europe GENEVA 2009 Haute école de gestion de Genève Geneva School of Business Administration EVA Europe 2009 was jointly organised by Gold Sponsors

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1 eva europe GENEVA , CERN, HEG, Authors - This material is provided courtesy of EVA Europe 2009, the European organisation for nuclear research(cern), the Geneva School of Business administration (HEG) and the authors. All rights reserved. The contents may not be reproduced without permission of the authors and EVA Europe. EVA Europe 2009 was jointly organised by Gold Sponsors Partners Haute école de gestion de Genève Geneva School of Business Administration

2 EVA in a Fast-Paced World An Agile approach for Earned Value EVA Europe, 25/26 November 2009 François Bachmann, SPRiNT it

3 Who s Talking François Bachmann dipl.ing.math. EPFL f.bachmann@sprint-it.ch SPRiNT it Organisational Development & Team Efficiency Coach since 2004 Helping companies make the transition to being more agile Particular interest : Complex Adaptive Systems Science

4 It s a Fast-Changing World Have you seen new competitors in the last 3 years? Have you seen familiar competitors disappear suddenly? Have you ever developed a product just to find out your competitor was faster to the market? Are you suffering from process inertia?

5 The Classical Iron Triangle of PM Cost Scope Schedule Quality source: Wikipedia/Project_management

6 Tacit Assumptions for Fixed Scope Requirements are: complete robust understood Change is: manageable non-catastrophic

7 Who s afraid of Variable Scope? Value changing in time (e.g. deadline, change in legislation, ) Customer changing his mind (new priorities, competition, new ideas, dropping requirements) Important & urgent changes popping up Forgotten requirements Brain gym: Money & time are finite resources (for most of us). Does this influence our Planning approach? How?

8 How To Do a Job Determine what needs to be done Decide how to do it Do it Check to make sure it is correct Fix any problems Deliver the final result

9 Let s Try This! (decide what determine how do check fix deliver) IKEA table pick from catalog look at drawing mount - *&@! return for extra parts mount - Mount an airplane from a kit pick&buy read manuals mount ask for help on forums test fly Organize a children s Birthday oops

10 How to Organize a Children s Party source: cognitive-edge.com

11 Empirical Process Control No predefined plan to measure against measure output and adjust Deming/Shewhart loop (PDCA) Inspect & Adapt is the optimal strategy Nested Feedback loops (eg. Release Planning, Sprints, Daily Scrums, TDD)

12 When to go empirical Processes that are: imperfectly defined and generate unpredictable and unrepeatable outputs Examples: Children s Party, Orienteering, Software Development Management: frequently inspect real delivery, learn (especially from failure) & adapt

13 EVM vs. Agile Earned Value Management Earned Value is a project management technique to measure, at a specific date, the progress and performance of a project against the plan, and to estimate future performance. Agile Agile is a framework which emphasizes ROI, respect, transparency, and incremental delivery of valuable parts of the product, by establishing conversations which ensure that critical responsibilities are taken care of. (source: Wikipedia, emphasis mine) (source:

14 Agile View of Business Value Business Value is a function of time, not a constant frequent re-planning necessary (hence iterative development) Intermediate artefacts have little value (hence incremental delivery)

15 Complex Transition Constraints Requirements Plandriven Estimates Cost Schedule (source: M.Sliger, stickyminds)

16 Complex Transition Constraints Requirements Cost Schedule Value &Visiondriven Plandriven Estimates Cost Schedule Feature (source: M.Sliger, stickyminds)

17 What is Planning? In preparing for battle, I have always found that plans are useless, but planning is indispensable. General Dwight D. Eisenhower

18 Planning an Empirical Process Plan: often just enough just in time STOP planning as soon as ROI of planning starts decreasing

19 What is Value? Who defines it? Who earns it? How can we make sure it s actually there? What does «50% finished» mean?

20 Value in Empirical Processes Focus on Business Value, not estimated cost 80 / 20 Rule used for determining priorities (not for earned value there it s 100/0!) Value is earned by demonstrating a working feature Positively NO ratio-calculated value

21 How To Do a Job the Empirical Way (Scrum terminology used below for Who/When/Result) What Who When Result Requirements gathering Decide what + priority + value Product Owner + Stakeholders continuously Product Backlog Product Owner Sprint Planning Selected Product Backlog Determine how Team Sprint Planning Sprint Backlog Do check fix Team Sprint Product Measure & report status Team Daily Scrum Burndown Chart Deliver Team Sprint Review Product Ongoing process improvement All Retrospective Improved Process

22 Lean / Agile Principles (based on CAS systems theory) Plan often, just enough, just in time Focus on relentlessly eliminating waste Reduce work-in-progress & inventory Optimize throughput, not resource usage Keep a Business Value vision Continuously improve your process

23 What s Different? Side Effects Less planning up front results visible earlier Better reliability (eg. quality, deadlines) More involved stakeholders Less firefighting, more visionary Program Management based on value Impediments pop up faster More fun

24 Wrap-up For projects in high change / high speed environments where «Fixed Scope» is a promise impossible to keep An empirical process approach focusing on incremental and iterative delivery of highly priority product increments, building on trust and enhancing conversations has proven to deliver better results than the defined process approach which measures progress against a predefined plan

25 Thank you for your attention! Questions?