

collaboration

formalisation

Agile Governanc

e

André Robitaille’s Organisation Communication Model

A buzz ???


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


Agile + Governance = [sKale]

[sKale] is a framework to develop your organization as a team.

Interactions Self-organisationCo-evolution Co-

production


… so What ? …. Figures?

Co-production

Co-evolution

Self-organisation

Interactions


Agile Project Managers are concerned with two key performance indicators

Backlog

Size

Velocit

y


AGILE EVM


Objectives

We want to measure the Outcome not the Outputs

Business Value


Process

Prioritization to maximize Business Value

Efficient shipping to minimize costs

Redistribution of resources when costs are too high or profits too low.


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


Scrum: Metrics

Business Value and

riskSelf organizing,

cross-functional

teams

Definition of Done

Potentially Shippable Increments

Velocity


Metrics & Calculations


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


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


Using the AgileEVM approach


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


Calculation (example)


Calculation


Number of completed iteration

Number of planned

iterations

Expected Percent

Complete

Expected Percent

CompleteTotal Budget

Planned Value for a

given iteration

Calculation


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


New Metrics: CPI

Cost Performance Index (CPI) gives measure of efficiency: ▪ CPI = EV/AC▪ In the example, CPI = 35.000/65.000 = 0.53


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


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


Conclusion 1

Using simple Agile Metrics provides objective analysis to share with teams, management and customers.


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.


Source: Tamara Sulaiman (InfoQ), Hubert Smits (rally SW)

That was my introduction to Agile Governance



Questions?


Thanks


Documents

Agile governance v1.2