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Connecting EVM with Agile

 

SERIES ARTICLE

Series on Earned Value and Agile provided by the College of Performance Management

By Glen B. Alleman

Niwot Ridge, LLC

USA

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Introduction

Several concepts needed to be established before proceeding:

The connection of agile development practices starts with the principle of Earned Value Management, not Agile development.

When the Agile community says VALUE, it means Business VALUE, not EARNED VALUE.

The details of ANSI–748–C are shown here. In the current Earned Value Management Practice guide, ANSI–748–C is only references. The content of ANSI–748–B is not mentioned or used in the suggested practices of Earned Value Management. In order to incorporate agile development practices with Earned Value Management, it is critical to understand the intent of ANSI–748–B.

A second document not referenced in the current Practice Guide, is the National Defense Industry Association Earned Value Management Intent Guide. The NDIA EVMIG is the second document needed when incorporating Agile practices with Earned Value.

Principles of This Appendix

Before any of the current “agile” development methods, Earned Value Management provided information for planning and controlling complex projects by measuring how much “value” was produced for a given cost in a period of time. One shortcoming of an agile development method is its inability to forecast the future cost and schedule of the project beyond the use of “yesterday’s weather” metrics.

Earned Value Analysis provides a means of predicting future schedule and cost variances through three measurements – budgeted cost for work scheduled, actual cost for work performed, and budgeted cost for work performed (earned value).

Before proceeding let’s look at some top level similarities between Earned Value Management and Agile Development.

More…

To read entire article (click here)

Editor’s note: The College of Performance Management (CPM) published a Compendium of articles on Earned Value and Agile based program management in The Measureable News in late 2014. The articles are now being republished in the PM World Journal, as agreed with CPM and the authors. For information about CPM, visit their website at https://www.mycpm.org/

 



About the Author 


pmwj37-Aug2015-Alleman-PHOTOGlen B. Alleman

Niwot Ridge, LLC

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Glen B. Alleman
leads the Program Planning and Controls practice for Niwot Ridge, LLC. In this position, Glen brings his 25 years’ experience in program management, systems engineering, software development, and general management to bear on problems of performance based program management.

Mr. Alleman’s experience ranges from real time process control systems to product development management and Program Management in a variety of firms including Logicon, TRW, CH2M Hill, SM&A, and several consulting firms before joining Niwot Ridge, LLC. Mr. Alleman’s teaching experience includes university level courses in mathematics, physics, and computer science.