Agile costs, but who's counting?

Project Accounting Australia © 2017. All rights reserved.

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Agile costs,but who’s counting?

Dina Gofman & Lourdes Duggineni


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Wikipedia

Project accounting (sometimes referred to as job cost accounting)

is the practice of creating financial reports specifically designed to

track the financial progress of projects, which can then be used by

managers to aid project management.

“ “THIS IS TERRIBLE!!


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Project Accounting AustraliaProject Accounting is:

A specialised form of accounting that corresponds to the ever-

evolving needs of project delivery, which helps adequately track,

report and analyse financial results and implications. “ “DRY, BUT TO THE POINT.


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Dina Gofman

Co-founder

ProjectAccounting.com.au

Lourdes Duggineni

Co-founder

Project Accounting AustraliaFounders



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Project methodology01

02

03

Why Project Accountants?

Management & financial accounting

skills (& sometimes BA skills)

Non-cyclical nature of projects


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versus


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KEY TAKEAWAYS

01

02

03

04

Better understanding of the critical role of accounting

in project management.

Correlation between Sprint estimation and financial

reporting.

Pitfalls & successes in a large scale agile roll-out.


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Product Owner

02

Project Accounting = Success

Accountant


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Pre-Sprint 0

Your relationship with project accounting:

Scrum Ecosystem

01

02

03

Sprint Planning

Retrospectives

Project Sponsor

SCRUM Master

SCRUM Team

Product Owner

PrioritisationBeneficiary

Delivery

PMO

Project

Accountant

Executive

Board


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Profit & Loss Statement:

Add Contents Title

= Profit/Loss

Balance Sheet:

= Owners’ Equity + Profit/Loss

Revenue

Expenses

Assets

General TermsProject Accounting 101

minus

Liabilities

minus

CAPEX OPEX


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How will you account

for SCRUM?

01 02 03 04 05

Lean

can

vas

Ca

pit

ali

sa

tio

n

De

pre

cia

tio

n / A

mo

rt.

Va

lue

cre

ate

d

RO

I / N

PV

PRE-SPRINT 0Considetrations before you start your project


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When was the initiative

you are passionate

about denied funding?


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This is what we planned:

ASSETEXPENSE

Idea generation

Analysis

Exploration

Inception

Sprint 0

Backlog of requirements

Delivery

Feature 1 Feature 2 Feature 3

Design

Develop

Test

Implement

ASSET

Design

Develop

Test

Implement

Design

Develop

Test

Implement

ASSETASSET

$10K $10K $10K $10K $10K

CAPEX BUDGET = $40K P&L BUDGET = $10K


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This is what happened:

ASSETEXPENSE

Idea generation

Analysis

Exploration

Inception

Sprint 0

Backlog of requirements

Delivery

Feature 1 (SUCCESS) Feature 2 (FAIL) Feature 3 (SUCCESS)

Design

Develop

Test

Implement

ASSET

Design

Develop

Test

Rework

Design

Develop

Test

Implement

ASSETEXPENSE

$10K $10K $10K $10K$10K

CAPEX SPEND = $30K P&L SPEND = $20K


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Sprint estimation and

financial reporting


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Old School vs New School

01

02

03

04

Budgets vs MVPs

Month-end vs Sprints

Story Points = $$


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Agile (Relative) EstimationSCRUM Ways of Working

Sprint 1

2 Points

= 4 minutes

= $4

Sprint 2

3 Points

= 5-7 minutes

= $5-7

Average = $6

Total Project Estimate = 5 Points = 10 minutes = $10 worth of labour

+ Cost of fruit & equipment (non-labour cost) of $5

+ Cost of refrigeration (OPEX) of $2

= $17


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Profit & Loss Statement:

Add Contents Title

= Loss of $2

Balance Sheet:

= Owners’ Equity $17 – Loss $2

Revenue

Expenses $2

Assets $15

Budgets vs Relative EstimationFruit Salad

minus

Liabilities

minus

CAPEX OPEX


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Time tracking

Project portfolio budget

Steering Group

PMOSystems

PA Methodology ModulesBudgets vs MVPs


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When do

you look at

the

instructions?

A

B

C

04D


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Time tracking


Steering Group

PMOSystems

PA Methodology Modules


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Common

pitfalls &

successes in

large scale

agile roll-outs

Case Study of

Australia’s

largest insurer


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Cost management

Benefits realisation

Portfolio prioritisation

01

02

03

The Key is to LearnDon’t wait until it’s too late


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Consulting, Training &

Stationary

Loss of visibility of

scope, spend and risk

Concept of cross-

functionality

Time tracking

Levers to STOP, START &

CONTINUE

Governance

Supporting tools

TIME and MONEY

Key LearningsThe Insurer’s Scrum Journey


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Time tracking


Lean Governance

Orchestration

Project AccountingSystems

SuccessesResults of the Transformation


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Thank you!

For further info, send a SMS with

YOUR NAME

& EMAIL

to

0411 202 307



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Proudly supported by:

Business Solutions

ZEPA Technologies

Agile costs, but who's counting?

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